Chap7 controlling

Learning ObjectivesAfter studying the chapter, you should be able to:  Define control  Explain why control is important  Describe the control process  Distinguish among the three typ

Fundamentals oF manaGement

BY: LAI VAN TAI

LAI VAN TAI

Chapter

CONTROLLING

Learning Objectives

After studying the chapter, you should be able to:

 Define control

 Explain why control is important

 Describe the control process

 Distinguish among the three types of control

 Describe the qualities of an effective control system

 Identify the ethical issues in employee monitoring

•Process of monitoring activities to ensure that what is being accomplished matches plans and corrects

significant deviations

•The process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to

achieve organizational goals

•Involves monitoring and evaluating organizational

strategy and structure to assess whether there is a need for change to improve the firm’s competitive

performance

Control

Planning-Controlling Linkage

Planning

Organizing Leading

Controlling

Purpose of Controls

 Measuring Performance

 Comparing to Standards

 Taking Corrective Action

Goals and

Objectives

Organizational

Divisional

Departmental

Individual

Control Process Steps

Figure 8.2

The Control Process

Identify Causes

Correct Performance

Variance Acceptable?

Revise Standard

Standard Attained?

Standard Acceptable?

Yes

Yes

Yes

No

No

No

Compare Performance

to Standard

Measure Performance

Objectives

Standard

Do Nothing

Do Nothing

How Do Managers Measure?

 Personal

observations

 MBWA

(management-by-walking about)

 Statistical reports

 Oral reports

 Written reports

What Do Managers Measure?

 Information

 Operations

 Finances

 People

Discrepancies Between Goals and Performance

Acceptable

Upper Limit

Standard

Acceptable

Lower Limit

Acceptable Range of Variation

t t+1 t+2 t+3 t+4 t+5

Input Processes Output

Three Types of Control

Feedback

Control

Anticipates

problems

Concurrent Control

Corrects problems

as they happen

Feedback Control

Corrects problems after they occur

Feedback Control

 Meaningful

information

 Enhance employee

motivation

Qualities Of An Effective Control System

Strategic Placement

Understandability

Reasonable Criteria

EFFECTIVE CONTROL SYSTEM

Timeliness

Multiple Criteria

Corrective Action Accuracy

Economy

Emphasis on

Exceptions

FOM 7.17 Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc.

Dysfunctional Controls

Inflexible

Controls

Unreasonable Standards

Contemporary Issues in Control

 Rights that manager has to monitor employee

behaviour

 Rights that manager has to control private lives of

employees

 Employers MAY be able to control employee

behaviour outside the work environment

You and Your Computer

 Employers can read your e-mail

 Employers can listen to your phone calls

 Employers can monitor your work by computer

Inform Employees

Written Policy

Monitor for Business Reasons

Control and

Ethics