Functions of Management

Planning

This is the process of copying with uncertainty by formulating future courses of action to achieve
great things by envisioning a pathway from concept to reality. It is concerned with the future
impact of today’s decisions. It is the fundamental function of management from which the others
stem.

A plan is a special, documented intention consisting of an objective and an action statement

(Kreitner). A plan consists of an objective (the end) and the strategy (means) game plan on how
to achieve the named objective. Stated another way, objectives give management targets to shoot
at, whereas strategy provides the arrows for hitting the targets. Properly conceived plans tell
what, when and how something is to be done.

A manager is ready to organise, staff and lead only after goals and plans to reach the objectives
are in place. In the controlling function, the determination of whether or not goals are being
accomplished and standards met is based on the planning function. The planning function
provides the objectives and standards that drive the controlling function

The essentials of planning

 Vision: - This is a non-specific directional and motivational guidance for the entire
organization. Top managers normally provide a vision for the business

 Mission: - This is an organization’s reason for being in existence. It is concerned with

scope on the business and what distinguishes this business from similar businesses. A
clear, formally written, and publicised statement of an organization’s mission is the
cornerstone of any planning system that will effectively guide the organization through
uncertain times.

 Goals refine the mission and address key issue within the organization such as Market
Standing, Innovation, Productivity, Physical and Financial resources. There are expected
to be general, observable, challenging, and untimed.

 Objectives are specific statements of anticipated results that further define the
Organisation’s goals. There are expected to be SMART, specific, measurable
Attainable, Relevant and Timed.

 Strategy / Tactics These are specific and narrow plans, describing who, what, when,
where, and how activities will take place to accomplish an objective.
Types of planning

1. Strategic planning (1 - 10 years) is the process of determining how to pursue the

organisation’s long-term goals with the resources expected to be available. A well –
conceived strategic plan communicates much more than general intentions about profit
and growth.

2. Intermediate/ Tactical planning (six months – 2 years) is the process of determining

the contributions subunits can make with allocated resources.

3. Finally, operations’ planning (I week – 1 year) is the process of determining how

specific tasks can best be accomplished on time with available resource.

Top
Management

Strategic Planning

Middle
Management

Tactical Planning

Lower
Management

Operational Planning

Once the organisation’s strategic goals (long term targets or ends of a firm) and plans of the
organizations are identified, they become the basic planning activities undertaken by tactical
(intermediate) and operational managers.
Tactical planning translates broad strategic goals and plans into specific goals and plans that are
relevant to a definite portion of the organization, for example, a functional area like marketing a
personal. The focus is on the major actions required by a functional area to fulfil its part of the
strategic plan

Operational planning identifies the specific procedures and processes required at lower levels or
the organization. Operational managers usually develop plans for very short period of time and
focus on routine tasks, such as production runs, delivery schedules and personal requirements.

Basic Steps in Any Planning Process

 Situation analysis (where are we now?)

Situation analysis involves analysing the internal and external environment of a business.
It also involves studying the past events of the company, it examines current conditions
and attempts to forecast the future trends (time series analysis)

 Alternative goals and courses of action, based on the situational analysis, the planning
process should generate alternative goals that maybe pursued in the future and the
alternative course of action that may be used to achieve these goals.

 Goals and Course of action evaluation

Planners must evaluate the advantages and disadvantages including potential effectives of
each alternative goal and course of action. Certain goals may require extraordinary
resources to implement them. Evaluation considers the relative merits or each alternative.

 Goals and course or action selection

After the evaluation of the goals and course of action, the planners must now select the
most appropriate feasible goals and courses of action

 Implementation

Once the goals and courses of action have been selected the need to be Implemented.
Best plans are useless unless they are implemented properly. Managers and employees
must understand the plan, have the necessary resources to implement it and have the
motivation to do so.

 Monitoring and control

This is a receptive and ongoing process managers continually monitor the actual
performance of their works in relation to the chosen goals and courses of action
 They must also create control systems that allow the organization to take corrective
action when the plan is implemented improperly or when the situation changes

Organizing

Organizing is the function of management which follows planning. It is a function in which the
synchronization and combination of human, physical and financial resources takes place. All the
three resources are important to get results. Therefore, organizational function helps in
achievement of results which in fact is important for the functioning of a concern. According to
Chester Barnard, “Organizing is a function by which the concern is able to define the role
positions, the jobs related and the co-ordination between authority and responsibility. The
definition is broken down into two;

Material Organisation: - this is the provision of all the necessary materials to enable an
organisation achieve its plans i.e. capital, human resources, and cash e.t.c.

Human Organisation: - this involves defining the roles and duties of employees of the
organisation. It involves the structuring of a co-ordinated system of authority relationships and
task responsibilities.

A manager performs organizing function with the help of following steps:-

1. Identification of activities - All the activities which have to be performed have to be

identified first. For example, preparation of accounts, making sales, record keeping, quality
control, inventory control, etc. All these activities have to be grouped and classified into
units.
2. Departmentally organizing the activities - In this step, the manager tries to combine and
group similar and related activities into units or departments. This organization of dividing
the whole concern into independent units and departments is called departmentation.
3. Classifying the authority - Once the departments are made, the manager likes to classify
the powers and its extent to the managers. This activity of giving a rank in order to the
managerial positions is called hierarchy. The top management is into formulation of
policies, the middle level management into departmental supervision and lower level
management into supervision of foremen. The clarification of authority helps in bringing
efficiency in the running of an organisation. This helps in avoiding wastage of time, money,
effort, in avoidance of duplication or overlapping of efforts and this helps in bringing
smoothness in operations.
4. Co-ordination between authority and responsibility - Relationships are established
among various groups to enable smooth interaction towards the achievment of the
organizational goals. Each individual is made aware of his authority and he/she knows
whom they have to take orders from and to whom they are accountable and to whom they
 have to report. A clear organizational structure is drawn and all the employees are made
aware of it.

Organisational design is concerned with how this structure is built. Within this, there are two
key aspects to be decided.
 The way in which authority is distributed through the organisation in order to put the
strategy into effect: this commonly called the infrastructure.
 The way in which operations are organised into separate groupings to develop efficiency
and effectiveness in carrying out the strategy: the superstructure.

1. The Distribution of Authority

a) The Chain of Command : refers to the number of different levels in the structure of the
organisation, the chain or lines of hierarchical command also called scalar chain. The chain of
command establishes the vertical graduation of authority and responsibility and the framework
for superior - subordinate relationships in an unbroken line down from the top of the organisation.

The length of the chain of command, from top to bottom, determines whether the organisation is
tall or flat.
The breadth of the structure at each level relative to the previous level, indicates the span of
control of individual managers.

 Tall and Flat Structures

A tall structure is one that has many levels and, therefore, a long chain of command. The major
characteristic of such structures is the very detailed breakdown of management responsibilities
throughout the organisation, specified within the organisational design. On the other hand, the
large distance between top and bottom can lead to communication problems, with the number
of levels increasing the chances of distortion, filtering and omissions in the process of defining
management responsibilities and objectives and in securing accountability, with consequent
problems for co-ordination and consistency in management action. Further, the degree of
specification of responsibility and authority may make such structures inflexible in adapting to
changing circumstances.
In addition, management levels tend to be costly, having a greater amount of administrative
activity associated with them.
A flat organisational structure is one that has relatively few levels. Comparing organisations of
similar size and operations, the flatter the organisational structure is, the broader the
responsibilities and authority are at each level. The organisational design is unlikely to be so
prescriptive and hence there may be greater management freedom in the way in which those
responsibilities are carried out and authority is exercised. This should enable greater flexibility
in response to changing requirements.
 Span of Control Span of control refers to the number of subordinates who a given
manager directly supervises. This is highly significant in that it affects the total
organisational structure, communication and methods of supervision.
Tall structures tend to be associated with narrow spans of control, although in larger
organisations, broad spans of control can co-exist with tall structures. Flat structures tend to be
associated with broad spans of control, and certainly if there is to be a move from a tall structure
to a flat one, this would necessitate a widening of the span of control.

A narrow or small span of control limits the number of people who report to a manager. This
enables the manager to supervise them in detail. By contrast, a broad or large span of control is
characterised by less detailed supervision of numerous subordinates.

Determinants of span of control

i) Similarity of work performed by subordinates. Identical work, a wide span would be
appropriate.
j) The ability and training of subordinates and supervisors. Well trained subordinates
would foster a wide span.
k) Complexity of work performed by subordinates, if the work is repetitive, a wide span
would do. However, if the work is complex a narrow span would do.
l) Time required for planning. For instance if little time is required (for example, in
operational planning) then a wide span is okay.
m) Dispersion of subordinates, if the subordinates work in the same area a wide span is
okay, if they are geographically dispersed a narrow span is needed.
n) The degree of change in the organisation’s environment. If work changes fast as in
financial markets, then a narrow span of control will enable action to be communicated
more efficiently.
o) Effectiveness of communication within the organisation. If the organisation lacks
proper communication then a narrow span would be best.

 Centralisation and Decentralisation

Centralisation is defined as the retention of decision making authority by top management.

Almost all decision – making authority is retained by top management in highly centralised
organisations.

Decentralisation is the granting of decision making authority by managers to lower level

employees. Decentralisation increases as the degree, importance and range of lower level
decision making increases, also as the amount of checking up by top management decreases.

When we speak of centralisation or decentralisation we are describing a comparative degree, not

an absolute. Meaning there is no complete centralisation or decentralisation; organisations just
differ in the degree of centralisation and decentralisation.

The factors that will influence the extent of centralisation or decentralisation are;
 organisational size,
 the geographical separation of different parts of the organisation and
 the need to extend activities or services to remote areas.

The advantages of Centralisation are as follows:

 a. The ease of implementation of common policy for the organisation as a whole;
b. Providing a consistent strategy across the organisation;
c. Preventing sub-units becoming too independent;
d. Making for easier coordination and management control;
e. Greater use of specialisation, including better facilities and equipment; and
f. Improved decision-making, which might otherwise be slower and a result of compromise
because of diffused authority.

Advantages of Decentralisation are as follows:

a. Enables decisions to be made easier at the operational level of work;

b. Increased responsiveness to local situations;
c. Improved level of personal customer service;
d. More closer to the developments in flatter and more flexible structures;
e. Provides opportunities for training and development in management; and
f. Usually, it has an encouraging effect on the motivation and morale for staff.

Formalisation

Formalisation is the extent to which an organisation relies on rules and procedures to direct the behaviour
of employees. Formalisation refers to the presence of formal rules; policies, job descriptions and other
regulations that define acceptable practices and constrain behaviour. The more rules and procedures in
the organisation, the more formalised the organisation's structure is. Some organisations have many rules
and regulations and while others have very few such rules and procedures.

Formal Relationships

Formal organisational structure clearly spells out the job to be performed by each individual, the
authority, responsibility assigned to every individual, the superior- subordinate relationship and the
designation of every individual in the organisation.

Features of Formal organisation:

a. The formal organisational structure is created intentionally by the process of organising.

b. The purpose of formal organisation structure is achievement of organisational goal.
c. In formal organisational structure each individual is assigned a specific job.

d. Formal organisation structure results in systematic and smooth functioning of an organisation.

Informal Relationships:

This is a network of social and friendly groups in the organisation which is called informal organisational
structure.

Features of informal organisation:

a. Informal organisational structure gets created automatically without any intended efforts of
managers.
b. Informal organisational structure is formed by the employees to get psychological satisfaction.
 c. Informal organisational structure does not follow any fixed path of flow of authority or
communication.
d. Source of information cannot be known under informal structure as any person can communicate
with anyone in the organisation.
e. The existence of informal organisational structure depends on the formal organisation structure.

Types of Formal Relationships

Line relationship is where authority flows vertically through the structure - the chain of command. For
instance from the Managing Director to Managers, section Leaders etc. Line relationships are associated
with functional or departmental divisions of work and organisational control. Such relationships may lead
to line organisations.

Functional relationships apply to relationships between people in specialist or advisory positions and the
line managers and their subordinates. Specialists offer a common service to all departments throughout
the organisation but with no direct authority over those who make use of the service. eg the Human
Resources department.

Staff relationships arise from the appointment of personal assistants to senior managers. People in staff
positions have little or no direct authority in their own right but have derived authority from their
superiors for instance the special assistants to the President. They may act as "gatekeepers."

Lateral relationships exist between individuals in different departments or sections and usually
individuals at the same level. Lateral consultations are based on contact and consultations to maintain
coordination for effective organisational performance.

Project Relationships are a combination of line, functional and lateral relationship on matters related to
the project.

2. The superstructure: Departmentalisation

The grouping of functions or tasks is referred to as departmentalisation. In order to decide upon the
method of grouping or division of work, the main objectives of the business must be considered. The
main methods of departmentalisation are;

Functional Departmentalisation
This is categorising jobs according to the activity performed i.e. having a separate department for each
function played in the organisation (e.g. Marketing, Production and Human Resources departments).

Advantages
 It permits those with similar technical expertise to work in a co-ordinated subunit.
 It is easy and logical to decide and usually effective in practice
 It follows the principle of specialisation and economies result.

Disadvantages
 Management positions need men of wide experience and this is not readily available in a rigid
department system which affords poor training grounds for managers.
 Local department concerns and loyalties tend to override strategic organisation concerns.
 General
Manager

Production Finance Marketing

Department Department Department

Geographic Departmentalisation
This is dividing work, based on geographic. Geographic dispersion of resources (for example, mining
companies), facilities (for example, railroads), or customers (for example, chain supermarkets) may
encourage the use of a geographic format to put administrators “closer to the action”. Manufactures of
bulky products tend to divide their work on a territorial basis, with a separate plant to serve each area or
district.

Advantages
 Lower cost of operation
 Knowledge of local circumstance helps decisions making and aids the creation of customer
goodwill.
 Provides a good training ground for managers

Disadvantages
 Loss of control and co-ordination by head office.

General
Manager

Eastern Midwest Western

Region Region Region
Department Department Department

Product/Service Departmentalisation
This is the group of activities on the basis of product or service. In product departmentalisation, a
production unit is set up for each good and service. Top management can delegate wide authority to a
division or plant which manufactures and sells a product.
 General
Manager

Product X Product Y
Departmen Departmen
t t

Production Finance Marketing Production Finance Marketing

Advantages
 Aids specialisation of men and machines
 Co-ordination is facilitated and customers given better services
 Responsibility for profit can be introduced, by setting a standard for a product department with
the manager responsible for most of the functions involved.
 Management is given a wider responsibility. For example, responsibility for a section of a retail
store could be given, were all aspects are controlled buy one person i.e. buying, selling, human
resources e.t.c.

Disadvantages
 Difficult of marinating co-ordination among product areas.
 Duplicates services in each division.

Customer Departmentalisation
This is the grouping of activities to reflect a paramount interest in the customer. The customer is key to
the way activities are grouped. The rationale is to better serve the distinctly different needs of the sets of
customers. This may be found in sales departments which have various types of customers e.g. large and
small, or wholesaler and retailers.

Advantages
 It caters for customers of different needs and brings benefits of specialisation

Disadvantages
 Co-ordination
 Costly dispersion of personnel and facilities.
 General
Manager

Industrial Home
Products Products
Department Department

Process or Equipment Departmentalisation

The purpose is to achieve economies by grouping activities around a process, or type of equipment which
cannot be made in economic small units and must therefore be costly and specialised.

Advantages
 Similar types of equipment and labour are brought together
 Departments are separated by clear-cut technical consideration

Disadvantages
 Co-ordination is lost

General
Manager

Order fulfillment Customer

New product and
Development process
Account
process management
process

A matrix organizational structure is a company structure in which the reporting relationships are set up
as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting
relationships - generally to both a functional manager and a product manager.

Advantages

In a matrix organization, instead of choosing between lining up staff along functional, geographic or
product lines, management has both. Staffers report to a functional manager who can help with skills and
help prioritize and review work, and to a product line manager who sets direction on product offerings by
the company. This structure has some advantages:

 Resources can be used efficiently, since experts and equipment can be shared across projects.
 Products and projects are formally coordinated across functional departments.
 Information flows both across and up through the organization.
  Employees are in contact with many people, which helps with sharing of information and can
speed the decision process.
 Staffers have to work autonomously and do some self-management between their competing
bosses; this can enhance motivation and decision making in employees who enjoy it.

Disadvantages

The following are a few disadvantages of a matrix organization structure:

 Employees may have to report to two managers, which adds confusion and may cause conflict.
This usually happens in a balanced matrix organization where both bosses have equal authority
and power.
 A conflict may arise between the project manager and the functional manager regarding the
authority and power.
 If the priorities are not defined clearly, employees may be confused about their role and
responsibility, especially when they are assigned a task which is different from, or even counter
to, what they were doing.
 If any resource is scarce there might be competition to use it, which may cause hostility within
the workplace and could affect the operation.
 It is generally perceived that matrix organizations have more managers than required, which
increases overhead costs.

LEADING
Leading involves influencing others toward the attainment of organizational objectives. Effective
leading requires the manager to motivate subordinates, communicate effectively, and effectively
use power. If managers are effective leaders, their subordinates will be enthusiastic about
exerting effort toward the attainment of organizational objectives.
To become effective at leading, managers must first understand their subordinates' personalities,
values, attitudes, and emotions.
Koontz and O’Donnell defined leadership as, “influence, the art or process of influencing people
so that they will strive willingly towards the achievement of group goals.”
According to Grey and Starke, “Leadership is both a process and property. The process of
leadership is the use of non-coercive influence to direct and coordinate the activities of the
members of an organized group towards the accomplishments of group objectives. As a property,
leadership is the set of qualities or characteristics attributed to those who are perceived to
successfully employ such influence.”

The essences of leadership which the above definitions reveal are:

1. Leadership is the process of influencing behaviour of others.

2. Leadership uses non-coercive method to direct and coordinate the activities of the members.

3. Leadership directs the people to attain some goal.

4. Leadership occupies a role for a given time and for a group.

5. A leader possesses qualities to influence others.

6. Leadership gives people a vision for future.

7. It is a group activity. Leader influences his followers and followers also exercise influence
over his leader. Leadership interacts.

8. Leadership is meant for a given situation.

9. Leadership is continuous process of influencing behaviour. It instills dynamism in the group.

10. It is a psychological process and multi-dimensional in character.

LEADERSHIP
Definition: the process of inspiring, influencing and guiding others to participate in a common
effort. It is the ability of management to induce subordinates to work towards common group
objectives with confidence and keenness (willingly).
Leadership implies that a leader accepts responsibility for the group objective and this is
essential for trust and cooperation.
POWER the ability to marshal the human, informational and material resources to get things
done. It must be used in organizations because managers must influence those they depend on
and also help to mangers to develop confidence and willingness to support subordinates.
Power affects organisational members in the following three areas
1. Decisions
2. Behaviour
3. Situations

INFLUENCE is the ability to affect ones behaviour, or the effect one has on the way a person
thinks of behaves, works or develops.
Formal leaders Vs Informal Leaders
Formal leadership is the process of influencing other to pursue official organisational objectives.
Formal leaders measure their legitimate power from the formal authority
Informal leadership on the other hand is the process of influencing others to pursue unofficial
objectives that may not serve the interests of the organisation. Informal leaders typically lack
formal authority from the organisation.
A formal leader is a leader who identifies with the job to be done in the organisation and is a
valuable asset to the organisation.
Despite the lack of formal legitimate authority the informal leader is a significant figure that
should be taken seriously by the organisation. An informal leader is capable of bringing the
whole organisation to its knees in cases of very cohesive work groups.
TYPES OF LEADERS
There are 6 common types of leaders
1. Charismatic Leader: this is a leader who gains influence mainly from the strength of
personality/trait. Eg a football captain, Nelson Mandela, Hitler etc. the problem with this
type of leadership is that very few people can aspire for such leadership as few people
posses such exceptional qualities. Personal traits or qualities of leadership cannot be
acquired by training they are inherent and can only be modified.
2. Traditional Leader: t this is a leader who gains his or her influence from customs and
traditions. The position is assured by birth. E.g. Chief Mpezeni, litunga, Prince Charles,
Queen Elizabeth etc. only a few can aspire for this kind of leadership as one can only
become one by being both in the line of royalty
3. Situational Leader: this is a leader whose influence can only be effective by being in the
right place at the right time. This leadership is of a temporal value to the organisation.
4. Appointed Leader: this is a leader who gains influence directly from his or her position
in the organisational hierarchy. This is a bureaucratic type of leadership where legitimate
power springs from the position within the hierarchy. The problem is that although the
powers of the position may be defined the job –holder may not be able to implement
them because of weak personality, lack of training or other factors.
5. Functional Leader: this is a leader who secures the leadership position by what s/he
does rather than what they are. They have to adopt their behaviour to meet the competing
needs of a particular situation.
 6. Principle Centred Leader: this leader is influenced by moral and ethical principles
involving considerations of equity, justice, integrity, honesty, fairness and trust.

LEADERSHIP STYLES (APPROACHES)

a. Autocratic/Authoritarian Leadership
 The leader retains all authority
 He assigns clearly defined roles/tasks to subordinates
 The is primarily a downward flow of communication
The primary advantage is that it stresses prompt orderly and predictable results
It major disadvantage / weakness is that the approach tends to stifle individual
initiative.
b. Democratic/participative /supportive Leadership
 Her the leader delegates a great deal of authority but returns all responsibility
 Work is divided and assigned on the basis of participatory decision making.\
 Active two way flow of downward and upward Communication
Primary strength – it enhances the personal commitment
Primary Weakness- it is time consuming and expensive.
c. Laissez-faire/ Free-Rein Leadership
 Here the leader grants responsibility and authority to the group members
 Group members are told to work things out themselves and do the best they can
 Primarily communication is horizontal among peers’

The advantage is that self-starters are to do things as they see fit (at their own pace)
without the leader’s interference
The main drawback is that group members may drift aimlessly away from intended
objectives in the absence of the leader.

The important theories of leadership are discussed below:

Trait Theory of Leadership:

Trait theory of leadership highlights the personality traits of a successful leader. It is the oldest
theory of leadership. According to theory the personal traits or characteristics of a leader makes
him different from the followers. The researchers have taken great pains to find out various traits
of leadership.

Qualities of an effective leader

A leader should;

 Lead by example
 Should make it his job to be known to all (it is more important to be recognised than to be
popular).
 Should Build a Team; create and promote effective team works which have common
goals, provides clarity of objectives and strategies for different team members (Team
Build).
 Should have self regulation; impose controls on one self and suspends judgment and
seeks information before making decisions.
 Should have confidence and trust in oneself and others
 Should have Political Skill: Understands and manages, differing and sometimes
conflicting goals/behaviour of different goals and stakeholders
 Social skills ability to manage relationships with others
 Social entrepreneur – effective leaders persist in accomplishing goals even in the face of
set backs and failures.
 He should also have persuasion,
 Knowledge
 Skill
 Technology
 Courage
 Memory
 Imagination
 Determination
It suffers from the following weaknesses:

1. Personality traits of successful leaders are too many. There is no final list of those
traits. Every researcher has added new traits to the long list. Some of the traits are also
possessed by those who are not leaders.

2. There is no solid method to measure these traits. Psychological traits are still more
difficult to measure.

3. Leaders cannot be distinctly different from the followers. Leader cannot necessarily be
more intelligent than the followers. In certain cases followers are more intelligent than
their leaders.

4. Effectiveness of leadership cannot be solely determined by traits alone. Situation is

also responsible for it.

5. Leadership is a changing process. It changes from situation to situation.

 6. Many traits can be acquired through learning, training and education. Traits are not in
born.

7. The theory does not make distinction between the traits of leadership and those for
sustaining it.

The successful leader therefore can be considered to be perceptible and flexible and able to act
appropriately, i.e. in one situation he is strong, and in other he is permissive. It is worth noting
also that the formal status of an individual does not indicate the ability he has to influence others,
as such ability is rather a combination of his position and his personality.

Controlling

Controlling is the process of measuring performance and taking action to ensure desired results.

Reasons for Controlling

 Controls let managers know whether their goals and plans are on target and what future
actions to take.
 Control systems provide managers with information and feedback on employee
performance.
 Controls enhance physical security and help minimize workplace disruptions.

The Control Process

Step 1 — establishing objectives and standards
 Output standards
Measure performance results in terms of quantity, quality, cost, or time.
 Input standards
Measure effort in terms of amount of work expended in task performance.
Step 2 — measuring actual performance
 Goal is accurate measurement of actual performance results and/or performance efforts.
 Must identify significant differences between actual results and original plan.
Step 3 — comparing results with objectives and standards
 Need for action reflects the difference between desired performance and actual
performance
 Comparison methods:
Historical comparison
Relative comparison
Engineering comparison
Step 4 — taking corrective action
 Taking action when a discrepancy exists between desired and actual performance.

Courses of action may include;

– “Doing nothing” Only if deviation is judged to be insignificant.

– Correcting actual performance

– Immediate corrective action to correct the problem at once.

– Basic corrective action to locate and to correct the source of the deviation.

– Corrective Actions

Change strategy, structure, compensation scheme, or training programs; redesign jobs; or fire
employees

Types of Controls

1. Feedforward controls …
Also known as preventive control. The rationale of feed forward control is to foresee
potential problems and prevent them from occurring. Code of conduct, criterion for
selection, opening bank account, quality of inputs…
 Employed before a work activity begins.
 Ensures that:
– Objectives are clear.
– Proper directions are established.
 – Right resources are available.
 Focuses on quality of resources.
2. Concurrent controls …

It focuses on problems as they arise during the work process. Problems are identified as they
occur and corrective action can be taken before final results are attained. E.g verification of
payment by mgt, authorization of outgoing mail…, quality checks in between production
schedules…

 Focus on what happens during work process.

 Monitor ongoing operations to make sure they are being done according to plan.

 Can reduce waste in unacceptable finished products or services.

3. Feedback controls …

Controlling takes place after a process is complete. E.g customer feedback, performance
appraisal

 Take place after work is completed.

 Focus on quality of end results.

 Provide useful information for improving future operations.