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7th Lecture Control

Controlling involves monitoring performance, comparing it to standards, and taking corrective action when needed. It is a key management function that ensures goals are achieved by providing feedback and linking work activities back to planning. Effective control processes include measuring performance, determining any variance from standards, and deciding whether to make adjustments to performance, standards, or take no action.

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Fatima Ahsan
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22 views

7th Lecture Control

Controlling involves monitoring performance, comparing it to standards, and taking corrective action when needed. It is a key management function that ensures goals are achieved by providing feedback and linking work activities back to planning. Effective control processes include measuring performance, determining any variance from standards, and deciding whether to make adjustments to performance, standards, or take no action.

Uploaded by

Fatima Ahsan
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Organization Control and Culture

What Is Controlling and Why Is It Important?

Controlling

▪ Management function that involves monitoring, comparing, and correcting work


performance.

▪ Effective controls ensure that activities are completed in ways that lead to the
attainment of goals.

▪ Whether controls are effective, then, is determined by how well they help employees
and managers achieve their goals.
Controlling provides a link back to planning.

 If managers didn’t control, they’d have no way of knowing whether their goals and plans
were being achieved and what future actions to take.
 Managers control is to protect the organization and its assets.
The Control Process

▪ A three-step process of measuring actual performance, comparing actual


performance against a standard, and taking managerial action to correct
deviations.
Step 1: Measuring Actual Performance

▪ To determine what actual performance is, a manager must first get information
about it. Thus, the first step in control is measuring.
▪ How Mangers Measure?
Four approaches used by managers to measure and report actual performance are
▪ Personal observations
▪ Statistical reports
▪ Oral reports
▪ Written reports.
Step 1: Measuring Actual Performance
Step 2: Comparing Actual Performance Against the
Standard
▪ The comparing step determines the variation between actual performance and the
standard.

Range of variation

▪ The acceptable parameters of variance between actual performance and the


standard.
Step 3: Taking Managerial Action

Managers can choose among three possible courses of action:

 Do nothing.

 Correct the actual performance.

 Revise the standards.


When you hear the word performance,
what do you think of
Controlling for Organizational and Employee
Performance

Managers in all types of businesses are responsible for managing organizational and
employee performance.

Performance

▪ The end result of an activity

Organizational performance

▪ The accumulated results of all the organization’s work activities


Measures of Organizational Performance

Productivity
▪ The amount of goods or services produced divided by the inputs needed to generate that
output. They want to produce the most goods and services using the least amount of
inputs.

Organizational Effectiveness
A measure of how appropriate organizational goals are and how well those goals are being
met. What guides managerial decisions in designing strategies and work activities and in
coordinating the work of employees.
Controlling for Employee Performance
▪ Since managers manage employees. Managers also have to be concerned about
controlling for employee performance; that is, making sure employees’ work efforts
are of the quantity and quality needed to accomplish organizational goals.
Disciplinary actions
▪ Actions taken by a manager to enforce the organization’s work standards and
regulations
Tools for Measuring Organizational Performance

Types of Control
▪ All managers need appropriate tools for monitoring and measuring
organizational performance.
▪ Managers can implement controls before an activity begins, during the time the
Activity is going on, and after the activity has been completed
i. Feed forward Control
ii. Concurrent Control
iii. Feedback Control.
Types of Control

Feed forward control


▪ Control that takes place before a work activity is done.
Concurrent control
▪ Control that takes place while a work activity is in progress. The best-known form of
concurrent control is direct supervision.
Management by walking around
▪ A term used to describe when a manager is out in the work area interacting directly with
employees
Feedback control
▪ Control that takes place after a work activity is done
Contemporary Issues in Control

Control is an important managerial function. We’re going to look at control issues that
managers face today.

 Cross-Cultural differences

 Workplace Privacy

 Employee Theft

 Workplace Violence

 Controlling Customer Interactions


Contemporary Issues in Control

▪ Adjusting controls for cross-cultural differences is that organizations should clearly


communicate to managers and employees how to approach and respond to routine and
nonroutine situations within and outside the home country.

▪ Employees who use the Internet and social media for personal use are not entitled to
privacy. Organizations need to establish clear policies that outline the differences
between proper and improper use and the consequences for using technology
inappropriately.

▪ Employee theft is costly to organizations. Procedures for monitoring theft and the
consequences for committing a theft should be clearly explained to employees.
Contemporary Issues in Control

▪ Workplace violence is a dominant problem. Organizations need to develop emergency


plans for responding to incidents of violence that include protecting the safety of
employees and customers.

▪ Control is important to customer interactions because employee service productivity


and service quality influences customer perceptions of service value. Organizations
want long-term relationships among their employees and customers.

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