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Chapter 5 Controlling.pptx

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Chapter 5 Controlling.pptx

  1. 1. Controlling
  2. 2. Controlling is the process of monitoring, comparing, and correcting work performance. According to Heinz Weihrich and Harold Koontz, “Controlling is the management function of measuring and correcting individual and organizational performance to ensure that events conform to plans”. According to Ricky W. Griffin , “Controlling is the process of monitoring and correcting ongoing activities to facilitate goal attainment”. In fact, controlling determines what is being accomplished— that is, evaluating the performance and, if necessary, taking corrective measures so that the performance takes place according to plans.
  3. 3. The value of the control function can be seen in three specific areas:  Planning: Goals, which provide specific direction to employees and managers, is the foundation of planning. However, just stating goals or having employees accept goals doesn’t guarantee that the necessary actions to accomplish those goals have been taken. Controlling provides a critical link back to planning.
  4. 4.  Empowering employees: Many managers are reluctant to empower their employees because they fear something will go wrong for which they would be held responsible. But an effective control system can provide information and feedback on employee performance and minimize the chance of potential problems.  Protecting the workplace: Today’s environment brings heightened threats from natural disasters, financial scandals, workplace violence, global supply chain disruptions, security breaches, and even possible terrorist attacks. Comprehensive controls and back-up plans will help assure minimal work disruptions.
  5. 5. The control process is a three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or to address inadequate standards. 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.
  6. 6. HOW WE MEASURE: Four approaches used by managers to measure and report actual performance are:  Personal observations  Statistical reports  Oral reports  Written reports
  7. 7.  WHAT WE MEASURE: What is measured often determines what employees will do. What control criteria might managers use? Some control criteria can be used for any management situation. Criteria such as employee satisfaction or turnover and absenteeism rates can be measured. Step 2: Comparing Actual Performance Against the Standard The comparing step determines the variation between actual performance and the standard. Although some variation in performance can be expected in all activities, it’s critical to determine an acceptable range of variation.
  8. 8. Managers can choose among three possible courses of action: do nothing, correct the actual performance, or revise the standards.  CORRECT ACTUAL PERFORMANCE Depending on what the problem is, a manager could take different corrective actions. For instance,  If unsatisfactory work is the reason for performance variations, the manager could correct it by things such as training programs, disciplinary action, changes in compensation practices, and so forth.  One decision a manager must make is whether to take immediate corrective action, which corrects problems at once to get performance back on track  To use basic corrective action, which looks at how and why performance deviated before correcting the source of deviation.
  9. 9.  REVISE THE STANDARD It’s possible that the variance was a result of an unrealistic standard—too low or too high a goal. In that situation, the standard needs the corrective action, not the performance. If performance consistently exceeds the goal, then a manager should look at whether the goal is too easy and needs to be raised.
  10. 10.  FEEDFORWARD CONTROL: The most desirable type of control—feedforward control—prevents problems because it takes place before the actual activity. The key to feedforward controls is taking managerial action before a problem occurs. That way, problems can be prevented rather than having to correct them after any damage (poor-quality products, lost customers, lost revenue, etc.) has already been done.  CONCURRENT CONTROL: Concurrent control, as its name implies, takes place while a work activity is in progress. The best-known form of concurrent control is direct supervision. Another term for it is management by walking around, which is when a manager is in the work area interacting directly with employees.
  11. 11.  FEEDBACK CONTROL :The most popular type of control relies on feedback. In feedback control, the control takes place after the activity is done. Feedback controls have two advantages.  First, feedback gives managers meaningful information on how effective their planning efforts were.  Second, feedback can enhance motivation. People want to know how well they’re doing and feedback provides that information.

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