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7 Keeping Things in Check Controls and the Control Process Learning Objectives After Studying This Chapter, Students Should Be Able To · Understand the elements of control, measurement tools, and corrective steps · Differentiate among the types of controls utilized within an organization · Employ control strategies for effective management · Identify which control processes are effective in an operational setting · Describe an integrated planning process Chapter Summary Chapter 7 focuses on maintaining control by becoming adept at utilizing various control techniques and processes. Components of the Control Process There are four basic components of the control process: 1. Planning: Sets the directions and allocates resources. 2. Organizing: Brings people and material resources together in working combinations. 3. Leading: Inspires people to best utilize these resources. 4. Controlling: Checks that the right things happen, in the right way, and at the right time. Objectives and Standards · Objectives provide the performance targets. · Output standards measure results in terms of performance quantity, quality, cost, or time. · Input standards measure effort in terms of the amount of work expended in task performance. Measurement Tools Managers are able to not only adopt measurement tools by which success can be determined, but they also can use historical comparison (historical information), relative comparison (comparing to performances of others), or engineering comparison (comparing to scientific standards as a means of evaluating performance). Corrective Action The last step in the control process is to take any action necessary to correct or improve future performance. Management by exception can be used to direct action on problems requiring more urgent attention. Effective Controls The best managers, by contrast, are proactive and positive in applying the control process to full advantage. Effective controls in organizations share the following characteristics: · Controls are understandable: They support decision making by presenting data in understandable terms; they do not involve complex reports and hard-to-understand statistics. · Controls encourage self-control: They allow for mutual trust, good communication and participation among everyone involved. · Controls are timely and exception-oriented: They report deviations quickly, lending insight into why a performance gap exists and what you can do to correct it. · Controls are positive in nature: They emphasize their contribution to development, change, and systems improvement; they deemphasize their role in penalties and reprimands. · Controls are fair and objective: They are considered impartial and accurate by everyone; they are respected for one fundamental purpose—performance enhancement. · Controls are flexible: They leave room for individual judgment and can be modified to fit new circumstances as they arise. Types of Control A variety of control strat.
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