PRINCIPLES OF CONTROLLING TTH: 10-30-12:00 PROF. AMY DARAWAY GROUP 8: Cristobal, Dennisse Ann (LEADER) Cusipag, Janica Marie Cardenas, Ricky Mae Dela Cruz, Jenny Dorio, Sherrie

THE FUNDAMENTALS OF CONTROLLING Defining control Entails ensuring that an event occurs as it was planned to occur. Planning and Controlling Are virtually inseparable functions Siamese twins of management

Murphy’s Law Is a lighthearted adage making the serious point that managers should continually control. Check to see that organizational activities and processes are going as planned.

Defining controlling Process that managers go through to control. Process of making things happen as planned.   **** According to Roberto Mockler controlling is a systematic effort by business management to compare performance to predetermined standards, plans or objectives to determine whether performance is in line with these standards and presumably to take any remedial action required to see that human and other corporate resources are being used in the most effective and efficient way possible in achieving corporate objectives.

THE CONTROLLING SUBSYSTEM Can be viewed as a subsystem of the over-all management system. The purpose of this subsystem is to help managers enhance the success of the overall management system through effective controlling.

THE THREE MAIN STEPS IN CONTROLLING PROCESS Measuring performance Comparing measured performance to standards Taking correlative action

Process (controlling process) input Man Money Machine Materials Process (controlling process) Work continues   No correlative action necessary Performance equivalent to standards Compare measurement to standards Measure performance Performance significantly different from standards Take correlative action: change plans, organization, or influencing methods New work situation begins output

COMPARING MEASURED PERFORMANCE TO STANDARD The next step in controlling once managers have taken a measure of organizational performance.

Measuring Performance Before managers can determine what must be done to make an organization more effective and efficient, the must measure current organizational performance. Before they can take such measurement, they must establish some unit of measure that ranges performance and observe the quantity of this unit as generated by the item whose performance is being measured. The degree of difficulty in measuring various types of organizational performance is determined primarily by the activity being measured.

Standard Is the level of activity establishes to serve as a model for evaluating organizational performance. In essence, standard are the yardsticks that determine whether organizational performance is adequate or inadequate.

General Electric Gives us some insights into different kinds of standards managers can establish. GE’s following standards. Profitability Standards Market Position Standards Productivity Standards Product Leadership Standards Personal Development Standards Employee Attitude Standards Social Responsibility Standards Standard Reflecting the relative balance between short-and-long range goals

Correlative Action Is a managerial activity aimed at bringing organizational performance up to the level of performance standards. Focuses on correcting organizational mistakes that are hindering organizational performance.

POWER AND CONTROL

Power Extent of which an individual is able to influence others so that they respond to orders.

The Total Power of a manager possesses two different kinds; Position power- is power derived from the organizational position a manager holds. Personal Power- is power derived from a manager’s relationship with others.

STEPS FOR INCREASING PERSONAL POWER A Sense of obligation toward the manager A belief that the manager possesses a high level of expertise within an organization A sense of identification with the manager The perception that they are dependent on the manager

Making Controlling Successful Specific organizational activities being focused on Different kinds of organizational goals Timely corrective action Communication of the mechanics of the control process

Isaiah 55:8-11  For my thoughts are not your thoughts, neither are your ways my ways, declares the Lord. For as the heavens are higher than the earth, so are my ways higher than your ways and my thoughts than your thoughts. “For as the rain and the snow come down from heaven and do not return there but water the earth, making it bring forth and sprout, giving seed to the sower and bread to the eater, so shall my word be that goes out from my mouth; it shall not return to me empty, but it shall accomplish that which I purpose, and shall succeed in the thing for which I sent it.