THE CONTROL PROCESS Learning Goals 13-15

Learning Goals 13. I will be able to describe the control process. 14. I will be able to explain the three types of control systems used by organizations (feedforward, concurrent and feedback) 15. I will be able to explain and use the Management by Objectives control process

Controlling …in the right way, … is the process of measuring performance and taking action to ensure desired results. Make sure the right things happen, …at the right time. …in the right way,

Steps in the Control Process

Questions Watch first 4:20 min of video. http://education-portal.com/academy/lesson/controlling-as-a-function- of-management.html#lesson How does the control process relate to the planning process? As a class, brainstorm a few examples of the control process in use. NOTE: There are speakers in my desk in the big drawer underneath the phone.

Types of Controls Feedforward – focuses on resources (land, labour, capital) to ensure standards are met. This is used to prevent problems. Concurrent – monitor work to ensure consistency in standards and rules. This takes place as an activity is in progress to ensure expected results. Feedback – review information to decide if standards were met. Focus is on the output of the organization after the activity takes place. Feedforward Controls focus on the control of inputs, i.e., human, material, and financial resources that flow into the organization, to ensure that they meet the necessary standards. These controls are sometimes called preliminary controls or preventive controls since their focus is preventing problems before they occur. They allow a manager to take action before getting too far away from the plan. One common example of a Feedforward Control is the careful hiring and training of new employees. Concurrent Controls monitor employees’ work to ensure consistency with performance standards, rules, and regulations.  These controls take place while an activity is in progress and are designed to ensure that employee work produces the expected results. Concurrent Control sometimes is called Screening Control. It often involves checkpoints at which decisions are made about whether to continue progress, take corrective action, or stop work altogether. The focus is to solve problems while they are occurring. Direct supervision of employee work is the most common Concurrent Control. Feedback Controls involve reviewing information to determine whether performance meets established standards. They are sometimes called Output Controls because they focus on the outputs of the organization after processing or production is complete. They may be used when Feedforward and Concurrent Controls are not feasible or too costly. Feedback has two advantages over Feedforward and Concurrent Controls. First, Feedback provides managers with meaningful information on the effectiveness of the planning effort. If Feedback indicates little variance between standard and actual performance, this is evidence that planning is generally on target. If there is a large variance, a manager can use this information when formulating new plans to make them more effective. Second, Feedback Control can be used to enhance employees’ motivation. The major drawback of this type of control is that problems can be addressed only after they occur. By the time the manager has the information, the damage is already done. Feedback Control is considered the least optimal control method, since the undesirable events already occurred well before the control function is initiated. Asking restaurant customers “How did you like your meal?” after they finished eating is an example of a Feedback Control.

What type of control is each situation? A local automobile dealer can focus on activities before, during, or after sales of new cars. Careful inspection of new cars and cautious selection of sales employees are ways to ensure high quality or profitable sales even before those sales take place. Monitoring how sales people act with customers is a control during the sales task. Counting the number of new cars sold during the month and telephoning buyers about their satisfaction with sales transactions are controls after sales have occurred.

Watch as much as possible of the video Watch as much as possible of the video. Once the video stops continue on reading the script below. http://education-portal.com/academy/lesson/organizational-controls-feedforward-concurrent-feedback.html#lesson try to come up with a list of 2 pros and 2 cons of the types of controls. (Feedforward, concurrent and feedback). Use the video to help make your choices.

Learning Goal Review I will be able to describe the control process. I will be able to explain the three types of control systems used by organizations (feedforward, concurrent and feedback)

Management by Objectives (MBO) – A way to set objectives/goals https://www.youtube.com/watch?v=3NDU-FlnA3M IS - an organization wide participative goal setting control method. This method asks that specific objectives are determined jointly by managers and their subordinates; progress toward agreed-upon objectives is periodically reviewed; end results are evaluated; and rewards are allocated on the basis of the progress. Here are the five criteria that these objectives must meet: Be arranged in order of their importance. Be expressed quantitatively, wherever possible. Be realistic. Be consistent with the organization's policies. Be compatible with one another.

The Steps specific objectives are determined jointly by managers and their subordinates progress toward agreed-upon objectives is periodically reviewed end results are evaluated rewards are allocated on the basis of the progress.

3 Types of Objectives Improvement Personal Maintenance Improve performance in a specific way “to reduce quality rejects by 10 percent” Personal Personal growth activities “to learn the latest version of a computer spreadsheet package” Maintenance Maintain performance at a specific level SMART – Specific, Measurable, Attainable, Realistic, Time defined PROs – Cons -