1. CHAPTER 6 CONTROLLING

2. What Is Control? Control The Purpose of Control
The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations.
The Purpose of Control
To ensure that activities are completed in ways that lead to accomplishment of organizational goals.
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3. Tools for Controlling Organizational Performance
Feedforward Control
A control that prevents anticipated problems before actual occurrences of the problem.
Building in quality through design.
Requiring suppliers conform to ISO 9002.
Concurrent Control
Control that monitors ongoing employee activities to ensure they are consistent with performance standards.
Direct supervision: management by walking around.
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4. Tools for Controlling Organizational Performance (cont’d)
Feedback Control
A control that takes place after an activity is done.
Corrective action is after-the-fact, when the problem has already occurred.
Advantages of feedback controls
Feedback provides managers with information on the effectiveness of their planning efforts.
Feedback enhances employee motivation by providing them with information on how well they are doing.
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5. Organizational Control Focus
Concurrent Control Solve Problems as They Happen
Feedback Control Solves Problems After They Occur
Feedforward Control Anticipates Problems
Examples • Pre-employment drug testing •Inspect raw materials •Hire only college graduates
Examples
•Adaptive culture •Total quality
management
•Employee
self-control
Examples •Analyze sales per employee •Final quality
inspection
•Survey customers
Focus is on
Focus is on
Focus is on
Ongoing Processes
Inputs
Outputs
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6. Scope of Control in the Organization
Strategic Control
Strategy refers to the direction for the
organization as a whole.
It is linked to the mission of the organization and
to the basic plans for achieving that mission.
focused on how the organization as a whole fits
its external environment and meets its long-range
objectives and goals.

7. Approaches to Strategic Control
HIGH
Strategic control system valuable, but should not be tightly administered
Strategic control system problematic
ENVIRONMENTAL TURBULENCE
Strategic control system valuable
Strategic control more for tracking progress than motivation
LOW
EASY
DIFFICULT
ABILITY TO SPECIFY AND MEASURE PRECISE STRATEGIC OBJECTIVES

8. Tactical Control Focuses on the implementation of strategy.
Tactical control forms the the soul of an organization’s total sets of controls.
4 types of tactical control systems are:
Financial controls
Budgets
The supervisory structure
Human resources policies and procedure.

9. Tactical Control Financial Controls Budget Controls
Include several quantitative ratios involving key financial statistics.
Budget Controls
Typically cover a relatively limited time frame (usually 12 months or 13 months periods)
Focus exclusively on one type of objective (financial)
Usually cannot be used to compare a total organization’s progress relative to its competitors.
Supervisory Structure
In organizations of any size, there is always someone or some group to which an employee or manager reports.

10. Human Resource Controls
Selection procedures can specify the range of abilities that will be brought into the organization.
Training can enhance the consistency with which skills will elevate performance to meet standards.
Appraisal and evaluation methods reinforce desired behavior and discourage undesirable levels of performance.
Compensation can motivate efforts in particular directions as opposed to other directions.

11. Characteristic of Strategic and Tactical Control
TACTICAL CONTROLS
STRATEGIC CONTROLS
TIME FRAME
Limited
Long, unspecified
OBJECTIVE
Controls relate to specific, functional areas
Controls relate to organization as a whole
TYPES OF COMPARISONS
Comparisons made within organization
Comparisons made to other organizations
FOCUS
Determination of overall organizational strategy
Implementation of strategy

12. Feedback Control Model
Adjust Standards
Adjust Performance
Establish Strategic Goals
1. Establish standards of performance.
2. Measure actual performance.
3. Compare performance to standards.
4. Take corrective action. If
Inadequate
If Adequate
4. Do nothing or provide reinforcement.
Feedback
Use of feedback to determine if performance meets established standards.
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13. Total Quality Management
A philosophy of management that is driven by customer needs & expectations & focuses on continual improvement in work processes.
an approach that seeks to improve quality and performance which will meet or exceed customer expectations.

14. TQM Techniques Quality Circles Benchmarking Six Sigma
a group of 6 to 12 volunteer employees
meet at a set time during the workweek
identify problems
Try to find solutions
Benchmarking
Benchmarking may be considered as a way to reference a good organization.
Six Sigma
Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.
Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.

15. TQM Techniques 4) Reduced Cycle Time 5) Continuous Improvement
refers to the steps taken to complete a company process, such as teaching a class, publishing a textbook or designing a new car.
5) Continuous Improvement
the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

16. 6) TQM Success Factors POSITIVE FACTORS NEGATIVE FACTORS
Tasks make high skill demand on employees
Management expectations are unrealistically high
TQM serves to enrich jobs and motivate employees
Middle managers are dissatisfied about loss of author
Problem solving skills are improved for all employees
Workers are dissatisfied with other aspects of organizational life
Participation and teamwork are used to tackle significant problems
Union leaders are left out of QC discussions
Continuous improvement is a way of life
Managers wait for big, dramatic innovations

17. International Quality Standards
ISO 9000
Quality management standards established by the International Organization for Standardization adhered to by companies around the world.
ISO 9000 is a family of standards for quality management systems.
ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies.