1. The Control System

2. Control Definition Purpose
monitoring employees’ activities, determining, whether the organization is on target toward its goals, and making corrections as necessary.
Purpose
To measure progress toward planned performance and apply corrective measures.

3. Why Is Control Important?
As the final link in management functions:
Controls let managers know whether their goals and plans are on target and what future actions to take.
Control systems provide managers with information and feedback on employee performance.
Controls enhance physical security and help minimize workplace disruptions.

4. What is control system
Control systems are designed to measure progress toward planned performance and, if necessary, to apply corrective measure

5. Four major steps Setting performance standards; Measuring performance;
Comparing performance against the standards and determining deviations
Taking corrective action

6. Setting performance standards
The level of expected performance for a given goal;
Desired performance levels
Job requirements, objective data;
Reference: quantity; quality; time used; cost;
When do managers set standard?

7. Measuring: How and What We Measure
Control Criteria
Employees
Satisfaction
Turnover
Absenteeism
Budgets
Costs
Output
Sales

8. Measuring performance
Information collection
Three sources:
Written reports;
Formal, broad level, precise;
Oral reports;
Swift, two-way communication
No records
Written reports: statistic reports; figures;
Oral reports: meetings, party, face to face conversation, phone talk;

9. Personal observations;
An intimate picture
General and subjective
Time consuming
Misleading
Mbwa: management by walking around

10. Comparing performance
To evaluate the performance;
Note: range of variation acceptable;
Exception
Significant deviations;
Managers should pay attention to exceptional cases;
For some activities relatively small deviations are acceptable; while in others a slight deviation may be serious;

11. Comparing
Determining the degree of variation between actual performance and the standard.
Significance of variation is determined by:
The acceptable range of variation from the standard (forecast or budget).
The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget).

12. Taking corrective action
To adjust operation to achieve the initially planned results;
By whom?
those having authority (Higher-ups)
the operator at the point;
Corrective action
Immediate corrective action
Basic corrective action
Basic corrective action: how deviation, why, correct;

13. Taking Managerial Action
Courses of Action
“Doing nothing”
Only if deviation is judged to be insignificant.
Correcting actual (current) performance
Immediate corrective action to correct the problem at once.
Basic corrective action to locate and to correct the source of the deviation.
Corrective Actions
Change strategy, structure, compensation scheme, or training programs; redesign jobs; or fire employees

14. Taking Managerial Action (cont’d)
Courses of Action (cont’d)
Revising the standard
Examining the standard to ascertain whether or not the standard is realistic, fair, and achievable.
Upholding the validity of the standard
Resetting goals that were initially set too low or too high.

15. Taking corrective action
A change in a procedure or method;
A disciplinary action;
A major organizational modification;
A change of the standard.

16. How does a teacher control study?

17. Types of control

18. Feedforward control Concurrent control Feedback control
Three types of control
Feedforward control
Concurrent control
Feedback control

19. Feedforward Control
Definition:
Process control in which changes are detected at the process input and an anticipating correction signal is applied before process output is affected.
A temperature sensor outside of a room to indicate a drop of temperature so people can start heating the room
Speed limit on highway.

20. Limiting activities in advance prevent the problems before they arise
Feedforward Control
Characteristic:
Future oriented
Limiting activities in advance
prevent the problems before they arise

21. Advantages and disadvantages
Prevents accidents before they occur.
Easy to be accepted and implemented.
Disadvantages:
Need massive accurate information.
Hard to estimate the new situation and the question.

22. Inspection of raw materials Proper selection and training of employees
examples
Inspection of raw materials
Proper selection and training of employees
Japan’s unique cost management system

23. Take place while plans are carried out ,
Concurrent control
Definition:
Take place while plans are carried out ,
is the heart of any control system.
Characteristic:
While plans are being carried out
Directing , monitoring and fine-tuning activities

24. Advantages and disadvantages
Is helpful to improve staff's working ability and the self-control ability.
Reduce loss quickly
Disadvantages:
The cost is high
hard to be accepted

25. Supervisors monitor the employees Production line Question:
Examples
Supervisors monitor the employees
Production line
Question:
How does Information technology affect the concurrent control?

26. Feedback control
Definition:
Feedback control implies that performance data were gathered and analyzed and the results returned to someone (or something) in the process to make corrections.

27. Waiting for results and comparing them with goals analyzing the reason
Feedback control
Characteristic:
Waiting for results and comparing them with goals
analyzing the reason
taking corrective action

28. Advantages and disadvantages
Summarizing the rule for further implementation, creating the condition , realizing the positive cycle, enhancing the efficiency and so on.
Disadvantages:
The deviation has produced before the implementation measure.
cannot control the process in time

29. Important aspect—Timing
If feedback on performance is not timely, managers cannot quickly identify and eliminate the problem and prevent more serious harm.

30. The product quality checks Evaluate an accomplishment
examples
The product quality checks
Evaluate an accomplishment

31. Difference and connection
Out put
In put
Transformation processes
Concurrent control
Feedback control
Feedforward control

32. Can you tell more difference?
Feedfordward control
Concurrent control
Feedback control
The time they take place
Focus on in a control system
Function
Control type
Aspect
Can you tell more difference?

33. Can you tell more difference?
Feedfordward control
Concurrent control
Feedback control
The time they take place
Before operations begin
While plans are being carried out
After the fact
Focus on in a control system
input
Transformation processes
Out put
Function
Prevent problems before they arise
Monitor behavior
Point out and correct improper performance
Control type
Aspect
Can you tell more difference?

34. Three type of control Compose a control system . They mutually affect.
connection
Three type of control Compose a control system .
They mutually affect.
Preliminary control sets antecedents
Concurrent control monitor behavior According to the antecedents and find the information results.
Feedback control analyze the results in order to correct improper performance or revised the antecedents.

35. which type of control do they belong to?
Rocket launching
Legislation
sign contract
Work summary
Directing working
reduce the staff
revises the law

36. Question
Analyzes the control types of our school and their connection during the appraisal stage.

37. Budgets and Their Types

38. Budgets The origin of budget: France in the Middle Ages
Definition: A budget is simply a financial plan listing in detail the resources or funds assigned to a particular product, division, or project.

39. Developing a budget
Guidelines for budget preparation: detailed economic, sales, and profit forecasts
Who?
1. Budgets are developed at the top management levels.
2. The department and individuals responsible for implementation should be allowed to contribute to the development of budget.

40. The advantages of the “bottom-up” approach
The process of developing a comprehensive budget

41. Building flexibility into the budget
A serious drawback to many budgets
How to avoid this problem
Variable budget: a series of different budgets based on different levels of output
Flexible budgets, sliding-scale budgets, step budgets

42. Program Planning Budgeting Systems (PPBS)
Five basic steps:
1. List and analyze the objectives of the activity.
2. Analyze the results of a given program or activity based on the objectives.
3. Estimate future program costs as well as original outlays.

43. Program Planning Budgeting Systems (PPBS)
Five basic steps:
4. Analyze alternatives.
5. Integrate the first four steps into the budgetary process.

44. Program Planning Budgeting Systems (PPBS)
The advantages of PPBS:
1. It relates the budget to agency or departmental objectives and requires accountability.
2. It requires a realistic appraisal of future costs and requires managers to justify their decision.
3. It brings into sharp focus the relationship between costs and benefits.

45. Zero-Base Budgeting (ZBB)
What is the essence of zero-base budgeting?
The steps of zero-base budgeting
The advantages and disadvantages of zero-base budgeting
The development of ZBB concept

46. Types of Budgets Manufacturing: 1. Manufacturing Budget
2. Capital Expenditures Budget

47. Types of Budgets
Marketing:
1. Marketing Budget
2. Product Budget

48. Types of Budgets Finance: 1. Cash Flow Budget
2. Budget Income Statement
3. Balance Sheet Budget

49. Types of Budgets Research and General Management:
1. Research and Development Budget
2. Executive Staff Budget
3. Branch and Regional Budget