1. Controlling
BOH4M

2. Agenda Learning goals Vocabulary What is controlling
Steps in the control process
Internal vs external control
Type of controls

3. Learning goals
Be able to describe the steps in the control process and how they relate to the managerial process of leading, planning, and organizing
Be able to describe progressive discipline and its impact on the individual within an organization
Be able to describe the impact of internal control measures (e.g., self-discipline, goal setting) and external control measures (e.g., compensation systems, progressive discipline) on an organization;
Be able to explain the three types of control systems used by organizations (feedforward, concurrent, feedback).

4. Vocabulary Controlling Output/input standards Preliminary Controls
Concurrent Controls
Feedback Controls

5. Controlling
Controlling: The process of measuring performance and taking action to ensure desired results
Ensures plans are achieved and actual performance meets/surpasses objectives
Foundation of control is information
Sees to it that right things happen in the right way at the right time
An after-action review identifies lessons learned in a completed project, task force or special operation

6. Four steps in the management control process:
Establish performance objectives and standards
Measure actual performance
Compare results with objectives and standards
Take corrective action as needed

7. Four steps in the management control process:
1. Establish performance objectives and standards (planning)
Key results that one wants to accomplish. Output standards measure performance results in terms of quantity, quality, cost, or time. 
Input standards measure work efforts that go into a performance task

8. 2. Measure actual performance (organizing)
Accurately measure actual results on output and/or input standards
Without measurement effective control is not possible
3. Compare results with objectives and standards (organizing)
Control equation: Need for action = Desired performance – Actual performance
Methods of comparing desired and actual performance:
Historical comparison – Use past performance as a benchmark
Relative comparison – Use performance achievements of others as the standard

9. 4. Take corrective action as needed (leading)
Take any action necessary to correct problems or make improvements
Management by exception is the practice of giving priority attention to situations showing the greatest need for action
Problem situation – Actual performance is below standard
Opportunity situation – Actual performance is above standard

10. There are three major types of managerial controls:
Feedforward (preliminary) controls ensures that directions and resources are right before the work begins (planning& leading)
Concurrent controls focus on what happens during work process (organizing & leading)
Feedback controls take place after work is completed (planning, organizing and leading)

11. Preliminary Controls Occur prior to work
Provide correct instructions and training for employees
Providing the correct resources
Requires proactive management

12. Concurrent Controls Happen while work is occurring
Mistakes are fixed continuously
Avoids wasted resources

13. Feedback Controls Occur after the work has taken place
Provide information for the future
Determines rewards

14. Managers have two broad options with respect to control:
Internal control: Allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations
External control: occurs through direct supervision and the use of formal administrative systems such as rules and procedures

15. Internal Controls self-administered
requires trust between manager and employee
subordinate should participate in setting goals
very Theory Y

16. External Controls manager exerts control over the subordinate
Examples: performance appraisals, compensation, benefits, discipline, technical control

17. Managerial process of planning
Control takes into account all of the managerial process of leading, planning and organizing