1. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Foundations of Control FOM12-1

2. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Learning Outcomes Define control Describe three approaches to control Explain why control is important Describe the control process Distinguish among the three types of control Describe the qualities of an effective control system FOM12-2

3. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Learning Outcomes (continued) Identify contingency factors in the control process Explain how controls can become dysfunctional Describe how national differences affect the control process Identify the ethical issues in employee monitoring FOM12-3

4. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Control Process of monitoring activities to ensure that what is being accomplished matches plans and corrects significant deviations FOM12-4

5. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Planning-ControllingLinkage Planning OrganizingLeading Controlling FOM12-5

6. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Purpose of Controls Measuring PerformanceMeasuring Performance Comparing to StandardsComparing to Standards Taking Corrective ActionTaking Corrective Action Goals and ObjectivesOrganizationalDivisionalDepartmentalIndividual FOM12-6

7. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Three Approaches to Control Systems MarketControlClanControlBureaucraticControl FOM12-7

8. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. The Control Process Identify Causes Correct Performance Variance Acceptable? Revise Standard Attained? Standard Acceptable? Yes No Compare Performance to Standard Measure Performance Objectives Standard Do Nothing FOM12-8

9. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. How Do Managers Measure? Personal observations Statistical reports Oral reports Written reports FOM12-9

10. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Information PeopleFinances Operations What Managers Measure FOM12-10

11. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Discrepancies Between Goals and Performance Acceptable Upper Limit Standard Acceptable Lower Limit Acceptable Range of Variation t t+1 t+2 t+3 t+4 t+5 FOM12-11

12. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. CanuckBrew’s Sales for July (in hundreds of cases) Propeller Big Rock Ale Okanagan Spring Garrison Oland’s Export McAuslan’s Granville Island Unibroue’s Nelson After Dark Total Cases 1,075 630 800 620 540 160 225 80 170 4,300 913 634 912 622 672 140 220 65 286 4,464 (162) 4 112 2 132 (20) (5) (15) 116 164 Brand Standard ActualOver (Under) FOM12-12

13. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Do Nothing TakingManagerialAction Immediate/BasicCorrectiveAction Revise the Standard FOM12-13

14. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. InputProcessesOutput Three Types of Control FeedforwardControl Anticipatesproblems ConcurrentControl Corrects problems as they happen FeedbackControl Corrects problems after they occur FOM12-14

15. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Feedback Control Meaningful information Enhance employee motivation FOM12-15

16. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Qualities of an Effective Control System Accurate Timely Economical Flexible Understandable FOM12-16

17. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Qualities of an Effective Control System (continued) Reasonable Emphasis on exceptions Strategic Multiple criteria Corrective action FOM12-17

18. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Adjusting Controls for National Differences Technology and the Comparability of Data Distance and the Formality of Controls FOM12-19

19. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. FOM12-21

20. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Invasion of Privacy

21. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Employee Monitoring FOM12-22

22. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. E-Mail FOM12-23

23. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. InformEmployees Written Policy Monitor for Business Reasons Control and Ethics FOM12-24

24. Robbins et al., Fundamentals of Management, 3rd Canadian Edition. ©2002 Pearson Education Canada, Inc., Toronto, Ontario. Off-the-Job Behaviour FOM12-25