1. © Prentice Hall, 2005 1 - 1

2. © Prentice Hall, 2005 1 - 2ObjectivesObjectives 1.A definition of control 2.A thorough understanding of the controlling subsystem 3.An appreciation for various kinds of control and for how each kind can be used advantageously by managers 4.Insights into the relationship between power and control 5.Knowledge of the various potential barriers that must be overcome to implement successful control 6.An understanding of steps that can be taken to increase the quality of a controlling subsystem

3. © Prentice Hall, 2005 1 - 3 The Fundamentals of Controlling Defining Control Control is making something happen the way it was planned Planning and control are virtually inseparable functions Siamese twins of management Murphy’s Law

4. © Prentice Hall, 2005 1 - 4 The Fundamentals of Controlling Defining Controlling The Controlling Subsystem The Controlling Process Measuring Performance How to Measure What to Measure

5. © Prentice Hall, 2005 1 - 5 The Fundamentals of Controlling

6. © Prentice Hall, 2005 1 - 6 The Fundamentals of Controlling

7. © Prentice Hall, 2005 1 - 7 The Fundamentals of Controlling Defining Controlling (continued) The Controlling Process (continued) Comparing Measured Performance to Standards General Electric (GE) standards: 1. Profitability 2. Market position 3. Productivity 4. Product leadership 5. Personnel development 6. Employee attitudes 7. Social responsibility 8. Reflecting the relative balance between short- and long-range goals

8. © Prentice Hall, 2005 1 - 8 The Fundamentals of Controlling Defining Controlling (continued) The Controlling Process (continued) Taking Corrective Action Recognizing Problems Recognizing Symptoms

9. © Prentice Hall, 2005 1 - 9 The Fundamentals of Controlling Types of Control Precontrol Concurrent Control Feedback Control

10. © Prentice Hall, 2005 1 - 10 The Controller and Control The Job of the Controller Financial dimensions of the organization: 1. Profits 2. Revenues 3. Costs 4. Investments 5. Discretionary expenses How Much Control Is Needed?

11. © Prentice Hall, 2005 1 - 11 The Controller and Control

12. © Prentice Hall, 2005 1 - 12 The Controller and Control

13. © Prentice Hall, 2005 1 - 13 Power and Control A Definition of Power Authority is the right to command or give orders Power is the ability to influence others so they take orders Total Power of a Manager Position power Personal power

14. © Prentice Hall, 2005 1 - 14 Power and Control Steps for Increasing Total Power 1. Sense of obligation toward the manager 2. Belief that the manager possesses a high level of expertise 3. Sense of identification with the manager 4. Perception that they are dependent on the manager

15. © Prentice Hall, 2005 1 - 15 Performing the Control Function Potential Barriers to Successful Controlling Long-Term Versus Short-Term Production Employee Frustration and Morale Filing of Reports Perspective of Organization Members Mean Versus Ends

16. © Prentice Hall, 2005 1 - 16 Performing the Control Function Making Controlling Successful Specific Organizational Activities Being Focused On Different Kinds of Organizational Goals Timely Corrective Action Communication of the Mechanics of the Control Process

17. © Prentice Hall, 2005 1 - 17 Questions