1. Control
Chapter 8

2. The Control Process Controlling:
Process of measuring performance and taking action to ensure desired results
Has a positive and necessary role in the management process
Ensures right things happen, in the right way, at the right time

3. Steps in the Control Process
1. Set Objectives and Standards
2. Measure Actual Performance
3. Compare Results with Objectives and Standards
4. Take Corrective Action as Needed

4. 1. Establish Objectives & Standards
Output Standards
Measure performance results in terms of quantity, quality, cost or time
Examples:
number of customers served/products produced in a time period
Percentage error rate
Input Standards
Measure effort in terms of amount of work done in task performance
Efficiency in use of resources
Work attendance or punctuality

5. 2. Measuring Actual Performance
An accurate measure of actual results on output and/or input standards is needed
Effective control requires accurate measurement

6. 3. Compare Results with Objectives and Standards
Need for action =
Desired performance – Actual performance
Comparison can be made on a historical basis (past years), relative basis (compare to benchmarks), engineering basis (scientific / mathematical standards)

7. 4. Take Corrective Action
Take action when discrepancies exist between desired and actual performance

8. Types of Controls
Feedforward
Concurrent
Feedback

9. Feedforward Controls Used before the work activity begins Ensure that:
Objectives are clear
Proper directions are established
Right resources are available
Focuses on quality of resources
Example: Feedforward controls at McDonalds
Ensure suppliers provide product meeting strict specifications, e.g., bun texture, uniformity of colour, etc.

10. Concurrent Controls Used while the work activity is taking place
Monitor operations to ensure work is done according to plan
Can reduce waste in unacceptable finished products or services
Example: Concurrent controls at McDonalds
Supervisors trained to take action when something is done right or when problem occurs

11. Feedback Controls Used after work is completed
Focus on quality of end result
Provide useful information for improving future operations
Example: Feedback at McDonalds
Provide a survey to customers to complete regarding their experience

12. Internal and External Control
Allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations
Comes from within the person/employee
External
Occurs through personal supervision and use of formal administrative systems
Managers direct behaviour of others

13. Role of Compensation & Benefits
Attractive and competitive base compensation results in:
Attracting and keeping a qualified workforce
Having capable, motivated workers who exercise self-control
Unattractive and competitive base compensation results in:
Attracting a less qualified workforce
Greater need for external control

14. Employee Discipline Systems
the act of influencing behaviour through reprimand
Progressive discipline:
Ties reprimands to the severity and frequency of the employee’s infractions

15. Effective Discipline To be effective, reprimands should: Be immediate
Be directed toward actions, not personality
Be consistently applied
Be informative
Occur in a supportive setting
Support realistic rules

16. Inventory Jargon
Economic Order Quantity- (EOQ) computer orders a fixed number of items every time the inventory level falls to a preset point.
Just-in-time delivery: A Japanese industry system of having parts delivered to the factory just as they are needed to save $ by not stockpiling items.
Statistical Quality Control: checking processes, materials, products and services to ensure they meet high standards.

17. Management by Objectives (MBO)
Structured process of regular communication in which a supervisor and subordinate jointly set performance objectives and review results accomplished
Regular communication is essential

18. MBO Jointly plan Individually act Jointly control
Set goals, standards and actions together
Individually act
Subordinate performs tasks
Supervisor provides support
Jointly control
Reviewing results together
Discuss implications
Renew the MBO cycle
How does this increase control? What kind of control?
Does MBO apply to all jobs?

19. MBO Criteria for effective performance objectives
Specific
Time defined
Challenging
Measurable
Pitfalls to avoid in using MBO …
Tying MBO to pay.
Focusing too much attention on easily. quantifiable objectives.
Requiring excessive paperwork.
Having managers tell workers their objectives

20. MBO
Advantages of MBO
Focuses worker’s efforts on most important tasks and objectives.
Focuses supervisor’s efforts on important areas of support.
Contributes to relationship building.
Gives worker structured opportunity to participate in decision making.

21. Objectives
Improvement Objectives : Intention for improving performance in a specific way.
(Reduce quality rejects by 10%)
Personal Objectives : personal growth so as to expand job knowledge or skills . (take Excel spreadsheet course)
Maintenance Objectives: Maintain performance (continue to sell 3 cars a week)