1. Chapter 13: Control processes and systems
Business Leadership: Management Fundamentals John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest
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2. Why and How Managers Assert Control
Controlling:
The process of measuring performance and taking action to ensure desired results
Has a positive and necessary role in the management process
Ensures that the right things happen, in the right way, at the right time
Organizational learning and after-action review
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3. Figure 13.1 The role of controlling in the management process
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4. Types of Controls Feedforward controls:
Employed before a work activity begins
Ensures 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.
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5. Types of Controls (cont’d)
Concurrent controls:
Focus on what happens during work process
Monitor ongoing operations to make sure they are being 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
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6. Types of Controls (cont’d)
Feedback controls:
Take place after work is completed
Focus on quality of end results
Provide useful information for improving future operations
Example: Feedback at McDonalds
Provide a survey to customers to complete regarding their experience
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7. Which type of control will you use? How will you measure control?
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8. Figure 13.2 The role of feedforward, concurrent, and feedback controls in organizations
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9. Internal and External Controls
Internal control: allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations
External control: occurs through personal supervision and the use of formal administrative systems
Bureaucratic control: influences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision
Clan control: influences behaviour through norms and expectations set by the organizational culture
Market control: influences behaviour through market competition
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10. Steps in the Control Process
Step 1: establish objectives and standards
Step 2: measure actual performance
Step 3: compare results with objectives and standards
Step 4: take corrective action as needed
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11. Figure 13.4 Four steps in the control process
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12. Steps in the Control Process (cont’d)
Step 1: Establishing objectives and standards
Output standards:
Measure performance results in terms of quantity, quality, cost, or time
Input standards:
Measure effort in terms of amount of work expended in task performance
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13. Steps in the Control Process (cont’d)
Step 2: Measuring actual performance
Goal is accurate measurement of actual performance results and/or performance efforts
Must identify significant differences between actual results and original plan
Effective control requires measurement
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14. Steps in the Control Process (cont’d)
Step 3: Comparing results with objectives and standards
Need for action reflects the difference between desired performance and actual performance
Comparison methods:
Historical comparison
Relative comparison
Engineering comparison
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15. Steps in the Control Process (cont’d)
Step 4: Taking corrective action
Taking action when a discrepancy exists between desired and actual performance
Management by exception:
Giving attention to situations showing the greatest need for action
Types of exceptions:
Problem situation
Opportunity situation
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16. COPYRIGHT
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