1. 1 Designing and Implementing Controls The Control Process The management function concerned with monitoring activities to ensure that they are being accomplished as planned and/or correcting any significant deviations.

2. 2 The Control Process Measure actual performance Compare results with standards Take corrective action

3. 3 Measuring Performance Common Sources of Information * Personal observation *Statistical reports *Oral reports *Written reports

4. 4 Measuring Performance What You Measure What you measure is probably more important than how you measure it. And What you measure determines, to a great extent, what employees will attempt to emphasize.

5. 5 Comparing Results with Standards Determining the Acceptable “Range of Variation” Cause-effect Diagrams Flow Charts Scatter Diagrams Control Charts

6. 6 Taking Corrective Action Immediate Actions that adjusts something right now and gets things back on track. Basic Action that asks how and why performance diverted and seeks permanent solutions.

7. 7 Types of Controls Preventative Concurrent Correctional (post action)

8. 8 Preventive (Preliminary) Hiring - Training Testing - Screening - Drilling Rules - Regulations Policies - Codes Preventive Maintenance

9. 9 Concurrent Monitoring Workers Equipment Processes Providing “immediate responses” to deviations.

10. 10 Correctional (Post Action) *Inspections *Audits *Reviews *Reports *Results

11. 11 Focus of Control n Cost ( labor, materials, operating expenses) n Improved Efficiency (cost reduction ) n Inventories n Quality n Services n Safety (accident prevention, OSHA) n Employee Performance

12. 12 Characteristics of Effective Controls n Timeliness n Economy n Flexibility n Understanding n Reasonable n Critical Placement n Emphasis on the exception

13. 13 Potential Control Problems n Employee Resistance n Misdirection of Effort n Ethics and Control Devices