1. The Importance of Control
Unit 4: Planning and Controlling

2. The Purpose of Control
Controlling is the process of measuring performance and taking the necessary action to make sure standards and objectives are met

3. The Purpose of Control
How does controlling fit in with the other three management functions?
Planning involves setting the direction and deciding how you will get there
Organizing is bringing people and material resources together in working combinations
Leading means inspiring people to best utilize these resources
Controlling is checking to see if the plan is being followed by measuring actual results and taking corrective action when necessary

4. Steps in the Control Process
Step 1: Set performance objectives and standards
Establish objectives and standards as part of the planning process
Describe standards as the conditions that must exist before the performance can be rated satisfactory
Establish objectives that are broader in scope and go beyond day-to-day standards
Step 2: Measure actual performance
Measurement must be accurate enough to catch differences between the planned and actual performance

5. Steps in the Control Process
Step 3: Compare actual performance against established standards
Decide how much variance from the standard is acceptable.
Determine if action is needed
Step 4: Take corrective actions as necessary
When standards are not met, it is important to find out why
When standards are met and exceeded, this is a good time to offer employees positive reinforcement

6. Types of Control Systems
Control can focus on events before, during, or after a process
The corresponding types of managerial controls are called:
Feedforward
Concurrent
Feedback

7. Types of Control Systems: Fastforward Control
Feedforward Controls - focus on the control of inputs, i.e., human, material, and financial resources that flow into the organization, to ensure that they meet the necessary standards
These controls are sometimes called preliminary controls or preventive controls since their focus is preventing problems before they occur
They allow a manager to take action before getting too far away from the plan
One common example of a Feedforward Control is the careful hiring and training of new employees

8. Types of Control Systems: Concurrent Control
Concurrent Controls - monitor employees’ work to ensure consistency with performance standards, rules, and regulations
These controls take place while an activity is in progress and are designed to ensure that employee work produces the expected results
It often involves checkpoints at which decisions are made about whether to continue progress, take corrective action, or stop work altogether
The focus is to solve problems while they are occurring
Direct supervision of employee work is the most common Concurrent Control

9. Types of Control Systems: Feedback Control
Feedback Controls - involve reviewing information to determine whether performance meets established standards
They are sometimes called Output Controls because they focus on the outputs of the organization after processing or production is complete
They may be used when Feedforward and Concurrent Controls are not feasible or too costly

10. Advantages of Feedback Control
Feedback has two advantages over Feedforward and Concurrent Controls
Feedback provides managers with meaningful information on the effectiveness of the planning effort
If Feedback indicates little variance between standard and actual performance, this is evidence that planning is generally on target. If there is a large variance, a manager can use this information when formulating new plans to make them more effective
Second, Feedback Control can be used to enhance employees’ motivation

11. Drawbacks of Feedback Control
The major drawback of this type of control is that problems can be addressed only after they occur
By the time the manager has the information, the damage is already done
Feedback Control is considered the least optimal control method, since the undesirable events already occurred well before the control function is initiated
Asking restaurant customers “How did you like your meal?” after they finished eating is an example of a Feedback Control