CHAPTER 6: CONTROLLING

The

mechanisms used to monitor the organizations performance relative to its goals and plans. (Lewis, 2004)

 Monitoring

the performance of the

organization, identifying deviations

(differences) between planned and actual

results, and taking corrective action when

necessary.
(Lewis, 2004)

THE CONTROLLING PROCESS

1. Set Performance Standards Whenever possible, the standards should be set in a manner that allows them to be compared with actual performance.
2. Measure Actual Performance An organization must decide: What to measure. When to measure. How frequently to measure.

THE CONTROLLING PROCESS

3. Compare Actual Performance with Standards This step involves determining if actual performance compared to standards falls within acceptable limits. 4. Responding to Deviations If the deviation from performance is unacceptable, then corrective action is warranted. If the deviation is acceptable, no correction action is necessary.

TYPES OF CONTROL
1.Pre-action control (Feed-forward) 2.Steering control 3.Screening control (Yes or No control) 4.Post-action control (Feed back)

TYPES OF CONTROL
1.Pre-action control (Feed-forward) input level of production before the start of production activities. purpose - to anticipate potential problems and preventing them. E.g.: Production/ Finance/ Marketing / Human Resources -specifications of output/input factors

TYPES OF CONTROL
2.Steering control

Focus on what occurs during the work

process.

Primary goal- to spot problems and take

corrective action before final results achieved. E.g.: HIV-AIDS

TYPES OF CONTROL
3.Screening control (Yes or No control)

Specify checkpoints- must be successfully passed

before an activity proceeds further. Before proceeding to the next sequence, an

activity must be approved or meet specific

condition. E.g. : Bank & Financial , procedure, approval of PTPTN.

TYPES OF CONTROL
4.Post-action control (feed back)

After an action is completed.

Attempts to measure the result of certain actions.

If problems, corrective action taken and applied to future activities and actions.

SELECTING THE FOCAL POINT FOR CONTROL

1.Preventive Control

Focuses on detecting undesirable material, financial,

or human resources that serve as inputs to the transformation process. 2.Concurrent Control Focuses on the transformation process to ensure that it is functioning properly.

SELECTING THE FOCAL POINT FOR CONTROL

3. Feedback Control

Focuses on discovering undesirable output and

implementing corrective action.

4.Multiple Focal Points

Most organizations use several control systems focused on various phases of the transformation process.

POTENTIAL BARRIERS TO SUCCESSFUL CONTROL

1. Over control

2. Inappropriate control
3. Reward for inefficiency 4. Too much accountability

MAKING CONTROLLING SUCCESSFUL

1. Accurate A control system that generates inaccurate information can result in managements neglecting to take action when it should or responding to a problem that does not exist. An accurate control system is reliable and produces valid data. 2. Timely Corrective action must be taken in time to produce improvements. Late corrective action means a great loss to the company. 3. Objectively and comprehensive Standards must be understandable and measurable. It must not be subjective or vague. Difficult control system will cause mistakes and frustration among managers as well as employees.

MAKING CONTROLLING SUCCESSFUL

4. Focused on strategic control points Strategic and result oriented Long term and based on outcomes or result 5. Flexible Individual judgment Modified to fit new circumstances as they arise. Based on findings of situation

6. Consistent with the organizations structure. Exercised Controlling at all levels of management.

MAKING CONTROLLING SUCCESSFUL

7. Economically realistic. Cost should be smaller than the benefits derived from it. 8. Reasonable and attainable criteria. If theyre too high or unreasonable, they no longer motivate to achieve.

THE END..........