Chapter 18 Controlling

 

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#Explain the nature and importance

of control #Describe the three steps in the control process #Explain ho organi!ational performance is measured #Describe tools used to measure

organi!ational performance

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"hat Is Control# # Controlling - the process of monitoring, comparing, and correcting or$ performance. #  %he Purpose of Control Control  $ %  %o o ensure that acti&itie acti&ities s are completed in ays that lead to the accomplishment of organizational   goals.

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"hy Is Control Important# # 's the (nal lin$ in management functions)  $ Planning # Controls let managers $no hether their goals and plans are on target and hat future actions to ta$e.

 $ Empoering employees # Control systems pro&ide managers ith information and feedbac$ on employee performance.

 $ Pr Protecting otecting the or$place # Controls enhance physical security and help minimi!e or$place disruptions. Copyright © 2012 Pearson Education, Inc. Publishing as Management , Eleventh Edition by Stephen P. Robbins & Mary Coulter  ©2012 Pearson Education, nc. publishin! as Prentice "all

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E*hibit 1+1) PlanningControlling -in$

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 %he Control Control Process Process # %he Process Process of Control 1.easuring actual performance 2.Comparing actual performa performance nce against a standard /.%a$ing action to c /.%a$ing correct orrect de&iati de&iations ons or inadeuate standards

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E*hibit 1+2) %he Control Process

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"hat "e easure # Control Criteria

# Sources of Information (How)

("hat)  $ Emplo#ees

 $ Personal obseration

# Satisfaction

 $ Statistical

# %bsenteeism

reports  $ !ral reports  $ "ritten reports

# $urnoer

 $ &u'gets # Costs # !utput # Sales

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 Information for easuring Performance

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Performance # etermining degree of &ariation 'gainstthe the tandard beteen actual performance and the standard # ange of ariation - the acceptable parameters of &ariance beteen actual performance and the standard.

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E*hibit 1+3) 'cceptable 4ange of 5ariation

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tep /) %a$ing anagerial 'ction # Imme'iate correctie action correcti&e corr ecti&e action that corr corrects ects problems at once in order to get performance bac$ on trac$. # &asic correctie action correcti&e corr ecti&e action that loo$s at ho and hy performance de&iated before correcting the source of de&iation. 6%raining7 Copyright © 2012 Pearson Education, Inc. Publishing as Management , Eleventh Edition by Stephen P. Robbins & Mary Coulter  ©2012 Pearson Education, nc. publishin! as Prentice "all

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Controlling for 8rgani!at Controlling 8rgani!ational ional Performance # !rganizational performance - the accumulated results of all the organi!ation9s or$ acti&ities.

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easures easur es of 8rgan 8rgani!ational i!ational Performance * Pro'uctiit# - the amount of goods or ser&ices produced di&ided by the inputs needed to generate that output. +* !rganizational e,ectieness a measure of ho appropriate organi!ational goals are and ho ell those goals are being met. * In'ustr# . Compan# an/ings -  4an$ings are a popular ay to measure organi!ation9s performance. 4an$ings are determined by speci(c performance measures and create a eual platform for other comparable companies. Copyright © 2012 Pearson Education, Inc. Publishing as Management , Eleventh Edition by Stephen P. Robbins & Mary Coulter  ©2012 Pearson Education, nc. publishin! as Prentice "all

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E*hibit 1+:) Popular Industry and Company 4an$ings

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 %ypes  % ypes of Control Control # 0ee' forwar' forw ar' control - control that ta$es place before a or$ acti&ity is done. # Concurrent

control - control that ta$es place hile a or$ acti&ity is in progress. Copyright © 2012 Pearson Education, Inc. Publishing Management , Eleventh Edition by Stephen P. Robbins & Mary Coulter  ©2012 as Pearson Education, nc. publishin! as Prentice "all

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 %ypes  % ypes of Control Control 6cont.7 # 1anagement b# wal/ing aroun' - a term used to describe

hen a manager is out in the or$ area interacting directly ith employees. # 0ee'bac/ control control that ta$es place after a or$ acti&ity is done. Copyright © 2012 Pearson Education, Inc. Publishing Management , Eleventh Edition by Stephen P. Robbins & Mary Coulter  ©2012 as Pearson Education, nc. publishin! as Prentice "all

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E*hibit 1++) %ypes of Control

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;inancial Controls #  %  %raditional raditional Controls  $ 4atio analysis # -iuidity # -e&erage # 'cti&ity # Pro(tability

 $