Chapter 7-Controlling 2

CHAPTER 7

CONTROLLING HAIRIANI ABDUL HAMID MGT162

LEARNING OUTCOMES 1) Definition of controlling 2) The controlling process 3) Types of control 4) Potential barriers to successful control 5) Making controlling success

HAIRIANI ABDUL HAMID MGT162

DEFINITION OF CONTROL • A process through which managers regulate organizational activities to make them consistent with expectations and help them achieve predetermined standards of performance.

HAIRIANI ABDUL HAMID MGT162

PROCESS OF CONTROL

HAIRIANI ABDUL HAMID MGT162

PROCESS OF CONTROL • Setting Standards for Performance – Whenever possible, the standards should be set in a manner that allows them to be compared with actual performance.

- SIRIM safety standards for electrical appliances • Measuring Actual Performance – An organization must decide: • What to measure. • When to measure. • How frequently to measure. HAIRIANI ABDUL HAMID MGT162

PROCESS OF CONTROL • Comparing Actual Performance With Standards – This step involves determining if actual performance compared to standards falls within acceptable limits.

• 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.

HAIRIANI ABDUL HAMID MGT162

TYPES OF CONTROL • There are three types of control and what type is used is determined primarily by the work phase in which the control is needed.

HAIRIANI ABDUL HAMID MGT162

TYPES OF CONTROL

HAIRIANI ABDUL HAMID MGT162

TYPES OF CONTROL 1) Preventive – 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.

HAIRIANI ABDUL HAMID MGT162

TYPES OF CONTROL 3) Corrective Control / Feedback – Focuses on discovering undesirable output and implementing corrective action.

HAIRIANI ABDUL HAMID MGT162

POTENTIAL BARRIERS TO SUCCESSFUL CONTROL 1. Long-term versus short-term production Burdens to manager because they needs to ensure that planned performance and actual performance are equivalent in the short-term and long-term production quotas. 2. Employee Frustrations And Morale When management exerts too much control and too rigid, employee morale tends to be low and frustrated because they think that there is no freedom for them to do a good job. HAIRIANI ABDUL HAMID MGT162

POTENTIAL BARRIERS TO SUCCESSFUL CONTROL 3. Perspective of organization members Although controls can be designed to focus on relatively narrow aspects of an organization, manager must remember that prospective corrective action is not only relation to the specific activity being control but also relation to all other organization units. 4. Means versus ends Control activities are not the goals of the control process, they are merely the means to eliminating problems. Corrective actions are activities that can be justified only if they yield some organizational benefit that exceeds the cost of performing them. HAIRIANI ABDUL HAMID MGT162

POTENTIAL BARRIERS TO SUCCESSFUL CONTROL 5. Filing of reports Employees may perceive that management is base on corrective action solely on department records with no regard for extenuating circumstances. If this is the case they may feel pressured to falsify records.

HAIRIANI ABDUL HAMID MGT162

MAKING CONTROLLING SUCCESSFUL 1) Related to Organizational Strategy

a) A control system should measure what is important now and what will be important in the future b) Utilizes All Steps in the Control Process c) To be effective, a control system must follows all of the steps in the control process.

HAIRIANI ABDUL HAMID MGT162

MAKING CONTROLLING SUCCESSFUL 2) Composed of Objective and Subjective Measures – Effective control systems typically require managers to blend quantitative (objective) and qualitative (subjective) performance measures. 3) Be timely in feedback reporting – Timeliness is the degree to which the control system provides information when it is needed.

HAIRIANI ABDUL HAMID MGT162

MAKING CONTROLLING SUCCESSFUL 4) Acceptable to a Diverse Work Force a) To be effective, organizational controls must be accepted by employees. b) The control system should motivate workers to recognize standards and act to achieve them.

HAIRIANI ABDUL HAMID MGT162

HAIRIANI ABDUL HAMID MGT162