2. After Reading and Studying This Chapter, You
Should Be Able to:
Define control
Give reasons why control is important
Describe the four-step control process
Distinguish among the three types of control
Explain the important financial controls
Describe the qualities of an effective control system
Outline the contemporary issues in control
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3. What is Control?
Management function that provides information on
the degree to which goals and objectives are being
accomplished
Monitoring of activities
Taking corrective action
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4. CONTROLLING CONCEPTS
Feed Forward Control-Control that attempts to identify
and prevent deviations before they occur is called feed
forward control, sometimes called preliminary or
preventive control.
Concurrent Control-Control that monitors ongoing
employee activities during their progress, to ensure
they are consistent with quality standards, is called
concurrent control.
Feedback Control-In this case, the control takes place
after the action. Sometimes called post-action or output
control
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5. Principles of Effective Control
Effective controls are timely.
Control standards should encourage compliance.
Setting effective standards is important
Use management by exception.
Employees should get fast feedback on performance.
Do not over rely on control reports.
Fit the amount of control to the task.
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6. Steps in the Control Process
1. Establish Standards of Performance
2. Measure Actual Performance
3. Compare Performance to Standards:
4. Take Corrective Action
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8. Controlling Ongoing Activities
• Controlling
– Evaluating and regulating ongoing activities to
ensure that goals are achieved
• Control function
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11. Control Process
1. Setting standards
2. Measuring actual performance
3. Comparing actual performance against the standard
4. Taking managerial action to correct deviations or
inadequate performances
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14. Results We Measure
Guest satisfaction
Labor costs
Food and beverage costs
Employee satisfaction
Room rates
Bed sheets
Energy costs
Insurance
Labor turnover
Etc.
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19. Qualities of an Effective Control System
Accuracy
Timeliness
Economy
Flexibility
Understandability
Reasonable criteria
Strategic placement
Emphasis on
exceptions
Multiple criteria
Corrective action
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20. Trends in Control
Use of technology
Generation of quicker results
Hand-held inventory devices
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