controlling.ppt
- 2. Management - Chapter 8 2
- 3. Management - Chapter 8 3 Controlling – The process of measuring performance and taking action to ensure desired results. – Has a positive and necessary role in the management process. – Ensures that the right things happen, in the right way, at the right time. – Organizational learning and after-action review.
- 4. Controlling as a Management Function • Controlling – A process of monitoring performance and taking action to ensure desired results. – It sees to it that the right things happen, in the right ways, and at the right time. – Done well, it ensures that the overall directions of individuals and groups are consistent with short and long range plans. – It helps ensure that objectives and accomplishments are consistent with one another throughout an organization 4
- 5. Definition of control E .F. L. Breach has defined control as follows: ”control is the process of checking actual performance against the agreed standards or plans with a view to ensuring adequate progress and satisfactory performance.” According to koontz and weihrich, “The managerial function of controlling is the measurement and correction of the performance in orders to make sure that enterprise objectives and the plans devised to attain them are accomplished.”
- 6. Management - Chapter 8 6 Study Question 4: What is the control process? Steps in the control process: – Step 1 — establish objectives and standards. – Step 2 — measure actual performance. – Step 3 — compare results with objectives and standards. – Step 4 — take corrective action as needed.
- 7. Management - Chapter 8 7 Four steps in the control process.
- 8. The process of control Standards Operations(organ ising, staffing & directing) Performance Meets standards Corrective actions Does not meet standard
- 9. Establish Objectives and Standards • The control process begins with planning and the establishment of performance objectives. • Performance objectives are defined and the standards for measuring them are set. 9
- 10. Establish Objectives and Standards • There are two types of standards: – Output Standards - measures performance results in terms of quantity, quality, cost, or time. – Input Standards - measures work efforts that go into a performance task. 10
- 11. Measuring Actual Performance • Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired. • Without measurement, effective control is not possible. 11
- 12. Comparing Results with Objectives and Standards • The comparison of actual performance with desired performance establishes the need for action. • Ways of making such comparisons include: – Historical / Relative / Engineering – Benchmarking 12
- 13. Taking Corrective Action • Taking any action necessary to correct or improve things. • Management-by-Exception focuses managerial attention on substantial differences between actual and desired performance. 13
- 14. Taking Corrective Action – Management-by Exception can save the managers time, energy, and other resources, and concentrates efforts on areas showing the greatest need. – There are two types of exceptions: • Problems - below standard • Opportunities - above standard 14
- 15. Management - Chapter 8 15 The role of feedforward, concurrent, and feedback controls in organizations.
- 16. An effective system of control will help in achieving the following benefits: 1) Coordination. 2)Corrective action. 3)Decision-making. 4)Better planning. 5)Decentralisation of authority. 6) Effective supervision.
- 17. Management - Chapter 8 17 Management by Objectives (MBO) – A structured process of regular communication. – Supervisor/team leader and workers jointly set performance objectives. – Supervisor/team leader and workers jointly review results.
- 18. Management - Chapter 8 18 Management by objectives as an integrated planning and control framework.
- 19. Management - Chapter 8 19 MBO involves a formal agreement specifying … – Workers’ performance objectives for a specific time period. – Plans through which performance objectives will be accomplished. – Standards for measuring accomplishment of performance objectives . – Procedures for reviewing performance results.
- 20. Management - Chapter 8 20 The MBO process: – Supervisor and workers jointly set objectives, establish standards, and choose actions. – Workers act individually to perform tasks; supervisors act individually to provide necessary support. – Supervisor and workers jointly review results, discuss implications, and renew the MBO cycle.
- 21. Management - Chapter 8 21 Types of MBO performance objectives – Improvement – Personal development – Maintenance Criteria for effective performance objectives – Specific – Time defined – Challenging – Measurable
- 22. Management - Chapter 8 22 Advantages of MBO – Focuses workers on most important tasks and objectives. – Focuses supervisor’s efforts on important areas of support. – Contributes to relationship building. – Gives workers a structured opportunity to participate in decision making.