MGF1010 TUTORIAL 9
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This document discusses controlling and the control process in an organizational context. It covers three main points: 1. Controlling is important for managers to monitor goals and performance, delegate authority, and protect the organization. The control process involves measuring actual performance, comparing it to standards, and taking corrective action. 2. There are three types of control - feedforward, concurrent, and feedback. Feedforward control prevents problems proactively. Concurrent control allows corrections during work. Feedback relies on past results. 3. Tools for measuring organizational performance include financial controls, balanced scorecards, information controls, and benchmarking best practices. Measures include productivity, output, effectiveness, and industry/company rankings.
MGF1010 TUTORIAL 9
- 1. www.monash.edu.au MGF1010: Introduction to Management Week 9: Controlling
- 2. www.monash.edu.au 2 AIMS • Explain why control is important and how three different approaches can be used in designing control systems. • Describe the three steps in the control process and why what is measured is more critical than how it is measured. • Contrast feedfoward, concurrent and feedback control.
- 3. www.monash.edu.au 3 GROUP EXERCISE: How to prevent academic dishonesty? Scenario: In the recently concluded Mid-semester exams across the faculty 12 students were found cheating. Furthermore, the percentage of students cheating in exams has been increasing consistently over the last 3 years. The Dean has asked you to look into the problem and suggest ways to control student cheating. In Groups of 4, identify atleast 4 suggestions. Work Time: 5 minutes
- 4. www.monash.edu.au 4 RECOMMENDATIONS Before academic dishonesty occurs (PREVENTITIVE) • State clear ramifications, like failing, to all students at the beginning of each semester and make sure to consistently uphold those standards • Change the tests every year to nullify old tests • Assign seats to prevent friends cheating off friends During assessment • Give every other person tests with the questions in a different order • Make people sit in different seats to prevent friends helping friends • Do not allow hats to be worn in the classroom • Do not allow graphing calculators, or electronic devices such as mobile phones, etc. • Make people clear their desks and close notes on the floor • When possible, require students to show their workings for each problem, not just the answer After • Adhere to your university’s policy on academic integrity • Consistently enforce the ramifications
- 5. www.monash.edu.au 5 CONTROLLING AND ITS IMPORTANCE • Control – is the process of monitoring, comparing and correcting work performance. – ensuring that the goals set during planning have to be met. Why? – Controlling is the only way managers can know whether organisational goals are being met and, if not, the reasons why. – Controlling is also important in order for managers to delegate authority and empower employees. If managers develop effective control systems, it may lessen their resistance when it comes to delegating and empowering employees. – To protect the organisation and its assets. Given today’s environment of heightened security alerts, the possibility of terrorist attacks and surprise financial scandals, managers must have plans in place to protect the organisation’s employees, data and infrastructure.
- 6. www.monash.edu.au 6 THE CONTROL PROCESS (1) Measuring: measuring actual performance through personal observation, statistical reports, oral reports or written reports (What and How) (2) Comparing: difference between actual performance against a standard, and (3) Taking Managerial action: correcting deviations or inadequate standards.
- 7. www.monash.edu.au 7 Organisational Performance Managers are concerned with organisational performance— the accumulated end results of all the organisation’s work activities. Better asset management. Asset management is the process of acquiring, managing, renewing and disposing of assets as needed and designing business models to take advantage of the value from these assets. Increased ability to provide customer value—managers should monitor how well they are providing customer value and they can do that when they measure performance. Impact on organisational reputation—the advantages of a strong corporate reputation include greater consumer trust and the ability to command premium pricing. How do you monitor your own performance?
- 8. www.monash.edu.au 8 Measures of Organsational Performance • Productivity • is the overall output of goods or services produced divided by the inputs needed to generate that output. It is the management’s job to increase this ratio. • Output Input • Effectiveness • effectiveness is a measure of how appropriate organisational goals are and how well an organisation is achieving those goals. Which Management theory are these derived from? • Industry and company rankings.
- 9. www.monash.edu.au 9 Controlling for employee performance. • How do universities control student performance? • Delivering effective performance feedback. • Using disciplinary actions.
- 10. www.monash.edu.au 10 Controls for measuring organisational performance Feedforward Control is a type of control that takes place before a work activity is done. • Feedforward control is the most desirable type of control because it prevents anticipated problems, since it takes place in advance of the actual activity. Concurrent Control is enacted while the work is being performed, management can correct problems before they become too costly. • The best known form of concurrent control is direct supervision. When managers use management by walking around—which is a term used to describe a manager being out in the work area, interacting directly with employees—they are using concurrent control. Feedback Control Feedback is the most popular type of control and it relies on feedback.
- 11. www.monash.edu.au 11 Tools for measuring organisational performance Managers might use any of the following types of performance control tools: • financial controls • balanced scorecard approach • information controls • benchmarking of best practices
- 12. www.monash.edu.au 12 Reflection • Which of these controls and tools have you been used on you as a university student. • University control on Teachers through SETU Evaluations. • Please fill these out. • Thank you!
- 13. www.monash.edu.au 13 CHALLENGES • Workplace privacy (e.g. Social media) • Employee theft (e.g. Subway) • Workplace and occupational violence.
- 14. www.monash.edu.au 14 Group Work • Disciplining employees is one of the least favourite tasks of managers, but is something that all managers have to do as part of controlling. What do you see as the most difficult things involved in disciplining employees? Why?
- 15. www.monash.edu.au 15 Breach of company policy (pg. 370) When cashiers pass along free goods to friends, it is called ‘sweethearting’. For organisations, it is difficult to keep track of this form of pilfering, so retailers are using technology to better detect it. Surveillance cameras are used to record and study cashiers staffing checkout lines. Students are asked what they think about the practice of employee surveillance. Is surveillance less invasive when it is a computer watching instead of a human? How could organisations make sure they are monitoring employees’ work activities ethically?
- 16. www.monash.edu.au 16 Creating a Business – You are starting a business in KIRTIISCOOLISTAN – How are you going to control using the control process (p. 652) – Which control process will you use (pp. 710-717) – What motivation and rewards will you use (Chapter 16) – Which leadership style will you use (Chapter 17) – What will the organisation culture will be (pp. 83-89)