Assignment No.

13
Discussion Questions

1. Define the managerial controlling function, and discuss its relationship to the other
managerial functions. Why do many people view controls negatively?

Controlling is the managerial function that determines whether plans are being followed
and whether performance conforms to standards. Every manager must develop and apply
controls that monitor the organization’s activities to achieve the desired results. The
controlling function is most closely related to the planning function. Supervisors set the
objectives that become the standards against which performance is checked. Well-designed
controls can positively influence employee motivation. Controls should be forward-looking
because nothing can be done about the past. The closeness of supervisory control depends, in
part, on employees’ experience, initiative, dependability, and resourcefulness.

2. After reviewing Figure 13.1, ponder the following statements:

a. “It’s OK to break the rules.”
b. “If in doubt, check with your boss.”
c. “Rules exist to make things work consistently, but when rules get in the way of
meeting customer needs, it is appropriate to question the rule.”
d. “You should always be willing to take a risk!”
e. “Celebrate your successes!”
1. Do you agree with the statements? Why or why not? Recall an instance where you followed
each of these statements. Did the situation turn out OK? If not, why not?

Yes, sometimes you have to break some rules because it is the hindrance for a better way,
It turns out OK.

2. Define and give examples of each of the following controls:

a. Feedforward - Anticipatory action taken to ensure that problems do not occur. For
example, a person who checks a car’s tires, oil, and gas gauge before a trip is using
feedforward controls.

b. Concurrent - Corrective action taken during the production or delivery process to

ensure that standards are being met. For example locals typically buy gas, bait, and
candy. The store is owned by Caitlyn Robbins, an avid outdoorswoman who took
over the business when her parents retired. Suppose the Wharf cashiers optically scan
each customer’s purchases. The customers get printouts of their purchases and the
prices they paid (sales receipts). At the same time, the store’s inventory automatically
decreases by the numbers just sold. The store’s computer records the items sold. The
computer has been programmed to alert Robbins at the close of business each day of
 items that are close to sold-out, and to automatically place a purchase order when the
store’s inventory reaches a specified level. As a result, stock is replenished as needed,
and the store risks no shortages. When these types of concurrent control aids are
absent, supervisors such as Robbins have to monitor activities by observation, often
with the assistance of employees.

c. Feedback - Actions taken after the activity, product, or service has been completed.
examples of feedback controls include measurements of the quality and quantity of
units produced, various kinds of statistical information, program satisfaction surveys,
accounting reports, and visual inspections. Because feedback controls are applied
after a task, process, service, or product is finished, they are the least desirable control
mechanisms when damage or mistakes occur, because nothing can be done after the
fact. When no damage or mistakes occur, feedback controls are used to further
improve the process or product.

3. Define and discuss each of the following primary steps in the control process:

a. Setting standards - In setting standards, a supervisor can use experience and job
knowledge as guides. Through experience and observation, most supervisors have
general ideas of how much time it takes to perform certain jobs, the resources that are
required, and what constitutes good or poor quality.

b. Checking performance against standards - The second major step in the control
process, an ongoing activity for every supervisor, is to check performance against
standards. The primary ways for a supervisor to do this are to observe, study oral and
written reports, spot check, and use statistical sampling. Figure 13.4 takes a
lighthearted look at tracking performance. Unfortunately, the supervisor did not give
praise when Tuesday’s performance exceeded expectations and did not take
corrective action on the other days. We ask you, who is at fault that Friday’s
performance fell to the bottom?

c. Taking corrective action – When no deviations from standards occur, the process of
control is fulfilled by the first two steps of control: (1) setting standards and (2)
checking performance against standards. When, however, deviations are noted
through personal

4. To what degree should supervisors be permitted to prepare budgets for their departments?
What are the advantages and disadvantages of allowing employees to participate in the
budget-making process?

A supervisor’s budget should not be so detailed and rigidly applied that it becomes a
burden. The budget should allow the supervisor some freedom to accomplish departmental
objectives. Flexibility does not mean that the supervisor can change budget figures
unilaterally or take them lightly. Rather, it means that the supervisor should not be led to
 believe that budget figures are rigid (see Figure 13.6). Budgets are guides for management
decisions, not substitutes for good judgment. Advantage: employees have relevant financial
data, they may act more conscientiously when making decisions with cost consequences.
Similarly, employees with responsibility to make choices about certain expenditures can
promote a sense of cost awareness that otherwise might not occur. If all financial information
is out in the open, there is no place for unscrupulous dealings to hide. Disadvantage: it most
cut the budget through the relevance that they need that in their company.

5. Discuss the supervisor’s duty to take appropriate action when accounting reports indicate
that expenditures are significantly above or below budget allocations. How do effective
supervisors reduce costs? Increase revenues?

The supervisor should use the specialized controls. Using inventory control, quality
control and production control. Through this process the cost of expenditures will reduce
costs and will likely increase the revenues.