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Topic 6 - Controlling

This document discusses controlling in the public sector. It defines control as the process of monitoring activities to ensure they are accomplished as planned and correcting deviations. Controlling is important for managers to know if goals are met and provides performance feedback. The control process involves measuring actual performance, comparing it to standards, and taking corrective actions. Types of control discussed are feedforward, concurrent, and feedback. Feedforward prevents problems, concurrent controls during activities, and feedback controls after activities. Budgeting and audits are discussed as ways to control financial resources, while selection and performance appraisal are used to control human resources. Workplace monitoring techniques are also outlined.

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23 views22 pages

Topic 6 - Controlling

This document discusses controlling in the public sector. It defines control as the process of monitoring activities to ensure they are accomplished as planned and correcting deviations. Controlling is important for managers to know if goals are met and provides performance feedback. The control process involves measuring actual performance, comparing it to standards, and taking corrective actions. Types of control discussed are feedforward, concurrent, and feedback. Feedforward prevents problems, concurrent controls during activities, and feedback controls after activities. Budgeting and audits are discussed as ways to control financial resources, while selection and performance appraisal are used to control human resources. Workplace monitoring techniques are also outlined.

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nadine emily
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CHAPTER 6 :

CONTROLLING
LEARNING OBJECTIVES
You should be able to:
◦ 1.Explain what is control
◦ 2.Identify importance of controlling in
public sector
◦ 3.Discuss steps in the controlling process
in public sector
◦ 4.Identify and explain types of control in
public sector mainly Feedback, Feed
forward and Concurrent control
WHAT IS CONTROL?

◦ Control
◦ The process of monitoring activities to ensure
that they are being accomplished as planned
and of correcting any significant deviations

◦ An effective control system ensures that


activities are completed in ways that lead to
the attainment of the organization’s goals
WHY IS CONTROL IMPORTANT?
◦ Managers know whether organizational goals
are being met

◦ Provides information and feedback on


employee performance

◦ Protecting the workplace – minimize risk


and avoid any workplace violence
(terrorist attack, injury)
THE CONTROL PROCESS (Exhibit
18.3)
STEPS IN THE CONTROL PROCESS
(1. Measuring actual performance)

How to measure?
◦ Personal observation, statistical reports, oral
reports, and written reports
◦ Management by walking around (MBWA)

What to measure?
◦ Productivity, production, satisfaction,
commitment, behavior, attitude, effectiveness
and efficiency keeping cost within budget etc
Copyright © 2004 Prentice Hall, Inc. All rights reserved. 13–7
Copyright © 2004 Prentice Hall, Inc. All rights reserved. 13–8
Copyright © 2004 Prentice Hall, Inc. All rights reserved. 13–9
STEPS IN THE CONTROL PROCESS
(2. Compare actual to standard
performance)
◦ Comparison to objective measures:
budgets, standards, goals

◦ Range of variation
◦ The acceptable parameters of
variance between actual
performance and the standard
Defining an Acceptable Range of Variation
Pepsi’s Sales Performance for July (hundreds of
cases)
BRAND STANDARD ACTUAL OVER (UNDER)

Pepsi 1,075 913 (162)


7 UP 630 634 4
Miranda Lemon 800 912 112
Diet Pepsi 620 622 2
Pepsi cans 540 672 132
Miranda Orange 160 140 (20)
Tropicana 225 220 (5)
Kurkure 80 65 (15)
Chips 170 286 116
Total cases 4,300 4,464 164
STEPS IN THE CONTROL PROCESS
(3. Taking managerial action for
corrective action)
◦ Taking managerial action to correct deviations or inadequate
standards
◦ Immediate corrective action
◦ Correcting a problem at once to get performance back on
track (mentoring process, advice, meetings)
◦ Basic corrective action
◦ Determining how and why performance has deviated and
then correcting the source of deviation (determining source
of deviation – research, observation, interview)
◦ Revising the standard
◦ Adjusting the performance standard to reflect current and
predicted future performance capabilities (procedural and
structural justice)
TYPES OF CONTROL
◦ Feedforward Control
◦ prevents anticipated problems
◦ most desirable type of control
◦ requires timely and accurate information that often
is difficult to get
(to imagine or expect that something will happen: anticipate
problems/difficulties It's always best to anticipate problems before they
arise-set off on a journey trip with spare tire)
◦ Concurrent Control
◦ takes place while activity is in progress
◦ corrects problem before it becomes too costly
◦ best-known form is direct supervision
(If many transactions try to access the same data, then inconsistency
arises. Concurrency control required to maintain consistency data. For
example, if we take ATM machines and do not use concurrency,
multiple persons cannot draw money at a time in different places. This is
where we need concurrency.)
TYPES OF CONTROL (continued)
◦ Feedback Control
◦ Takes place after the activity is done

◦ Problems may already have caused


damage or waste
(An example of feedback control is when a
sales goal is set, the sales team works to
reach that goal for three months, and at the
end of the three-month period, managers
review the results and determine whether
the sales goal was achieved)
TYPES OF CONTROL
CONTROLLING FINANCIAL
RESOURCES
Budgeting:
Budgeting is a control process that involves expressing
the future activities of an organization or sub unit in
rupees or any other quantitative terms
Financial Audits:
• External Audits & Internal Audits
• Mechanism seek to document the authenticity of
every item on a firm’s Financial Statements
CONTROLLING HUMAN RESOURCES
1. Selection : (Feed Forward Control)
• Important mechanism for ensuring the effective use of human
resources
• Selecting the right person for a task or activity increases the
probability that the task will be performed well

2. Performance Appraisal: (Concurrent Control & Feedback


Control)
• It identifies standards to be achieved, monitors & compares to those
standards the performance of individuals & work groups
• Feedback and counselling will be conducted if needed
◦ Example : Pos Malaysia
◦ Source:
◦ https://www.slideshare.net/adlinazainuri/mgt162-assignment-pos-malaysia

13–19
MANAGERIAL DECISIONS IN THE
CONTROL PROCESS
WORKPLACE MONITORING

Track telephone calls (numbers and time spent) 39%


Store and review employee e-mail messages 27%
Store and review computer files 21%
Log computer time and keystrokes entered 15%
Record and review telephone conversations 11%
Store and review voice-mail messages 6%
THANK YOU

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