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CONTROLLING

The document outlines the concept of organizational control, defining it as the process of monitoring and evaluating the efficiency and effectiveness of an organization's strategy and structure. It details the controlling process, which includes establishing performance standards, measuring actual performance, comparing it to standards, and taking corrective actions as needed. Additionally, it describes three types of controlling: feedforward, concurrent, and feedback control, each serving different stages of the control process.

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4 views11 pages

CONTROLLING

The document outlines the concept of organizational control, defining it as the process of monitoring and evaluating the efficiency and effectiveness of an organization's strategy and structure. It details the controlling process, which includes establishing performance standards, measuring actual performance, comparing it to standards, and taking corrective actions as needed. Additionally, it describes three types of controlling: feedforward, concurrent, and feedback control, each serving different stages of the control process.

Uploaded by

Ngọc Hân
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CONTROLLING

CONTENT
DEFINITION OF CONTROLLING

TYPES OF CONTROLLING

CONTROLLING PROCESS

LICERIA COMPANY
Organizational control is the process whereby managers
monitor and evaluate how efficiently and effectively and
an organization whether the organization’s strategy and
DEFINITION OF structure are working as intended, how they could be
CONTROLLING improved, how they might be changed if they are not
efficiently and effectively working.

Controlling helps organizations respond to


opportunities and threats from external
environment change and keep employees
motivated that will help the organizations
improve their performance over time.
DEFINITION OF
CONTROLLING Controlling is the process of
monitoring, regulating, (comparing),
and correcting work performance to
achieve goals.
Give managers feedback on the
quality of goods and services to
be able to continuously improve
them

Determine how
efficiently managers Increase
are using the CONTROLLING
responsiveness to
organization’s HELPS MANAGERS
resources customers.
TO

Attain competitive
Raise the level of innovation
advangtages of the
in an organization.
organization.

WWW.REALLYGREATSITE.COM LICERIA COMPANY


CONTROLLING Establish the performance
PROCESS standards

Measure actual performance.

Compare actual
performance to standards

Take corrective action as


needed.
STEP 1 Establish the
performance
standards
• Managers decide on the standards of performance, goals, or targets that they
will use in the future to evaluate the performance of the entire organization or
part of it such as a division, a function, or an individual.
• The standards of performance that managers select to measure can be
efficiency, quality, responsiveness to customers, or innovation (For example,
top managers want to pursue a low-cost strategy, so they decide to set a
corporate goal of reducing operating costs by 10% for the next year to
increase efficiency)
• To do this, they need to measure efficiency at all levels in the organization, so
respective divisions and functional departments all set cost-saving targets to
reduce the operating cost.
STEP 2 Measure actual
performance.

• At step 2, managers base on standards or targets


which they selected at stage 1 to measure actual
performance.
(For example, managers measure the real result with
10% that managers set up reducing operating costs at
stage 1).
• In practice, managers can measure three types of
controls in an organization:
⚬ (1) The actual output
⚬ (2) The behaviors
⚬ (3) The clan control.
STEP 3 Compare actual
performance to
standards
• At step 3, managers compare the real result with
the intended result to see whether there are any
deviations or not.
⚬ If performance is higher than expected,
managers might raise the standard for the
next period to challenge their subordinates.
⚬ If performance is lower than expected,
managers try to improve performance or
lower standards if needed.
⚬
STEP 4 Take corrective action
as needed.

• The final step in the control process is to take corrective


action as needed.
⚬ If there are deviations from performance standards,
managers should be able to correct one in two things,
performance or standard.
• In practice, standards or targets may be established too
high or too low, so performance may not be suitable for
them.
• If the performance and standard are established too high ,
so expected results can't be performed,manager should take
corrective actions.

⚬
TYPES OF CONTROLLING

FEEDFORWARD
CONCURRENT CONTROL FEEDBACK CONTROL
CONTROL

THREE STAGES OF
THE CONTROL INPUT STAGE CONVERSION STAGE OUTPUT STAGE
PROCESS

To anticipate problems Gives managers immediate Use feedback control to


before they arise, so the feedback on how efficiently provide information about
inputs are being transformed customers’ reactions to goods
problems do not occur or services of an organization,
PURPOSE into outputs so managers
later during the so corrective action can be
conversion process. can correct problems as taken if necessary
they arise

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