CHAPTER 7-Controlling
CHAPTER 7-Controlling
7:
Controllin
g
FUNDAMENTALS OF
MANAGEMENT (MGT 162)
o Define control.
o Identify the importance of control.
ES control system.
o Explain barriers of control.
▪ A process through which managers
regulate organizational activities to
DEFINITION make them consistent with expectations
and help them to achieve predetermined
standards of performance.
▪ Control is the last of the four major
management functions.
▪ It is critically important because it helps
INTRODUCTIO to ensure that all of our planning,
N organizing and leading went successfully
as we intended.
▪ With an effective control in
organizations, it can ensure to deliver an
excellent output to its shareholders.
◦ Assist the management process
◦ Deal with change or uncertainty
◦ Deal with complexity
IMPORTANCE ◦ Deal with human limitations
of CONTROL ◦ Help delegation and decentralization to
run smoothly
◦ Minimize costs
◦ Adapt to environmental change
PROCESS OF
CONTROL
Process or Steps of Control involves:
1. Setting standards of performance
Whenever possible, the standards should be
set in a manner that allows them to be compared
with actual performance.
2. Measuring actual performance
An organization must decide:
◦ What to measure.
◦ When to measure.
…cont.. ◦ How frequently to measure.
3. Comparing actual performance with
standards
This step involves determining if actual
performance compared to standards falls within
acceptable limits.
4. Responding to deviations
◦ If the deviation from performance is
unacceptable, then corrective action is
warranted.
◦ If the deviation is acceptable, no correction
action is necessary.
The three (3) types of control:
◦ Feedforward control
◦ Concurrent control
◦ Feedback control
TYPES OF
CONTROL
◦ Be related to the organizational
strategy.
◦ Use all steps in the control process.
CHARACTERISTIC ◦ Be composed of objective and
S OF EFFECTIVE subjective measures.
CONTROL SYSTEM ◦ Be timely in feedback reporting.
◦ Be acceptable to a diverse
workforce.
◦ Game playing
◦ Manipulating resources usage.
◦ Operating delays
◦ In terms of mechanical and technical
issues.
◦ Negative attitude
◦ Refer to the employers/employees-human
BARRIERS of nature.
CONTROL ◦ Over-control
◦ Limiting individuals job autonomy.
◦ Under-control
◦ Granting a lot of autonomy to individuals.