Leadership & Management

1. Leadership & Management Reading for Lesson 10: Foundations of Control

2. Lesson 10Reading Objectives 1.The student will comprehend the concept of control. 2.The student will comprehend the two approaches to control. 3.The student will comprehend why control is important. 4. The student will comprehend the differences between the two types of control. 5. The student will comprehend the qualities of an effective control system.

3. Lesson 10Discussion Objectives • The student will comprehend the concept of control. 2.The student will apply control to him/herself. 3.The student will comprehend why control is important. 4.The student will comprehend the qualities of an effective control system.

4. Concept of Control • Control is the process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations. • It is the last of the four functions of management and entails taking corrective action to fix a problem or correct a deviation in performance. • Actual performance is compared to the performance against a standard. Significant deviations are corrected.

5. Approaches to Control • There are two different approaches to designing organizational control systems. • Bureaucratic control • Clan control • Most organizations do not rely totally on just one of these approaches

6. Approaches to Control • Bureaucratic control • Emphasizes organizational authority • Relies on the following to ensure employees exhibit appropriate behaviors and meet performance standards. • Administrative rules • Regulations • Procedures • Policies • Standardization of activities and other administrative mechanisms

7. Approaches to Control • Clan control is an approach to designing control systems in which employee behaviors are regulated by the following aspects of the organization’s culture: • Shared values • Norms • Traditions • Rituals • Beliefs

8. Importance of Control • Control serves as final link in the functional chain of management • The manager measures actual performance as compared to a standard, and acts to correct deviations or inadequate standards • Control may help lessen resistance to delegation

9. The Control Process • Figure 10-3 goes here

10. The Control Process • Measuring • Personal observation • Statistical reports • Oral reports • Written reports • What we measure is more critical than how we measure

11. The Control Process • Comparing • Determines the degree of variation between actual performance and the standard • Range of variation is the acceptable parameters of variance between actual performance and the standard

12. The Control Process • Taking managerial action—two alternatives: 1. Correct actual performance • Immediate corrective action—change activity at once to get performance back on track • Basic corrective action—determine why performance deviated and correct the source of deviation 2. Revise the standard • May be set too high • May be set too low

13. Three Basic Types of Control

14. Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on the exception Multiple criteria Corrective action Qualities of an Effective Control System