Chapter 19 Control

1. Chapter 19Control

2. After Reading and Studying This Chapter, You Should Be Able to: • Define control • Give reasons why control is important • Describe the four-step control process • Distinguish among the three types of control • Explain the important financial controls • Describe the qualities of an effective control system • Outline the contemporary issues in control

3. Control Defined • Management function that provides information on the degree to which goals and objectives are being accomplished • Monitoring of activities • Taking corrective action

4. Importance of Controlling • Final link to the management functions of: • Planning • Organizing • Leading

5. Figure 19-1Relationship between Controlling and the Other Management Functions

6. Control Process • Setting standards • Measuring actual performance • Comparing actual performance against the standard • Taking managerial action to correct deviations or inadequate performances

7. Setting Standards • Quality • Quantity • Finances • Time

8. Measuring • Personal observation • Statistical reports • Oral reports • Written reports

9. MBWA • “Management by Walking Around” • Personal observation • Direct interaction with employees • Exchanging information

10. Guest satisfaction Labor costs Food and beverage costs Employee satisfaction Room rates Bed sheets Energy costs Insurance Labor turnover Etc. Results We Measure

11. Taking Managerial Action • Correct actual performance • Immediate corrective action • Basic corrective action

12. Types of Control • Feedforward control • Concurrent control • Feedback control

13. Figure 19-3Three Types of Control

14. Operational Financial Controls • Budgets • Income statements • Zero-based budgeting

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

16. Contingency Factors in Control • Size of the organization • Operational complexity • Degree of decentralization • Importance of the activity

17. Adjusting Controls for Cultural Differences • Foreign operators tend to: • Be less controlled directly by the home office • Have a tendency to formalize controls • Generate extensive formal reports • Rely on the power of Information Technology

18. Contemporary Issues • Workplace privacy • Employee theft • Workplace violence

19. Trends in Control • Use of technology • Generation of quicker results • Hand-held inventory devices