1 / 23

Control

Control. Chapter 8. The Control Process. Controlling: Process of measuring performance and taking action to ensure desired results Has a positive and necessary role in the management process Ensures right things happen, in the right way, at the right time. Steps in the Control Process.

jena
Download Presentation

Control

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Control Chapter 8

  2. The Control Process • Controlling: • Process of measuring performance and taking action to ensure desired results • Has a positive and necessary role in the management process • Ensures right things happen, in the right way, at the right time

  3. Steps in the Control Process • 1. Set Objectives and Standards • 2. Measure Actual Performance • 3. Compare Results with Objectives and Standards • 4. Take Corrective Action as Needed

  4. 1. Establish Objectives & Standards • Output Standards • Measure performance results in terms of quantity, quality, cost or time • Examples: • number of customers served/products produced in a time period • Percentage error rate • Input Standards • Measure effort in terms of amount of work done in task performance • Examples: • Efficiency in use of resources • Work attendance or punctuality

  5. 2. Measuring Actual Performance • An accurate measure of actual results on output and/or input standards is needed • Effective control requires accurate measurement

  6. 3. Compare Results with Objectives and Standards • Need for action = • Desired performance – Actual performance • Comparison can be made on a • historical basis (past years), • relative basis (compare to benchmarks), • engineering basis (scientific / mathematical standards)

  7. 4. Take Corrective Action • Take action when discrepancies exist between desired and actual performance

  8. Types of Controls • Feedforward • Concurrent • Feedback

  9. Feedforward Controls • Used before the work activity begins • Ensure that: • Objectives are clear • Proper directions are established • Right resources are available • Focuses on quality of resources • Example: Feedforward controls at McDonalds • Ensure suppliers provide product meeting strict specifications, e.g., bun texture, uniformity of colour, etc.

  10. Concurrent Controls • Used while the work activity is taking place • Monitor operations to ensure work is done according to plan • Can reduce waste in unacceptable finished products or services • Example: Concurrent controls at McDonalds • Supervisors trained to take action when something is done right or when problem occurs

  11. Feedback Controls • Used after work is completed • Focus on quality of end result • Provide useful information for improving future operations • Example: Feedback at McDonalds • Provide a survey to customers to complete regarding their experience

  12. Internal and External Control • Internal • Allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations • Comes from within the person/employee • External • Occurs through personal supervision and use of formal administrative systems • Managers direct behaviour of others

  13. Internal & External Control • Effective control is combination of internal and external control • People are more likely to exercise internal control when: • They are involved in setting goals • They have clear sense of mission and expectations • They have resources necessary to do their job well • Everyone treats each other with respect

  14. Role of Compensation & Benefits • Attractive and competitive base compensation results in: • Attracting and keeping a qualified workforce • Having capable, motivated workers who exercise self-control • Unattractive and competitive base compensation results in: • Attracting a less qualified workforce • Greater need for external control

  15. Role of Compensation & Benefits • Attracting and keeping qualified employees who exercise self-control can be helped or hindered by: • Merit pay incentives • Pay-for-performance incentives • Fringe benefits

  16. Management by Objectives (MBO) • A structured process of regular communication • Supervisor/team leader and worker jointly set worker’s performance objectives. • Supervisor/team leader and worker jointly review results.

  17. Management by Objectives (MBO) MBO involves a formal agreement specifying • Worker’s performance objectives for a specific time period. • Plans through which they will be accomplished. • Standards for measuring results. • Procedures for reviewing results.

  18. Management by Objectives (MBO) • Jointly plan • Set goals, standards and actions together • Individually act • Subordinate performs tasks • Supervisor provides support • Jointly control • Reviewing results together • Discuss implications • Renew the MBO cycle • How does this increase control? What kind of control? • Does MBO apply to all jobs?

  19. Management by Objectives (MBO) Types of MBO performance objectives • Improvement • Personal development • Maintenance Criteria for effective performance objectives • Specific • Time defined • Challenging • Measurable

  20. Management by Objectives (MBO) Pitfalls using MBO • Tying MBO to pay. • Focusing on easily quantifiable objectives. • Requiring excessive paperwork. • Having managers tell workers their objectives. Advantages of MBO • Focuses worker’s efforts on most important tasks and objectives. • Focuses supervisor’s efforts on important areas of support. • Builds relationships. • Opportunity to participate in decision making.

  21. Employee Discipline Systems • Discipline: • the act of influencing behaviour through reprimand • Progressive discipline: • Ties reprimands to the severity and frequency of the employee’s infractions

  22. “Hot Stove Rules” of Employee Discipline A reprimand should • Be immediate; • a hot stove burns the first time you touch it. • Be directed toward someone’s actions, not the personality; • a hot stove doesn’t hold grudges, doesn’t try to humiliate people, and doesn’t accept excuses. • Be consistently applied; • a hot stove burns anyone who touches it, and it does so every time. • Be informative; • a hot stove lets a person know what to do to avoid getting burned in the future—”don’t touch.” • Occur in a supportive setting; • a hot stove conveys warmth but with an inflexible rule—”don’t touch.” • Support realistic rules; • the don’t-touch-a-hot-stove rule isn’t a power play, a whim, or an emotion of the moment; it is a necessary rule of reason.

  23. Total Sales = Revenue Break-even Point Revenues = Costs Profit Total Costs = Fixed+Variable Dollar Costs & Revenues Variable Costs Loss Fixed Costs Unit Sales Management Fundamentals - Schermerhorn & Wright

More Related