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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.

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Control

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  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 • Today’s workplace emphasizes participation, empowerment and involvement • What type of control is relied upon for this to work? • Relying on internal control requires trust • 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. 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

  17. Effective Discipline • To be effective, reprimands should: • Be immediate • Be directed toward actions, not personality • Be consistently applied • Be informative • Occur in a supportive setting • Support realistic rules

  18. Management by Objectives (MBO) • Structured process of regular communication in which a supervisor and subordinate jointly set performance objectives and review results accomplished • Regular communication is essential

  19. 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?

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