ENGR. CJ G. MADRID
-the process of monitoring, comparing, and correcting work
performance.
-To ensure that activities are completed in ways that lead to
the accomplishment of organizational goals.
1.Planning
Controls let managers know whether their goals and plans are on target and what
future actions to take.
2.Empowering Employees
Control systems provide managers with information and feedback on employee
performance.
3.Protecting the Workplace
Controls enhance physical security and help minimize workplace disruptions.
-is a three-step process of measuring actual
performance, comparing actual performance against a
standard, and taking managerial action to correct deviations
or inadequate standards.
Sources of Information (How)
- Employees
• Satisfaction
• Turnover
• Absenteeism
- Budget
• Costs
• Output
• Sales
ARCHITECTURE PRESENTATION
- Personal Observation
- Statistical Reports
- Oral Reports
- Written Reports
Control Criteria (What)
-Determining the degree of variation between actual
performance and the standard
-Range of variation isthe acceptable parameters of variance
between actual performance and the standard.
Managers can take three (3) possible courses of action:
a) Do nothing
b) Correct actual performance
• Immediate corrective action - corrective action that
corrects problems at once in order to get performance
back on track.
• Basic corrective action - corrective action that looks at
how and why performance deviated before correcting the
source of deviation.
Managers can take three (3) possible courses of action:
c) Revise the standard
Variance between the performance and standard could be a
result of unrealistic standard, either too high or too low.
• Performance exceeds standards always, standards might
be too low or easy
• Performance always fall short of standards always,
standards might be too high
Caution should always be observed when revising a standard
downward.
• Performance - the end result of an activity.
• Organizational performance - the accumulated
results of all the organization’s work activities.
1.Productivity - the amount of goods or services produced
divided by the inputs needed to generate that output.
Productivity = Output / Input
2.Organizational effectiveness - a measure of how
appropriate organizational goals are and how well those goals
are being met.
1.Feedforward control - control that takes place before a work activity is done,
to prevent the problem.
2.Concurrent control - control that takes place while a work activity is in
progress. The best known concurrent control is “direct supervision”.
Management by walking around, another type of concurrent control, is a term
used to describe when a manager is out in the work area interacting directly
with employees.
3.Feedback control - control that takes place after a
work activity is done. This is the most popular type of
control.
I. Financial Control:
• Liquidity ratios - measure an organization’s ability to meet its
current debt obligations.
• Leverage ratios - examine the organization’s use of debt to
finance its assets and whether it’s able to meet the interest
payments on the debt.
• Activity ratios - assess how efficiently a company is using its
assets.
• Profitability ratios - measure how efficiently and effectively the
company is using its assets to generate profits.
I. Financial Control:
• Liquidity ratios - measure an organization’s ability to meet its
current debt obligations.
• Leverage ratios - examine the organization’s use of debt to
finance its assets and whether it’s able to meet the interest
payments on the debt.
• Activity ratios - assess how efficiently a company is using its
assets.
• Profitability ratios - measure how efficiently and effectively the
company is using its assets to generate profits.
II. The Balanced Scorecard
- a performance measurement tool that examines more than just the
financial perspective.
- measures a company’s performance in four areas:
• Financial
• Customer
• Internal processes
• People/innovation/growth assets
III. Information Controls
- Management information system (MIS) - a system used to provide
management with needed information on a regular basis.
- Data is an unorganized collection of raw, unanalyzed facts (e.g., an
unsorted list of customer names).
- Information is data that has been analyzed and organized such
that it has value and relevance to managers.
IV. Benchmarking
- the search for the best practices among competitors or noncompetitors that lead to their superior performance.
• Benchmark - the standard of excellence to measure and compare
against.
I. Adjusting Controls for Cross-cultural Differences
II. Workplace Concerns
• Workplace Privacy
• Employee Theft
III. Workplace Violence
IV. Controlling Customer Interactions
• Service Profit Chain
• Corporate Governance