MGT 101 - Principles of Management and Business
Foundation of Control
Objectives
✤
Explain the nature and importance of control
✤
Describe the three steps in the control process
✤
Discuss the types of controls organizations and managers use
What is Control? And Why?
✤
Control: is the management function that involves monitoring
activities to ensure that they’re being accomplished as planned and
correcting any significant deviations
✤
Why is control important?
1. Goals: to ensure that what employees are supposed to do is being
done and goals are being achieved.
2. Empowering: to provide information and feedback on employee
enforcement and minimize the chance of potential problems
3. Organization and assets: to protect organization and assets against
threats (like natural disasters, financial pressure and scandals,
workplace violence, supply chain disruptions, security breaches,
and even possible terrorist attacks)
Planning-Controlling Link
Planning
Controlling
Goals
Objectives
Strategies
Plans
Standards
Measurements
Comparison
Actions
Organizing
Structure
Human Resource
Management
Leadership
Motivation
Leadership
Communication
Individual and
Group Behavior
The Control Process
✤
Definition
A three-step process of measuring actual performance against a
standard, and taking managerial action to correct deviations or to
address inadequate standards
✤
The Control Process
Compare actual
performance
with standard
Is standard
being
attained?
Yes
Do nothing
No
Is variance
acceptable?
Goals
Standard
Measure actual
performance
Yes
Do nothing
No
Is standard
acceptable?
Yes
Identify cause of
variation
No
Revise standard
Correct
performance
How Do We Measure?
✤
Four common sources of information frequently used to
measure performance:
✤
Personal observation
✤
Statistical reports
✤
Oral reports
✤
Written reports
MBWA
✤
Management by Walking Around (MBWA): when a manager is out
in the work area interacting with employees
Range of Variation
✤
Range of Variation: the acceptable parameters of variance between
actual performance and a standard
Acceptable
upper limit
Acceptable
range of
variation
Standard
Acceptable
lower limit
t
t+1
t+2
t+3
t+4
t+5
How to Correct Actual
Performance?
✤
Immediate Corrective Actions: corrective action that addresses
problems at once to get performance back on track
✤
Basic Corrective Actions: corrective action that looks at how and
why performance deviated before correcting the source of deviation
When Does Control Take Place?
Definition
How it works
Feedforward Control
Control that takes place before a
work activity is done
Anticipate problems
Concurrent Control
Control that takes place while a
work activity is in progress
Correct problems as they
happen
Feedback Control
Control that takes place after a work Corrects problems after they
activity is done
occur
Learning Outcomes
✤
Control is important because it helps us make sure that the
organization goals are better attained and that organizational assets
are well maintained
✤
The control process is a three-step process of measuring actual
performance against a standard, and taking managerial action to
correct deviations or to address inadequate standards
✤
The company needs to take different control actions and at different
times depending on the need for a corrective action