IIUI
BS(CS)-Physics
International Islamic University
Islamabad
Lecture Notes
Controlling
Contributed By: Muhammad Adnan Khan
E.mail: adnan_comsats@yahoo.com
Contact: 0300-9568964
Introduction to Management
IIUI
Lecture Outline
Introduction
What Is Control?
Why Is Control Important?
The Control Process
Measuring
How We Measure
What We Measure
Comparing
Taking Managerial Action
Correct Actual Performance
Revise the Standard
Summary of Managerial Decisions
Types of Control
Feedforward Control
Concurrent Control
Feedback Control
Implications for Managers
Qualities of an Effective Control System
Contingency Factors in Control
Adjusting Controls for Cultural Differences
Contemporary Issues in Control
Workplace Privacy
Employee Theft
Workplace Violence
Introduction to Management
BS(CS)-Physics
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BS(CS)-Physics
1.
INTRODUCTION.
Regardless of the thoroughness of the planning done, a program or decision still may be poorly
or improperly implemented without a satisfactory control system in place.
2.
WHAT IS CONTROL?
Control is the process of monitoring activities to ensure they are being accomplished as planned
and of correcting any significant deviations. There are three different approaches to designing
organizational control systems.
3.
WHY IS CONTROL IMPORTANT?
Control is important for two particular reasons.
4.
A.
It serves as the final link in the functional chain of management.
B.
Controlling is also important to delegation. If managers develop an effective control
system, it may lessen the resistance to delegation.
THE CONTROL PROCESS.
The control process is the three-step process of measuring actual performance, comparing it
against a standard, and taking managerial action to correct deviations or inadequate standards.
A.
Measuring.
Measuring is the first step in the control process.
1.
How we measure is done through four common sources of information that
managers use. Each of these sources has its own advantages and drawbacks.
a.
Personal observation
b.
Statistical reports
c.
Oral reports
d.
Written reports
2.
What we measure is probably more critical than the how. Both objective and
subjective measures are used.
B.
Comparing is the next step in the control process.
1.
2.
C.
It determines the degree of variation between actual performance and the
standard.
It’s critical to determine the range of variation, which are the acceptable
parameters of variance between actual performance and the standard.
Taking managerial action is the final step in the control process. Although the
manager might decide to “do nothing,” two other alternatives are possible.
Introduction to Management
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1.
2.
D.
5.
Correct actual performance. Once the manager has decided to correct actual
performance, he or she has another decision to make.
a.
Take immediate corrective action, which is correcting an activity at
once in order to get performance back on track.
b.
Take basic corrective action, which is determining how and why
performance has deviated and correcting the source of deviations.
c.
The action taken will depend on the cost/benefit of doing so.
Revise the standard. If the standard was set too high or too low, a manager may
decide to revise it.
Summary of Managerial Decisions.
The control process is a continuous flow between measuring, comparing, and managerial
action. In the book, the writer has summarizes the manager’s decisions in the control
process.
TYPES OF CONTROL.
There are three basic types of controls: feedforward, concurrent, and feedback.
6.
A.
Feedforward control is control that prevents anticipated problems.
B.
Concurrent control is control that occurs while an activity is in progress.
C.
Feedback control is control that takes place after an action has occurred.
IMPLICATIONS FOR MANAGERS.
A.
B.
Qualities of an Effective Control System.
Effective control systems tend to have certain qualities in common.
1.
These characteristics of effective control systems include the following:
a.
Accuracy
b.
Timeliness
c.
Economy
d.
Flexibility
e.
Understandability
f.
Reasonable criteria
g.
Strategic placement
h.
Emphasis on the exception
i.
Multiple criteria
j.
Corrective action
2.
The importance of these qualities varies with the situation.
Contingency Factors in Control.
1.
Different contingency factors will affect the design of an organization’s control
system.
Introduction to Management
IIUI
BS(CS)-Physics
a.
b.
c.
d.
e.
2.
C.
Organization size
Position and level in organizational hierarchy
Degree of decentralization
Organizational culture
Importance of an activity
Different organizational characteristics will necessitate control system design
changes.
Adjusting Controls for Cultural Differences.
Methods of controlling people and operations can be quite different in foreign countries.
The differences are seen primarily in the measurement and corrective action steps of the
control process. Also, technology’s impact on control can be seen when comparing
technologically advanced countries with those that are not as technologically advanced.
7.
CONTEMPORARY ISSUES IN CONTROL.
In this section, we’re going to look at three contemporary issues in control: workplace privacy,
employee theft, and workplace violence.
A.
Employee workplace privacy is one area in which ethical questions can arise. One area
of hot debate is e-mail communications. Organizations need to have policies in place
regarding e-mail usage and communicate these to all system users.
B.
Closely related to the issue of workplace privacy is the practice of computer monitoring
of employee work performance and behavior on the job. Computer monitoring systems
can be used to collect, process, and provide feedback on employees’ work. Again, it’s
important that organizations have a well-designed computer monitoring system that
informs employees they will be monitored and is used only in instances where a
legitimate business purpose is at stake.
C.
Another area in contemporary issues of control concerns employee theft. Up to 85
percent of all organizational theft and fraud is committed by employees. Different
experts suggest differing reasons behind employee theft.
D.
Workplace Violence.
U.S. Department of Justice estimates indicate that workplace assaults of all types claim
more than 1 million victims each year.
1.
Primary contributors to workplace violence include:
a.
Employee work drive by time, numbers, and crises
b.
Rapid and unpredictable change
c.
Destructive managerial communication style
d.
Authoritarian leadership
e.
Defensive attitudes
f.
Double standards for managers and employees
Introduction to Management
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g.
h.
i.
j.
k.
l.
2.
Unresolved grievances due to lack of mechanisms
Emotionally troubled employees and no managerial intervention
Repetitive, boring work with little upward opportunities
Faulty or unsafe equipment or deficient training
Hazardous work environment—temperature, air quality, etc.
Culture of violence
The competitive demands of a 24-7 global economy all put pressure on
organizations and employees.
Some important short Questions.
1.
What is the role of control in management?
Control is the process of monitoring activities to ensure that they are being accomplished as
planned and of correcting any significant deviations.
2.
Contrast market, bureaucratic, and clan control.
Market control emphasizes the use of external market mechanisms such as price, competition,
and relative market share to establish the standards used in the control system. Bureaucratic
control emphasizes organizational authority and relies on administrative rules, regulations,
procedures, and policies. Clan control regulates employee behavior by means of the shared
norms, values, traditions, rituals, beliefs, and other aspects of the organization’s culture.
3.
How are planning and controlling linked?
Controlling activities provide the critical link back to planning. If managers didn’t control, they
would have no way of knowing whether or not their objectives and plans were on target and
what future actions to take.
4.
What are the three steps in the control process?
The control process consists of three steps: measuring actual performance, comparing actual
performance against a standard, and taking managerial action to correct deviations or
inadequate standards.
5.
Name four methods managers can use to acquire information about actual
performance.
Four common sources of information frequently used by managers to measure actual
performance are personal observation, statistical reports, oral reports, and written reports.
6.
Contrast the managerial actions of correcting actual performance and revising
standards.
Correcting actual performance might include making changes in strategy, structure,
compensation practices or training programs or undertaking job redesign or the replacement of
personnel. Revising standards might include resetting a goal that was too high or too low.
7.
Why is feedforward control the most desirable type of control?
Feedforward controls are desirable because they allow managers to prevent problems rather
than cure them.
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8.
Contrast the advantages and disadvantages of concurrent and feedback control.
Concurrent control takes place while an activity is in progress and allows managers to correct
problems before they become too costly. The major drawback of feedback control is that by
the time the manager has the information, the damage has already been done. However, it
does provide managers with meaningful information about how effective the planning effort
was, and it can enhance employee motivation.
9.
What qualities will an effective control system have?
An effective control system has the following qualities: accuracy, timeliness, economy,
flexibility, understandability, reasonable criteria, strategic placement, emphasis on the
exception, multiple criteria, and corrective action.
10.
Why is workplace violence an organizational control problem?(Consult Book)
Aside from the cost factors of attracting, hiring, and training employees who are lost as a result
of workplace violence, organizations are legally required to provide a safe working
environment.
Answers to Thinking About Management Issues
1.
In last lecture we discussed the white-water rapids view of change. Do you think it is possible
to establish and maintain effective standards and controls in this type of atmosphere? Explain.
It is absolutely essential for organizations to establish and maintain effective standards and
controls in this type of rapid-change environment. The control system would need to be flexible
and clearly focused on the important performance measures.
3.
How could you use the concepts of control in your own personal life? Be specific. (Think in
terms of feedforward, concurrent, and feedback controls as well as controls for the different
areas of your life.)
Students’ responses to this will vary. However, they might point out things such as daily to-do
lists, calendars, a career plan that they revise as necessary, a degree program or some other
mechanism used to ensure that they’re taking the right courses in the right sequence, and so forth.
4.
When do electronic surveillance devices such as computers, video cameras, and telephone
monitoring step over the line from “effective management controls” to “intrusions on
employee rights”?
This question should spark some interesting discussion! Students should concentrate on the fact
that organizations have the right to protect their assets and to monitor premises for illegal
activities. However, the dilemma is “How much is too much?”
5.
“Every individual employee in the organization plays a role in controlling work activities.” Do
you agree or do you think that control is something that only managers are responsible for?
Explain.
Control is something that every individual employee plays a role in, particularly in organizations
where employees have been empowered. But even in organizations where employees haven’t
been empowered, these employees play a role in measuring, comparing, and correcting
performance. However, managers will still be responsible for establishing the standards,
approaches, and guidelines for measuring, comparing, and correcting.
Introduction to Management