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Objectives
1. A definition of control
2. A thorough understanding of the controlling subsystem
3. An appreciation for various kinds of control and for how each kind can be
used advantageously by managers
4. Insights into the relationship between power and control
5. Knowledge of the various potential barriers that must be overcome to
implement successful control
6. An understanding of steps that can be taken to increase the quality of a
controlling subsystem
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The Fundamentals of Controlling
 Defining
Control
Control is making something happen the way it was planned
Planning and control are virtually inseparable functions
Siamese twins of management
Murphy’s Law
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The Fundamentals of Controlling
 Defining
Controlling
 The
Controlling Subsystem
 The
Controlling Process

Measuring Performance
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
How to Measure

What to Measure
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The Fundamentals of Controlling
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The Fundamentals of Controlling
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The Fundamentals of Controlling
 Defining
 The

Controlling (continued)
Controlling Process (continued)
Comparing Measured Performance to Standards
General Electric (GE) standards:
1. Profitability
2. Market position
3. Productivity
4. Product leadership
5. Personnel development
6. Employee attitudes
7. Social responsibility
8. Reflecting the relative balance between short- and long-range goals
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The Fundamentals of Controlling
 Defining
 The

Controlling (continued)
Controlling Process (continued)
Taking Corrective Action
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
Recognizing Problems

Recognizing Symptoms
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The Fundamentals of Controlling
 Types
of Control
 Precontrol
 Concurrent
 Feedback
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Control
Control
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The Controller and Control
 The
Job of the Controller
Financial dimensions of the organization:
1. Profits
2. Revenues
3. Costs
4. Investments
5. Discretionary expenses
 How
Much Control Is Needed?
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The Controller and Control
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The Controller and Control
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Power and Control
 A Definition
of Power
Authority is the right to command or give orders
Power is the ability to influence others so they take orders
 Total
Power of a Manager
Position power
Personal power
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Power and Control
 Steps
for Increasing Total Power
1. Sense of obligation toward the manager
2. Belief that the manager possesses a high level of expertise
3. Sense of identification with the manager
4. Perception that they are dependent on the manager
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Performing the Control Function
 Potential
Barriers to Successful Controlling
 Long-Term
 Employee
 Filing
Versus Short-Term Production
Frustration and Morale
of Reports
 Perspective
 Mean
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of Organization Members
Versus Ends
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Performing the Control Function
 Making
Controlling Successful
 Specific
 Different
 Timely
Organizational Activities Being Focused On
Kinds of Organizational Goals
Corrective Action
 Communication
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of the Mechanics of the Control Process
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Questions
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