Fundamentals oF manaGement BY: LAI VAN TAI LAI VAN TAI Chapter CONTROLLING Learning Objectives After studying the chapter, you should be able to:  Define control Explain why control is important Describe the control process Distinguish among the three types of control Describe the qualities of an effective control system  Identify the ethical issues in employee monitoring     Control •Process of monitoring activities to ensure that what is being accomplished matches plans and corrects significant deviations •The process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals •Involves monitoring and evaluating organizational strategy and structure to assess whether there is a need for change to improve the firm’s competitive performance Controlling Planning PlanningControlling Linkage Leading Organizing Purpose of Controls Goals and  Measuring Performance  Comparing to Standards  Taking Corrective Action Objectives Organizational Divisional Departmental Individual Control Process Steps Figure 8.2 The Control Process Compare Performance to Standard Objectives Standard Standard Attained? Do Nothing No Variance Acceptable? Measure Performance Yes Yes Do Nothing No Standard Acceptable? Yes Identify Causes No Revise Standard Correct Performance How Do Managers Measure?  Personal observations     MBWA (management-bywalking about) Statistical reports Oral reports Written reports What Do Managers Measure?     Information Operations Finances People Discrepancies Between Goals and Performance Acceptable Upper Limit Acceptable Range of Variation Standard Acceptable Lower Limit t t+1 t+2 t+3 t+4 t+5 Three Types of Control Input Processes Output Feedback Control Concurrent Control Feedback Control Corrects problems as they happen Corrects problems after they occur Anticipates problems Feedback Control   Meaningful information Enhance employee motivation Qualities Of An Effective Control System Corrective Action Accuracy Multiple Criteria Emphasis on Exceptions Timeliness EFFECTIVE CONTROL SYSTEM Strategic Placement Economy Flexibility Reasonable Criteria Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc Understandability FOM 7.17 Dysfunctional Controls Inflexible Controls Unreasonable Standards Contemporary Issues in Control    Rights that manager has to monitor employee behaviour Rights that manager has to control private lives of employees Employers MAY be able to control employee behaviour outside the work environment You and Your Computer    Employers can read your e-mail Employers can listen to your phone calls Employers can monitor your work by computer Control and Ethics Inform Employees Written Policy Monitor for Business Reasons ... whether there is a need for change to improve the firm’s competitive performance Controlling Planning PlanningControlling Linkage Leading Organizing Purpose of Controls Goals and  Measuring...Chapter CONTROLLING Learning Objectives After studying the chapter, you should be able to:  Define control... Standard Correct Performance How Do Managers Measure?  Personal observations     MBWA (management-bywalking about) Statistical reports Oral reports Written reports What Do Managers Measure?  