MGMT CH18 Controlling Activities & Operations

Controlling

management function that involves monitoring, comparing, and correcting work performance

Why is Control Important?

• Planning

• Empowering employees

• Protecting the workplace

Planning

Goals

Objectives

Strategies

Plans

Organizing

Structure

Human Resource

Management

Leading

Motivation

Leadership

Communication

Individual and

Group Behavior

Controlling

Standards

Measurements

Comparison

Actions

Control Process

a three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards

The Control Process: Step 1

Measuring Actual Performance

The Control Process: Step 2

Comparing Actual Performance Against Standard

The Control Process: Step 3

Taking Managerial Action

Range of Variation

the acceptable parameters of variance between actual performance and the standard

Immediate Coercive Action

corrective action that corrects problems at once to get performance back on track

Basic Coercive Action

corrective action that looks at how and why performance deviated before correcting the source of deviation

Managerial Decisions in Controlling

Depending on the results, a manager's decision is to do nothing, correct the performance, or revise the standard.

Performance

the end result of an activity

Organizational Performance

the accumulated results of all the organization's work activities

Productivity

the amount of goods or services produced divided by the inputs needed to generate that output

Organizational Effectiveness

a measure of how appropriate organizational goals are and how well those goals are being met

Disciplinary Action

actions taken by a manager to enforce the organization's work standards and regulations

Progressive Disciplinary Action

an approach to ensure that the minimum penalty appropriate to the offense is imposed

Feel forward Control

control that takes place before a work activity is done

Concurrent Control

control that takes place while a work activity is in progress

Management by Walking Around

a term used to describe when a manager is out in the work area interacting directly with employees

Feedback Control

control that takes place after a work activity is done

MIS

a system used to provide management with needed information on a regular basis. data vs information.

Benchmarking

the search for the best practices among competitors or noncompetitors that lead to their superior performance.

Benchmark

the standard of excellence against which to measure and compare

Reasons Companies Monitor

• Productivity/Internet traffic

• Concerns about offensive/inappropriate material

• Protecting company secrets

Balanced Scorecard

a performance measurement tool that looks at more than just the financial perspective

Employee Theft

any unauthorized taking of company property by employees for their personal use

Service Profit Chain

the service sequence from employees to customers to profit

Corporate Governance

the system used to govern a corporation so that the interests of corporate owners are protected