It refers to the process of ascertaining whether organizational objectives have been achieved
Controlling
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When \___ is properly implemented, it will help the organization achieve its goal in the most efficient and effective manner possible
Controlling
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\___ minimizes the ill effects of such negative occurrences
Proper control
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Steps in Controlling Process
Establishing performance objectives and standards; Measuring actual performance; Comparing actual performance to objectives and standards; Taking necessary action based on the results of the comparisons.
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In controlling, what was to be achieved must firs be determined
Establishing Performance Objectives and Standards
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Objectives and Standards for establishing performance
Sales Targets; Production Targets; Worker Attendance; Safety Record; Supplies Used
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Expressed in quantity or monetary terms
Sales Targets
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Expressed in quantity or quality
Production Targets
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Expressed in terms of rate of absences
Worker Attendance
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Expressed in number of accidents for given periods
Safety Record
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Expressed in quantity or monetary terms for given periods
Supplies Used
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There is a need to measure actual performance so that when shortcomings occur, adjustments could be made
Measuring Actual Performance
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Once actual performance has been determined, this will be compared with what organization seek to achieve
Comparing Actual Performance to Objective and Standards
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The purpose of comparing actual performance with desired result is to provide management with the opportunity to take corrective action when necessary
Taking Necessary Action
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Corrective Actions:
Hire additional personnel; Use more equipment; Require overtime
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Types of Control
Feed Forward Control; Concurrent Control; Feedback Control
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Sometimes called preliminary or preventive controls
Feed Forward Control
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It attempts to identify and prevent deviations in the standards before they occur
Feed Forward Control
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It takes place while an activity is in progress
Concurrent Control
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It involves the regulation of ongoing activities that are part of transformation process
Concurrent Control
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It focuses on the outputs of the organization after transformation is complete.
Feedback Control
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It is sometimes called post action or output control
Feedback Control
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Advantages of Feedback Control
Provides managers with meaningful information on how effective its planning effort was; Enhance the employees' motivation
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Behavioral Control under Feed Forward Control
Organizational Control
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Behavioral Control under Concurrent Control
Hands-on Management Supervision during a Project
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Behavioral Control under Feedback Control
Qualitative Measures of Customer Satisfaction
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Outcome Control under Feed Forward Control
Market Demand or Economic Forecasts
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Outcome Control under Concurrent Control
The Real-Time Speed of a Production Line
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Outcome Control under Feedback Control
Financial Measures such as profitability, sales growth
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Components of Organizational Control System
Strategic Plan; The Long-range Financial Plan; The Operating Budget; Performance Appraisals; Statistical Reports; Policies and Procedures
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It provides the basic control mechanism for the organization
Strategic Plans
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The planning horizon differs from company to company. Most firms will be satisfied with one year. Engineering firms will require longer term financial plans. This is because of the long head times needed for capital projects.
The Long-Range Financial Plan
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The \____ differs from company to company.
Planning Horizon
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Most firms will be satisfied with \___ of financial plan
One Year
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\___ will require longer term financial plan
Engineering Firms
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Engineering firms require longer term financial plans because of \___ needed for capital projects
Long Head Times
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It indicates the expenditures, revenues, or profits planned for some future period regarding operations
The Operating Budget
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It measure employee performance
Performance Appraisals
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it also function as effective checks on new policies and programs
Performance Appraisals
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It pertain to those that contain data on various developments within the firm
Statistical Reports
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it is the framework within which the objectives must be pursued
Policies
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It is the plan that describes the exact series of actions
Procedures
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When operations became complex, the engineer manager must consider steps in controlling
Identifying Control Problems
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Three Approaches mentioned by Kreitner:
Executive reality check; Comprehensive internal audit; General checklist of symptoms of inadequate control
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Employees at the frontline often complain that management imposes certain requirements that are not realistic.
Executive Reality Check
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It is one undertaken to determine the efficiency and affectivity of the activities of an organization.
Comprehensive Internal Audit
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If a comprehensive internal audit cannot be availed of for some reason, the use of a \____ may be used.
General Checklist of Symptoms of Inadequate Control