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Ch 6 - Control
Controlling: process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations
Purpose of control: to ensure that activities are completed in ways that lead to accomplishment of organisational goals
Planning and control links in management functions:
As the final step in the management process, controlling provides the critical link back to planning. If managers didn’t control, they’d have no way of knowing whether their goals and plans were being achieved and what future actions to take.
Planning: controls let managers know whether their goal and plans are on target and what future actions to take
Empowering employees: control systems provide managers with information and feedback on employee performance
Protecting the workplace: controls enhance physical security and help minimise workplace disruptions
Process of Control:
Measuring actual performance
Comparing actual performance against a standard
Taking action to correct deviations or inadequate standards
Performance: the end result of an activity
Organisational performance: the accumulated end results of all the organisation’s work processes and activities
Designing strategies, work processes, and work activities
Coordinating the work of employees
Productivity: the overall output of goods and services by the inputs needed to generate that output
Output: sales revenues
Inputs: costs of resources (materials, labour expense, and facilities)
Productivity is a measure of how efficiently employees do their work
Types of Control:
Feedforward control: a control that prevents anticipated problems before actual occurrences of the problem
Concurrent control: a control that takes place while the monitored activity is in progress
Direct supervision: management by walking around
Feedback control: a control that takes place after an activity is done
Corrective action is after-the-fact, when the problem has already occurred
Advantages of feedback control:
Provide managers with information on the effectiveness of their planning efforts
Enhance employee motivation by providing them with information on how well they are doing
