Feedforward : use in the input stage of the process.
Managers anticipate problems before they arise.
Managers can give rigorous specifications to suppliers to avoid quality
Concurrent : gives immediate feedback on how inputs are converted into outputs.
Allows managers to correct problems as they arise.
Managers can see that a machine is becoming out of alignment and fix it.
Feedback : provides after the fact information managers can use in the future.
Customer reaction to products are used to take corrective action in the future.
The Control Process Objectives Standard Measure actual performance Compare actual performance with standard Is standard being attained? Is variance acceptable? Is standard acceptable? Revise standard Do nothing Do nothing Identify cause of variation Correct performance No No No Yes Yes Yes
Control Process Steps Establish standards of performance, goals, or targets against which performance is evaluated. Measure actual performance Compare actual performance against chosen standards Evaluate results and take corrective action when the standard is not being achieved. 1. 2. 3. 4.
The Goal-Setting Process Corporate level managers set goals for individual decisions to allow organization to achieve corporate goals. Divisional managers set goals for each function to allow the division to achieve its goals. Functional managers set goals for each worker to allow the function to achieve its goals.
Organizational Control Systems Output Control Behavior Control Culture or Clan Control Financial Measures or performance Goals Operating budgets Direct supervision Management by Objective (MBO) Rules & Standard Operating Procedures Values Norms Socialization
Focuses attention on exceptionally serious deviations from the plans and standards
Characteristics of an Effective Control System
Sound and Economical
Objective and Impersonal
Responsibility for failures
Contingency Factors Organization size Small Large Informal, personal, management by walking around Formal, impersonal, extensive rules and regulation Position and level High Low Many criteria Few, easy-to-measure criteria High Degree of decentralization Low Increased number and breath of controls Reduced number of control Organizational culture Open and supportive Threatening Informal, self-control Formal, externally imposed controls Importance of an activity High Low Elaborate, comprehensive controls Loose, informal controls