Part 5

Controlling

Chapter 13

Exercising
Control

Mosley • Pietri
PowerPoint Presentation by Charlie Cook
The Universit...
Learning Objectives
Learning Objectives
After reading and studying this chapter, you should
be able to:
1. Define control ...
What is Control?
• Controlling Defined
 Comparing actual performance with planned

performance and taking corrective acti...
EXHIBIT 13.1

Murphy’s Laws

• Left to themselves, things always go from bad to worse.
• There’s never time to do it right...
Control’s Close Links to Planning
• Importance of Controls
 Plans represent the setting of goals to be reached.
 Control...
EXHIBIT 13.2

Some Common Examples of Supervisory Control

• At the end of the workday, a production supervisor spends 30
...
Types of Control Systems
• Feedforward Controls
 Preventive controls that try to anticipate problems

and take corrective...
EXHIBIT 13.3

Tips for Establishing Preventive Controls

1. Identify your department’s major goals.
2. Identify those fact...
EXHIBIT 13.4

Steps in the Control Process

© 2008 Thomson/SouthWestern. All rights reserved.

13–9
Types of Standards
• Tangible Standards
 Clear, concrete, specific, and generally measurable.

A unit of measurement that...
EXHIBIT 13.5

Controlling Intangible Standards

Intangible Standards
Relate to human characteristics and are not expressed...
Step 1: Establishing Performance
Standards

• How Standards Are Set
 Supervisors

 Various staff departments:
 Industri...
EXHIBIT 13.6

Types of Standards for Various Positions

Position

Type of Standard

Bank teller

Monetary (balance), time ...
Step 2: Measuring Performance
• Issues in Measuring Performance
 How often to measure performance?
 How to measure perfo...
EXHIBIT 13.7

Setting Strategic Control Points in the Control Process

Strategic Control Point
A performance measurement p...
EXHIBIT 13.8

Example of a Written Report about an Employee

© 2008 Thomson/SouthWestern. All rights reserved.

13–16
Step 3: Comparing Performance with
Standards and Analyzing
Deviations
• It is important to:
 Identify the causes of probl...
Step 4: Taking Corrective Action if
Necessary
• Taking Corrective Action:
 Modifications, adjustments, and fine-tuning do...
EXHIBIT 13.9

Management by Exception

Management by Exception
A supervisor focuses on critical
control needs and allows
e...
Self-Check: Week One
Suppose you are a sales supervisor and your departmental sales goal is
800 units weekly (or 3,200 uni...
Self-Check: Week Two
Suppose that at the end of the second week, sales results are as shown:

What will you do now?

© 200...
The Impact of Technology on Control
• The growth of information technology
has redistributed power in organizations,
thus ...
Important Terms
Important Terms
•
•
•
•
•

concurrent controls
feedback controls
feedforward controls
intangible standards...
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BUS 51 - Mosley7e ch13

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Cengage Professor, Karen Gordon-Brown, Peralta Community College District @ Merritt College, Oakland, CA
kgordon@peralta.edu

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  • BUS 51 - Mosley7e ch13

    1. 1. Part 5 Controlling Chapter 13 Exercising Control Mosley • Pietri PowerPoint Presentation by Charlie Cook The University of West Alabama © 2008 Thomson/South-Western All rights reserved.
    2. 2. Learning Objectives Learning Objectives After reading and studying this chapter, you should be able to: 1. Define control and explain how it relates to planning. 2. Discuss the characteristics of effective control systems. 3. Discuss the three types of control systems. 4. Discuss the four steps in the control process. 5. Identify the different types of standards. 6. Explain the importance of strategic control points. 7. Discuss management by exception. 8. Discuss the impact of technology on control. © 2008 Thomson/SouthWestern. All rights reserved. 13–2
    3. 3. What is Control? • Controlling Defined  Comparing actual performance with planned performance and taking corrective action, if needed, to ensure that objectives are achieved. • Phases of Control 1. Anticipating the things that could go wrong and taking preventive measures to see that they don’t 2. Monitoring or measuring performance to compare what is actually happening with what is supposed to be happening 3. Correcting performance problems that occur. © 2008 Thomson/SouthWestern. All rights reserved. 13–3
    4. 4. EXHIBIT 13.1 Murphy’s Laws • Left to themselves, things always go from bad to worse. • There’s never time to do it right, but always time to do it over. • If anything can go wrong, it will. • Of the things that can go wrong, the one that will is capable of the most possible damage. • If you think nothing can go wrong, you have obviously overlooked something. • Of those things that “cannot” go wrong, the most unlikely one will. • Inside every large problem are many small problems struggling to get out. • Any object will fall so that it lands in the one spot where it is capable of doing the most damage. © 2008 Thomson/SouthWestern. All rights reserved. 13–4
    5. 5. Control’s Close Links to Planning • Importance of Controls  Plans represent the setting of goals to be reached.  Controls provide information about progress toward goals which supervisors use to make adjustments to achieve goals • Effective Control Systems Are:  Focused on appropriate activities.  Timely.  Cost-effective.  Accurate and concise.  Accepted by the people they affect. © 2008 Thomson/SouthWestern. All rights reserved. 13–5
    6. 6. EXHIBIT 13.2 Some Common Examples of Supervisory Control • At the end of the workday, a production supervisor spends 30 minutes examining a printout showing each employee’s output, quality, and scrap. The supervisor notes those employees whose performance is below par and makes plans to discuss their performance with them the next day. • A nursing supervisor studies a survey completed by all patients who were housed in her ward in the past 6 months. The survey lists items such as nurses’ friendliness, professionalism, appearance, and a number of other factors related to job performance. • A maintenance supervisor tours the building, examining the progress of each worker or work team. • After a college football game, the head defensive coach views the game films several times, assigning performance grades to each defensive player. Grades below 60 reflect areas to which the © 2008 Thomson/South- attention during upcoming practices. coach must devote special Western. All rights reserved. 13–6
    7. 7. Types of Control Systems • Feedforward Controls  Preventive controls that try to anticipate problems and take corrective action before they occur. • Concurrent Controls (Screening Controls)  Controls used while an activity is taking place. • Feedback Controls  Controls that measure completed activities and then take corrective action if needed. © 2008 Thomson/SouthWestern. All rights reserved. 13–7
    8. 8. EXHIBIT 13.3 Tips for Establishing Preventive Controls 1. Identify your department’s major goals. 2. Identify those factors most crucial to accomplishing your department’s major goals. These may be items such as properly running machinery and equipment, availability of raw materials, availability of key personnel, or a balanced demand for your department’s services. 3. Determine the most likely problems or circumstances that could prevent the items in (2) from occurring. These could be factors such as machine breakdown or absence of key personnel. 4. Develop a plan for preventing the problems listed in (3). You might consider input from employees, staff personnel, your immediate supervisor, peers, and others in arriving at your preventive control plans. © 2008 Thomson/SouthWestern. All rights reserved. 13–8
    9. 9. EXHIBIT 13.4 Steps in the Control Process © 2008 Thomson/SouthWestern. All rights reserved. 13–9
    10. 10. Types of Standards • Tangible Standards  Clear, concrete, specific, and generally measurable. A unit of measurement that can serve as a reference point for evaluating results.  Numerical Standards – Standards expressed in numbers.  Monetary standards – Standards expressed in dollars and cents.  Physical Standards – Refer to quality, durability, size, and weight.  Time Standards – Standards expressed in terms of time. © 2008 Thomson/SouthWestern. All rights reserved. 13–10
    11. 11. EXHIBIT 13.5 Controlling Intangible Standards Intangible Standards Relate to human characteristics and are not expressed in terms of numbers, money, physical qualities, or time. © 2008 Thomson/SouthWestern. All rights reserved. 13–11
    12. 12. Step 1: Establishing Performance Standards • How Standards Are Set  Supervisors  Various staff departments:  Industrial engineering  Quality control  Cost accounting  Budgeting  Personnel © 2008 Thomson/SouthWestern. All rights reserved. 13–12
    13. 13. EXHIBIT 13.6 Types of Standards for Various Positions Position Type of Standard Bank teller Monetary (balance), time (speed of teller line), physical (orderliness of work area) Postal letter carrier Time (hours taken to complete run) Server in a large restaurant Physical (appearance), time (speed), intangible (courtesy and friendliness) Real estate salesperson Monetary (volume), numerical (number of listings and closings) Offensive-line football coach Numerical (yards per game rushing), intangible (leadership of players) Upholsterer in a manufacturing plant Numerical (number of units completed), physical (quality of units) Third-grade teacher Intangible (appearance, classroom behavior), physical (quality of lesson plans) © 2008 Thomson/SouthWestern. All rights reserved. 13–13
    14. 14. Step 2: Measuring Performance • Issues in Measuring Performance  How often to measure performance?  How to measure performance? • Ways to Measure Performance 1. Personal observation 2. Written or oral reports by or about employees 3. Automatic methods 4. Inspections, tests, or samples © 2008 Thomson/SouthWestern. All rights reserved. 13–14
    15. 15. EXHIBIT 13.7 Setting Strategic Control Points in the Control Process Strategic Control Point A performance measurement point located early in an activity to allow any corrective action to be taken. © 2008 Thomson/SouthWestern. All rights reserved. 13–15
    16. 16. EXHIBIT 13.8 Example of a Written Report about an Employee © 2008 Thomson/SouthWestern. All rights reserved. 13–16
    17. 17. Step 3: Comparing Performance with Standards and Analyzing Deviations • It is important to:  Identify the causes of problems before taking corrective action.  To compare results that are substantially above standard in order to determine why they varied from standard.  To find out the opinions of those close to a particular problem to determine why standards are not being met. © 2008 Thomson/SouthWestern. All rights reserved. 13–17
    18. 18. Step 4: Taking Corrective Action if Necessary • Taking Corrective Action:  Modifications, adjustments, and fine-tuning done in response to problems encountered earlier.  Examples: Making a decision to retrain a new operator whose performance has not progressed as expected.  Shifting employees from their normal jobs to help meet a deadline on another job.  Counseling an employee whose performance has recently been below standard.  Reprimanding an employee for failure to adhere to safety rules.  © 2008 Thomson/SouthWestern. All rights reserved. 13–18
    19. 19. EXHIBIT 13.9 Management by Exception Management by Exception A supervisor focuses on critical control needs and allows employees to handle most routine deviations from the standard. © 2008 Thomson/SouthWestern. All rights reserved. 13–19
    20. 20. Self-Check: Week One Suppose you are a sales supervisor and your departmental sales goal is 800 units weekly (or 3,200 units monthly). Each of your eight sales representatives, then, has a goal of 100 units weekly (or 400 units monthly). At the end of the first week, your sales results are as follows: What corrective action will you take? © 2008 Thomson/SouthWestern. All rights reserved. 13–20
    21. 21. Self-Check: Week Two Suppose that at the end of the second week, sales results are as shown: What will you do now? © 2008 Thomson/SouthWestern. All rights reserved. 13–21
    22. 22. The Impact of Technology on Control • The growth of information technology has redistributed power in organizations, thus enhancing the position of supervisors. © 2008 Thomson/SouthWestern. All rights reserved. 13–22
    23. 23. Important Terms Important Terms • • • • • concurrent controls feedback controls feedforward controls intangible standards management by exception © 2008 Thomson/SouthWestern. All rights reserved. • • • • • • • monetary standards numerical standards physical standards standard strategic control point tangible standards time standards 13–23
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