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2. Objectives
1. A definition of control
2. A thorough understanding of the controlling subsystem
3. An appreciation for various kinds of control and for how each kind can
be used advantageously by managers
4. Insights into the relationship between power and control
5. Knowledge of the various potential barriers that must be overcome to
implement successful control
6. An understanding of steps that can be taken to increase the quality of
a controlling subsystem
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3. The Fundamentals of Controlling
Defining Control
Control is making something happen the way it was planned
Planning and control are virtually inseparable functions
Siamese twins of management
Murphy’s Law
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4. The Fundamentals of Controlling
Defining Controlling
The Controlling Subsystem
The Controlling Process
 Measuring Performance
 How to Measure
 What to Measure
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5. The Fundamentals of Controlling
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6. The Fundamentals of Controlling
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7. The Fundamentals of Controlling
Defining Controlling (continued)
The Controlling Process (continued)
 Comparing Measured Performance to Standards
General Electric (GE) standards:
1. Profitability
2. Market position
3. Productivity
4. Product leadership
5. Personnel development
6. Employee attitudes
7. Social responsibility
8. Reflecting the relative balance between short- and long-range goals
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8. The Fundamentals of Controlling
Defining Controlling (continued)
The Controlling Process (continued)
 Taking Corrective Action
 Recognizing Problems
 Recognizing Symptoms
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9. The Fundamentals of Controlling
Types of Control
Precontrol
Concurrent Control
Feedback Control
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10. The Controller and Control
The Job of the Controller
Financial dimensions of the organization:
1. Profits
2. Revenues
3. Costs
4. Investments
5. Discretionary expenses
How Much Control Is Needed?
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11. The Controller and Control
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12. The Controller and Control
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13. Power and Control
A Definition of Power
Authority is the right to command or give orders
Power is the ability to influence others so they take orders
Total Power of a Manager
Position power
Personal power
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14. Power and Control
Steps for Increasing Total Power
1. Sense of obligation toward the manager
2. Belief that the manager possesses a high level of expertise
3. Sense of identification with the manager
4. Perception that they are dependent on the manager
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15. Performing the Control Function
Potential Barriers to Successful Controlling
Long-Term Versus Short-Term Production
Employee Frustration and Morale
Filing of Reports
Perspective of Organization Members
Mean Versus Ends
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16. Performing the Control Function
Making Controlling Successful
Specific Organizational Activities Being Focused On
Different Kinds of Organizational Goals
Timely Corrective Action
Communication of the Mechanics of the Control Process
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17. Questions
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