The nature and significance of control


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The nature and significance of control

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  3. 3.  Control consist in verifying whethereverything occurs in conformity with the planadopted, the instructions issued and theprinciples established. It has for it’s objectto point out weakness and errors in order torectify them and prevent recurrences. ‘HENRI FAYOL’3
  4. 4.  Controlling is measuring and correcting ofactivities of subordinates to ensure thatevents confirms to plan.‘ KOONTZ & O’DONNELL’4
  5. 5.  Objective Elements Responsibility Spheres Inevitable & Dynamic activity Forward looking Inter-dependence5
  6. 6.  Proper execution of management function. Proper use of human and material resources. Facilitates decision-making. Maintains discipline. Improve morale. Increases output. Effectiveness.6
  7. 7.  To achieve planned objective. To discover and identify deficiency. To develop suitable actions. To provide proper directions.7
  8. 8.  Market control Bureaucratic control Clan control8
  9. 9. It is a three step process :• Measuring actual performance ,• Comparing it against a standard• Taking managerial actions to correctdeviations or inadequate standards.9
  10. 10. 10MeasuringactualperformanceTakingmanagerialactionsGOALS ANDOBJECTIVESorganizationaldivisionaldepartmentalindividualComparing actualPerformance againstStandard.STEP 1STEP 3THE CONTROL PROCESSSTEP 2
  11. 11.  Purpose is to determine the actualperformance of an employee.HOW WE MEASURE? There are four ways;1. personal observation.2. statistical reports.3. oral reports.4. written reports. In general ,combination these are used by themanager to get reliable information.11
  12. 12.  Involves measuring the works in terms of controlstandards and communicating the appraisal tothe persons who can take corrective actions. Tangible aspects can be measured easily asstandards are clear. These can measured in termsof numbers ,quantity ,money , time etc and caneasily be compared against standards. Difficulty arises when it comes to measureintangible aspects , which are measuredindirectly ,for example ,company goodwill &reputation is measured on the basis of trend ofsales , readiness of creditors ,ease of gettingloans ,value of shares in market and so on.12
  13. 13. 13 advantages  drawbacks Firsthandknowledge. Proper covering ofwork activities. Easy visualization. Faster way. Allows feedback. Comprehensive Formal Easydocumentation. Personal biases. Time consuming. Limitedinformation. Ignore subjectiveissues. Information can befiltered. Information can`tbe documented. Time consuming.PersonalobservationStatistical reportsOralreportsWrittenreports
  14. 14.  Final step in the control process. Manager can choose from three possiblecourse of action: FIRST: if results are satisfactory no correctiveaction is taken. SECOND: Correction of actual performance. THIRD: Revision of standards.14
  15. 15.  If variation in performance is due tounsatisfactory works ,corrective action isrequired. These measures could be changing strategy, changing structures ,compensation practices,training program ,redesigning jobs ,or firingemployees. Immediate corrective action corrects problemsat once to get performance back on track. Basic corrective action looks at how and whyperformance has deviated and then proceedsto correct the reasons of deviation.15
  16. 16.  If the variation was a result of an unrealisticstandards i.e. the goals are too high or toolow ,then the standards require correctiveattention. But one must keep in mind that it is thesestandards which are generally blamed forvariation even when the main reason isunderperformance ,so one must be sureabout the fairness and achievability ofstandards.16
  17. 17.  Control can be implemented before anactivity begins: FEEDFORWARD CONTROL. During the time an activity is going on :CONCURRENT CONTROL. After an activity has been completed:FEEDBACK CONTROL. BALANCED SCORECARD: it is performancemeasurement tool. BENCHMARKING: a standard setting tool.17
  18. 18.  Here managerial actions are taken before aproblem arises. Feed forward control is the most desirablebecause it prevent problems rather thancorrecting them when the damage hasoccurred. Since it requires timely and accurateinformation managers generally end up usingother types of controls.18
  19. 19.  In this type of control problems can becorrected before they become too costly. The best form of this control is directsupervision , where manager monitors theaction of the employees and correct problemsas they occur. Here balanced scorecard method could beused to measure the performance of theemployee.19
  20. 20.  Most popular type of control process. Feedback tells how efficient was the planning. Feedback also enhance employee motivation. Drawback to feedback control is that till weapply control waste or damage have alreadyoccurred.20
  21. 21.  A performance measurement tool that looksat four areas- financial ,customer ,internalprocess and people/innovation/growthassets- that contribute to a company’sperformance. With this approach managers should developgoals in each of the four areas and measureto determine if these goals are met. This scorecard reflect the strategy of thecompany.21
  22. 22.  Benchmarking is the search for the bestpractices among competitors ,non-competitors or self that leads to their or oursuperior performance. Benchmark is the standard of excellenceagainst which to measure and compare theperformance of the company. As a tool of setting standards benchmarkingcan be used to identify specific performancegap and potential areas of development.22
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