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PMG 1104
Controlling
18–2
What Is Control?
 CONTROL
The process of monitoring activities to
ensure that they are being accomplished
as planned and of correcting any
significant deviations.
 THE PURPOSE OF CONTROL
To ensure that activities are
completed in ways that lead to
accomplishment of organizational
Why Control is Important?
 As the final link in management functions:
 Planning
 Controls let managers know whether their
goals 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
minimize workplace disruptions.
Tools for Controlling Organizational Performance
• Feedforward Control
– A control that prevents anticipated problems before
actual occurrences of the problem.
• Building in quality through design.
• Concurrent Control
– Control that monitors ongoing employee activities to
ensure they are consistent with performance
standards.
• Direct supervision: management by walking around.
• When managers use management by walking around, which is
a term describing when a manager is out in the work area
interacting directly with employees, they're using concurrent
control.
• 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 controls
• Feedback provides managers with
information on the effectiveness of their
planning efforts.
• Feedback enhances employee motivation by
providing them with information on how well
Organizational Control Focus
Feedforward Control
Anticipates Problems
Examples
• Pre-employment
drug testing
•Inspect raw materials
•Hire only college
graduates
Focus
is
on
Inputs
Concurrent Control
Solve Problems as
They Happen
Examples
•Adaptive culture
•Total quality
management
•Employee
self-control
Focus
is
on
Ongoing
Processes
Feedback Control
Solves Problems
After They Occur
Examples
•Analyze sales per
employee
•Final quality
inspection
•Survey customers
Focus
is
on
Outputs
Developed by Cool Pictures & MultiMedia Presentations
Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
Scope of Control in the Organization
 Strategic Control
 Strategy refers to the direction for the
organization as a whole.
 It is linked to the mission of the organization
and
to the basic plans for achieving that mission.
 focused on how the organization as a whole
fits
its external environment and meets its long-
range
 Tactical Control
 Focuses on the implementation of strategy.
 Tactical control forms the heart @ the soul of
an organization’s total sets of controls.
 4 types of tactical control systems are:
I. Financial controls
II. Budgets
III. The supervisory structure
IV. Human resources policies and
procedure.
Tactical Control
• FINANCIAL CONTROLS
– Is the control of financial resources as they flow into the
organization.
• BUDGET CONTROLS
– Typically cover a relatively limited time frame (usually
one year)
– Focus exclusively on one type of objective (financial)
– Usually cannot be used to compare a total organization’s
progress relative to its competitors.
• SUPERVISORY STRUCTURE
– In organizations of any size, there is always someone or
some group to which an employee or manager reports.
 HUMAN RESOURCE CONTROLS
Training can enhance the consistency
with which skills will elevate performance
to meet standards.
Appraisal and evaluation methods
reinforce desired behavior and
discourage undesirable levels of
performance.
Selection procedures can specify the
range of abilities that will be brought into
the organization.
Total Quality Management
• TQM is the integration of all functions and
processes within an organization in order to
achieve continuous improvement of the
quality of goods and services. The goal is
customer needs & satisfaction.
• For workforce work more systematic.
TQM Techniques
1) Quality Circles
 a group of 6 to 12 volunteer employees
 meet at a set time during the workweek
 identify problems
 Try to find solutions
2) Benchmarking
 Benchmarking may be considered as a way to
reference a good organization.
3) Six Sigma
 Six Sigma is a business management strategy
originally developed by Motorola, USA in 1981.
 Six Sigma seeks to improve the quality of process
outputs by identifying and removing the causes of
defects (errors) and minimizing variability in
manufacturing and business processes.
4) Cycle time Reduction
Cycle-time is the time required to deliver a product or
service to a customer. Long cycle-times not only
prevent prompt delivery of product/ service to your
customers, but also increase costs. One of the best
ways to cut down on your cycle-time is to conduct
activities in parallel and eliminate unnecessary
waste times .
 Ways of reducing cycle times through process redesign
1. Eliminate activities
2. Reduce waiting and processing time
3. Eliminate rework
4. Perform activities in parallel
TQM Techniques
5) Continuous Improvement
the implementation of a large
number of small, incremental
improvements in all areas of the
organization on an ongoing basis.

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CONTROLLING.ppt

  • 2. 18–2 What Is Control?  CONTROL The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations.  THE PURPOSE OF CONTROL To ensure that activities are completed in ways that lead to accomplishment of organizational
  • 3.
  • 4. Why Control is Important?  As the final link in management functions:  Planning  Controls let managers know whether their goals 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 minimize workplace disruptions.
  • 5.
  • 6. Tools for Controlling Organizational Performance • Feedforward Control – A control that prevents anticipated problems before actual occurrences of the problem. • Building in quality through design. • Concurrent Control – Control that monitors ongoing employee activities to ensure they are consistent with performance standards. • Direct supervision: management by walking around. • When managers use management by walking around, which is a term describing when a manager is out in the work area interacting directly with employees, they're using concurrent control.
  • 7. • 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 controls • Feedback provides managers with information on the effectiveness of their planning efforts. • Feedback enhances employee motivation by providing them with information on how well
  • 8. Organizational Control Focus Feedforward Control Anticipates Problems Examples • Pre-employment drug testing •Inspect raw materials •Hire only college graduates Focus is on Inputs Concurrent Control Solve Problems as They Happen Examples •Adaptive culture •Total quality management •Employee self-control Focus is on Ongoing Processes Feedback Control Solves Problems After They Occur Examples •Analyze sales per employee •Final quality inspection •Survey customers Focus is on Outputs Developed by Cool Pictures & MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning. All rights reserved.
  • 9. Scope of Control in the Organization  Strategic Control  Strategy refers to the direction for the organization as a whole.  It is linked to the mission of the organization and to the basic plans for achieving that mission.  focused on how the organization as a whole fits its external environment and meets its long- range
  • 10.  Tactical Control  Focuses on the implementation of strategy.  Tactical control forms the heart @ the soul of an organization’s total sets of controls.  4 types of tactical control systems are: I. Financial controls II. Budgets III. The supervisory structure IV. Human resources policies and procedure.
  • 11. Tactical Control • FINANCIAL CONTROLS – Is the control of financial resources as they flow into the organization. • BUDGET CONTROLS – Typically cover a relatively limited time frame (usually one year) – Focus exclusively on one type of objective (financial) – Usually cannot be used to compare a total organization’s progress relative to its competitors. • SUPERVISORY STRUCTURE – In organizations of any size, there is always someone or some group to which an employee or manager reports.
  • 12.  HUMAN RESOURCE CONTROLS Training can enhance the consistency with which skills will elevate performance to meet standards. Appraisal and evaluation methods reinforce desired behavior and discourage undesirable levels of performance. Selection procedures can specify the range of abilities that will be brought into the organization.
  • 13. Total Quality Management • TQM is the integration of all functions and processes within an organization in order to achieve continuous improvement of the quality of goods and services. The goal is customer needs & satisfaction. • For workforce work more systematic.
  • 14. TQM Techniques 1) Quality Circles  a group of 6 to 12 volunteer employees  meet at a set time during the workweek  identify problems  Try to find solutions 2) Benchmarking  Benchmarking may be considered as a way to reference a good organization. 3) Six Sigma  Six Sigma is a business management strategy originally developed by Motorola, USA in 1981.  Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.
  • 15. 4) Cycle time Reduction Cycle-time is the time required to deliver a product or service to a customer. Long cycle-times not only prevent prompt delivery of product/ service to your customers, but also increase costs. One of the best ways to cut down on your cycle-time is to conduct activities in parallel and eliminate unnecessary waste times .  Ways of reducing cycle times through process redesign 1. Eliminate activities 2. Reduce waiting and processing time 3. Eliminate rework 4. Perform activities in parallel TQM Techniques
  • 16. 5) Continuous Improvement the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.