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
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.