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1. CHAPTER 7: CONTROLLING
Lecturer: Duong Thi Hoai Nhung (MBA)
Faculty of Business Administration
Foreign Trade University
Email: nhungdth@ftu.edu.vn
Mobile: 0985 867 488

2. OUTLINE
1. What is control? Why is control important?
2. The control process
• Measuring
• Comparing
• Taking management action
• Summary of managerial decisions
3. Tools of controlling organizational
performance
• Feed-forward
• Concurrent
• Feedback controls

3. 1. What is control?
- Control is the process of monitoring activities to ensure that they are being
accomplished as planned and of correcting any significant deviations.
- Purpose of controlling: ensures that activities are completed in ways that lead to
the attainment of the organizational goals.

4. Why Is Control 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. 2. The control process
Exhibit: The control process (Source: Robbins, 2006, p.660)

6. a. Measuring
How and What We Measure??
2. The control process
Sources of Information
 Personal
observation
 Statistical reports
 Oral reports
 Written reports
Control Criteria
 Employees
• Satisfaction
• Turnover
• Absenteeism
 Budgets
• Costs
• Output
• Sales

7. a. Measuring
2. The control process
Exhibit: Common sources of information for measuring performance
(Source: Robbins, 2006, p.661)

8. b. Comparing
The comparing step determines the degree of variation between
actual performance and the standard
2. The control process
Exhibit: Defining the Acceptable Range of Variation
(Sources: Robbins, 2006, p.661)

9. c. Taking managerial action
• To correct deviations or inadequate standards
– Immediate corrective action
• Correcting a problem at once to get performance back
on track
– Basic corrective action
• Determining how and why performance has deviated
and then correcting the source of deviation
– Revising the standard
• Adjusting the performance standard to reflect current
and predicted future performance capabilities
2. The control process

10. 2. The Control Process
Identify
Causes
Correct
Performance
Variance
Acceptable?
Revise
Standard
Standard
Attained?
Standard
Acceptable?
Yes
Yes
Yes
No
No
No
Compare
Performance
to Standard
Measure
Performance
Objectives
Standard
Do Nothing
Do Nothing
Exhibit: Managerial Decisions in the Control Process (Source: Robbins, 2006, p.663

11. 3. Tools for controlling organizational performance
Exhibit: Types of Control (Source: Robbins, 2006, p.671)

12. • Feed-forward control
– Control that prevents anticipated problems
• Concurrent control
– Control that takes place while an activity is in
progress
• Feedback control
– Control that takes place after an action
• Provides evidence of planning effectiveness
• Provides motivational information to employees
3. Tools for controlling organizational performance

13. Control Measures for Deterring or Reducing Workplace Violence
Sources: Based on M. Gorkin, “Five
Strategies and Structures for Reducing
Workplace Violence,” Workforce Online
(www.workforce.com). December 3,
2000; “Investigating Workplace Violence:
Where Do You Start?” Workforce Online
(www.forceforce.com), December 3,
2000; “Ten Tips on Recognizing and
Minimizing Violence,” Workforce Online
(www.workforce.com), December 3,
2000; and “Points to Cover in a Workplace
Violence Policy,” Workforce Online
(www.workforce.com), December 3,
2000.

14. Contemporary Issues in Control
• Cross-Cultural Issues
– The use of technology to increase direct corporate
control of local operations
– Legal constraints on corrective actions in foreign
countries
– Difficulty with the comparability of data collected from
operations in different countries