The document discusses controlling as the management function that establishes performance standards and monitors actual performance to ensure goals are met. It describes controlling as setting guidelines for measuring capacity, quality, costs and other metrics for people, processes and devices. Effective control systems integrate feedforward, concurrent and feedback controls to enforce standards at critical points while balancing costs and benefits.

1. Controlling: Purpose and Process
MultiMedia by 2002 South-

2. Six Sigma
• A process quality goal.
• Highly disciplined process.
• Helps companies focus on developing and
delivering near-perfect products and services.
• Statistical goal: 3.4 defects per million transactions.
MultiMedia by 2002 South-

3. Controlling
 The function in which managers set and communicate
performance standards for people, processes, and
devices.
 Is about managing risks.
 A standard is any guideline or benchmark established
as the basis for the measurement of capacity,
quantity, content, value, cost, quality, or performance.
MultiMedia by 2002 South-

4. Risk Managers
Monitor people and processes
Help transform functional managers into advisers and
consultants
Teach others how to deal with the risks that haunt
their areas of expertise
MultiMedia by 2002 South-

5. Bittel (1989)
“Controlling is the function that brings the
management cycle full circle. It is the
steering mechanism that links all the
preceding functions of organizing, staffing,
and [leading] to the goals of planning.”
MultiMedia by 2002 South-

6. Control Process
MultiMedia by 2002 South-

7. Establishing Performance
Standards
Use a quantitative or qualitative
Point 1
measuring device.
Point 2 Designed to monitor people,
money, capital goods, or processes.
MultiMedia by 2002 South-

8. The Nature of a Standard
Depends On
• Who designs, works with, • Where monitoring efforts
and receives the output will take place (location and
from controls. functional area).
• What is being monitored. • When controls will be used.
• What is to be achieved • What resources are available
through monitoring. to expend on the controls.
MultiMedia by 2002 South-

9. Productivity
The amount of output achieved from the
use of a given amount of inputs.
Can be measured quantitatively.
Can be measured qualitatively.
MultiMedia by 2002 South-

10. Quality
Is customer satisfaction.
Begins with the standards and methods used to
recruit, hire, train, evaluate, and reward employees.
Must exist within every person and process.
Must be a core value within an organization’s
culture.
MultiMedia by 2002 South-

11. To Control Quality
 Companies create standards and quality assurance
(QA) systems.
 A QA system focuses on constant incremental
quality improvement [kaizen] measurements and
results.
MultiMedia by 2002 South-

12. Measuring Performance
• Measure actual performance to determine variation
from standard.
• Mechanisms for this purpose can be extremely
sensitive.
• Computers are increasingly important as tools for
measuring performance.
MultiMedia by 2002 South-

13. Comparing Measured Performance
to Established Standards
1. Compare actual 2. If deviations exist,
performance to the the evaluator must
standards set for that decide if they are
purpose. significant.
5. May require
4. The source of a examining the
3. The evaluator must deviation may lie standards being
determine what is beyond the employee applied and the
causing the variance. who first discovers it. accuracy of the
measurement and
comparison processes.
MultiMedia by 2002 South-

14. Productivity and Quality-Centered
Environment of Today
• Workers and managers are often empowered to evaluate
their own work for:
– Quality
– Productivity
– Cost improvements
• Individuals and groups are being given the responsibility
to control their behavior and operations.
MultiMedia by 2002 South-

15. Types of Controls
for Restaurant Operations
MultiMedia by 2002 South-

16. Feedforward Controls
 Focus on operations before they begin.
 Sometimes called preliminary, screening, or
prevention controls.
 Intended to prevent defects and deviations from
standards.
MultiMedia by 2002 South-

17. Concurrent Controls
 Apply to processes as they are happening.
 The most important concurrent control in any
undertaking is often the skilled and experienced
operator.
MultiMedia by 2002 South-

18. Feedback Controls
 Focus on the results of operations.
 After-the-fact, or postperformance, controls.
 Information is fed back into the process or to the
controller.
MultiMedia by 2002 South-

19. Control Systems
Feedforward, concurrent , and feedback controls should
be viewed as part of an overall control system.
Managers integrate suitable control combinations to
enforce standards.
Make sure elements function smoothly with one another.
Ensure that resources are used effectively and efficiently.
MultiMedia by 2002 South-

20. Controls Focus on
Inputs Outputs
Processes
MultiMedia by 2002 South-

21. Critical Control Points
• All the operations that directly affect the survival of
an organization.
• Should focus on:
– Those points at which failures cannot be tolerated.
– Where time and money costs are greatest.
• The objective is to apply controls to the essential
aspects of a business, not the peripheral ones.
MultiMedia by 2002 South-

22. Six Characteristics
Of Effective Controls
 Economic
 Integration
Feasibility
 Acceptability  Accuracy
 Timelines  Comprehensibility
MultiMedia by 2002 South-

23. Controls are Effective
as Long as They
Do what they are
intended to do.
Do not generate Do not result in costs
opposition. greater than the
benefits they provide.
MultiMedia by 2002 South-

24. Controls are Designed to Deal
With
1. Specific people
2. Processes
3. Circumstances
MultiMedia by 2002 South-

25. Changes that Require
Reexamination of Controls
 Changes to Mission
 Structural Changes
 Changes in Decision Making
 Changes in Human Relations
 Technological Changes
MultiMedia by 2002 South-