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Controlling
– The process of measuring performance and taking action
to ensure desired results.
– Has a positive and necessary role in the management
process.
– Ensures that the right things happen, in the right way, at
the right time.
– Organizational learning and after-action review.
4. Controlling as a Management Function
• Controlling
– A process of monitoring performance and taking
action to ensure desired results.
– It sees to it that the right things happen, in the
right ways, and at the right time.
– Done well, it ensures that the overall directions of
individuals and groups are consistent with short
and long range plans.
– It helps ensure that objectives and
accomplishments are consistent with one another
throughout an organization
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5. Definition of control
E .F. L. Breach has defined control as follows:
”control is the process of checking actual
performance against the agreed standards or
plans with a view to ensuring adequate progress
and satisfactory performance.”
According to koontz and weihrich, “The
managerial function of controlling is the
measurement and correction of the performance
in orders to make sure that enterprise objectives
and the plans devised to attain them are
accomplished.”
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Study Question 4: What is the
control process?
Steps in the control process:
– Step 1 — establish objectives and standards.
– Step 2 — measure actual performance.
– Step 3 — compare results with objectives and
standards.
– Step 4 — take corrective action as needed.
8. The process of control
Standards
Operations(organ
ising, staffing &
directing)
Performance
Meets
standards
Corrective
actions
Does not
meet
standard
9. Establish Objectives and Standards
• The control process begins with planning and
the establishment of performance objectives.
• Performance objectives are defined and the
standards for measuring them are set.
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10. Establish Objectives and Standards
• There are two types of standards:
– Output Standards - measures performance
results in terms of quantity, quality, cost, or time.
– Input Standards - measures work efforts that go
into a performance task.
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11. Measuring Actual Performance
• Measurements must be accurate enough to
spot deviations or variances between what
really occurs and what is most desired.
• Without measurement, effective control is
not possible.
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12. Comparing Results with Objectives
and Standards
• The comparison of actual performance with desired
performance establishes the need for action.
• Ways of making such comparisons include:
– Historical / Relative / Engineering
– Benchmarking
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13. Taking Corrective Action
• Taking any action necessary to correct or improve
things.
• Management-by-Exception focuses managerial
attention on substantial differences between
actual and desired performance.
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14. Taking Corrective Action
– Management-by Exception can save the
managers time, energy, and other resources,
and concentrates efforts on areas showing the
greatest need.
– There are two types of exceptions:
• Problems - below standard
• Opportunities - above standard
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The role of feedforward, concurrent, and
feedback controls in organizations.
16. An effective system of control will help in
achieving the following benefits:
1) Coordination.
2)Corrective action.
3)Decision-making.
4)Better planning.
5)Decentralisation of authority.
6) Effective supervision.
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Management by Objectives (MBO)
– A structured process of regular communication.
– Supervisor/team leader and workers jointly set
performance objectives.
– Supervisor/team leader and workers jointly review
results.
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Management by objectives as an integrated
planning and control framework.
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MBO involves a formal agreement specifying …
– Workers’ performance objectives for a specific time
period.
– Plans through which performance objectives will be
accomplished.
– Standards for measuring accomplishment of performance
objectives .
– Procedures for reviewing performance results.
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The MBO process:
– Supervisor and workers jointly set objectives,
establish standards, and choose actions.
– Workers act individually to perform tasks;
supervisors act individually to provide necessary
support.
– Supervisor and workers jointly review results,
discuss implications, and renew the MBO cycle.
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Types of MBO performance objectives
– Improvement
– Personal development
– Maintenance
Criteria for effective performance objectives
– Specific
– Time defined
– Challenging
– Measurable
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Advantages of MBO
– Focuses workers on most important tasks and
objectives.
– Focuses supervisor’s efforts on important areas of
support.
– Contributes to relationship building.
– Gives workers a structured opportunity to
participate in decision making.
