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Managing Organizational Control: Unit Vii

This document discusses organizational control as a management function that involves establishing objectives and standards, measuring performance, comparing results to objectives, and taking corrective action. It describes control as a process that ensures the right actions are taken at the right time. The document also differentiates between internal and external controls, feedforward, concurrent, and feedback controls, and outlines the typical steps in an organizational control process.

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44 views17 pages

Managing Organizational Control: Unit Vii

This document discusses organizational control as a management function that involves establishing objectives and standards, measuring performance, comparing results to objectives, and taking corrective action. It describes control as a process that ensures the right actions are taken at the right time. The document also differentiates between internal and external controls, feedforward, concurrent, and feedback controls, and outlines the typical steps in an organizational control process.

Uploaded by

rock star
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Managing Organizational

Control

UNIT VII
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.
As a Management
Function
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.
It helps maintain compliance with essential
organizational rules and policies.
Cybernetic Control
System
One that is self-contained in its performance
monitoring and correction capabilities.
(thermostat)
The control process practiced in organizations
is not cybernetic, but it does follow similar
principles.
The Control Process

 Establish objectives and standards.


 Measure actual performance.
 Compare results with objectives and
standards.
 Take necessary action.
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.
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.
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.
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:
Relative
Benchmarking
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.
Effective Controls

Timely and exception oriented


 Positive in nature
 Fair and objective
 Flexible
Types of Control

 feedforward controls, they are


accomplished before a work activity begins.
They make sure that proper directions are
set and that the right resources are available
to accomplish them.
Types of Control

 Concurrent
Focus on what happens during the work
process. Sometimes called steering
controls, they monitor ongoing operations
and activities to make sure that things are
being done correctly.
Types of Control

 feedback controls, they take place after an


action is completed. They focus on end
results, as opposed to inputs and activities.
Types of Controls

Managers have two broad options with


respect to control.
 They can rely on people to exercise self-
control (internal) over their own behavior.
 Alternatively, managers can take direct
action (external) to control the behavior of
others.
Types of Control

 Internal Controls
Allows motivated individuals to exercise
self-control in fulfilling job expectations.
The potential for self-control is enhanced when
capable people have clear performance objectives
and proper resource support.
Types of Control

 External Controls
It occurs through personal supervision and the use of
formal administrative systems.
Performance appraisal systems, compensation and
benefit systems, employee discipline systems, and
management-by-objectives.

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