Lec Controlling
Lec Controlling
1
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.
2
Controlling as a Management
Function
Controlling;
Controlling is the management function in
which managers establish and communicate
performance standards for people, processes,
and devices.
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.
3
Controlling as a Management
Function
Controlling
It helps maintain compliance with essential
organizational rules and policies.
4
The Control Process
Establish objectives and standards.
Measure actual performance.
Compare results with objectives and
standards.
Take necessary action.
5
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.
6
Establish Objectives and Standards
7
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.
8
Comparing Results with Objectives
and Standards
9
Taking Corrective Action
10
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
11
Effective Controls
The Best Controls in Organizations
are
Strategic and results oriented
Understandable
Encourage self-control
12
Effective Controls
The Best Controls in Organizations are
Timely and exception oriented
Positive in nature
Fair and objective
Flexible
13
Types of Control
Preliminary
Sometimes called the 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.
14
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.
15
Types of Control
Postaction
Sometimes called feedback controls, they
take place after an action is completed.
They focus on end results, as opposed to
inputs and activities.
16
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.
17
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.
18
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.
19
Organizational Control Systems
Management Processes
Strategy and objectives
Policies and procedures
Selection and training
Performance appraisal
Job design and work structures
Performance modeling, norms, and
organization culture
20
Organizational Control Systems
Compensation and Benefits
Attract talented people and retain them.
Motivate people to exert maximum effort
in their work.
Recognize the value of their performance
contributions.
21
Organizational Control Systems
Employee Discipline
Discipline is defined as influencing behavior
through reprimand.
Progressive Discipline ties reprimand to the
severity and frequency of the employee’s
infractions.
Positive Discipline tries to involve people
more positively and directly in making
decisions to improve their behavior.
22
The “Hot Stove Rule”
To be Effective Discipline Should be:
Immediate Informative
Focus on activity Occur in a
not personality supportive setting
Consistent Support realistic
rules
23
Organizational Control Systems
Information and Financial
Activity-based costing - the true cost of all
products and services.
Economic value added - examine the value
added by all activities.
Understand the implication of key financial
measures of (ratios) organizational
performance
24
Operations Management and
Control
Project Management
Program Evaluation and Review Technique
(PERT) - Identifies and controls the many
separate events in complex projects.
25
Operations Management and
Control
Statistical Quality Control
Based on the establishment of upper and
lower control limits, that can be graphically
and statistically monitored to ensure that
products meet standards.
26
Performance Appraisal
Performance Appraisal is a process that
helps organization to improve its human
resource’s productivity to achieve some
objectives and goals
27
Performance appraisal tools
Purposes:
The assessment of past effectiveness and setting of new Performance
targets
The assessment of present salary levels and setting of new levels or
relation of performance to pay
The assessment of training and development needs, and identification of
strategies for meeting them
The assessment of potential for promotion and development with
succession planning
The assessment of individual progress and assistance with career planning
decisions
The enhancement of motivation and communication
.
28
Methods of performance
appraisal
Rating scale: it is a method of rating a person
against a set standard, which may be the job
description, desired behaviors, or personal traits.
The rating scale is the most widely used of the
many available appraisal methods.
Traditional Methods: These methods are used by
organization since very long time. It appraises
employees on the bases of their traits. This type
includes several methods and related to self-
appraisal of employee. These are:
29
cntt
Essay Appraisal Method: This method used by
rater to explain employee’s strengths, weaknesses,
potentiality etc. also give suggestion for
improvement in written form (Cascio, 2006).
32
Behaviorally Anchored Rating Scale (BARS).
Checklists
Job dimension scales
Essays
33