What does “Control” means in the management process?
- The process of measuring performance and taking action to ensure the planned outcomes are achieved.
- The function of ‘Control’ refers to all processes that keeps the manager up to date with what is happening in key areas of the organisation’s operations, and facilitate any necessary organisational changes being made.
Organisational Performance : Name 3 performance measures.
- Productivity : the quantity and quality of work performance in relation to resource use; e.g. productivity of labour (motion studies)
- Performance effectiveness : an output measure of task or goal accomplishment
- Performance efficiency : a measure of resource cost/use in relation to standard that we aim to achieve
Name the 4 Steps in the control process
Step 1 … Establish performance objective and standards
Step 2 … Measure actual performance
Step 3 … Compare actual performance with objective and standards
Step 4 … Take necessary action
(… Circle – no end - an organisation is always improving)
Explain Step 1 of the control process
‘Establish objectives and standards’
- performance objectives should represent key results to be achieved
- output standards measure performance results in terms of quantity, quality, cost or time
- input standards measure work efforts that go into a performance task
Explain Step 2 of the control process
‘Measure actual performance’
- the goal here is to accurately measure the performance results (output standards) and/or the performance efforts (input standards)
- a common management failure in this regard is an unwillingness or inability to ,ensure the performance of people at work. Yet without measurements, effective control is not possible.
Explain Step 3 of the control process
‘Compare results with objectives and standards’
- need for action = desired performance = actual performance
- a historical comparison uses past performance as a benchmark for evolution
- a relative comparison uses the performance achievement of others as the evaluation standards
- an engineering comparison uses standards that are set scientifically (Frederick Taylor - time and motion studies)
Explain Step 4 of the control process
‘Take corrective action’
- Management by exception focuses managerial attention on substantial differences between actual and desired performances
- Two types of exceptions may be encountered
- Problem situation: performance below standard
- Opportunity situations: performance above standard
- an after-action review formally examines results to identify lessons learned in a completed project special operation.
What are the 3 Major Types of Managerial Controls
Feedforward Controls (work inputs) -- ensure the right directions are set and the right resource inputs are available
Concurrent Controls (work throughputs) -- endure the right things are being done as part of work flow operations
Feedback Controls (work outputs) -- ensure that final results are up to desired standards
Explain Feedforward Controls
- also called preliminary controls, they are accomplished before a work activity begins
- designed to eliminate the potential for problems alter on the process
- what needs to be done before we begin?
Explain Concurrent Controls
- they focus on what happens during the work process
- also called steering controls, they monitor ongoing operations and activities to make sure things are being done according to plan.
- allow corrective actions to be taken before a task is completed
- what can we do to improve things before we finish?
Explain Feedback Controls
- feedback controls focus on the quality of end results rather then on inputs and activities
- also called postaction controls, feedback control take place after work is completed
- now that we are finished, how well did we do ?
- the feedback provided by the control process is useful information for improving things in the future
What is Internal and External Control?
INTERNAL
* Occurs through self-discipline and self-control ( managers who lead by example)
* Relies on motivated individuals exercising self-control over their own behaviour
EXTERNAL
* Occurs through direct supervision or administrative systems such as rules and procedures.
* Managers take direct action to control the behaviour of others
* Types of external control approaches: Bureaucratic, Clan and Market control
