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ObjectivesObjectivesObjectivesObjectives1.A definition of control

2.A thorough understanding of the controlling subsystem

3.An appreciation for various kinds of control and for how each kind can be used advantageously by managers

4.Insights into the relationship between power and control

5.Knowledge of the various potential barriers that must be overcome to implement successful control

6.An understanding of steps that can be taken to increase the quality of a controlling subsystem

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingDefining Control

Control is making something happen the way it was planned

Planning and control are virtually inseparable functions

Siamese twins of management

Murphy’s Law

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingDefining Controlling

The Controlling Subsystem

The Controlling Process

Measuring Performance

How to Measure

What to Measure

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of Controlling

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of Controlling

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingDefining Controlling (continued)

The Controlling Process (continued)Comparing Measured Performance to Standards

General Electric (GE) standards:

1. Profitability

2. Market position

3. Productivity

4. Product leadership

5. Personnel development

6. Employee attitudes

7. Social responsibility

8. Reflecting the relative balance between short- and long-range goals

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingDefining Controlling (continued)

The Controlling Process (continued)Taking Corrective Action

Recognizing Problems

Recognizing Symptoms

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The Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingThe Fundamentals of ControllingTypes of Control

Precontrol

Concurrent Control

Feedback Control

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The Controller and ControlThe Controller and ControlThe Controller and ControlThe Controller and ControlThe Job of the Controller

Financial dimensions of the organization:

1. Profits

2. Revenues

3. Costs

4. Investments

5. Discretionary expenses

How Much Control Is Needed?

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The Controller and ControlThe Controller and ControlThe Controller and ControlThe Controller and Control

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The Controller and ControlThe Controller and ControlThe Controller and ControlThe Controller and Control

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Power and ControlPower and ControlPower and ControlPower and ControlA Definition of Power

Authority is the right to command or give orders

Power is the ability to influence others so they take orders

Total Power of a Manager

Position power

Personal power

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Power and ControlPower and ControlPower and ControlPower and ControlSteps for Increasing Total Power

1. Sense of obligation toward the manager

2. Belief that the manager possesses a high level of expertise

3. Sense of identification with the manager

4. Perception that they are dependent on the manager

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Performing the Control FunctionPerforming the Control FunctionPerforming the Control FunctionPerforming the Control FunctionPotential Barriers to Successful Controlling

Long-Term Versus Short-Term Production

Employee Frustration and Morale

Filing of Reports

Perspective of Organization Members

Mean Versus Ends

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Performing the Control FunctionPerforming the Control FunctionPerforming the Control FunctionPerforming the Control FunctionMaking Controlling Successful

Specific Organizational Activities Being Focused On

Different Kinds of Organizational Goals

Timely Corrective Action

Communication of the Mechanics of the Control Process

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QuestionsQuestions