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chapter
13Fundamentals of
Controlling
Supervision:
Concepts and Practices
of Management,Second Canadian Edition
Hilgert, Leonard,
Shemko, and Docherty
© 2005 by Nelson, a division of Thomson Canada Limited
13-2
Learning Objectives1. Describe the nature and
importance of the managerial controlling function.
2. Identify three types of control mechanisms based on time.
3. Explain the essential characteristics of effective controls.
4. Describe the essential steps in the control process.
13-3
Learning Objectives5. Discuss the supervisor’s role in
controlling through budgets.6. Discuss the supervisor’s role in
maintaining cost consciousness and in responding to higher-level managers’ orders to reduce costs.
7. Identify additional control areas and explain how the controlling function is closely related to the other managerial functions.
13-4
Controlling
1. Ensuring that actual performance is in line with intended performance and taking corrective action, if necessary.
2. Controls ensure that results match plans.
13-5
Controlling
When performance and standards deviate from the plan, the supervisor must carry out the controlling function by taking corrective action, which may involve establishing new plans and different standards.
13-6
Employee Responses
When controls are well designed and properly implemented, they can positively influence employee motivation and behaviour.
13-7
The Time Factor
• Feedforward controls—anticipatory
• Concurrent controls—in-process
• Feedback controls—after-the-process
13-8
Types of Controls
1. Feedforward control — anticipatory action taken to ensure that problems do not occur
2. Concurrent control — corrective action taken during the production or delivery process to ensure that standards are being met
3. Feedback control — action taken after the activity, product, or service has been completed
13-9
Closeness of Supervision
Supervisors must know how closely to monitor employees’ work based on the employees’
1. Experience
2. Initiative
3. Dependability
4. Resourcefulness
13-10
Effective Controls
• Understandable
• Timely
• Suitable and economical
• Indicational
• Flexible
13-11
Steps in the Control Process
13-12
Do’s and Don’ts for Controlling• Be clear about objectives and assignments.• Get agreement on standards and measures.• Solicit ideas for improvement.• Do not micromanage.• Take corrective action.• Demonstrate consistently the importance of
budgets, standards, and controls.• Convey that you will not accept any
unsatisfactory performance.
13-13
Standards
• Tangible standards—standards for performance results that are identifiable and measurable
• Intangible standards—standards for performance results that are difficult to measure and often relate to human characteristics
13-14
Motion and Time Studies
• Motion study—analysis of work activities to determine how to make a job easier and quicker to do
• Time study—technique for analyzing jobs to determine time standards for performing each job
13-15
Employee Participation
Workers are more apt to accept standards as reasonable and fair when they help formulate those standards.
13-16
Strategic Control Points
Performance criteria chosen for assessment because they are key indicators of overall performance
13-17
Strategic Control Standards
• Number of voluntary resignations and requests for transfer
• Levels of absenteeism and tardiness• Accident frequency and severity rates• Number and types of employee
grievances• Number and types of customer
complaints• Amount of scrap and rejects
13-18
Checking Performance Against Standards
• Personal observation
• Oral and written reports Exception principle - concept that
supervisors should concentrate their investigations on activities that deviate substantially from the standard
13-19
Checking Performance Against Standards
• Spot checks
• Sampling TechniquesSampling - the technique of
evaluating some numbers from a large group to determine whether the group meets acceptable quality standards
13-20
Taking Corrective Action
• Before taking corrective action, analyze the situation to determine the causes of the deviation.
• Only after identifying specific causes can the supervisor decide which remedial actions will obtain better results.
13-21
Budgetary Control
Budget—financial plan that projects expected revenues and expenditures during a set period
Budgetary control—the use of budgets to control operations so that they comply with organizational standards for making budgets
13-22
Budget Making
• Incremental budgeting—technique for projecting revenues and expenses based on history
• Zero-base budgeting—process of assessing, on a benefit-and-cost basis, all activities to justify their existence
13-23
Sharing Budgetary Responsibility
• Employees must understand financial data and have a basis for comparing their firms’ financial information with that of previous years and competitors.
• Involve employees in setting objectives and cutting costs.
13-24
Specialized Controls
• Inventory control
• Quality control
• Production control
13-25
Controlling and the Other Managerial Functions
The better the supervisor plans, organizes, staffs, and leads, the better will be his or her ability to control activities and employees.