CHAPTER 7: CHAPTER 7: CONTROLLINGCONTROLLING
DMG 1213 / DMG1113 / DPM1213 / DPM1113Principles of Management
Laura LawPerak College of Technology
Laura Law Perak College of Technology 1
Perspectives on ControlPerspectives on ControlThe controlling function of management is to
ensure that the outcomes of an organization are as planned. (Stoner)
This process can carried out by comparing the true performance with the standard that been established and taking corrective actions in order to rectify any distortion that does not comply the standard
EXAMPLE:
1.Production targets are met
2.Quality is as planned
3.Organizational culture is what was wanted
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Challenges That Manager Face1. Coping with uncertainty
2. Detecting Irregularities
3. Identifying Opportunities
4. Handling Complex Situations
5. Decentralizing Authority
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The Purpose of ControlThe Purpose of ControlThe Purpose of ControlThe Purpose of Control5
Adapt to environmental change Limit the accumulation of error
Control helps the organization
Cope with organizational complexity Minimize costs
Laura Law Perak College of Technology
The Purpose/Advantage of The Purpose/Advantage of ControlControl
The Purpose/Advantage of The Purpose/Advantage of ControlControl
1. Assist the management process
2. Deal with change or uncertainty.
3. Deal with complexity (size & diversity).
4. Deal with human limitation.
5. Help delegation and decentralization to run smoothly.
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Steps in Control Process
CHAPTER 7: ControllingDMG 1213 / DMG1113 / DPM1213 / DPM1113
Principles of ManagementLaura Law
Perak College of Technology
Laura Law Perak College of Technology
Steps in the Control Steps in the Control ProcessProcess
Steps in the Control Steps in the Control ProcessProcess
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Establish/ Set
standards
Measure
performance
Compare
performanceagainst standards
Maintain the
status
Correct the
deviation
Change
standards
Determine need
for correctiveaction
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Laura Law Perak College of Technology
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Steps in the Control Steps in the Control Process:1Process:1
Steps in the Control Steps in the Control Process:1Process:1
2. Measure Performance◦Ongoing process◦Most challenging step◦Measuring period gap must not be too long or too often◦Performance measures must be valid indicators (e.g., sales,
costs, units produced) of performancei. What to measureii. When to measureiii. How Frequently to measure
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Steps in the Control Steps in the Control Process:2Process:2
Steps in the Control Steps in the Control Process:2Process:2
3. Compare Performance Against Standards◦Easier of all steps◦Define what is a allowable deviation from the
performance standard◦Utilize the appropriate timetable for measurement◦Exp: Performance appraisal
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Steps in the Control Steps in the Control Process:3Process:3
4. Determine the Need for Corrective Action◦Done only if the performance does not meet the earlier establish
standard◦Maintain the status quo (do nothing)◦Correct the deviation to bring operations into compliance with the
standard◦Change the standard if it was set too high or too low◦Providing more incentive to enhance the performance
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Steps in the Control Steps in the Control Process:4Process:4
Type of Controlling
CHAPTER 7: ControllingDMG 1213 / DMG1113 / DPM1213 / DPM1113
Principles of ManagementLaura Law
Perak College of Technology
Laura Law Perak College of Technology
Types or Methods of ControlTypes or Methods of ControlTypes or Methods of ControlTypes or Methods of Control
1. Preliminary/Pre-Action/Feed-Forward Control:
- Controlling is done at the input level of production
- It is initiated before the start of production of service activity.
- This type of control is sometimes called preventive control because the objective is to prevent problems at the input level before going through the transformation process.
- “Prevention is better than cure” 15Laura Law Perak College of Technology
2. Steering Control/Concurrent Control
- Focus on what occurs during the work/transformation process
- The primary goal is to spot problems as they develop and take corrective action before final results are achieved
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Types or Methods of ControlTypes or Methods of ControlTypes or Methods of ControlTypes or Methods of Control
3. Screening Control (Yes or No Control)
- Specify check points that must be successfully passed before an activity proceeds further.
- Before proceeding to the next sequence, an activity, product or service must be approved or meet specific conditions.
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Types or Methods of ControlTypes or Methods of ControlTypes or Methods of ControlTypes or Methods of Control
4. Post-Action Control/Feedback Control/Corrective Control
- Controlling takes place AFTER the action is completed.
- It attempts to measure the result of certain actions
- If there are problems, corrective action is taken and applied for future activities
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Types or Methods of ControlTypes or Methods of ControlTypes or Methods of ControlTypes or Methods of Control
Forms of Operations Forms of Operations ControlControl
Forms of Operations Forms of Operations ControlControl
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Preliminary control
Focuses on inputs
to the organizational
system
Inputs Transformation Outputs
Screening control
Focuses on how
inputs are being
transformed into
outputs
Postaction control
Focuses on outputs
from the organiza-
tional system
Feedback
Laura Law Perak College of Technology
Characteristics of an Effective Control System
CHAPTER 7: ControllingDMG 1213 / DMG1113 / DPM1213 / DPM1113
Principles of ManagementLaura Law
Perak College of Technology
Laura Law Perak College of Technology
Characteristics1. To help avoid problems with human relations to control
2. Characteristics as guidance to make control more effective
3. Effective control system is:i. Accurate (Information)
ii. Timely
iii. Objective and Comprehensive
iv. Focused on Strategic Control Points (Strategic and Result Oriented)
v. Flexibility
vi. Consistent with the Organization’s Structure (Organzationally Realistic)
vii. Acceptable by Organization Members
viii. Utilize all steps of the Control Process
ix. Understandable and Justifiable
x. Corrective Action
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Accurate (Information)Inaccurate information
will cause the organization to make
wrong decision or to take the wrong action
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TimelyInformation must
collected and evaluated quickly to enable
managers to solve problems on time
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Objective and Comprehensive
Standards set must be understandable and measurable. Difficult
control system will cause frustration.
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Focus on Strategic Control Points (Strategic and Result Oriented)
Designed what is important now and what will
important in the future. Pass as a guidelines for future measurement
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FlexibilityLeave room for individual judgment and is modified to fit new circumstances
as they arise
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Consistent with the Organization’s Structure (Organizationally Realistic)
Exercise and obtain by all level of employees who
work within the organization
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Acceptable by Organizational Members
Able to motivate workers to recognize the importance of
standards and engage themselves in an appropriate
behavior to achieve them
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Utilize all steps of the control process
Omitting any of these steps will break (destroy) the overall
control system and the future of the organization will be
doubtful
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Understandable and Justifiable
Employees who know exactly what is expected of
them will exhibit less resistance, know earlier will
be easier to obtainLaura Law Perak College of Technology 30