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Robbins et al., Fundamentals of Management, 4th Canadian Edition2005 Pearson Education Canada, Inc. FOM 7.1
Chapter 18
Foundationsof Control
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Robbins et al., Fundamentals of Management, 4th Canadian Edition2005 Pearson Education Canada, Inc. FOM 7.2
Learning Outcomes Define control
Describe three approaches to control Explain why control is important
Describe the control process
Distinguish among the three types ofcontrol (continued)
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Robbins et al., Fundamentals of Management, 4th Canadian Edition2005 Pearson Education Canada, Inc. FOM 7.3
Learning Outcomes
(continued) Describe the qualities of an effective control
system
Identify contingency factors in the control
process
Describe how national differences influence
the control process (continued)
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.4
Learning Outcomes
(continued) Identify the ethical issues in employee
monitoring Describe how an entrepreneur controls for
growth
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.5
Controlling
Controlling is the process ofmonitoring, comparing, and
correcting work performance.
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.6
IMPORTANCE
Controlling helps the organization in achieving objectives.
Controlling helps in improving adaptability to environmental change.
Controlling helps in coping with organizational complexity.
Controlling helps in maintaining and improving quality.
Controlling helps in financial matter.
Controlling helps in improving employees performance.
Controlling helps in monitoring sales.
Controlling helps in minimizing errors.
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.7
Planning-
Controlling
Linkage
Planning
OrganizingLeading
Controlling
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.8
PROCESS OF CONTROLLING
Setting up of standards.
Measurement of performance. Comparison of performance with
standards.
Taking corrective action.
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.9
Purpose of Contro
ls
Measuring PerformanceMeasuring Performance
Comparing to StandardsComparing to Standards
Taking Corrective ActionTaking Corrective Action
Goals andGoals and
ObjectivesObjectives
OrganizationalOrganizational
DivisionalDivisional
DepartmentalDepartmental
IndividualIndividual
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.10
Approaches to Control Market
Bureaucratic Clan
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.11
The ControlProcessThe ControlProcess
Identify
Causes
Correct
Performance
Variance
Acceptable?
Revise
Standard
StandardAttained?
Standard
Acceptable?
Yes
Yes
Yes
No
No
No
Compare
Performance
to Standard
Measure
Performance
Objectives
Standard
Do Nothing
Do Nothing
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.12
Discrepancies Between Goals and Performance
AcceptableAcceptable
Upper LimitUpper Limit
StandardStandard
AcceptableAcceptable
Lower LimitLower Limit
AcceptableAcceptableRange ofRange of
VariationVariation
t t+1 t+2 t+3 t+4 t+5t t+1 t+2 t+3 t+4 t+5
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.13
Canuck Brews Sales for July
(in hundreds of cases)
Propeller
Big RockAle
Okanagan Spring
Garrison
Olands Export
McAuslans
Granville IslandUnibroues
NelsonAfterDark
Total Cases
1,075
630
800
620
540
160
22580
170
4,300
913
634
912
622
672
140
22065
286
4,464
(162)
4
112
2
132
(20)
(5)(15)
116
164
Brand Standard Actual Over (Under)
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.15
Do Not
hing
Do Not
hing
TakingTaking
ManagerialManagerialActionAction
Immediate/BasicImmediate/Basic
CorrectiveCorrective
ActionAction
ReviseRevise
the Standardthe Standard
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.16
How Do Managers Measure? Personal
observations
MBWA(management-by-
walking about)
Statistical reports
Oral reports
Written reports
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.17
What Do Managers Measure? Information
Operations Finances
People
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.19
Feedback Control
Meaningful
information Enhance employee
motivation
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Flexibility
Qualities Of An Effective
Control System
StrategicPlacement
UnderstandabilityReasonable
Criteria
EFFECTIVE
CONTROL
SYSTEM
TimelinessMultiple
Criteria
Corrective
ActionAccuracy
EconomyEmphasis on
Exceptions
FOM 7.17
Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.20
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.21
Contemporary Issues in
Control Rights that manager has to monitor
employee behaviour
Rights that manager has to control
private lives of employees.
Employers MAY be able to control
employee behaviour outside the workenvironment
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.22
You and Your Computer Employers can read your e-mail
Employers can listen to your phone
calls
Employers can monitor your work by
computer
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.24
InformInform
EmployeesEmployees
Written PolicyWritten Policy
Monitor forMonitor for
Business ReasonsBusiness Reasons
Control andControl and
EthicsEthics
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.25
Entrepreneurs Controlling for
Growth Plan for growth
Organize for growth
Control for growth
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Robbins et al., Fundamentals of Management, 4th Canadian Edition
2005 Pearson Education Canada, Inc. FOM 7.27
BIBLIOGRAPHY Fundamentals of Management- By Stephen Robbins
Publications- 4th Canadian edition 2005
www.wikipedia.com Principles of Management- By Prasad L.M.
Principles of Management- By Chabra T.N