INFS 212 Principles of Management Session 12 Controlling Lecturer: Dr. Emmanuel Adjei Department of Information Studies Contact Information: eadjei@ug.edu.gh College of Education School of Continuing and Distance Education 2014/2015 2016/2017
Session Overview Controlling is the last of the four managerial funtions to be covered. It is critically an important management function. Managers must plan, organise and direct the organization. But how do they know if their activities are conforming to established plans? Controlling is the function of management that evaluates the efforts of managers. Control ensures that the right things are done at the right time and in the right way. In this Session we will define control and explain why it is important. We will also take a look at the control process, types of control and methods of control. Slide 2
Session Objectives Objectives By the end of the session, the student should be able to: Explain the function of control and its importance to organisations Identify and explain the steps in the control process Identify the types of control and explain the differences among them Identify some of the methods used by management to achieve control Slide 3
Session Outline The key topics to be covered in this session are as follows Topic One: Organisational Control Topic Two: The Control Process Topic Three: Types of Control Topic Four: Methods of Control Topic Five: Requirements of an effective control system Topic Six: Information and Control Slide 4
Reading List 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 13 pages 355-379) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 17 Pages 406-320). Slide 5
Topic One ORGANISATIONAL CONTROL Slide 6
Organisational Control What is control? The process of taking the necessary preventive and corrective actions to ensure that the organisation s mission and objectives are accomplished as effectively and efficiently as possible (Kreitner, 2000). A systematic process through which managers regulate organisational activities to make them consistent with the expectations established in plans and to help the achieve all predetermined standards of performance(lewis, 2000). Slide 7
Organisational Control con t What is control? The process of monitoring activities to ensure that goals are being accomplished as planned and correcting any significant deviations. (Robbins,2000) Slide 8
Organisational Control con t Controlling It helps maintain compliance with essential organisational rules and policies. What do managers Control? Quantity Quality Time use Cost Slide 9
Topic Two THE CONTROL PROCESS Slide 10
The Control Process Establish objectives and standards. Measure actual performance. Compare results with objectives and standards. Take necessary action. Slide 11
The Control Process con t Slide 12
The Control Process con t Establish Objectives and Standards The control process begins with planning and the establishment of performance objectives. Performance objectives are defined and the standards for measuring them are set. Slide 13
The Control Process con t There are three types of standards: Output Standards - measures performance results in terms of quantity, quality, cost, or time. Input Standards - measures work efforts that go into a performance task. Standards of conduct moral and ethical criteria that shape the behavioural climate at the work place Slide 14
The Control Process con t Examples of Standards Profitability standards Market position standards Productivity standards Product leadership standards Personnel development standards Employee attitude standards Social responsibility standards Slide 15
The Control Process con t The Measuring Actual Performance When Measuring Standards managers must ask questions. For example Is the firm efficiently converting inputs into outputs? Are units of inputs and outputs measured accurately? Is product quality improving? Is the firm s quality competitive with other firms? Are employees responsive to customers? Are customers satisfied with the services offered? Are our managers innovative in outlook? Does the control system encourage risk-taking? Slide 16
The Control Process con t Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired. Without measurement, effective control is impossible. Slide 17 Slide 17
The Control Process con t Comparing Performance to Standards The comparison of actual performance with desired performance establishes the need for action. Slide 18
The Control Process con t Taking Corrective Action Managers can choose among three courses of action Do nothing Correct actual performance Modify standard Slide 19
The Control Process con t Slide 20
The Control Process con t Checklist may suggest some general areas for corrective action Revise the standard Revise the objective Revise the strategies Slide 21
Topic Three TYPES OF CONTROL Slide 22
Types of Control Feed-forward Concurrent Feedback Slide 23
Types of Control Feed-forward Sometimes called preliminary control, pre-control or preventive control. They are accomplished before a work activity begins. They make sure that proper directions are set and that the right resources are available to accomplish them. Slide 24
Types of Control con t Concurrent Focus on what happens during the work process. Sometimes called steering controls. They monitor ongoing operations and activities to make sure that things are being done correctly. Slide 25
Types of Control con t Feedback Sometimes called post-action controls, they take place after an action is completed. They focus on end results, as opposed to inputs and activities. Slide 26
Types of Control con t Slide 27
Topic Four METHODS OF CONTROL Slide 28
Methods of Control Personal Control Bureaucratic Control Control through incentives Clan Control Slide 29
Methods of Control Personal Control Involves direct personal contact and supervision of employees Disadvantages Subjective Lacks objectivity De-motivate employees Costly Breaks down as organisations expand Slide 30
Methods of Control con t Bureaucratic Control Aim at ensuring that employees exhibit appropriate behaviours that meet performance standards Relies on Rules Policies Supervision Reward systems Slide 31
Methods Of Control con t Control through incentives Incentives are a means of encouraging and rewarding employee behaviour. They are tied to employee behaviour. Slide 32
Methods of Control con t Clan Control This represents cultural values, beliefs, corporate culture, shared norms and informal relationships to regulate employee behaviours and facilitate reaching organisational goals. Slide 33
Topic Five REQUIREMENTS OF AN EFFECTIVE CONTROL SYSTEM Slide 34
Requirements of an Effective Control System Targets must be realistic Performance standards Linking activity to objectives Employees must understand Measurement System must be acceptable to the entire workforce Feedback and reporting Slide 35
Topic Six INFORMATION AND CONTROL Slide 36
Information and Control Sources of information Observation Oral reports Written reports Statistical data Slide 37
Information and Control Feedback from results of plan Control Purpose To indicate whether and how far a plan has been carried out, whether and how far it has been successful in achieving its objective To suggest the adjustment of performance, or the plan itself, to correct any deviation Source Feedback from subordinates charged with carrying out plan on how it went Information from the environment about changes, requiring adjustments of plans Information from within the organization: suggestions for improvements, identification of problems Slide 38
Summary Control is the process of monitoring activities to ensure that goals are accomplished as planned. It is the final link in the functional chain of management. Organisations operate on the assumption that all activities will function smoothly; however it is possible that this will not be the case, hence the need for controlling. The control process can be understood as a four-step process: Establishing objectives; Measuring actual performance; Comparing measured performance against established standards; and Taking corrective action Slide 39
Sample Questions for Consideration 1. What are the methods of control in organisations known to you? 2. List four disadvantages of organic control. 3. What factors should management consider when establishing a control system? 4. Define the management function of control and explain the necessity for control. 5. Describe the control process Slide 40
References 1. Robbins, S.P. & DeCenzo D.A. (2008) Fundamentals of Management: Essential concepts and applications, (Sixth Edition), Pearson, Prentice Hall: Upper Saddle River, NJ. (Read Chapter 13 pages 355-379) 2. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 17 Pages 406-320). Slide 41