Management Control*

The meaning of controlA systematic effort to set performance standards with planning objectives, to design information feedback systems, to compare actual performance with standards, to determine whether there are any deviations and to take any action if required.Control is the process of ensuring that actual activities conform to planned activities.

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Process of Control Slide 3 of 3*Set performancestandardsMeasureactualperformanceCompareperformancewithstandardsTake nocorrective actionTakecorrectiveactionIf deviations are acceptableIf deviations are unacceptable

Steps in the control process1.Establish standards and methods for measuring performance.-standards should be stated in clear, measurable terms that include specific deadlines.2.Measure performance-measurement is an ongoing repetitive process.3.Determine whether performance matches the standard-This is the easiest step in the control process4.Take corrective action-This step is necessary if performance falls short of standards and the analysis indicates action is required.

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The importance of control1.Change-Control systems should be able to detect changes affecting org.2.Complexity-A more formal and careful control approach is required.3.Mistakes-allows managers to detect mistakes before they become critical4.Delegation-allows managers to check on subordinates progress*

Types of control methods1.Pre-action control2.Steering control3.Screening or Yes/No control4.Post-action control*

1.Pre-Action ControlControl before an action is undertaken e.g before a new product is launch, marketers conduct market testing.

* Allow corrective action to be taken before a particular sequence of actions is completed.e.g after launching a new product, marketers will monitor competitors, customers and dealers reaction and take corrective actions if required.

3.Screening or Yes/No controls Provides a screening process in which specific aspects of a procedure must be met before the operations is allowed to proceed.e.g large customers withdrawal must be approved by a bank officer.

*4.Post-action controls Measure the result of a completed action e.g marketers conducted Profitability analysis to assess the profitability of the new product

Selecting the Focal Point for Control

Feedforward (Preventive) ControlFocuses on detecting undesirable material, financial, or human resources that serve as inputs to the transformation process.Concurrent ControlFocuses on the transformation process to ensure that it is functioning properly.*

Selecting the Focal Point for Control Slide 2 of 2Feedback ControlFocuses on discovering undesirable output and implementing corrective action.Multiple Focal PointsMost organizations use several control systems focused on various phases of the transformation process.*

Control Focal Points*Control systemTransformationprocessInputsOutputsFeedforward controlConcurrent controlFeedback control

Characteristics of effective control systems1.Accurate-provide accurate info2.Timely-up to date info3.Objective and comprehensive-clear and measurable4.Focused on strategic control points-focus on key areas such as finance and quality*

Characteristics of effective control systems5.Economically realistic-cost should be less than the benefits6.Organizationally realistic-org should have adequate resources7.Flexible-adaptable to changes8.Prescriptive and operational-describe the corrective actions to be taken9.Accepted by organizational members *

Management from the Islamic perspectiveThe management process based on the Quran and the Sunnah to promote societal well being and Islamic values.-Islamic mgt seek to achieve a balance between org profit, customer satisfaction, societal well being and Islamic values. *

The principles Management from the Islamic perspective1.Tauhid-work an an Ibadah or way of submission to Allah2.Syura-the importance of teamwork3.Justice-the importance of fairness4.Masruaiah-the concept of legality based on the syariah laws5.Qualification-based on competencies 6.Maslahah-priority based on Islamic values

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