Chapter 13

Controlling for Quality and Productivity

Controlling

Controlling establishes mechanisms that ensure that objectives are achieved. Controls are used at each stage of the management system to ensure that objectives are being met.

Controlling From the Inside

Concurrent controls are actions taken during transformation to ensure that standards are met. Rework controls are actions taken to fix output. Rework is necessary when preliminary and concurrent controls fail. Most organizations inspect output before it is sold or sent as input to other departments in the organization. Damage controls are actions taken to minimize negative impacts on customers due to faulty output.

Figure 13.1

Figure 13.3

Governance

Many sport organizations are monitored and controlled by external bodies of governance. FIFA and its executive committee monitor all soccer activities; the International Olympic Committee (IOC) monitors all Olympic activities; the PGA is the regulating body for golf; each Jewish Community Center is monitored by the Jewish Community Centers of America (JCCA). Likewise, each YMCA is governed by the YMCA of the USA (YUSA), and college athletics are governed by the rules and policies set forth by the NCAA.

Sport Governance

Governing bodies are dedicated to their particular sports. They establish rules and regulations that every member must follow. The IOC approves the sports and events in the Olympics. The IOC picks locales for the Summer and Winter Games seven years in advance. Cities bid for the right to hold Games and must prove they have the facilities to play the games, house the athletes and spectators, and provide officiating.

Standards

Standards minimize negative impacts on customers due to faulty output by controlling quantity, quality, time, cost, and behavior. Incomplete standards often lead to negative results.

Figure 13.4

Control Process

Step 1. Set objectives and standards (preliminary control).Step 2. Measure performance (prepare for steps 3 and 4).Step 3. Compare performance to standards (determine if

control is necessary, and if so, what type).Step 4. Correct or reinforce.a. Concurrent controlb. Future correction (rework or damage control might be

needed)c. Reinforce (standard or objective met; correction not needed)

CSFs

Critical success factors (CSFs) are pivotal areas in which satisfactory results will ensure achievement of the objective or standard.

Controls

Constant controls are in continuous use and include self-control, clan control, and standing plans.Periodic controls are used on a regular, fixed basis, such as hourly, daily, weekly, monthly, quarterly, or annually. Periodic controls include regularly scheduled reports, budgets, and audits.

More Controls

Occasional controls are used on an as-needed basis. They include observation, the exception principle, special reports, and project controls.

Financial Controls

Budgets are plans for allocating resources to specific activities. Notice that our definition uses the term resources, not just money. That is because organizations budget all types of resources—human resources, machines, time, space, and, yes, funds.

Income Statements

The three financial statements are the income statement, the balance sheet, and the statement of cash flow. The income statement shows the company’s revenues and expenses and its profit or loss for the stated period.

Balance Sheet

The balance sheet lists assets, liabilities, and owners’ equity. Assets are what the organization owns. Liabilities are what it owes to others. Subtract the organization’s liabilities from its assets and you have the owners’ and stockholders’ equity (that share of the assets owned free and clear).

Statement of Cash Flow

This statement shows cash receipts and payments for the stated period.

Coaching

Coaching gives motivational feedback to maintain and improve performance. Employees who are given immediate, frequent, and direct feedback perform at higher levels.

Figure 13.6

Feedback

Feedback is the “main entrée” of coaching, and it should be motivational. The idea is to give more positive feedback than negative feedback. A culture of positive feedback creates an abundance of enthusiasm and energy in an organization. So, cheer your people on with an immediate response to their excellent work. What happens when athletes make good plays? The coach and team cheer them on! The same technique motivates people in the workplace, so try it.

EAPs

Employee assistance programs (EAPs) help employees get professional assistance in solving their problems. More and more companies are offering EAPs because they improve employee retention and productivity. Former Cleveland Indians pitcher Sam McDowell became a certified and licensed therapist in sport psychology and addiction after his retirement in 1975. For 14 years, he was the director of EAPs and sport psychology programs for the Texas Rangers and Toronto Blue Jays.

Discipline

Discipline is corrective action to get employees to meet standards and to follow the rules. Discipline can be effective if it makes the person realize the seriousness of the situation. Many organizations use a series of escalating actions. Progressive discipline occurs in this order:

1. Oral warning2. Written warning3. Suspension4. Dismissal