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CHAPTER 6:CONTROLLING
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The mechanisms used to monitor the
organizations performance relativeto its goals and plans.
(Lewis, 2004)
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Monitoring the performance of the
organization, identifying deviations
(differences) between planned and actual
results, and taking corrective action when
necessary.
(Lewis, 2004)
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THE CONTROLLING PROCESS
1. Set Performance Standards
Whenever possible, the standards should be set in a
manner that allows them to be compared with actual
performance.
2. Measure Actual Performance
An organization must decide:
What to measure.
When to measure.
How frequently to measure.
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3. Compare Actual Performance with Standards
This step involves determining if actual
performance compared to standards falls within
acceptable limits.
4. Responding to Deviations
If the deviation from performance is
unacceptable, then corrective action is
warranted. If the deviation is acceptable, no correction
action is necessary.
THE CONTROLLING PROCESS
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TYPES OF CONTROL
1.Pre-action control (Feed-forward)
2.Steering control
3.Screening control (Yes or No control)
4.Post-action control (Feed back)
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1.Pre-action control (Feed-forward)
input level of production
before the start of production activities.
purpose - to anticipate potential
problems and preventing them.
E.g.: Production/ Finance/ Marketing /
Human Resources -specifications of
output/input factors
TYPES OF CONTROL
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2.Steering control
Focus on what occurs during the work
process. Primary goal- to spot problems and take
corrective action before final results
achieved.
E.g.: HIV-AIDS
TYPES OF CONTROL
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3.Screening control (Yes or No control)
Specify checkpoints- must be successfully passed
before an activity proceeds further.
Before proceeding to the next sequence, an
activity must be approved or meet specific
condition.
E.g. : Bank & Financial , procedure, approval of
PTPTN.
TYPES OF CONTROL
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4.Post-action control (feed back)
After an action is completed.
Attempts to measure the result of certain
actions.
If problems, corrective action taken and
applied to future activities and actions.
TYPES OF CONTROL
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SELECTING THE FOCAL POINT
FOR CONTROL
1.Preventive Control
Focuses on detecting undesirable material, financial,
or human resources that serve as inputs to the
transformation process.
2.Concurrent Control
Focuses on the transformation process to ensure that
it is functioning properly.
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3. Feedback Control
Focuses on discovering undesirable output and
implementing corrective action.
4.Multiple Focal Points
Most organizations use several control systemsfocused on various phases of the transformation
process.
SELECTING THE FOCAL POINT
FOR CONTROL
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POTENTIAL BARRIERS TO
SUCCESSFUL CONTROL
1. Over control
2. Inappropriate control
3. Reward for inefficiency
4. Too much accountability
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MAKING CONTROLLING SUCCESSFUL
1. Accurate
A control system that generates inaccurate informationcan result in managements neglecting to take action when
it should or responding to a problem that does not exist.
An accurate control system is reliable and produces valid
data.
2. Timely
Corrective action must be taken in time to produce
improvements. Late corrective action means a great loss
to the company.
3. Objectively and comprehensive
Standards must be understandable and measurable. It
must not be subjective or vague.Difficult control system
will cause mistakes and frustration among managers as
well as employees.
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4. Focused on strategic control points Strategic and result oriented
Long term and based on outcomes or result
5. Flexible
Individual judgment
Modified to fit new circumstances as they
arise.
Based on findings of situation
6. Consistent with the organizations structure.
Exercised Controlling at all levels of
management.
MAKING CONTROLLING SUCCESSFUL
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7. Economically realistic.
Cost should be smaller than the benefits
derived from it.
8. Reasonable and attainable criteria.
If theyre too high or unreasonable, they no
longer motivate to achieve.
MAKING CONTROLLING SUCCESSFUL
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THE END..........