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Part 5: ControllingPart 5: Controlling

Chapter 13Chapter 13

Foundations of ControlFoundations of Control控制的基礎控制的基礎

Foundations of ControlFoundations of Control控制的基礎控制的基礎

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OUTLINE S

1. Define control.

2. Three approaches to control.

3. The control process.

4. Three types of control.

5. Qualities of an effective control system.

6. Contingency factors in the control process.

7. How controls can become dysfunctional.

8. How an entrepreneur controls for growth.

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What Is Control?What Is Control?• Control

– The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations

用以確保活動能按計畫完成並矯正任何重大的偏離的監視程序。

– An effective control system ensures that activities are completed in ways that lead to the attainment of the organization’s goals.

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Three Approaches to Control SystemsThree Approaches to Control Systems

• Market市場控制– Uses external market mechanisms, such as price competition and

relative market share, to establish standards used in system to gain competitive advantage. 使用外部市場機制來進行控制的方式，例如價格競爭或市場佔有率。

• Bureaucratic科層體制控制– Emphasizes organizational authority of administrative and

hierarchical mechanisms to ensure appropriate employee behaviors and to meet performance standards. 強調運用組織行政上的職權，並且依賴管理規則、規定、程序以及政策的控制方法

• Clan群體控制– Regulates employee behavior by the shared values, norms,

traditions, rituals, beliefs, and other aspects of the organization’s culture. 藉由共有的評價、規範、傳統、儀式典範、信念及其他方面的組織文化來管理員工行為所設計的控制系統

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The Control Process The Control Process 控制程序控制程序

與實際績效比較

目標 標準

量測實際績效

修正績效

修正標準

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Steps in the Control Process (No.1)Steps in the Control Process (No.1)

• Measuring actual performance 衡量實際績效– Personal observation, statistical reports,

oral reports, and written reports 個人觀察、統計報告、口頭報告、書面報告、資訊系統

– Management by walking around (MBWA) 走動式管理• A phrase used to describe when a

manager is out in the work area interacting with employees

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Steps in the Control Process (No.2)Steps in the Control Process (No.2)

• Comparing actual performance against a standard 依據標準比較實際的績效– Comparison to objective measures: budgets,

standards, goals– Range of variation 變異區間

• The acceptable parameters of variance between actual performance and the standard

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Defining an Acceptable Range of VariationDefining an Acceptable Range of Variation

EXHIBIT 13.3

接授上限

接授下限

可接授的變異區間

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Steps in the Control Process (No.3)Steps in the Control Process (No.3)• Taking managerial action to correct deviations or

inadequate standards 採取管理行動來改正偏離或不當的標準 – Correct actual performance 改善績效

• Immediate corrective action治標改善行動 :Correcting a problem at once to get performance back on track 馬上修正問題並導正偏差。

• Basic corrective action治本改善行動 :Determining how and why performance has deviated and then correcting the source of deviation 探討績效如何及為何產生偏差，然後再正本清源來修正偏差。

– Revising the standard 修改標準• Adjusting the performance standard to reflect current and

predicted future performance capabilities

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Mid-Western Distributors’ Sales Performance for July Mid-Western Distributors’ Sales Performance for July (hundreds of cases)(hundreds of cases)

EXHIBIT 13.4

BRAND STANDARD ACTUAL OVER (UNDER)

Heineken 1,075 913 (162)

Molson 630 634 4

Beck’s 800 912 112

Moosehead 620 622 2

Labatt’s 540 672 132

Corona 160 140 (20)

Amstel Light 225 220 (5)

Dos Equis 80 65 (15)

Tecate 170 286 116

Total cases 4,300 4,464 164

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Types Of ControlTypes Of Control

• Feedforward control事前控制– Control that prevents anticipated problems 控制預期未來

發生的問題• Concurrent control事中並行控制

– Control that takes place while an activity is in progress控制發生在活動進行中

• Feedback control 回饋 (事後 )控制– Control that takes place after an action 控制發生在行動

之後• Provides evidence of planning effectiveness• Provides motivational information to employees

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Types of ControlTypes of Control

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Steps in Performance FeedbackSteps in Performance Feedback

1. Schedule the feedback session in advance and be prepared.

2. Put the employee at ease.

3. Make sure the employee knows the purpose of the feedback session.

4. Focus on specific rather than general work behaviors.

5. Keep comments impersonal and job related.

6. Support feedback with hard data.

7. Direct the negative feedback toward work-related behavior that the employee controls.

8. Let the employee speak.

9. Ensure that the employee has a clear and full understanding of the feedback.

10. Detail a future plan of action.

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Qualities Of An Effective Control SystemQualities Of An Effective Control System

• Accuracy• Timeliness• Economy• Flexibility• Understandability• Reasonable criteria• Strategic placement• Emphasis on the exception • Multiple criteria • Corrective action

• 正確性• 時效性• 經濟• 彈性• 可了解度• 合理的標準• 策略性的配置• 著重例外• 多重標準• 修正行動

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Contingency FactorsContingency Factors 權變因素 權變因素 in the Design of Control Systemsin the Design of Control Systems

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Controls And Cultural DifferencesControls And Cultural Differences 控制與文控制與文化差異化差異

• Methods of controlling employee behavior and operations can be quite different in different countries.

– Distance creates a tendency for formalized controls in the form of extensive, formal reports.

– In less technologically advanced countries, direct supervision and highly centralized decision making are the basic means of control.

– Local laws constraint the corrective actions that managers can take foreign countries.

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The Dysfunctional Side Of ControlThe Dysfunctional Side Of Control 控制之不控制之不良面良面

• unfocused controls– Failure to achieve desired or intended results occur

when control measures lack specificity

• incomplete control measures– Individuals or organizational units attempt to look good

exclusively on control measures.

• inflexible or unreasonable control standards– Controls and organizational goals will be ignored or

manipulated.

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Control Measures for Deterring Employee Theft or Fraud

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Contemporary Issues In ControlContemporary Issues In Control 控制的現代控制的現代議題議題

• The right to personal privacy in the workplace versus:– Employer’s monitoring of employee activities in

the workplace– Employer’s liability for employees creating a

hostile environment– Employer’s need to protect intellectual

property

Remember: The computer on your desk belongs to the company

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How An Entrepreneur Can Control For GrowthHow An Entrepreneur Can Control For Growth

• Planning for growth– By addressing growth strategies as part of business

planning but not being overly rigid in planning.

• Organizing for growth– The key challenges include finding capital, finding

people, and strengthening the organizational culture.

• Controlling for growth.– Maintaining good financial records and financial

controls over cash flow, inventory, customer data, sales orders, receivables, payables, and costs.

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Suggestions for Achieving a Supportive Growth-Oriented Suggestions for Achieving a Supportive Growth-Oriented CultureCulture

EXHIBIT 13.8a

•Keep the lines of communication open—inform employees about major issues.

•Establish trust by being honest, open, and forthright about the challenges and rewards of being a growing organization.

•Be a good listener—find out what employees are thinking and facing.

•Be willing to delegate duties.

•Be flexible—be willing to change your plans if necessary.

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Suggestions for Achieving a Supportive Growth-Oriented Suggestions for Achieving a Supportive Growth-Oriented Culture (cont’d)Culture (cont’d)

EXHIBIT 13.8b

•Provide consistent and regular feedback by letting employees know the outcomes—good and bad.

•Reinforce the contributions of each person by recognizing employees’ efforts.

•Continually train employees to enhance their capabilities and skills.

•Maintain the focus on the venture’s mission even as it grows.

•Establish and reinforce a “we” spirit since a successful growing venture takes the coordinated efforts of all the employees.