Management Fundamentals

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Gio

Index
1. Management
Management A Profession The Importance Of Management What is Management Definition Of management Management & Organizational Resources Management Functions & Process Management Roles Management Skills Management , Science Of Art The Universality Of Management

2.

Planning
Definition Of Planning Purposes Of Planning Primacy Of Planning Steps In Planning Process Organizational Objectives Or Goals (Planning Function)
Types Of Goals Types Of Plans

Planning Tools & Techniques

3.

Decision - Making
Defining of Decision Types of Decision The Decision Making Process The Decision Making Steps Decision Making Conditions The Pervasiveness Of Decision Making
Planning Organizing Leading Controlling

4.

Organizing
Definition Of Organizing Some Purposes Of Organizing The Organizing Process Organizational Structure Organizational Design
Work Specialization Departmentalization Chain Of Command Span Of Control Centralization & Decentralization Formalization

5.

Influencing
Definition Of Influencing The Influencing Sub System
Leading Motivating Considering Groups Communicating

Interpersonal Communication Organizational Communication

6.

Leadership
Definition Of Leadership Leader vs. Manager The Trait Approach to Leadership The Situational Approach to Leadership Determining How to Make Decision as a Leader The (VYJ) decision style The (OSU) decision style
The Michigan studies

Effectiveness of various Leadership Styles

7.

Motivation
Definition Of Motivation Strategies for motivating organization members
Managerial Communication Theory X Theory Y Job Design Behavior Modification Likerts Management Systems Monetary Incentives Non-Monetary Incentives

Considering Groups Kinds of Group in Organizations

Formal Groups Informal Groups

8.

Controlling
Definition Of Controlling The Controlling Process
Measuring performance Comparing measured performance to standards Taking corrective action Pre-control of feed forward control Concurrent control Feedback control

Types Of Control

Qualities of an Effective Control System

Management
Management a Profession
to act loyally and honestly in carrying out the policy of the organization and not undermine its image or reputation To accept responsibility for their own work and of their subordinates . Not to abuse their authority for personal gain . Not to hurt or attempt to injure the professional reputation, prospects, or business of others . Always to comply strictly with the law and operate within the spirit of the law . To order their conduct so as to uphold the dignity, standing and reputation of the institute . 1. 2. 3. 4. 5.

Definition
management is a process of reaching organizational goals by working with and through people and other organizational resources. its also the process of coordinating work activities so that theyre completed effectively and efficiently completing with and through people and other resources theres three main characteristics Its a process or series of continuing and related activities It involves and concentrated on reaching organization goals It reaches these goals by working with and through people and other organizational resources . the process represents the ongoing functions or primary activities engaged by mangers

1. 2. 3.

Efficiency Do things right its getting the most output from the least amount of input . Because managers deal with scarce inputs (people, money, equipment) theyre concerned with the efficient use of resources and not wasting them . Effectiveness Do the right things the work activities help the company to reach its goals or its completing activities so that the organizational goals are attained efficiency is concerned with the means of getting thongs done, effectiveness is concerned with the ends, or attainment of organizational goals . )Efficiency (means Effectiveness (ends)

Resource Usage
Low Waste

Goal Attainment
High Attainment

Management strives for )Low resource waste (high efficiency )High goal attainment (high effectiveness

Management and Organizational Resources

These resources composed of all assets available for activities during the production process, are of four basic types Human Resource the people who work for company . Their skills and knowledge of the work system are invaluable to managers . Monetary Resources are amount of money that managers use to purchase goods and services for the company Raw Materials are ingredients used directly in the manufacturing of product Capital Resources are machines used during the manufacturing process. Modern machines can be major factor in maintaining desired production levels and to keep pace with competitors Organizational Resources People Money Raw materials Capital Finished Products Goods Services

1.

2.

3. 4.

Inputs

Production Process

Outputs

Management Function and Process

Planning Organizing Leading Controlling management process is the set of ongoing decisions and work activities in which managers engaged as they plan, organize, lead, and control .

1. 1.

Management Roles
managers perform a lot of different but high interrelated roles Management roles its the specific categories of managerial behavior The interpersonal roles are roles that involves people (subordinates and persons outside the company) and other duties that are ceremonial and symbolic in nature The informational roles Involves receiving collection, and disseminating information. The decisional roles revolve around making choices and includes roles as businessman, disturbance handler, resource allotment, and negotiator.

1. 1.


1.

Management Skills
Technical Skills include knowledge of and proficiency in a certain specialized field . These skills are more important at lower levels of management since these managers are dealing directly with employees doing the company work Human Skills its the ability to work well with other people. managers knows how to communicate, motivate lead, and inspire enthusiasm and trust. These skills are equally important at all levels of management Conceptual Skills are the skills managers must have to think and to conceptualize about abstract and complex situation. These skills are most important at the top management level Management Skills
Levels
Top Management Middle Management Needs

2.

3.

Needed Conceptual Skills Human Skills Technical Skills

Needs

Supervisory or Operational Management

Needs

How do we define who managers are Manager is someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals First-line Managers are managers at the lowest level of the company who manage the work of nonmanagerial employees who are involved with the production or creation of the companys products. Middle Managers include all levels of management between the first-line level and the top level of the company . These managers manage the work of first-line managers and may have titles such as department head, project leader, plant manager or division manager. Top Managers are responsible for making organization-wide decision and establish the plans and goals that affect the whole company . These individuals typically gave titles such as executive vice president, president, managing director, chief operating officer, chief executive officer, or chairman of the board.

Management Universality
management is needed in all types and sizes of organizations, at all organizational levels, in all organizational work areas, and in all companies, no matter in what country theyre located.
All Sizes of Organizations Small Large

All Organizational Areas Manufacturing-Marketing Human Resources Accounting Information System.

Management is ..Needed in

All Types of Organizational Profit not-for Profit

All Organizational Levels Bottom Top

Planning
Definition
Planning is establishing an overall strategy for achieving the organizations goals and developing a comprehensive set of plan to integrate and coordinate organizational work .Its concerned with both ends (whats to be done) and means (how its to be done) .

1. 2. 3. 4.

Planning Purposes
Planning gives direction . Reduces the impact of change . Minimizes waste and redundancy . Sets the standards used in controlling .

1. 2. 3. 4. 5.

Planning Process Steps

State the organizational objectives . List alternative ways of reaching objectives . Develop premises how and which alternative to be based . Choose the best alternative for reaching objective . Develop plans to pursue the chosen alternative .

 1.

Organizational Objectives or Goals (Plannings Function) Organizational Objectives

targets toward which the open management system is directed. Properly developed organizational objectives reflect the purpose of the organization .

2.
1. 2. 3. 4. 5. 6. 7. 8.

Organizational Purpose or Mission

is what the organization exists to do, given a particular customer group and customer needs .

Organizational Objectives Areas

Market standing-Management :set objectives to clarify the relation with competitors . Innovation-Management :set objectives explain the ways to develop a new operation methods. Productivity-Management : set objectives to show the production target levels . Physical and financial resources-Management : set objectives of the good using of acquisition, and maintenance of capital and monetary resources . Profitability-Management : set objectives to specify the profit the company would like to generate . Managerial performance and development-Management : set objectives that specify rates and levels of managerial productivity and growth . Worker performance and attitude-Management : set objectives that specify worker productivity rates as well as desirable attitudes for worker to possess . Public responsibility-Management : set objectives explain the companys responsibilities to its customers and society and shows the companys seriousness to live up to those responsibility.


1.

Goals Types
Stated Goals are official statements of what the company says, and what it wants its stakeholders to believe about the goals. They can be found in an organizations charter, annual reports, or managers public statements. Real Goals are goals that a company actually pursues-closely show what organizational members are doing .

2.

Compare between Financial and Strategic Objectives

Financial Objectives
Faster revenue growth Faster earning growth Higher profit margins Higher return on invested capital Stronger bond and credit Bigger cash flows Arising stock price A more diversified revenue base Stable earnings during recessionary periods

Strategic Objectives A bigger market share

A higher more secure industry rank Higher product quality Lower costs relative to key competitors More attractive product line A stronger reputation with customers Superior customer service Recognition as leader to complete in international markets

 A.
2.

Plans Types Types Plans according to their Breadth

Strategic Plans are plans that apply to the whole company ,establish the overall goals and seek to position the company in its environment terms Operational Plans are plans that specify the details of how to achieve the overall goals

2.

Compare between two Types

Strategic plans covers the a longtime frame and broader of the company , and also include the formulation of goals because operational plans define ways to achieve the goals . Operational plans covers the short time periods (monthly, weekly, and day to-day)

B.
1. 2. 3.

Plans Types according to Timeframe

Long-term Plans plans with a time frame three years and more Short-term Plans one year or less Intermediate Plans is any time in between

C.
1.

Plans Types according to Specificity

Specific Plans are clearly defined . They have specifically stated objectives . Theres no uncertain and no problem with misunderstanding . Directional Plans are flexible plans that set out general guidelines .

2.

D.
1. 2.

Plans Types according to Use Frequency

A single-use Plans is a one-time plan specifically designed to meet the needs of a unique situation . Standing Plans are plans provide direction for activities performed repeatedly, and include policies, rules ,and procedure .

1)
B.

Planning Tools and Techniques Environment Assessing Techniques

Environmental Scanning is the screening a large amounts of information to anticipate and interpret changes in the environment .

B.

Forecasting this can used by managers to assess the environment is forecasting. Forecasting is an important part of organizational planning. Environment scanning creates the foundation for forecasts, which are predication of outcomes Forecasting Techniques Quantitative Forecasting applies a set of mathematical rules to a series of past data to predict outcomes. These techniques are preferred when managers have sufficient hard data that can be used . Qualitative Forecasting it uses the judgment and opinion of knowledgeable individuals to predict outcomes. its used when precise data are limited or hard to obtain. Benchmarking this is the search for the best practices between competitors or non competitors that lead to their superior performance . The basic idea behind benchmarking is that managers can improve quality by analyzing and then copying the methods of the leaders in various fields .

2)

Resources Allocating Techniques

resources are the assets of the company and include

Financial (debt, equity, retained, earning, and other financial holdings ). Physical (equipment, building, raw materials, or other real assets ). Human (experiences, skills, knowledge, and qualification of people ). Immaterial (brand name, patents, reputation, trade marks, copy right, registered designs, and databases, structural ). Cultural (history, culture, work system, working, relationships, levels of trust, policies, and structure ).

and there is four techniques

Budgeting is a numerical plan for allocating resources to specific activities . Managers typically prepare budget for revenues, expenses, and large capital expenditures. Scheduling is detailing what activities have to be done, and which theyre to be completed, whos to be each, and when . Some useful scheduling devices are Gantt, Load charts, and PERT network analysis .

Cash Budget Forecasts cash on band and how much will be needed

Revenue Budget Project future sales

Expense Budget Lists primary activities and allocate monetary amount to each

Variable Budget Fixed Budget Takes into account the costs that vary with Assumes fixed level of sales or production volume

Profit Budget Combines revenue and expense budget of various units to determine each units profit contribution

Break-even Analysis is a technique for identifying if only the total revenue is just sufficient to cover total cost . It points out the relationship between revenues, costs, and profits . Linear Programming is a mathematical technique solves resource allocation problems .

Decision-Making
1.

Definition
Decision is choice made between two or more available alternatives . Decision-Making is process of choosing the best alternative to reach objectives.

Decisions Types : Programmed Decision

are routine and repetitive, and the company develops specific ways to handle them . Procedure Its a series of interrelated sequential steps that manager can use for responding to a structured problem . Rule Its clear statement that tells manger what he can do . Rules used for facing a wellstructured problem because they are simple to follow and ensure consistency stability . ex. Rules about lateness and absenteeism . Policy put guidelines to limit managers thinking in specific direction . Different from rule, policy establish parameters for decision maker rather than specifically stating what should or should not to be done

2.

Non-Programmed Decision
are typically one-shot decision that are usually less structured than programmed decision .

The Decision-Making Process : the decision-making process include the steps for
decision maker to arrive at this choice . The decision-making steps

1.

Identifying an existing problem

Orders issued by managers or supervisors . Situations relayed to managers by their subordinates . The normal activity of the managers themselves .

2.

List alternative solution

before searching for solutions managers should be aware of five limitations on the number of problem-solving alternatives available : Authority factors (managers superior may gave told the manager that may be a certain alternative is not feasible ) . Biological for human factors (human factors inside the company may be not fit for carry out certain alternatives ) . Physical factors (the physical facilities of the company may be not fit for certain alternatives ) .

Technological factors (the level of company technology may be not fit for certain alternatives ) . Economic factors (certain alternatives may be too costly for the company ) .

3.

Selecting the most beneficial alternative

the evaluation should consist of three steps first : decision maker should list the potential effects of each alternatives Second : they should assign a probability factor to each potential effects to show how probable the effect occurrence would be if the alternative were carried out . Third : keeping company goals in mind, decision maker should compare each alternatives expected effects and the respective probabilities of those effects . after completed this steps. Manager the most advantageous of alternative to the company .

4.

Implementing the chosen alternative

put the chosen alternative into action . Decision must be supported by appropriate action to have a chance of success .

5.

Evaluating decision effectiveness

decision makers must gather feedback to determine the implementing alternative effect on the identified problem . If the identified problem is not being solved, managers need to search out and implement some other alternative .

Decision-Making Conditions
Complete Certainty Condition Its the decision-making situation in which the decision maker knows exactly what the results of a carried out alternative will be . Complete Uncertainty Condition Used if the decision maker has no idea about the results of carried out alternative . Risk Condition It means the decision maker has only enough information to estimate about the implemented alternatives outcome .

* *

The Decision-Making Pervasiveness

Plan Organize Lead Control

Organizing
Definition
Organizing is the process of establishing orderly uses for all companys resources. Its also the process of creating a companys structure . The challenge for managers is to design an organizational structure that allows employees to effectively and efficiently do their work .

Some Organizing Purposes

Divides work into specific jobs and department . Assign tasks and responsibilities associated with individual jobs . Coordinate diverse organizational tasks . Cluster jobs into units . Establish relationships among individuals, groups, departments . Establish formal lines of authority Allocates and deploys company all resources .


1. 2. 3. 4. 5.

The Organizing Process

Reflect the companys plan and objectives . Establish major tasks . Divides major tasks into subtasks . Allocate resources and directives for subtasks . Evaluate the result of implemented organizing strategy .

Step 1: Reflect on plans and objectives .

Step 2: Establish major tasks .

:Step 5 Evaluate results of .Organizing strategy

Step 3: Divides major tasks Into sub tasks .

Step 4 : Allocate resources and Directives for subtasks .

Organizational Structure
Is the formal framework about job tasks dividing, grouping, and coordinating . When managers develop or change an organizations structure, they are engaged in organizational design .

1.

Organizational Design
Is a process involves decisions about six key elements

Work Specialization
Describes the degree to which tasks in an company are divided into separate jobs. Its also meaning not done by one individual . But is broken down into steps and each one is completed by different person . Individual employees specialize in doing part of an activity rather than entire activity .

2.

Departmentalization Is the basis by which job are grouped together .

There are five common forms of departmentalization Functional departmentalization Product departmentalization Geographical departmentalization Process departmentalization Customer departmentalization

Cross-Functional Teams : are groups of individuals who are experts in various

specialties and who work together .

3.

Chain Of Command
is the continues line of authority that extends form upper organizational levels to the lowest levels and clarifies who reports to whom . Authority : involves the rights inherent in a managerial position to tell people what to do and to expect them to do it . Responsibility : involves the obligation of employees to perform any assigned duties as managers coordinate and integrate the work of employees . Unity Of Command : it helps preserve the concept of a continuous line of authority . It states that a person should report to only one manager .

4.

Span Of Control
The contemporary view of span of control notices that many factors influence the appropriate number that a manager can efficiently and effectively manage . Employee tasks similarity . Tasks complexity . The degree of standardized procedure placing . The companys information system sophistication . Companys culture strength . Manager preferred style .

5.

Centralization and Decentralization Centralization

Describes the degree to which decision-making concentrated at a single point in the company . If top managers make the companys key decisions with little or no inputs from below then the organization is centralized

Decentralization
Allows lower-level employees provide input or actually make decision .

Centralization and Decentralization Factors More Centralization

Environment is stable Lower level managers are not as capable or experienced at making decisions as upper level managers . Lower-level managers do not want to have a say in decisions . Decisions are significant . Organization is facing a crisis or the risk of company failure . Company is large Effective implementation of company strategies depends on managers retaining say over what happens .

More Decentralization
Environment is complex, uncertain . Lower-level managers are capable and experienced at making decision . Lower-level managers want a voice in decision . Decisions are relatively minor . Corporate culture is open to allowing managers to have a say in what happens . Company is geographically dispersed . Effective implementation of company strategies depends on managers having involvement and flexibility to make decision .

6.

Formalization
shows the degree to which jobs in company are standardized and the extent to which employee behavior is guided by rules and procedures .

Influencing
Definition
Influencing is the process of guiding the activities of company members in appropriate directions .

Appropriate Directions
Are those that lead to the attainment of management system objectives .

1. 2. 3. 4.

The Influencing Subsystem

Leading . Motivating . Considering groups . Communicating .

1. 2. 3. 4.

Inputs People . Money . Raw materials . Machines .

Processes Influencing Process

Considering groups

Leading

Motivating

Output appropriate organization members behavior

1)

Communication Its the process of sharing information with individuals . In general, communication involves one person projecting a message to one or more other people that result in everyones arriving at a common understanding of the message . Interpersonal Communication Its the process of transmitting information to others . The Source / Encoder Its the person in the interpersonal communication situation who originates and encodes information to be shared with others . The Signal The message that has been transmitted from one person to another is called signal (encoded information used to share constitutes a message) . The Decoder / Destination Its the person or persons who the source tries to share information with . Decoding Its the process of converting messages back into information .

2)

3)

Feedback and Interpersonal Communication feedback is the destinations reaction to a message . Feedback can used by source to ensure successful communication .

 1. 2.

Interpersonal Communication Types Verbal Communication Its the sharing of through words (written or spoken) Nonverbal Communication Its the sharing of information without using words to encode thoughts (gestures, vocal tones, and facial expressions) Organizational Communication Is the interpersonal communication within organization .Organizational communication directly relates to the goals, function, and human organizations structure .

Formal Organizational Communication It follows the organization chart lines .

 1.

Formal Organizational Communication Types Downward Organizational Communication it flows form any point on an company chart downward to another point on the company chart . Upward Organizational Communication it flows from any point on company chart upward to another point on the chart . Lateral Organizational Communication it flows from any point on chart horizontally to another point on chart .

2. 3.

Leadership
Definition
Leadership is the process of directing the behavior of others toward the accomplishment of some objective or objectives .

Leader Versus Manager

leading is not like managing . But some managers are leaders and some leaders are mangers, leading and managing have not the same activities. Managing is much wider in range than leading and focuses on both non-behavioral and behavioral issues . Leading emphasizes mainly behavioral issues .

The Trait Approach to Leadership

leadership shows the personal characteristics of an individual as the main determinates of how successful that individual could be as a leader. management writer agree that leadership ability cant be explained by individual traits or inherited characteristics, they believe that individual can be trained to be good leaders .


1. 2.

Situational Approach to Leadership

It suggests that leadership style must be matched to the situation the leader faces.

Leader Decision-Making
(Vroom Yetton jago) the VYJ theory is built on two premises Organizational decision should be of high quality (should have beneficial impact on performance) Subordinates should accept and be committed to organizational decisions that are made. Decision Style The VYJ model suggests that therere five different decision styles or ways that leaders can make decision . These styles range from authority (the leader makes the decision) to consultative (the leaders makes the decision after interacting with the followers) to group-focused (the managers meets with the group and the group makes the decision . The VYJ model, is method for determining when a leader should use which decision style .

Decision style AI AII

Definition
- Managers makes the decision alone. - Manager asks for information from subordinates but makes the decision Subordinates may or may not be informed about what the situation is. - Managers shares the situation with individual subordinates and asks for information and evaluation - Subordinates do not meet as group, and the managers alone makes the decision. - Manager and subordinates meets as group to discuss the situation, but manger makes the decision. ,Manager and subordinates meet as a group to discuss the situationand the group makes the decision.

CI

CII

GII

A = authority

C = consultative

G = group

Leadership Behavior
It concerned about what good leaders do. Are they concerned on keeping task done. Or make their followers happy and having high morale.

1.

The Ohio state University (OSU)

Theres two main types of behavior Structured Behavior Its the activities that (1) determinates the relationship between the leader and his followers (2) establishes well-defined procedure that the followers should conform to in doing their jobs. Consideration Behavior It reflects friendship, mutual trust, respect, and warmth in the relationship between leader and followers.

2.

Leadership Style
Used by leader to establish the way of guiding the organization members in specific direction.

High

Low Structure High Consideration Low Structure Low Consideration

High Structure High Consideration High Structure Low Consideration

Consideration

Low

Low

High

structure


2.

The Michigan Studies

It says theres two basic types of leading behavior Job-Centered Behavior It focuses on the subordinates work and performance. Employee-Centered Behavior It focuses on subordinates humanity (as people) and cares about personal needs and team player. Effectiveness of various leadership styles The desirable leadership behavior is associated with high leader emphasis on both structure and consideration and the undesirable leadership behaviors is associated with low leader emphasis on both dimensions. The most effective leadership style noticed in high consideration and high structure. Results of a more recent studies shows that high consideration is always preferred by subordinates. Comparing Styles one shows that any single leadership style is more effective than any other. The successful leadership style for managers in one situation may prove ineffective in another situation.

Motivation
Definition
Motivation is the inner state makes everyone in company behaves in a way that ensures the accomplishment of some jobs .

1. 2. 3. 4. 5. 6. 7.

Motivating Organization Members Strategies

Theres seven strategies Managerial communication . Theory X Theory Y . Job design . Behavior modification . Likerts management system. Monetary incentives . Non monetary incentives .

1.

Managerial Communication
Managers should strive to communicate with other company members, because its basic tool for satisfying the human needs of company members.

2.

Theory X Theory Y
Theory X : involves negative assumption about people . Theory Y : involves positive assumption about people and must be used by managers. Production might be increased by using any theory of X or Y assumption. Depending on the situation the manager face.

3.

Job Design
Job Rotation Its the process of moving workers form between jobs rather than requiring them to perform only one simple and specialized job over the long term. Job Enlargement is the process of increasing the number of operations an individual performs in a job, in order to enhance the individuals situation in work. Job Enrichment Its the process of incorporating motivators into a job situation. And motivating factors are items that influence the job satisfaction degree (achievement opportunity, recognition opportunity work itself, responsibility, advancement, personal growth) Flextime or flexible working hours programs, is a program that allows workers to complete their jobs within a workweek of normal of hours that they arrange themselves .

4.

Behavior Modification Its a program that focuses on managing human activity by controlling the consequences of performing the activity. Positive reinforcement is a reward that consist of a desirable consequence of behavior, and negative reinforcement is reward that consist of eliminating of an undesirable consequence of behavior. Likerts Management System Includes - System 1 - this style of management is characterized by a lack of confidence or trust in subordinates. - System 2 - this style is characterized by master to servant style confidence and trust in subordinates. - System 3 - this style is characterized by substantial, though not complete confidence in subordinates. - System 4 - this style is characterized by complete trust and confidence in subordinates. styles, systems, and productivity Likert has suggested that as management style moves from system 1 to 4, the human needs of individuals become more effectively satisfied over the long-term.

5.

6.

Monetary Incentives Its a program or plan allows the team members receive a bonus when their team exceeds a goal. All plans link pay closely to performance (shares of company stock as a benefit, lump sum bonuses one time cash payment and gain sharing) . Non Monetary Incentive This plan makes employees committed and motivated by non-monetary means . Considering Groups A group is any number of people who interact with one another, are psychologically aware of one another, and perceive to be group. Why should managers study groups Group exist in all kind of organizations . Groups inevitably from in facets of organizational existence . Groups can cause desirable or undesirable consequences within the organization . An understanding of groups can used in rising probability desirable consequences in company .

7.

1. 2. 3. 4.

 Groups kinds Formal Groups Is group that exists inside organization by management decree to perform tasks that enhance the attainment of organizational objectives Informal Groups Is a collection of individuals whose common work experiences result in the development of a system of interpersonal relations.

Controlling

Definition Control is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations. The Controlling Process
Measuring performance . Comparing measured performance to standards . Taking corrective action .

1.

Measuring Performance
managers must measure correct organizational performance by establishing some unit of measure that gauges performance and observe the quantity of this unit as generated by the items whose performance is being measured.

2.

Comparing Measured Performance to Standards

after managers have taken a measure of organizational performance, the next step in controlling is to compare this measure with some standard.

A Standard is a level of activity established to serve as a model for evaluation organizational performance .

3.

Take Corrective Action

after actual performance has been measured and compared with established performance standards, the next step in controlling process is to take corrective action if necessary . Corrective Action focuses on correcting organizational mistakes that are slowing the organizational performance.

1.

Control Types
Pre-control or Feed forward Control the control that takes place before work is performed is called per control or feed forward control . Managers using this type of control to create policies, procedures, and rules aimed at eliminating behavior that will cause desirable work result . Concurrent Control Is control that takes place as work is being performed . It relate not only to employee performance, but also to such non human areas as equipment performance and department appearance.

2.

3.

Feedback Control is control that takes place after some unit of work has been performed. Control that concentrates on past organizational performance is called feedback control. Managers use this type of control to take corrective action by looking at organizational history over a specified time period . Theres two advantages over feed forward and concurrent control first feedback provides managers with meaningful information on how effective their planning effort was. second feedback control can enhance employee motivation.

Input

Processes

Output

Feed forward Control Anticipates Problems

Concurrent Control Corrects Problems as they Happen

Feedback Control Corrects Problems after they Occur

 1. 2. 3.

Qualities of Effective Control System Accuracy

an accurate control system is reliable and produces valid data.

Timeliness
an effective control system must provide timely information .

Economy
any system of control has to justify the benefits that it gives in relation to the costs it incurs .

4.

Flexibility
controls must be flexible enough to adjust to problems or to take advantage of new opportunities .

5.

Understandability
controls that cannot be understood have no value. A control system that is difficult to understand can cause unnecessary mistakes, frustrate employees, and be ignored .

6.

Reasonable Criteria
control standards must be reasonable and attainable if they are too high or unreasonable, they no longer motivate.

7.

Strategic Placement
management cant control everything that goes on in company . Even if it could the benefits couldnt justify the costs . As a result , managers should place controls on factors that are strategic to the organizations performance. Control should cover the critical activities, operations, and events within the organization.

8.

Emphasis on the Exception

because managers cant control all activities, they should place their strategic control devices where those devices can call attention only to the exceptions .

9.

Multiple Criteria
if management controls by using a single measure such as unit profit, effort will be focused only on looking good on that standard. multiple measures of performance widen this narrow focus.

10.

Corrective Action
an effective control system not only indicates when a significant deviation from standard occurs but also suggests what action should be taken to correct the deviation .