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Chapter
Controlling
14
1
Topic 9

1
 Control
 Managers monitor and regulate how
efficiently and effectively an
organization and its members are
performing the activities necessary to
achieve organizational goals
 Keeping an organization on track,
anticipating events, changing the
organization to respond to opportunities
and threats
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 Importance of control
Managers must monitor and evaluate:
 Is the firm efficiently converting inputs into
outputs?
 Are units of inputs and outputs measured accurately?
 Is product quality improving?
 Is the firm’s quality competitive with other firms?
 Are employees responsive to customers?
 Are customers satisfied with the services offered?
 Are our managers innovative in outlook?
 Does the control system encourage risk-taking?

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 Control Process Steps

Figure 11.2 11-4

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 Control process steps
 Step 1: Establish standards of performance.
Managers define goals for organizational
departments in specific, operational terms that
comprise a standard of performance against which to
compare organizational activities.

 Step 2: Measure actual performance. Managers

develop quantitative measurements of performance
that can be reviewed on a daily, weekly, or monthly
basis.

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 Control process steps
 Step 3: Compare performance to
standards. This is an explicit
comparison of actual activities to
performance standards.
 Step 4: Corrective action is a change in
work activities to bring them back to
acceptable performance standards.

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 Three Types of Control

Figure 11.1
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 Types of Control
 Feedforward (Future) Controls
 Used in the input stage of the process
 Managers can anticipate problems before they
arise.
 Managers can give rigorous specifications to
suppliers to avoid quality problems with inputs.

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 Types of Control
 Concurrent Controls
 Give immediate feedback on how inputs are
converted into outputs
 Allows managers to correct problems as they arise
 Managers can see that a machine is becoming out of
alignment and fix it.

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 Types of Control
Feedback Controls
 Provide after-the-fact information managers
can use in the future
 Customers’ reactions to products are used to
take corrective action in the future.

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 Forms of Control

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 Forms of Control

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 Forms of Control

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 Forms of Control
Concertive Control

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 Forms of Control

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 Factors to be Controlled

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