Professional Documents
Culture Documents
Mod 4 and 5
Mod 4 and 5
LEADING
Introduction
Leading is an attitude a person must possess in influencing other people to act in attaining
goals and objectives. Leadership is a process in which an individual influences the behavior and
attitudes of other people. Leading by example helps other people see what lies ahead and act
swiftly to counter any challenges along the way. If a group is led by a person with poor leadership
skills, the group will experience frequent conflicts as each person wants to do things their way. In
this unit, discussions and illustrations of the different topic regarding leading and leadership will
be discussed.
Lesson Outcomes
5. Illustrate and understand leadership and influence processes and its characteristics
Leading is the third element of management, one of the management core functions. Here,
a manager spends time connecting with his/her employees. Leadership skills include inspiring,
communicating, motivating, and influencing employees for efficient output. All managers are not
leaders, but all leaders are managers. An employee follows all the directions a manager gives
because they have to, because managers have all the legitimate powers. But an employee
voluntarily follows the direction of a leader because they have believed in him\her.
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Leading function has three basic components:
2. Influencing Employees: They influence their employees and subordinates to reach the
desired goals of the organization.
The leading function helps any organization go forward to attain its goals and objectives.
To maximize efficiency and to achieve organizational goals, leading to business management plays
a key role. Guiding the subordinates towards the goal and to ensure their growth is one of the many
functions leading covers. To justify the importance of leading in a concern of business
management, the following points are discussed.
Leading in business management is to initiate the project according to plan, but to ensure its
success the employees must be effective and efficient at their work. It is a leaders’ responsibility
to ensure that the workforce is doing their part of the job properly with full knowledge. If needed,
leaders might have to help the employee in their respective tasks. Leading a subordinated and
providing real-time support helps the employee grow and ensure the best performance in their
working area.
Motivating Employees
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Motivating employees and bringing the best out of them is one of the prime aspects of leading in
an organization. If employees are motivated according to their needs, they try to be more efficient
with their work and they work more effectively. A leader leads the employees by keeping them
motivated so that they can do their part of the job properly
The Psychological contract is the overall set of expectations held by an individual with respect to
what he or she will contribute to the organization and what the organization will provide in return.
Each individual has the effort, skills, ability, time, and loyalty to contribute to an organization that
pays and has career opportunities (tangible rewards)/job status and security (intangible rewards).
Components of an attitude:
An affective component reflects the feelings and emotions an individual has toward a situation.
The Cognitive component is derived from perceived knowledge. The behavioral intentional
component is how a person expects to behave in a given situation.
Work-Related Interests:
The attitude that reflects the extent to which an individual is gratified or fulfilled by his or her
work is job satisfaction.; influenced by a personal, group, and organizational factors; high levels
of job satisfaction don’t always lead to high job performance. Most people are dissatisfied when
absent from work more often, experience stress, which disrupts coworkers, and are continually
looking for another job. Satisfied workers are absent from work less often, makes positive
contributions, and stay with the organization
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Organizational Commitment is the attitude that reflects an individual’s identification with an
attachment to an organization itself. A person with a high level of reward themselves as true
members of the organization, overlook minor sources of dissatisfaction, see themselves as
remaining a member of the organization. A person with a low level sees themselves as outsiders,
express more dissatisfaction about things, and don’t see themselves as long-term members of the
organization.
Emotional Intelligence is the extent to which people are self-aware, or having the capacity for
being aware of how they are feeling by tuning into one’s emotions. A person can manage their
emotions to balance anxiety, fear, and anger so that they do not overly interfere with getting things
accomplished. They can motivate themselves and remain optimistic to continue striving in the
face of setbacks, barriers, and failures with explanatory style. People express empathy to
understand how others are feeling and possess social skills to get along with others and to establish
positive relationships High EQ perform better on jobs that require interaction and directing others;
can be developed and not biologically biased.
Causes of stress can be related inside and outside of the workplace. Task demands are quick
decisions, incomplete information for decisions, and critical decisions or the task itself. Physical
demands such as temperature extremes, poorly designed offices, and threats to health can be
associated with the job setting. Your role demand in the areas of role conflict, role ambiguity, a
set of expected behaviors associated with a position in a group or organization. Finally,
interpersonal demands on group pressures, leadership styles, and conflicting personalities;
stressors associated with relationships that confront people in organizations
The consequences of stress can create negative Personal Behavioral through smoking, alcoholism,
overeating, and drug abuse. They can create physiological-sleep disturbances, depression. They
can also create a medical problem such as heart disease, stroke, backaches, ulcers, and skin
conditions. Finally, they can create negative work related to poor quality work output and lower
productivity, faulty decisions and disrupted relationships, withdrawal through indifference and
absenteeism, irritation and difficulty in getting along, job dissatisfaction, low morale, and a lack
of commitment
A Type A Personality is extremely competitive, very devoted to work, and has a strong sense of
time urgency, is impatient and can be easily hostile or angry towards people.
Motivation
Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned
by the effort’s ability to satisfy some individual need. “Effort” is a measure of intensity,
organizational goals, and need. It is some internal state that makes certain outcomes appear
attractive and is the set of forces that cause people to behave in certain ways
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Needs theory states that we have basic needs and wants to be satisfied. There can be a need or
deficiency depended upon a person be more motivated in a deficient state. Humans search for
ways to satisfy the need and have a choice of behavior to satisfy a need. After an evaluation of
need satisfaction, follows the determination of future needs and search/choice for satisfaction
Task-related behaviors of leader are that they adapt to demands of the situation, sets
direction, sets high-performance standards, takes risks, scans and interprets environment (SWOT),
provides frequent feedback, performs consistently, and focuses on needs of customers.
Relationship-oriented behaviors of leaders are that they align people with goals, mobilize
people to achieve performance standards, builds synergy among people, inspires, enables the
satisfaction of higher-order needs, provides meaning for people, encourages and supports,
promotes principles and values.
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Lesson 2 Motivating Employee Performance
Employee motivation and performance are key factors in moving a small business forward.
Owners, managers and supervisors know positive motivation leads to better performance and
higher productivity but may rely on the wrong tools. Microsoft Business states the conundrum as
"using monetary and other rewards to improve motivation is a simple idea, but doing it fairly and
effectively can be challenging."
1. Reinforcement
Essentially the two types of reinforcement are positive and negative. Positive reinforcement is
using beneficial incentives to boost morale and productivity, such as performance based bonuses,
sales commissions, achievement rewards, pay raises and promotions. Negative reinforcement is
using unfavorable tools to achieve desired results, such as bad performance reviews, verbal and
written warnings, suspension, pay reduction or dismissal warnings.
2. Benefits
Benefits as motivators can boost job performance. Pay raises, bonuses, stock options and profit
sharing are examples of positive motivators. These motivators reward employees for not only
doing their job, but doing it well and with enthusiasm. However, these motivators are to retain
normal levels or morale but do not necessarily increase overall motivation levels. Management
Help includes money as a myth of motivating small business employees as "things like money, a
nice office and job security can help people from becoming less motivated, but they usually don't
help people to become more motivated."
3. Goal Setting
An important part of improving employee motivation and performance is clear, attainable goals.
Informing your employees of goals you have set for your small business improves focus and team
cohesion. Business consultant Harvey Wigder states, "if people are communicated to and if they
understand the ground rules, they know that if things don't work they're not going to get
incentives."
4. Employee Input
Regularly engage your small business employees on issues that effect productivity and morale.
Being engaged imparts parity and demonstrates your ability to be an effective leader as one in
touch with employee concerns. NOLO suggests asking employees for ways to improve working
conditions: "if the answer is better lighting, or a more efficient computer, or a chance to work at
home one day a week, you can often reward the employee by following through on the request."
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5. Considerations
According to Accel Team, research consistently shows that employees who are well motivated
perform better and add value to a small business. However, "the inverse also holds true." Meaning
unmotivated employees produce less and do not substantially contribute to businesses.
What is Leadership?
Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the
ability of a manager to induce the subordinates to work with confidence and zeal.
Leadership is the potential to influence behaviour of others. It is also defined as the capacity to
influence a group towards the realization of a goal. Leaders are required to develop future visions,
and to motivate the organizational members to want to achieve the visions.
According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards
goals.”
Characteristics of Leadership
3. It is a group process. It involves two or more people interacting with each other.
4. A leader is involved in shaping and moulding the behaviour of the group towards
accomplishment of organizational goals.
5. Leadership is situation bound. There is no best style of leadership. It all depends upon
tackling with the situations.
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While managers lay down the structure and delegates authority and responsibility, leaders provides
direction by developing the organizational vision and communicating it to the employees and
inspiring them to achieve it.
While management includes focus on planning, organizing, staffing, directing and controlling;
leadership is mainly a part of directing function of management. Leaders focus on listening,
building relationships, teamwork, inspiring, motivating and persuading the followers.
While a leader gets his authority from his followers, a manager gets his authority by virtue of his
position in the organization.
While managers follow the organization’s policies and procedure, the leaders follow their own
instinct.
Management is more of science as the managers are exact, planned, standard, logical and more of
mind. Leadership, on the other hand, is an art. In an organization, if the managers are required,
then leaders are a must/essential.
While management deals with the technical dimension in an organization or the job content;
leadership deals with the people aspect in an organization.
While management measures/evaluates people by their name, past records, present performance;
leadership sees and evaluates individuals as having potential for things that can’t be measured, i.e.,
it deals with future and the performance of people if their potential is fully extracted.
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Management is based more on written communication, while leadership is based more on verbal
communication.
The organizations which are over managed and under-led do not perform upto the benchmark.
Leadership accompanied by management sets a new direction and makes efficient use of resources
to achieve it. Both leadership and management are essential for individual as well as organizational
success.
Communication in Organizations
Most HR professionals and organizational leaders agree that linking corporate communication to
business strategy is essential to effective and consistent business operations. With a formal and
comprehensive communication strategy, organizations can ensure that they:
3. Deliver messages from the top that are congruent with the organization's mission,
vision and culture.
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The impact of effective communication
3. Helps employees understand terms and conditions of their employment and drives their
commitment and loyalty.
4. Educates employees on the merits of remaining union-free (if that is the organization's
goal).
6. Helps to lessen the chances for misunderstandings and potentially reduces grievances
and lawsuits.
7. Improves processes and procedures and ultimately creates greater efficiencies and
reduces costs.
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Lesson 3 The impact of ineffective communication
Two-way communication
5. Provide feedback.
1. Highly effective strategies that are often top-down, with senior management setting the
tone for a cascading series of messages.
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2. A budget that allows for the use of various types of communication vehicles depending
on the message to be delivered and any unique issues associated with it.
3.A process by which leaders evaluate any particular situation driving the need to
communicate and from which key messages will emerge.
Constituencies
1. The CEO and senior managers are ultimately responsible for setting the tone and
establishing organizational culture. Key leaders should be coached on their role in ensuring
effective companywide communication.
2. The HR professional and communication leader also have critical roles, especially in
challenging economic environments.
3. Managers are responsible for daily communication with their employees and for relating
to their peers and colleagues.
4. All employees have a responsibility to voice concerns and issues, provide feedback, and
listen effectively.
Training
3. Train-the-trainer initiatives.
A strong training component will not only equip leaders to communicate effectively with their
teams and other organizational leaders, it will also help them understand the appropriate
communication channels and protocols.
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Responding to employee issues
There is no better way to cause resentment among employees than to ask them for feedback and
then fail to act in response to their concerns. Honest, constructive feedback from employees starts
with trust and the understanding that employees can voice their concerns without fear of retaliation.
Measuring results
While organizations generally agree that measuring and quantifying results of communication
plans are beneficial, this goal is difficult to accomplish. Given the elusive nature of communication
data, determining a cost-benefit ratio, for example, may be challenging. Did the organization fare
better because of the manner in which it communicated crucial information about a merger or
acquisition? Was the impact of a reduction in force on morale mitigated by the way in which
employees were told?
Despite the difficulty of doing so, organizations should strive to collect qualitative and quantitative
information to evaluate their efforts:
Qualitative data may include anecdotal evidence that employees' attitudes were improved
after the handling of an emergency situation or that focus group information supported the strategy
for communicating benefits changes to employees.
Quantitative data may include measures such as turnover rates, productivity rates and
employee satisfaction benchmarks, as well as use of employee service center options.
When selecting the best communication vehicle, organizational leaders should consider:
2. Location. Employees' location may affect this selection. Are all employees in one
building, at multiple sites or situated globally? Do they work virtually?
3. Message. Another issue that affects the decision is the sensitivity of the information.
For layoff or termination information, most professionals agree that face-to-face meetings trump
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any other means of communication, but some issues may make these meetings impossible due to
the geographic location of the employees, the number of employees affected and other factors.
Organizational leaders have many options, including the following, when selecting a
communication vehicle.
Groups and teams are ubiquitous on the organizational landscape and managers will find
that team management skills are required within each of the planning-organizing-leading-
controlling (P-O-L-C) functions. For instance, planning may often occur in teams, particularly in
less centralized organizations or toward the higher levels of the firm. When making decisions about
the structure of the firm and individual jobs, managers conducting their organizing function must
determine how teams will be used within the organization. Teams and groups have implications
for the controlling function because teams require different performance assessments and rewards.
Finally, teams and groups are a facet of the leading function. Today’s managers must be both good
team members and good team leaders. Managing groups and teams is a key component of
leadership.
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Activity 9
Identification.
_________________3. The extent to which people are self-aware, or having the capacity for being
aware of how they are feeling by tuning into one’s emotions.
_________________7. A process by which an executive can direct, guide and influence the
behavior and work of others towards accomplishment of specific goals in a given situation.
_________________8. They are required to develop future visions, and to motivate the
organizational members to want to achieve the visions
________________10. Deals with the technical dimension in an organization or the job content;
leadership deals with the people aspect in an organization.
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Activity 10
___________1. Lay down the structure and delegates authority and responsibility.
___________10. It is an art.
___________11. More of science as the managers are exact, planned, standard, logical and more
of mind,
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___________15. Deals with the technical dimension in an organization or the job content.
___________16. Sees and evaluates individuals as having potential for things that can’t be
measured, i.e., it deals with future and the performance of people if their potential is fully extracted.
___________19. Accompanied by management sets a new direction and makes efficient use of
resources to achieve it.
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Activity 11
1. Which of Maslow's five needs can a manager fulfill by providing challenging work, inviting
employees to participate in decision-making, and giving them flexibility and autonomy in their
jobs?
2. Your organization has asked you to prepare a report on adopting a Leadership and Management
Development programme. They require more background to the exact difference between what
the experts term ‘Leadership’ and ‘Management’. They would also like to see your
recommendations on what you feel about the situational and contingency theories of leadership
and how they could adopt the key principles into an appropriate programme of development for
the organization.
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References
https://corporatefinanceinstitute.com/resources/careers/soft-skills/leading-by-example/
https://global.oup.com/uk/orc/busecon/business/carmichael/01student/examqs/ch02/
https://goallab.psych.umn.edu/orgpsych/readings/13.%20Leadership/Jex%20&%20Britt%20200
8%20Chapter%2010.pdf
https://open.lib.umn.edu/app/uploads/sites/5/2015/03/b0f0b2e7c6b92e9155f81257b81a3289.jpg
https://smallbusiness.chron.com/motivation-employee-performance-1964.html
https://www.globalsocialmediamarketing.com/managing-individual-behavior/
https://www.google.com.ph/search?q=leading+in+management&sxsrf=ALeKk02cBo6ntmLxe31
sg77xb-uIqj1XRA:1593822817211&tbm=isch&source=iu&ictx=1&fir=8AiptVQPtXi5yM%25
https://www.managementstudyguide.com/leadership_basics.htm
https://www.managementstudyguide.com/leadership-management.htm
https://www.shrm.org/resourcesandtools/tools-and-
samples/toolkits/pages/managingorganizationalcommunication.aspx
https://www.thestrategywatch.com/importance-of-leading-in-management/
ttps://www.google.com.ph/search?q=maslow+hierarchy+of+needs&sxsrf=ALeKk00-
vKakVfTzSAWFVb2zIBz-o0tmlQ:1593823719780&source=lnms&tbm=isch&
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Unit 5 . CONTROLLING
Introduction:
Controlling helps managers monitor the effectiveness of their planning, organizing, and
leading activities. Management and leaders often rely on the accomplishment of their subordinates
throygh controlling. Controlling determines what is being accomplished — that is, evaluating the
performance and, if necessary, taking corrective measures so that the performance takes place
according to plans.Controlling can also be viewed as detecting and correcting significant variations
in the results obtained from planned activities. Thus, the deeper study of the controlling in
management will be discussed in this unit.
Learning Objective
Every manager needs to monitor and evaluate the activities of his subordinates. It helps in taking
corrective actions by the manager in the given timeline to avoid contingency or company’s loss.
Controlling is performed at the lower, middle and upper levels of the management.
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Lesson 1 Features of Controlling
Controlling and planning are interrelated for controlling gives an important input into the next
planning cycle. Controlling is a backwards-looking function which brings the management cycle
back to the planning function. Planning is a forward-looking process as it deals with the forecasts
about the future conditions.
Process of Controlling
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1. Establishing standards: This means setting up of the target which needs to be achieved
to meet organizational goals eventually. Standards indicate the criteria of performance.
Control standards are categorized as quantitative and qualitative standards. Quantitative standards
are expressed in terms of money. Qualitative standards, on the other hand, includes intangible
items.
3. Comparison of actual performance with the standard: This compares the degree of
difference between the actual performance and the standard.
4. Taking corrective actions: It is initiated by the manager who corrects any defects in
actual performance.
Controlling process thus regulates companies’ activities so that actual performance conforms to
the standard plan. An effective control system enables managers to avoid circumstances which
cause the company’s loss.
1. Feedback Control: This process involves collecting information about a finished task,
assessing that information and improvising the same type of tasks in the future.
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2. Concurrent control: It is also called real-time control. It checks any problem and
examines it to take action before any loss is incurred. Example: control chart.
3. Predictive/ feedforward control: This type of control helps to foresee problem ahead of
occurrence. Therefore action can be taken before such a circumstance arises.
Advantages of controlling
Allow managers to concentrate on important tasks. This allows better utilization of the
managerial resource.
On the contrary, controlling suffers from the constraint that the organization has no control over
external factors. It can turn out to be a costly affair, especially for small companies.
An effective organization is one where managers understand how to manage and control. The
objective of control as a concept and process is to help motivate and direct employees in their
roles. Understanding managerial control process and systems is essential for the long- term
effectiveness of an organization.
Without enough control systems in place, confusion and chaos can overwhelm an organization.
However, if control systems are “choking” an organization, the organization will suffer from
erosion of innovation and entrepreneurship.
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Lesson 2 Concept of Control:
The term control has different connotations depending upon the context of the use of the term. In
manufacturing it refers to a device or mechanism installed or instituted to guide or regulates the
activities or operation of an apparatus, machine, person, or system; in law it refers to controlling
interest and in management as an authority to order and manage the workings and management of
an entity.
Control is a management process to aim at achieving defined goals within an established timetable,
and comprises of three components: (1) setting standards, (2) measuring actual performance, and
(3) taking corrective action.
Characteristics of Control:
Management process comprises of five functions, viz., planning, organizing, staffing, directing
and controlling. Thus, control is part of the process of management.
Whatever has happened has happened, and the manager can take corrective action only of the
future operations. Past is relevant to suggest what has gone wrong and how to correct the future.
Anyone who is a manager, has to involve into control – may be Chairman, Managing Director,
CEO, Departmental head, or first line manager. However, at every level the control will differ –
top management would be involved in strategic control, middle management into tactical control
and lower level into operational control.
Controlling is not the last function of management but it is a continuous process. Control is not a
one-time activity, but a continuous process. The process of setting the standards needs constant
analysis and revision depending upon external forces, plans, and internal performance.
Planning and controlling are closely linked. The two are rightly called as ‘Siamese twins’ of
management. “Every objective, every goal, every policy, every procedure and every budget
become standard against which actual performance is compared.
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Planning sets the ship’s course and controlling keeps it on course. When the ship begins to veer
off the course, the navigator notices it and recommends a new heading designed to return the ship
to its proper course. Once control process is over its findings are integrated into planning to
prescribe new standards for control.
Control is there because without it the business may go off the track. The controlling has positive
purpose both for the organization (to make things happen) and individuals (to give up a part of
their independence for the attainment of organizational goals).
Within an organization’s overall strategic plan, managers define goals for organizational
departments in specific, precise, operational terms that include standards of performance to
compare with organizational activities. However, for some of the activities the standards cannot
be specific and precise.
Standards, against which actual performance will be compared, may be derived from past
experience, statistical methods and benchmarking (based upon best industry practices). As far as
possible, the standards are developed bilaterally rather than top management deciding unilaterally,
keeping in view the organization’s goals.
Standards may be tangible (clear, concrete, specific, and generally measurable) – numerical
standards, monetary, physical, and time standards; and intangible (relating to human
characteristics) – desirable attitudes, high morale, ethics, and cooperation.
Most organizations prepare formal reports of performance measurements both quantitative and
qualitative (where quantification is not possible) that the managers review regularly. These
measurements should be related to the standards set in the first step of the control process.
For example, if sales growth is a target, the organization should have a means of gathering and
reporting sales data. Data can be collected through personal observation (through management by
walking around the place where things are happening), statistical reports (made possible by
computers), oral reporting (through conferencing, one-to-one meeting, or telephone calls), written
reporting (comprehensive and concise, accounting information – normally a combination of all.
To be of use, the information flow should be regular and timely.
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3. Compare Performance with the Standards:
This step compares actual activities to performance standards. When managers read computer
reports or walk through their plants, they identify whether actual performance meets, exceeds, or
falls short of standards.
Typically, performance reports simplify such comparison by placing the performance standards
for the reporting period alongside the actual performance for the same period and by computing
the variance—that is, the difference between each actual amount and the associated standard.
The manager must know of the standard permitted variation (both positive and negative).
Management by exception is most appropriate and practical to keep insignificant deviations away.
Timetable for the comparison depends upon many factors including importance and complexity
attached with importance and complexity.
When performance deviates from standards, managers must determine what changes, if any, are
necessary and how to apply them. In the productivity and quality-centered environment, workers
and managers are often empowered to evaluate their own work. After the evaluator determines the
cause or causes of deviation, he or she can take the fourth step— corrective action.
The corrective action may be to maintain status quo (reinforcing successes), correcting the
deviation, or changing standards. The most effective course may be prescribed by policies or may
be best left up to employees’ judgment and initiative. The corrective action may be immediate or
basic (modifying the standards themselves).
Importance of Control:
The continuous flow of information about projects keeps the long range of planning on the right
track. It helps in taking corrective actions in future if the performance is not up to the mark.
The control system helps in improving organizational efficiency. Various control devices act as
motivators to managers. The performance of every person is regularly monitored and any
deficiency if present is corrected at the earliest.
Controls put psychological pressure on persons in the organization. On the other hand control also
enables management to decide whether employees are doing right things.
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3. Facilitates Coordination:
Control helps in coordination of activities through unity of action. Every manager will try to
coordinate the activities of his subordinates in order to achieve departmental goals.
Similarly the chief executive also coordinates the functioning of various departments. The control
acts as a check on the performance and proper results are achieved only when activities are
coordinated.
A decision about follow-up action is also facilitated. Control makes delegation easier/better.
Decentralization of authority is necessary in big enterprises. The management cannot delegate
authority without ensuring proper control.
The targets or goals of various departments are used as a control technique. Various control
techniques like budgeting, cost control; pre action approvals etc. allow decentralization without
losing control over activities.
For control processes management’s attention is not required every now and then. The
management by exception enables top management to concentrate on policy formulation.
A control system is not an automatic phenomenon but deliberately created. Though different
organizations may design their control systems according to their unique and special
characteristics or conditions, yet in designing a good and effective control system the following
basic requirements must be kept in view:
At the shop level, control has to be easy, but more sophisticated and broad ranging controls may
be developed for higher level managers. Thus, controls should be tailored to plans and positions.
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Rapid reporting of variations is at the core of control. An ideal control system could detect, not
create bottlenecks and report significant deviation as promptly as possible so that necessary
corrective action may be taken well in time. This needs an efficient system of appraisal and timely
flow of information.
Controls should not only be able to point to the deviations, but they should also suggest corrective
action that is supposed to check the recurrence of variations or problems in future.
Control is justified only if indicated or experienced deviations from plans are corrected through
appropriate planning, organizing, staffing and directing. Control should also lead to making
valuable forecasts to the managers so that they become aware of the problems likely to confront
them in the future.
Controls should be simple and easy to understand, standards of performance are quantified to
appear unbiased, and specific tools and techniques should be comprehensive, understandable, and
economical for the managers.
They must know all the details and critical points in the control device as well as its usefulness. If
developed and complex statistical and mathematical techniques are adopted, then proper training
has to be imparted to managers.
Standards should be determined based on facts and participation. Effective control systems must
answer questions such as, “How much does it cost?” “What will it save?” or “What are the returns
on the investment?”
The benefits of controls should outweigh the costs. Expensive and elaborate control systems will
not suit, for example to small enterprise.
Control should emphasize the functions, such as production, marketing, finance, human resources,
etc and focus on four factors – quality, quantity, timely use and costs. Not one, but multiple
controls should be adopted.
Control should be selective and concentrate on key result areas of the company. Every detail or
thing cannot and is not to be controlled in order to save time, cost and effort.
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Certain strategic, critical or vital points must be identified along with the expectations at those
points where failures cannot be tolerated and appropriate control devices should be designed and
imposed at those stages.
Controls are applied where failure cannot be tolerated or where costs cannot exceed a certain
amount. The critical points include all the areas of an organization’s operations that directly affect
the success of its key operations.
7. Flexibility:
Control must not become ends in themselves. It must be environment friendly and be able to make
modifications or revisions necessitated by the rapidly changing and complex business
environment. Flexibility in control system is generally achieved by the use of alternative plans or
flexible budgets.
Excess control causes corruption. It should not arouse negative reactions but positive feelings
among people through focus on work, not on people. The aim of control should be to create self-
control and creativity among members through enmeshing it in the organizational culture.
Employee involvement in the design of controls can increase acceptance.
9. Suitability:
Controls have to be consistent with the organization structure, where the responsibility for action
lies, position, competence, and needs of the individuals who have to interpret the control measures
and exercise control. The higher the quality of managers and their subordinates, the less will be
the need for indirect controls.
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Activity 12
2. Why is it important for a manager to include his employees when setting goals that are part of
their performance appraisals?
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Activity 13
True or False.
________2. The aim of control should be to create self-control and creativity among members
through enmeshing it in the organizational culture.
________3. Controls put psychological pressure on persons in the organization. On the other hand
control also enables management to decide whether employees are doing right things.
________4. Control is a process of comparing the actual performance with the set standards of the
company to ensure that activities are performed according to the plans and if not then taking
corrective action.
________5. Controls have to be consistent with the organization structure, where the responsibility
for action lies, position, competence, and needs of the individuals who have to interpret the control
measures and exercise control.
________6. Controls should be complicated and easy to understand, standards of performance are
quantified to appear unbiased, and specific tools and techniques should be comprehensive,
understandable, and economical for the managers.
________8. Organizing sets the ship’s course and controlling keeps it on course. When the ship
begins to veer off the course, the navigator notices it and recommends a new heading designed to
return the ship to its proper course.
________9. Concurrent control involves collecting information about a finished task, assessing
that information and improvising the same type of tasks in the future.
________10. Controls are only applied where failure can be tolerated or where costs cannot exceed
a certain amount.
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Activity 14
1. Ariah is the manager of a small company. One of her employees has been showing up late and
missing work frequently. What action can you do to control the attitude of that employee?
2. During a staff meeting, Jayrem says, "In closing, I want to congratulate Arkyn, who has been
instrumental in landing the Bio-Saj account. This account has the potential to greatly impact our
company's sales." Is Jayrem motivating his employee by acknowledging his efforts? Is this a part
of controlling people? Explain
3. Jamyel is assigned in the procurement section of a company. Every now and then, an employee
keeps on requesting materials which Jamyel taught is too many for a specific product. What will
you do if you were Jamyel? How do you control this action?
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References
https://businessjargons.com/management.html
https://study.com/academy/practice/quiz-worksheet-controlling-its-role-in-management.html
https://www.assignmentpoint.com/business/management/managing-operations-quality-and-
productivity.html
https://www.deca.org/wpcontent/uploads/2014/08/HS_Business_Management_Cluster_Sample_
Exam.pdf
https://www.iedunote.com/controlling
https://www.researchgate.net/topic/Management-Control
https://www.vskills.in/practice/controlling
https://www.yourarticlelibrary.com/management/managerial-control-process-its-characteristics-
importance-techniques-and-other-details/5383
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