control.pptVIP

section 1 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. The Purpose of Control To ensure that activities are completed in ways that lead to accomplishment of organizational goals. Designing Control Systems Market Control Emphasizes the use of external market mechanisms to establish the standards used in the control system. External measures: price competition and relative market share Bureaucratic Control Emphasizes organizational authority and relies on rules, regulations, procedures, and policies. Clan Control Regulates behavior by shared values, norms, traditions, rituals, and beliefs of the firm’s culture. Why Is Control Important? As the final link in management functions: Planning Controls let managers know whether their goals and plans are on target and what future actions to take. Empowering employees Control systems provide managers with information and feedback on employee performance. The Control Process The Process of Control Measuring actual performance. Comparing actual performance against a standard. Taking action to correct deviations or inadequate standards. Measuring: How and What We Measure Sources of Information Personal observation Statistical reports Oral reports Written reports Control Criteria Employees Satisfaction Turnover Absenteeism Budgets Costs Output Sales Comparing Determining the degree of variation between actual performance and the standard. Significance of variation is determined by: The acceptable range of variation from the standard (forecast or budget). The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget). Taking Managerial Action Courses of Action “Doing nothing” Only if deviation is judged to be insignificant. Correcting actual (current) performance Immediate corrective action to correct the problem at once. Basic corrective action to locate