Management Fundamentals

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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

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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

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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

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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

  Influencing Definition Of Influencing The Influencing Sub System     Leading Motivating Considering Groups Communicating   Interpersonal Communication Organizational Communication .5.

     Leadership Definition Of Leadership Leader vs.6. 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 .

  Motivation Definition Of Motivation Strategies for motivating organization members        Managerial Communication Theory X – Theory Y Job Design Behavior Modification Likert’s Management Systems Monetary Incentives Non-Monetary Incentives   Considering Groups Kinds of Group in Organizations   Formal Groups Informal Groups .7.

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 .

standing and reputation of the institute . Always to comply strictly with the law and operate within the spirit of the law . 2. 3. . prospects. To order their conduct so as to uphold the dignity. or business of others . Not to abuse their authority for personal gain . Not to hurt or attempt to injure the professional reputation. 1. 5. 4.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 .

2. .• Definition management is a process of reaching organizational goals by working with and through people and other organizational resources. 3. it’s also the process of coordinating work activities so that they’re completed effectively and efficiently completing with and through people and other resources there’s three main characteristics It’s 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.

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

4.• Management and Organizational Resources These resources composed of all assets available for activities during the production process. 2. Their skills and knowledge of the work system are invaluable to managers . Inputs Production Process Outputs . are of four basic types Human Resource the people who work for company . 3. 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. 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.

1. . Management Roles managers perform a lot of different but high interrelated roles Management roles it’s 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. The decisional roles revolve around making choices and includes roles as businessman. disturbance handler. and control . 1. • 1. organize. and disseminating information. and negotiator.• » » » » 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. resource allotment. lead. 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 it’s the ability to work well with other people. managers knows how to communicate. Needed Conceptual Skills Human Skills Technical Skills Needs Supervisory or Operational Management Needs . 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.• 1. motivate lead. These skills are most important at the top management level Management Skills Levels Top Management Middle Management Needs 2. 3. and inspire enthusiasm and trust.

president. chief operating officer. project leader. Top Managers are responsible for making organization-wide decision and establish the plans and goals that affect the whole company . or chairman of the board. Middle Managers include all levels of management between the first-line level and the top level of the company . » » » . These individuals typically gave titles such as executive vice president.• » 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 company’s products. plant manager or division manager. These managers manage the work of first-line managers and may have titles such as department head. chief executive officer. managing director.

at all organizational levels. Management is …. no matter in what country they’re located. All Sizes of Organizations Small Large All Organizational Areas Manufacturing-Marketing Human Resources Accounting Information System….Needed in All Types of Organizational Profit not-for Profit All Organizational Levels Bottom Top .. in all organizational work areas. and in all companies.• Management Universality management is needed in all types and sizes of organizations.

It’s concerned with both ends (what’s to be done) and means (how it’s to be done) . . Choose the best alternative for reaching objective . Develop plans to pursue the chosen alternative . Sets the standards used in controlling . 3. 4.Planning • Definition Planning is establishing an overall strategy for achieving the organization’s goals and developing a comprehensive set of plan to integrate and coordinate organizational work . Planning Purposes Planning gives direction . • 1. 4. List alternative ways of reaching objectives . Planning Process Steps State the organizational objectives . Minimizes waste and redundancy . 3. • 1. 2. 2. Reduces the impact of change . 5. Develop premises how and which alternative to be based .

4. 2. 5. Organizational Purpose or Mission is what the organization exists to do. Physical and financial resources-Management : set objectives of the good using of acquisition. 7. Managerial performance and development-Management : set objectives that specify rates and levels of managerial productivity and growth . Productivity-Management : set objectives to show the production target levels . • 1. 2. Innovation-Management :set objectives explain the ways to develop a new operation methods. and maintenance of capital and monetary resources . given a particular customer group and customer needs . Organizational Objectives or Goals (Planning’s Function) Organizational Objectives targets toward which the open management system is directed. Organizational Objectives Areas Market standing-Management :set objectives to clarify the relation with competitors . 6.• 1. 8. . Profitability-Management : set objectives to specify the profit the company would like to generate . Worker performance and attitude-Management : set objectives that specify worker productivity rates as well as desirable attitudes for worker to possess . 3. Public responsibility-Management : set objectives explain the company’s responsibilities to its customers and society and shows the company’s seriousness to live up to those responsibility. Properly developed organizational objectives reflect the purpose of the organization .

and what it wants its stakeholders to believe about the goals. Goals Types Stated Goals are official statements of what the company says. annual reports. 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 . 2. Real Goals are goals that a company actually pursues-closely show what organizational members are doing . or managers public statements. They can be found in an organization’s charter.• 1.

and day to-day) B. and also include the formulation of goals because operational plans define ways to achieve the goals . 2. 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 .• A. 3. 2. Compare between two Types Strategic plans covers the a longtime frame and broader of the 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. 1. weekly. Plans Types Types Plans according to their Breadth Strategic Plans are plans that apply to the whole company . Operational plans covers the short time periods (monthly.

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 . There’s no uncertain and no problem with misunderstanding . 2.and procedure . and include policies.C. 1. 2. Standing Plans are plans provide direction for activities performed repeatedly. • 1) B. 1. rules . 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 . Directional Plans are flexible plans that set out general guidelines . D. . Plans Types according to Specificity Specific Plans are clearly defined . They have specifically stated objectives .

it’s used when precise data are limited or hard to obtain.B. 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 . Forecasting is an important part of organizational planning. The basic idea behind benchmarking is that managers can improve quality by analyzing and then copying the methods of the leaders in various fields . • • • Forecasting this can used by managers to assess the environment is forecasting. Benchmarking this is the search for the best practices between competitors or non competitors that lead to their superior performance . . Environment scanning creates the foundation for forecasts. Qualitative Forecasting it uses the judgment and opinion of knowledgeable individuals to predict outcomes.

Immaterial (brand name. and there is four techniques • Budgeting is a numerical plan for allocating resources to specific activities . expenses. Scheduling is detailing what activities have to be done. raw materials. and large capital expenditures. retained. building. registered designs. Some useful scheduling devices are Gantt. Managers typically prepare budget for revenues. and when . Physical (equipment. Cultural (history. work system. knowledge. who’s to be each. and databases. relationships. and qualification of people ). skills.2) Resources Allocating Techniques resources are the assets of the company and include      Financial (debt. • . levels of trust. copy right. reputation. culture. and structure ). or other real assets ). Load charts. policies. and other financial holdings ). structural ). and which they’re to be completed. patents. and PERT network analysis . earning. working. trade marks. equity. Human (experiences.

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 unit’s profit contribution .

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

Decision-Making is process of choosing the best alternative to reach objectives. Rules about lateness and absenteeism .Decision-Making • • 1. Rules used for facing a wellstructured problem because they are simple to follow and ensure consistency stability . policy establish parameters for decision maker rather than specifically stating what should or should not to be done  . and the company develops specific ways to handle them . Procedure It’s a series of interrelated sequential steps that manager can use for responding to a structured problem . Policy put guidelines to limit manager’s thinking in specific direction .   Definition Decision is choice made between two or more available alternatives . Decisions Types : Programmed Decision are routine and repetitive. ex. Rule It’s clear statement that tells manger what he can do . Different from rule.

• Non-Programmed Decision are typically one-shot decision that are usually less structured than programmed decision . The normal activity of the managers themselves . The decision-making steps 1. ¤ ¤ ¤ Identifying an existing problem Orders issued by managers or supervisors . ¤ ¤ ¤ .2. Physical factors (the physical facilities of the company may be not fit for certain alternatives ) . Biological for human factors (human factors inside the company may be not fit for carry out certain alternatives ) . 2. The Decision-Making Process : the decision-making process include the steps for decision maker to arrive at this choice . List alternative solution before searching for solutions managers should be aware of five limitations on the number of problem-solving alternatives available : Authority factors (manager’s superior may gave told the manager that may be a certain alternative is not feasible ) . Situations relayed to managers by their subordinates .

Evaluating decision effectiveness decision makers must gather feedback to determine the implementing alternative effect on the identified problem . Manager the most advantageous of alternative to the company . managers need to search out and implement some other alternative .¤ ¤ ¤ Technological factors (the level of company technology may be not fit for certain alternatives ) . 3. . decision maker should compare each alternative’s expected effects and the respective probabilities of those effects . If the identified problem is not being solved. Implementing the chosen alternative put the chosen alternative into action . ® ® ® 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 . Decision must be supported by appropriate action to have a chance of success . 5. Third : keeping company goals in mind. 4. after completed this steps. Economic factors (certain alternatives may be too costly for the company ) .

Risk Condition It means the decision maker has only enough information to estimate about the implemented alternatives outcome .• * Decision-Making Conditions Complete Certainty Condition It’s the decision-making situation in which the decision maker knows exactly what the results of a carried out alternative will be . * * • Θ Θ Θ Θ The Decision-Making Pervasiveness Plan Organize Lead Control . Complete Uncertainty Condition Used if the decision maker has no idea about the results of carried out alternative .

Establish relationships among individuals.Organizing • Definition Organizing is the process of establishing orderly uses for all company’s resources. Cluster jobs into units . . groups. It’s also the process of creating a company’s structure . • ◙ ◙ ◙ ◙ ◙ ◙ ◙ Some Organizing Purposes Divides work into specific jobs and department . Establish formal lines of authority Allocates and deploys company all resources . The challenge for managers is to design an organizational structure that allows employees to effectively and efficiently do their work . Assign tasks and responsibilities associated with individual jobs . departments . Coordinate diverse organizational tasks .

4. 2. Step 2: Establish major tasks .• 1. Allocate resources and directives for subtasks . The Organizing Process Reflect the company’s plan and objectives . Step 1: Reflect on plans and objectives . .Organizing strategy Step 3: Divides major tasks Into sub tasks . Establish major tasks . 5. Divides major tasks into subtasks . :Step 5 Evaluate results of . 3. Step 4 : Allocate resources and Directives for subtasks . Evaluate the result of implemented organizing strategy .

When managers develop or change an organization’s structure. Departmentalization Is the basis by which job are grouped together . grouping. • 1. they are engaged in organizational design . But is broken down into steps and each one is completed by different person .• Organizational Structure Is the formal framework about job tasks dividing. It’s also meaning not done by one individual . and coordinating . 2. 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. There are five common forms of departmentalization Functional departmentalization Product departmentalization Geographical departmentalization Process departmentalization Customer departmentalization Θ Θ Θ Θ Θ . Individual employees specialize in doing part of an activity rather than entire activity .

Employee tasks similarity . It states that a person should report to only one manager . The company’s information system sophistication .Cross-Functional Teams : are groups of individuals who are experts in various specialties and who work together . Company’s culture strength . 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 . Authority : involves the rights inherent in a managerial position to tell people what to do and to expect them to do it . ¤ ¤ ¤ 4. The degree of standardized procedure placing . Tasks complexity . ¤ ¤ ¤ ¤ ¤ ¤ . Unity Of Command : it helps preserve the concept of a continuous line of authority . Responsibility : involves the obligation of employees to perform any assigned duties as managers coordinate and integrate the work of employees . 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 . Manager preferred style .

Decisions are significant . . Centralization and Decentralization Centralization Describes the degree to which decision-making concentrated at a single point in the company .5. 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 . Company is large Effective implementation of company strategies depends on managers retaining say over what happens . If top managers make the company’s 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 . Lower-level managers do not want to have a say in decisions . Organization is facing a crisis or the risk of company failure .

Effective implementation of company strategies depends on managers having involvement and flexibility to make decision . Decisions are relatively minor . Lower-level managers want a voice in decision . Corporate culture is open to allowing managers to have a say in what happens . 6. Company is geographically dispersed . . uncertain . Lower-level managers are capable and experienced at making decision . Formalization shows the degree to which jobs in company are standardized and the extent to which employee behavior is guided by rules and procedures .More Decentralization • • • • • • • Environment is complex.

4.Influencing • Definition Influencing is the process of guiding the activities of company members in appropriate directions . 2. . Communicating . Appropriate Directions Are those that lead to the attainment of management system objectives . 3. Motivating . Considering groups . • 1. The Influencing Subsystem Leading .

4.1. Processes Influencing Process Considering groups Leading Motivating Output appropriate organization members behavior . 3. 2. Inputs People . Machines . Money . Raw materials .

Interpersonal Communication It’s the process of transmitting information to others . Decoding It’s the process of converting messages back into information . 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 It’s the person or persons who the source tries to share information with . Feedback can used by source to ensure successful communication . communication involves one person projecting a message to one or more other people that result in everyone’s arriving at a common understanding of the message . The Source / Encoder It’s the person in the interpersonal communication situation who originates and encodes information to be shared with others . In general. . 2) 3) » Feedback and Interpersonal Communication feedback is the destination’s reaction to a message .» » 1) Communication It’s the process of sharing information with individuals .

Interpersonal Communication Types Verbal Communication It’s the sharing of through words (written or spoken) Nonverbal Communication It’s the sharing of information without using words to encode thoughts (gestures. and facial expressions) Organizational Communication Is the interpersonal communication within organization .Organizational communication directly relates to the goals. and human organizations structure . vocal tones. .» 1. » » Formal Organizational Communication It follows the organization chart lines . function. 2.

» 1. . 3. Lateral Organizational Communication it flows from any point on chart horizontally to another point on chart . Upward Organizational Communication it flows from any point on company chart upward to another point on the chart . 2. Formal Organizational Communication Types Downward Organizational Communication it flows form any point on an company chart downward to another point on the company chart .

they believe that individual can be trained to be good leaders . But some managers are leaders and some leaders are mangers. leading and managing have not the same activities. • 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 can’t be explained by individual traits or inherited characteristics. . • Leader Versus Manager leading is not like managing . Managing is much wider in range than leading and focuses on both non-behavioral and behavioral issues . Leading emphasizes mainly behavioral issues .Leadership • Definition Leadership is the process of directing the behavior of others toward the accomplishment of some objective or objectives .

.• • 1. 2. The VYJ model. Decision Style The VYJ model suggests that there’re 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 . 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. Situational Approach to Leadership It suggests that leadership style must be matched to the situation the leader faces. is method for determining when a leader should use which decision style .

Managers makes the decision alone.Subordinates do not meet as group. .Manager and subordinates meet as a group to discuss the situationand the group makes the decision.Manager and subordinates meets as group to discuss the situation.Decision style AI AII Definition .Manager asks for information from subordinates but makes the decision Subordinates may or may not be informed about what the situation is. CI CII GII A = authority C = consultative G = group . and the managers alone makes the decision. .Managers shares the situation with individual subordinates and asks for information and evaluation . but manger makes the decision. . .

and warmth in the relationship between leader and followers.• Leadership Behavior It concerned about what good leaders do. Or make their followers happy and having high morale. mutual trust. The Ohio state University (OSU) There’s two main types of behavior Structured Behavior It’s 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. Are they concerned on keeping task done. • 1. 2. Leadership Style Used by leader to establish the way of guiding the organization members in specific direction. . respect. Consideration Behavior It reflects friendship.

High Low Structure High Consideration Low Structure Low Consideration High Structure High Consideration High Structure Low Consideration Consideration Low Low High structure .

The most effective leadership style noticed in high consideration and high structure. 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. Results of a more recent studies shows that high consideration is always preferred by subordinates. The successful leadership style for managers in one situation may prove ineffective in another situation.• • 2. • • . The Michigan Studies It says there’s two basic types of leading behavior Job-Centered Behavior It focuses on the subordinates work and performance. Comparing Styles one shows that any single leadership style is more effective than any other. Employee-Centered Behavior It focuses on subordinates humanity (as people) and cares about personal needs and team player.

5. 4. Non – monetary incentives .Motivation • Definition Motivation is the inner state makes everyone in company behaves in a way that ensures the accomplishment of some jobs . Motivating Organization Members Strategies There’s seven strategies Managerial communication . Job design . Theory X – Theory Y . . 6. Monetary incentives . 2. 7. • 1. Likert’s management system. Behavior modification . 3.

Production might be increased by using any theory of X or Y assumption. in order to enhance the individual’s situation in work. advancement. Depending on the situation the manager face. is a program that allows workers to complete their jobs within a workweek of normal of hours that they arrange themselves . 3. because it’s basic tool for satisfying the human needs of company members. Theory Y : involves positive assumption about people and must be used by managers. Job Enrichment It’s the process of incorporating motivators into a job situation. Managerial Communication Managers should strive to communicate with other company members. And motivating factors are items that influence the job satisfaction degree (achievement opportunity. 2. personal growth) Flextime or flexible working hours programs. € € . recognition opportunity work itself. Theory X – Theory Y Theory X : involves negative assumption about people .1. € Job Design Job Rotation It’s the process of moving workers form between jobs rather than requiring them to perform only one simple and specialized job over the long term. responsibility. Job Enlargement is the process of increasing the number of operations an individual performs in a job.

systems. the human needs of individuals become more effectively satisfied over the long-term. though not complete confidence in subordinates.System 4 .4. ¤ ¤ ¤ ¤ . Positive reinforcement is a reward that consist of a desirable consequence of behavior.this style is characterized by substantial.this style of management is characterized by a lack of confidence or trust in subordinates. . 5.System 2 . Likert’s Management System Includes .this style is characterized by master – to – servant – style confidence and trust in subordinates. . Behavior Modification It’s a program that focuses on managing human activity by controlling the consequences of performing the activity. styles.this style is characterized by complete trust and confidence in subordinates.System 3 . and negative reinforcement is reward that consist of eliminating of an undesirable consequence of behavior.System 1 . . and productivity Likert has suggested that as management style moves from system 1 to 4.

are psychologically aware of one another. Non – Monetary Incentive This plan makes employees committed and motivated by non-monetary means . 7. . and perceive to be group. Groups inevitably from in facets of organizational existence . All plans link pay closely to performance (shares of company stock as a benefit. Considering Groups A group is any number of people who interact with one another. Groups can cause desirable or undesirable consequences within the organization . An understanding of groups can used in rising probability desirable consequences in company . Why should managers study groups Group exist in all kind of organizations . 3. 2. • 1. 4. lump – sum bonuses – one – time cash payment – and gain – sharing) . Monetary Incentives It’s a program or plan allows the team members receive a bonus when their team exceeds a goal.6.

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

Comparing Measured Performance to Standards after managers have taken a measure of organizational performance. 2. Comparing measured performance to standards .Controlling • •    Definition Control is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations. 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. . 1. The Controlling Process Measuring performance . Taking corrective action . the next step in controlling is to compare this measure with some standard.

. 2. 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 . It relate not only to employee performance. Managers using this type of control to create policies. and rules aimed at eliminating behavior that will cause desirable work result . 3. but also to such non human areas as equipment performance and department appearance. Take Corrective Action after actual performance has been measured and compared with established performance standards. Concurrent Control Is control that takes place as work is being performed .A Standard is a level of activity established to serve as a model for evaluation organizational performance . procedures. Corrective Action focuses on correcting organizational mistakes that are slowing the organizational performance. • 1. the next step in controlling process is to take corrective action if necessary .

Managers use this type of control to take corrective action by looking at organizational history over a specified time period .3. There’s 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. Control that concentrates on past organizational performance is called feedback control. Input Processes Output Feed forward Control Anticipates Problems Concurrent Control Corrects Problems as they Happen Feedback Control Corrects Problems after they Occur . Feedback Control is control that takes place after some unit of work has been performed.

3. Understandability controls that cannot be understood have no value. Economy any system of control has to justify the benefits that it gives in relation to the costs it incurs . 5. 2.• 1. 4. and be ignored . Flexibility controls must be flexible enough to adjust to problems or to take advantage of new opportunities . . A control system that is difficult to understand can cause unnecessary mistakes. frustrate employees. Timeliness an effective control system must provide timely information . Qualities of Effective Control System Accuracy an accurate control system is reliable and produces valid data.

9.6. operations. they should place their strategic control devices where those devices can call attention only to the exceptions . Even if it could the benefits couldn’t justify the costs . As a result . Reasonable Criteria control standards must be reasonable and attainable if they are too high or unreasonable. Strategic Placement management can’t control everything that goes on in company . 8. they no longer motivate. Emphasis on the Exception because managers can’t control all activities. managers should place controls on factors that are strategic to the organization’s performance. effort will be focused only on looking good on that standard. 10. Multiple Criteria if management controls by using a single measure such as unit profit. . and events within the organization. multiple measures of performance widen this narrow focus. Control should cover the critical activities. 7. 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 .

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