1. Define the problem and the decision to be made.

Clarify the problem and

try to eliminate irrelevant or unnecessary issues. In identifying problems is
sometimes symptoms are identified and not the actual cause of the
problem. Decisions can end up biased against the wrong aspects of a
process.

2. Gather and collate all the information about

the problem. Put all the information in a logical
form and sequence.

Management (9)
Controlling is one of the most important functions of management.
Control is the process of monitoring activities to ensure that they
are being accomplished as planned and of correcting any
significant deviations.
1- Introduction to control
‫ ده ﻣﻬﻢ ﺟﺪا ﻋﺸﺎن ﻫﻮ‬control‫ﺑﻴﻘﻮﻟﻚ ﻫﻨﺎ أن ال‬
‫ﻳﻌﺘﺒﺮ ﻣﺮاﻗﺒﻪ اﻟﺸﻐﻞ اﺗﻌﻤﻞ زى ﻣﺎ اﺗﺨﻄﻂ ﻟﻴﻪ و ﻟﻮ‬
‫ﻓﻰ أﺧﻄﺎء ﻳﺼﻠﺤﻬﺎ‬
Standards are created when objectives are set during the planning process. A
standard is any guideline established as the basis for measurement. It is a
precise, explicit statement of expected results from a product, service, machine,
individual, or organizational unit. It is usually expressed numerically and is set for
quality, quantity, and time. Tolerance is permissible deviation from the standard.
What is expected? How much deviation can be tolerated?
Step 1. Establish
performance standards
Examples for standards are:
Time controls relate to deadlines and time constraints.
Material controls relate to inventory and material-yield controls.
Equipment controls are built into the machinery, imposed on the
operator to protect the equipment or the process.
2- Control Process Cost controls help ensure cost standards are met.
Employee performance controls focus on actions and behaviours
of individuals and groups of employees.
Budgets control cost or expense related standards. Financial
controls facilitate achieving the organization's profit motive.
Operations control methods assess how efficiently and effectively
an organization's transformation processes create goods and
services.
The measurement of performance can be done in several ways, depending
on the performance standards, including financial statements, sales
Step 2. Measure actual reports, production results, customer satisfaction, and formal
performance performance appraisals. Managers at all levels engage in the managerial
function of controlling to some degree. Supervisors collect data to
measure actual performance to determine variation from standard.
Comparing results with standards determines variation. Some
Step 3. Compare measured performance variation can be expected in all activities and the range of variation
against established standards. - the acceptable variance - has to be established. Deviations or
differences that exceed this range would alert the supervisor to a
problem.
The supervisor must find the cause of deviation from standard. Then, he
or she takes action to remove or minimize the cause. If the source of
Step 4. Take variation in work performance is from a deficit in activity, then a
corrective action supervisor can take immediate corrective action and get performance
back on track. Also, the supervisors need to determine how and why
performance has deviated and correct the source of the deviation.
The control process is cyclical which means it is never 3. Extract the relevant
finished. Controlling leads to identification of new information.
The managers as decision maker is a problem solver, charged with 11-Steps in Decision Making
problems that in turn need to be addressed through
either selecting from available alternatives or inventing an
establishment of performance standards, measuring
Managers expect people in an organization to change their alternative different in meaningful ways from any that now exist. 4. Evaluate the information. Assess the quality and
performance etc.
behaviour in response to control. However, employee resistance can There are two major categories of decisions programmed and accuracy of the information and estimate the
easily make control efforts dysfunctional. The following behaviours nonprogrammed unknowns and variables that may influence the
Planning is pre-requisite for controlling. Plans provide the outcome of the decision.
demonstrate means by which the manager's control efforts can be
standard for controlling. If the standards as the first step in frustrated
5- Relationship between controlling process are not set in advance managers have
repetitive, well defined, procedures
exist to find a solution. 5. Identity alternatives. Determine the alternatives and the possible
Employees often view controlling negatively. By its very nature, No Planning and Controlling nothing to control.
matter how positive the changes may be for the organization, outcomes of each. a. At this point, it's useful to keep others involved
3- Characteristics of the Control Process employees may still view them negatively. Control is both anticipatory 1. Resisting control: a reaction a. Programmed decision (unless you're facing a personal and/or employee performance problem).
to too much control A procedure is a series of interrelated
and retrospective. The process anticipates problems and takes 1. Control at all levels in Brainstorm for solutions to the problem. Very simply put, brainstorming is
9- Types of Managerial Decisions sequential steps that can be used to respond
collecting as many ideas as possible, then screening them to find the best
preventive action. the business to a structured problem.
idea. It's critical when collecting the ideas to not pass any judgment on the
2. Providing inaccurate information: a lack of ideas -- just write them down as you hear them
2. Acceptability to those who will understanding of why the information is needed and
A rule is an explicit statement that
enforce decisions important leading to "you want numbers, we will give
7-Dysfunctional tells managers what they ought or
Controlling is related to each of the other functions you numbers." ought not to do. 6. Make the decision. The process of
of management. Controlling builds on planning, Consequences of Control decision-making does not end with the selection
organizing and leading. 3. Flexibility. Controls should be flexible and of a solution. Its success depends on the
economical in operation
3. Following rules to the letter: people A policy is a guide that establishes implementation of the solution
following dumb and unprofitable rules in parameters for making decisions.
4. Accuracy reaction to "do as I say."
7. Evaluate the choice. Even after the successful implementation,
Managers can implement controls before an activity 6- Designing Effective the effectiveness of the decisions taken need to be monitored and
begins, during the time the activity is going on, and after the b. Non programmed decision
Control Systems 5. Timeliness novel, poorly defined, no procedure evaluated periodically. The criteria developed in the first step are
activity has been completed. used for evaluation.
4. Stealing, discrediting other workers, chasing exists for finding a solution.
customers away, gossiping about the firm to
people in the community
are also known as Proactive, preliminary, preventive or pre-action controls. 6. Cost effectiveness
As the name implies, these controls take place before a process to make Decision-trees: The decision tree technique is great for forecasting
sure bad things do not happen in the first place. The controls identify outcomes to different decisions. The decision tree starts out with one
Feed forward controls actions to be taken before a problem occurs. Feedforward control focuses 7-Understandability. Controls should be 5. Playing one manager off against another, 12-DECISION-MAKING question, which is the root of the tree, which then branches out into
4- Timing of Control on the regulation of inputs (human, material, and financial resources that simple to understand and should indicate exploiting lack of communication among managers, many different possibilities. Branches will lead to nodes (outcomes) and
flow into the organization) to ensure that they meet the standards asking a second manager if don't like the answer
TOOLS
necessary for the transformation process.
corrective action subsequently, you can add a leaf, marking a rule or final decision.
from the first manager.
Lower-level managers typically confront familiar and repetitive problems
and rely on programmed decisions. As managers move up the levels of the
Concurrent control takes place while an activity is in progress. It involves the 8. Balance between
organization, the problems tend to become more unstructured. Problems
regulation of ongoing activities that are part of transformation process to objectivity and subjectivity 10 - Types of Decisions and that come up infrequently and have a great deal of uncertainty surrounding
ensure that they conform to organizational standards. Concurrent control is Level of Management
Concurrent controls, designed to ensure that employee work activities produce the correct results. All managers must sooner or later make decisions. That is, they face them are often of a strategic nature and should be the concern of top
9. Coordinated with planning, management. Middle managers often have the task of transforming
As an example, many manufacturing operations include devices that measure several alternatives, and their decision involves a comparison
whether the items being produced meet quality standards. organizing and leading. between the alternatives and an evaluation of the outcome. The non-programmed decisions into programmed ones.
quality of the decisions managers make is the true measure of their
performance.
also known as post-action controls, are controls that occur after 10. Control must be set according to nature of the job to
a process to gain feedback or information that can determine be performed. Small firms need different systems of
whether performance standards, sales quotas or other control from large firms.
Feedback controls measurable criteria are being met. This type of control focuses
on the outputs of the organization after transformation is Errors in decision making, therefore,
complete. 8-Introduction to Decision Making tend to be cumulative.
11. Deviations should be
reported immediately.
Decision making is the major responsibility of a manager,
12. Controls must conform to the pattern of the regardless of his or her functional area or level in the
organisation. If the organisation pattern is clear and organization. Some of these decisions may have a strong
Feed forward, concurrent, and feedback responsibility for work done is well defined, control impact on the organization, while others will be important but
control methods are not mutually exclusive. becomes more effective and it is simpler to isolate persons less crucial.
Rather, they usually are combined into a responsible for deviations.
multiple control system.
13. Controls should show expectations at selected points. The
expectation principle should be adopted. Note must be taken of
the varying nature of expectations, as small expectations in certain
areas may be greater significance than larger expectations
elsewhere.