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Monitoring organizational progress toward goal

attainment and taking corrective action when


needed.
Controlling affects and is affected by the other four
functions. Each function must be monitored to
maintain its effectiveness and efficiency. In essence,
when a plan is created, a control is established to
monitor it. In turn, when organizing, staffing, and
leading take place, controls are established,
performance is measured, and corrective action is
taken if needed.
FUNCTIONS OF CONTROLLING
It sees to it that the right things happen, in
the right ways, and at the right time.

It helps ensure that objectives and


accomplishments are consistent with one
another throughout an organization.
FUNCTIONS OF CONTROLLING
Done well, it ensures that the overall
directions of individuals and groups are
consistent with short and long range plans.

It helps maintain compliance with essential


organizational rules and policies.
IMPORTANCE OF CONTROLLING
When controlling is properly implemented, it
will help the organization achieved its goal the
most efficient and effective manner possible.
Deviation, mistakes, and shortcomings happen
inevitably.
CONTROL PROCESS
1. Establish objectives and standards
-The control process begins with
planning and the establishment of
performance objectives.
Performance objectives are defined and
the standards for measuring them are set.
TWO TYPES OF STANDARDS
Output Standards - measures performance
results in terms of quantity, quality, cost, or
time.

Input Standards - measures work efforts


that go into a performance task.
CONTROL PROCESS
2. Measure actual performance
- Measurements must be accurate enough
to spot deviations or variances between what
really occurs and what is most desired.
Without measurement, effective control is
not possible.
CONTROL PROCESS
3. Comparing results with objectives and
standards
- The comparison of actual performance
with desired performance establishes the need
for action.
Ways of making such comparisons include:
Historical / Relative / Engineering
CONTROL PROCESS
4. Taking corrective action
- Taking any action necessary to correct or
improve things.
Management-by-Exception focuses
managerial attention on substantial differences
between actual and desired performance
CONTROL PROCESS
4. Taking corrective action

There are two types of exceptions:


Problems - below standard
Opportunities - above standard
TYPES OF CONTROL
Preliminary
Sometimes called the feedforward controls, they
are accomplished before a work activity begins.
They make sure that proper directions are set
and that the right resources are available to
accomplish them.
TYPES OF CONTROL
Concurrent
Focus on what happens during the work
process. Sometimes called steering controls,
they monitor ongoing operations and activities
to make sure that things are being done
correctly.
TYPES OF CONTROL
Post action
Sometimes called feedback controls,
they take place after an action is completed.
They focus on end results, as opposed to
inputs and activities.
CHARACTERISTICS OF EFFECTIVE CONTROLS

A. Focus on Critical Points

The critical control points include all the


areas of an organizations operations that
directly affect the success of its key operations.
CHARACTERISTICS OF EFFECTIVE CONTROLS

B. Integration
Controls must not be haphazardly placed. They must
function harmoniously within the established processes of
the work. In short, they should not bottleneck operations.
Trust, confidence, and acceptance of all controls must
be a part of the culture. Employees must have faith in these
devices.
CHARACTERISTICS OF EFFECTIVE CONTROLS

C. Acceptability
As with integration, employees must accept
these devices or methods. The necessity, usage, and
appropriateness of the controls must blend with the
personnel involved.
The acceptability of controls is important to
effectiveness and efficiency.
CHARACTERISTICS OF EFFECTIVE CONTROLS

D. Timeliness
Deadlines, time costs, and punctual needs are
apparent in this criteria.
Costs are frequently attributed to time
shortcomings or failures.
CHARACTERISTICS OF EFFECTIVE CONTROLS

E. Economic Feasibility
How much does it cost? What will it save? What are the
returns on the investment?
The above questions need to be answered and the
accompanying expenses to any control or system of controls
must be analyzed. In short, compare the costs to the
benefits.
CHARACTERISTICS OF EFFECTIVE CONTROLS

F. Accuracy
The information for the control must be useful and
accurate. Reliability and validity of diagnosed deviations
from standards must be accurate. Are they consistent? Do
they measure what is intended?
CHARACTERISTICS OF EFFECTIVE CONTROLS

G. Comprehensibility

Complexity can cause confusion. Managers should favor


simplicity. How simple or complex should the system
become? Ease of understanding and application is often
associated with simplicity.
CONTROL MONITORING
A. Monitoring Organizational Impacts
Controls need to be monitored to determine the degree of
organizational impact that they have, both on people and on
systems. When controls are developed, employees may
resent them as unnecessary, strict, or demeaning. Employee
involvement in the design and implementation of the control
is critical to reduce or eliminate anxiety and resentment.
CONTROL MONITORING
B. Updating Controls
Controls need to be updated if the circumstances and
expectations under which they were designed change. The
instant changes are planned or occur in operations,
managers should begin to examine how adequate the
present controls will be for these changes. Controls need to
be current.
EFFECTIVE CONTROLS
Timely and exception oriented
Positive in nature
Fair and objective
Flexible
Strategic and results oriented
Understandable
Encourage self-control