CONTROLLING

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 Controlling
• Controlling is monitoring, comparing and
correcting work performance.

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 Why is controlling important?
• Planning
• Empowering employees
• Protecting the workplace

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 The controlling process
• The control process is a three step process of
measuring actual performance, comparing
actual performance against a standard, and
taking managerial actions to correct deviation
or to address inadequate standards.

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 Step 1: measuring actual performance

• Sources of information for measuring

performance:
– Personal observations
– Statistical reports
– Oral reports
– Written reports

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 Step 2: comparing actual performance
against the standard
• Acceptable range of variation

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 Step 3: taking managerial action
• Immediate corrective action
• Basic corrective action

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Controlling for organizational performance

• Organizational performance refers to the

accumulated results of all the organization’s
work activities. It’s a multifaceted concept, but
managers need to understand the factors that
contribute to organizational performance.
• Organizational productivity
• Organizational effectiveness
• Industry and company ranking

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 Tools for measuring organizational
performance
• Feed forward control: the control which takes
place before a work activity is done.

• Concurrent control: control that takes place

when a work activity is in progress.

• Feedback control: control that takes place

after a work activity is done.
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 Management by walking around
• A term used to describe when a manager is
out in the work area interacting directly with
employees.

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 Financial control
• Every business wants to earn profit. To achieve
this goal, ,managers need financial control. For
instance, they might analyze quarterly income
statements for excessive expenses. They might
also calculate financial ratios to ensure that
sufficient cash is available to pay ongoing
expenses, that debt levels haven't become too
high, or that assets are being used
productively.
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 Balance scorecard
• It is way to evaluate organizational
performance from more than just the financial
perspective.
• The measures of balance scorecard is:
– Financial
– Customer
– Internal/operational
– Strategic and learning

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 Information control
• MIS: a system used to provide management
with needed information on a regular basis.

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 Benchmarking of best practices
• Benchmark refers to excellence against which
to measure and compare.

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 Suggestions for internal benchmarking
• Connect best practices to strategies and goals
• Identify best practices throughout the
organization
• Develop best practices reward and recognition
system
• Communicate best practices throughout the
organization
• Create a best practices knowledge sharing
system
• Nurture best practices on an ongoing process 15
 Contemporary issues in control
• Adjusting control for cross cultural differences
• Workplace concerns
• Workplace violence

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 Adjusting control for cross-cultural
differences
• In a global corporation, managers of foreign
operations tend to be less controlled by the
home office.
• Another challenge for global managers is
collecting data for measurement and
comparability.

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 Workplace concerns
• Workplace privacy
• Employee theft

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 Workplace violence
• Employee stress caused by an uncertain
economic environment, job uncertainties,
declining value of retirement accounts, long
hours, information overload, other daily
interruptions, unrealistic deadlines and
uncaring managers play a role in contributing
to workplace violence.

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