Chapter 8

Controlling
Learning Objectives
1 Explain the nature and importance of control.
2 Describe the three steps in the control process.
3 Explain how organizational and employee performance are measured.
● Know how to be effective at giving feedback.
4 Describe tools used to measure organizational performance.
5 Discuss contemporary issues in control.
● Develop your skill at dealing with difficult people.
 What Is Controlling and Why Is It Important?
 Controlling
Management function that involves monitoring, comparing, and
correcting work performance.
 Effective controls ensure that activities are completed in ways that
lead to the attainment of goals.
 Whether controls are effective, then, is determined by how well they
help employees and managers achieve their goals.
 Controlling provides a link back to planning.

o If managers didn’t control, they’d have no way of knowing

whether their goals and plans were being achieved and what future
actions to take.
o Managers control is to protect the organization and its assets.
 The Control Process
 A three-step process of measuring actual performance, comparing
actual performance against a standard, and taking managerial action
to correct deviations.
 Step 1: Measuring Actual Performance

 To determine what actual performance is, a manager must first get

information about it. Thus, the first step in control is measuring.
 How Mangers Measure?
Four approaches used by managers to measure and report actual performance
are
 Personal observations
 Statistical reports
 Oral reports and
 Written reports.
Step 1: Measuring Actual Performance
 Step 2: Comparing Actual Performance Against the
Standard

 The comparing step determines the variation between actual performance and the
standard.
 Range of variation
The acceptable parameters of variance between actual performance and the standard.
Step 3: Taking Managerial Action
Managers can choose among three possible courses of action:
 Do nothing.
 Correct the actual performance.
 Revise the standards.
When you hear the word performance, what do you
think of?
Controlling for Organizational and Employee
Performance
 Managers in all types of businesses are responsible for managing
organizational and employee performance.
 Performance
The end result of an activity
 Organizational performance
The accumulated results of all the organization’s work activities
Measures of Organizational Performance
 Productivity
The amount of goods or services produced divided by the inputs needed to
generate that output.
They want to produce the most goods and services using the least amount of
inputs.

 Organizational Effectiveness
A measure of how appropriate organizational goals are and how well those
goals are being met.
 what guides managerial decisions in designing strategies and work
activities and in coordinating the work of employees.
 Controlling for Employee Performance
 Since managers manage employees.
 Managers also have to be concerned about controlling for employee
performance; that is, making sure employees’ work efforts are of the
quantity and quality needed to accomplish organizational goals.
 Disciplinary actions: Actions taken by a manager to enforce the
organization’s work standards and regulations
Tools for Measuring Organizational Performance
 Types of Control
All managers need appropriate tools for monitoring and measuring organizational
performance.
 Managers can implement controls before an activity begins, during the time the
Activity is going on, and after the activity has been completed
i. Feed forward Control
ii. Concurrent Control
iii. Feedback Control.
Types of Control
 Feed forward control
Control that takes place before a work activity is done.
 Concurrent control
Control that takes place while a work activity is in progress.
The best-known form of concurrent control is direct supervision.
• Management by walking around
A term used to describe when a manager is out in the work area interacting
directly with employees
 Feedback control
Control that takes place after a work activity is done
Contemporary Issues in Control
 Contemporary Issues in Control
 Control is an important managerial function. We’re going to look at
control issues that managers face today.
 Cross-Cultural differences
 Workplace Privacy
 Employee Theft
 Workplace Violence
 Controlling Customer Interactions
 Contd.
 Adjusting controls for cross-cultural differences is that organizations should
clearly communicate to managers and employees how to approach and respond
to routine and nonroutine situations within and outside the home country.
 Employees who use the Internet and social media for personal use are not
entitled to privacy. Organizations need to establish clear policies that outline the
differences between proper and improper use and the consequences for using
technology inappropriately.
 Employee theft is costly to organizations. Procedures for monitoring theft and
the consequences for committing a theft should be clearly explained to
employees.
Contd.

 Workplace violence is a dominant problem. Organizations need to

develop emergency plans for responding to incidents of violence that
include protecting the safety of employees and customers.
 Control is important to customer interactions because employee service
productivity and service quality influences customer perceptions of service
value. Organizations want long-term relationships among their employees
and customers.