CHAPTER 7:

Control

FUNDAMENTALS OF
MANAGEMENT (MGT 162)
 o Define control.
o Identify the importance of control.
o Explain the process of control.
LEARNING o Explain types of control.

OBJECTIVES o Describe characteristics of effective control

system.
o Explain barriers of control.
  A process through which managers regulate
organizational activities to make them consistent with
DEFINITION expectations and help them to achieve predetermined
standards of performance.
  Control is the last of the four major management
functions.
 It is critically important because it helps to ensure
INTRODUCTION that all of our planning, organizing and leading
went successfully as we intended.
 With an effective control in organizations, it can
ensure to deliver an excellent output to its
shareholders.
 ◦ Assist the management process
◦ Deal with change or uncertainty
◦ Deal with complexity
IMPORTANCE of ◦ Deal with human limitations
CONTROL ◦ Help delegation and decentralization to run
smoothly
◦ Minimize costs
◦ Adapt to environmental change
PROCESS OF
CONTROL
 Process or Steps of Control involves:
1. Setting standards of performance 
Whenever possible, the standards should be set in a
manner that allows them to be compared with actual
performance.
2. Measuring actual performance
An organization must decide:
◦ What to measure.
…cont.. ◦ When to measure.
◦ How frequently to measure.
3. Comparing actual performance with standards
This step involves determining if actual performance
compared to standards falls within acceptable limits.
4. Responding to deviations
◦ If the deviation from performance is unacceptable, then
corrective action is warranted.
◦ If the deviation is acceptable, no correction action is
necessary.
 The three (3) types of control:
◦ Feedforward control
◦ Concurrent control
◦ Feedback control

TYPES OF
CONTROL
 ◦ Be related to the organizational strategy.
◦ Use all steps in the control process.
CHARACTERISTICS ◦ Be composed of objective and subjective
OF EFFECTIVE measures.
CONTROL SYSTEM ◦ Be timely in feedback reporting.
◦ Be acceptable to a diverse workforce.
 ◦ Game playing 
◦ Manipulating resources usage.
◦ Operating delays
◦ In terms of mechanical and technical issues.
◦ Negative attitude 
◦ Refer to the employers/employees-human nature.
BARRIERS of ◦ Over-control 
CONTROL ◦ Limiting individuals job autonomy.
◦ Under-control
◦ Granting a lot of autonomy to individuals.
Making Controlling Success/Overcoming
The Barriers
◦ 1. Integration with planning
◦ 2. Flexible
◦ 3. Information Accuracy
◦ 4. Timeliness
◦ 5. Objectivity
◦ (refer to latest manual- pg. 68)