Because learning changes everything.

CHAPTER 16
CONTROL SYSTEMS AND
QUALITY MANAGEMENT

Techniques for Enhancing

Organizational
Effectiveness

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 LEARNING OBJECTIVES

16-1 Describe control as a managerial function.

16-2 Describe the steps in the control process and
types of control.
16-3 Discuss ways that managers can control an
organization.
16-4 Explain the total quality management process.
16-5 Discuss contemporary control issues.
16-6 Discuss the process for managing career
readiness and review six tips for managing your
career.

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 FIGURE 16.1 CONTROLLING FOR EFFECTIVE
PERFORMANCE

Controlling is defined as monitoring performance, comparing it with goals, and

taking corrective action as needed.
Controlling is what you as a manager do to get things done, with controlling shown in
relation to the three other management functions. (These are not lockstep; all four functions
happen concurrently.)

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 CONTROL: WHEN MANAGERS MONITOR PERFORMANCE

Six reasons control is needed:

• To adapt to change and uncertainty
• To discover irregularities and errors
• To reduce costs, increase productivity, or add value
• To detect opportunities and increase innovation
• To provide performance feedback
• To decentralize decision making and facilitate
teamwork

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 STEPS IN THE CONTROL PROCESS

Establish Standards:
“What is the outcome we want?” A performance standard or control standard, is
the desired performance level for a given goal.

Measure Performance:
“What is the actual outcome we got?” Performance data are usually obtained from
five sources: (1) employee behavior and deliverables, (2) peer input or
observations, (3) customer feedback, (4) managerial evaluations, and (5) output
from a production process.

Compare Performance to Standards: “How do the desired and

actual outcomes differ?” managers should be informed of a situation only if data
show a significant deviation from standards.

Take Corrective Action, If Necessary:

“What changes should we make to obtain desirable outcomes?”

There are 3 possibilities: 1) Make no change.2) Recognize & reinforce positive

performance. 3) Take action to correct negative performance.
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 FIGURE 16.3 STEPS IN THE CONTROL PROCESS

Paying attention to the feedback is particularly important because of its dynamic nature.

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 TYPES OF CONTROLS
- Feedforward Control focuses on preventing future
problems.
The benefits of effective feedforward control, showing it improved
organizational performance and maximized profits.
- Concurrent Control entails collecting performance
information in real time.
This enables managers to measure performance and determine if
employee behavior and organizational processes conform to
regulations and standards.

-Feedback Control amounts to collecting performance

information after a task or project is done.
The problem with feedback control is that it often
occurs too late.
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 TOTAL QUALITY MANAGEMENT

Quality Control and Quality Assurance

Deming Management: The Contributions of W. Edwards

Deming to Improved Quality

Core TQM Principles: Deliver Customer Value and Strive for

Continuous Improvement

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 QUALITY CONTROL AND QUALITY ASSURANCE

Quality Control: control is defined as the strategy

for minimizing errors by managing each stage of
production.

Quality Assurance: focuses on the performance of

workers, urging employees to strive for “zero
defects.”

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 DEMING MANAGEMENT: THE CONTRIBUTIONS OF W.
EDWARDS DEMING TO IMPROVED QUALITY

• Quality should be aimed at the needs of the

consumer.
• Companies should aim at improving the system,
not blaming workers.
• Improved quality leads to increased market
share, increased company prospects, and
increased employment.
• Quality can be improved on the basis of hard
data, using the PDCA cycle

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 FIGURE 16.7 THE PDCA CYCLE: PLAN-DO-CHECK-ACT

FIGURE 16.7
The PDCA cycle: Plan-Do-
Check-Act
The four steps continuously
follow each other, resulting
in continuous improvement.
Source: From W. Edwards
Deming, Out of the Crisis,
Plan Do Study Act Cycle,
Massachusetts Institute of
Technology, 2000, p. 88.

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 CORE TQM PRINCIPLES: DELIVER CUSTOMER VALUE AND
STRIVE FOR CONTINUOUS IMPROVEMENT

People Orientation:
• Focusing everyone on delivering value to customer
Improvement Orientation:
• Focusing everyone on continuously improving the work
processes

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 CAREER CORNER: PROCESS FOR MANAGING CAREER
READINESS

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 CAREER CORNER: MANAGING YOUR CAREER READINESS

• Make every day count.

• Stay informed and network.
• Promote yourself.
• Roll with change and disruption.
• Small things matter during interviews.
• Use technology for self-development and
creating good habits.

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 End of Main Content

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No reproduction or further distribution permitted without the prior written consent of McGraw Hill.