Controlling

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Chapter 2 Planning

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Definition

Monitoring performance + corrective actions

process to ensure that an organization’s goals are achieved in the most effective and efficient manners

defined as the process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations

Types of Control

Concurrent Control

- Most common form is direct supervision

Allow management to correct problems before they become too costly

Feedback Control

Major drawback is that the damage is already done by the time the manager received the information

enhance employee motivation as it provides feedback to employees on their performance

provides meaningful information on how effective its planning effort was and can be used in future planning

Feedforward control

Most desirable as it prevents problems rather than to cure them later

take managerial action before a problem occurs

Takes place in advance of the actual activity

Importance of control

Managerial Decisions in Control Process

planning, organizing, staffing, directing and controlling.

include setting target growth rates, hiring or firing employees, and deciding what products to sell

Any decision regarding the operations of a firm

The control Process

4. Take Necessary Action

3. Compare actual performance with objectives and standards

2. Measure actual performance

1. Establishing performance objective and standards

Three approaches to Control System

Clan Control

Regulates behavior by shared values, norms, traditions, rituals, and beliefs of the firm’s culture.

eg, China: No 4 o’clock meetings , Japan: Keep an origami frog in your wallet

Bureaucratic Control

organizational authority and relies on rules, regulations, procedures, and policies.

- eg MOM, MOE, MOF

Market Control

Emphasizes the use of external market mechanisms to establish the standards used in the control system.

- eg, apple vs samsung, gojek vs grab vs taxis

Reason

Protecting workplace

Controls enhance physical security and help minimize workplace disruption

let managers know whether goals and plans are on target and what future actions to take

Empowering employees

Provide manager with information and feedback on employee performance

The planning-control link

Standard Measurements, Comparison, Actions

Leading

Motivation, Leadership, Communication, Individual and Group Behavior

Organizing

Structure, Human Resource Management

Planning

Goals, Objectives, Strategies, Plans

Controlling