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Chapter #16 - Controlling.doc

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Global Management Studies
GMS 200
Shavin Malhotra

Chapter #16 – The Control Process Controlling - The process of measuring performance and taking action to ensure desire results - Has a positive and necessary role in the management process - Ensures that the right things happen, in the right way, at the right time - Organizational learning and after-action review - After – Action Review: identifies lessons learned through a completed project, task force assignment, or special operation Types of Controls - Feedforward controls o Employed before a work activity begins o Ensures that  Objectives are clear  Proper directions are established  Right resources are available o Focuses on quality of resources - Concurrent controls o Focus on what happens during work process o Monitor ongoing operations to make sure they are being done according to plan o Can reduce waste in unacceptable finished products or services - Feedback control o Take place after work is completed o Focus on quality of end results o Provide useful information for improving future operations Internal and External controls - Internal o Allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations also known as self-control - External o Occurs through personal supervision and the use of formal administrative system o Bureaucratic control  Influences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to0day supervision o Clan Control  Influences behaviour through norms and expectations set by the organizational culture  Persons who share values and identify strongly with one another tend to behave in wars that are consistent with one another’s expectations o Market Control  Influences behaviour through market competition on the behaviour of organization and their members The Control Process - Step 1 — establish objectives and standards o Identify performance objectives of what you want to accomplish o Describing critical or essential results that will make a substantial performance different o Output Standards: measures performance results in terms of quantity, quality, cost, or time o Input Standards: measures work efforts that to into a performance task - Step 2 — measure actual performance o Goal is accurate measurement of actual performance results and/or performance efforts. o Must identify significant differences between actual results and original plan. o Effective control requires measurement. - Step 3 — compare results with objectives and standards o Need for action reflects the difference between desired performance and actual performance o Control Equation : Need for Action = Desired Performance – Actual Performance o Compari
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