Download Control - BUS 203 - Modern Management

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The Fundamentals of Controlling
 As
the scale and complexity of modern organizations grow, the
problem of control also grows.
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Defining Control
 Control:
is ensuring that an event occurs as it was planned to
occur (It is making something happen the way it was planned)
 Planning
and control are virtually inseparable functions (The
Siamese Twins of Management) How is that?
 The
planning process provides a map of what actions needed to meet the
objectives (the scope & time of these actions)
 But
it is not enough! If we don’t follow it, or did something wrong, we will
not achieve the desired results
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plan is a s good as we can make it happen. That’s why we need
Controlling; we must (1) develop methods of measurements and control,
(2) to know when a deviation from the plan happens, (3) then take a
corrective action
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Defining Control
 Murphy’s
Law: anything that can go wrong will go wrong.
 That’s
why managers should be alerts for possible problems
(even if the system is operating well, it might be eroding under the
surface)
 Managers
should continually control. They should check to see
that organizational activities and processes are going as planned,
get feedback, and make corrective changes if needed.
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Defining Controlling
 Controlling:
is the process managers go through to control.
 Controlling:
is a systematic effort by business management to
compare performance to predetermined standards, plans, or
objectives to determine whether performance is in line with these
standards and presumably to take any remedial action required to
see that human and other corporate resources are being used in
the most effective and efficient way possible in achieving
corporate objectives. (this definition is for understanding only)
 Example:
Set
Production workers
If levels
below goals
Corrective action
Daily & weekly production goals
Compare
Record
Daily & weekly production levels
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If levels
equal goals
Continue
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The Controlling Subsystem
 Purpose:
to help managers enhance the success of the overall
management system through effective controlling.
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The Controlling Process
3
Main Steps in the controlling process:
1.
2.
3.
Measuring Performance
Comparing measured performance to standards
Taking corrective actions
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The Controlling Process
1. Measuring Performance:
 Measure current org. performance to determine what must be
done to be more effective and efficient
 Before
measuring! Should establish units of measure
How to measure? (example?)
1.
Establish units of measure that represent performance
2.
Determine the number of each of these units accomplished by each
employee
What to measure? (example?)
 A wide range or org. activities can be measured
 Performance measurements can relate to various effects of production
 The
degree of difficulty is determined by the activity being measured
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The Controlling Process
2. Comparing Measured Performance to Standards:
 Standard:
is the level of activity established to serve as a model
for evaluating organizational performance
 Standards
are the yardsticks that determine whether org performance
is adequate or inadequate
 The
performance evaluated can be for the org as a whole or for some
individuals working within the org
 Successful
managers pinpoint all important areas of org performance
and establish corresponding standards in each area
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The Controlling Process
3. Taking Corrective Action (if necessary):
 Corrective
action: is managerial activity aimed at bringing org
performance up to the level of performance standards
 It
focuses on: correcting org mistakes that are hindering
(obstruct, stop) org. performance
 Managers
should first make sure that:
 Standards were properly established
 Measurements of org. performance are valid & reliable
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The Controlling Process
3. Taking Corrective Action (if necessary):
Recognizing Problems:
 Problem: any factor within the organization that is a barrier to
organizational goal attainment
 Difficult to pinpoint
 Recognizing
Symptoms:
 The manager must determine whether the failure is a problem in it
self or a symptom. (what exactly is causing the situation?)
 symptom: a sign that a problem exists.
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The Controlling Process
3. Taking Corrective Action (if necessary):
 Once
the problem has been properly identified → corrective
action can focus on one or more of the three primary management
functions (Planning, Organizing, Influencing), example?:
 Modify
past plans → more suitable for future
 Change existing organizational structure →
 Restructure incentive program →
 Because
planning, organizing, and influencing are closely related,
it is likely that corrective action in one area --will need→ some
corresponding actions in one or both of the other two areas
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Power and Control
 To
control successfully, managers must understand:
1.
The control process (nonhuman variable)
2.
How organization members relate to it (human-relater variable,
e.g. Power)
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Definition of Power
 The
differences between Authority & Power:
 Authority:
is the right to command or give orders
 Power:
is the ability to influence others so they respond to orders
(or take orders)
 Power
and control are closely related, HOW? (book)
 Managers
must learn how to wield (use) power in order to
advance their organization’s agenda
 Many
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highly competent professionals floundered (failed) in
management careers because they are uncomfortable using
power
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Total Power of a Manager
The total power a manager possess (have) is made up of two
different kinds of power:
1.
Position power: derived from the organizational position a
manager holds (lower-level v.s. upper-level)
2.
Personal power: derived from a manager’s relationships with
others.
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Steps for Increasing Total Power
 Managers
can increase their total power by increasing:
1.
Position power, by moving to a higher organizational position.
(but they have little control over it)
2.
Personal power (they have greater control over it), by
developing the following attitudes and beliefs in other
organization members:
1. Sense of obligation toward the manager. How?
2. Belief that the manager possesses a high level of expertise. How?
3. Sense of identification with the manager. How?
4. Perception that they are dependent on the manager. How?
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Making Controlling Successful
 Factors
to make controlling system successful and increase its
quality:
1.
Specific Organizational Activities Being Focused On. Explain?
2.
Different Kinds of Organizational Goals. Explain?
3.
Timely Corrective Action. Explain?
4.
Communication of the Mechanics of the Control Process.
Explain?
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