FAZEELAT MASOOD 3
To explain the
To describe the
three steps in the
To explain how
To describe tools
used to measure
issues in control.
5. WHAT IS CONTROL?
The process of monitoring, comparing, and
correcting work performance.
In this process, activities are monitored to
ensure that they are being accomplished as
planned and of correcting any significant
The Purpose of Control
To ensure that activities are completed in
ways that lead to accomplishment of
FAZEELAT MASOOD 5
6. WHY IS CONTROL IMPORTANT?
As the final link in management
Controls let managers know whether their
goals and plans are on target and what future
actions to take.
Control systems provide managers with
information and feedback on employee
Protecting the workplace FAZEELAT MASOOD 6
8. THE CONTROL PROCESS
The control process is a three-step
Measuring actual performance.
Comparing actual performance against a
Taking action to correct deviations or
The control process assumes that
performance standards already exist, and
They’re the specific goals created during
FAZEELAT MASOOD 8
10. 1. MEASURING ACTUAL
To determine what actual performance
is, a manager must first get
information about it.
Thus, the first step in control is
How we measure?
What we measure?
FAZEELAT MASOOD 10
11. HOW WE MEASURE
Four approaches used by managers to
measure and report actual
1. Personal observations,
2. Statistical reports,
3. Oral reports, and
4. Written reports.
FAZEELAT MASOOD 11
13. WHAT WE MEASURE
What to measure is probably more critical to
the control process than how it’s measured.
Because selecting the wrong
criteria can create serious
What is measured often determines
what employees will do.
FAZEELAT MASOOD 13
14. 2. COMPARING
Determining the degree of variation
between actual performance and the
Significance of variation is determined
The acceptable range of variation from
the standard (forecast or budget).
The size (large or small) and direction
(over or under) of the variation from the
FAZEELAT MASOOD 14
16. 3. TAKING MANAGERIAL ACTION
Managers can choose among three possible
courses of action:
1) Do nothing,
2) Correct the actual performance, or
3) Revise the standards.
Option 1: “do nothing”
It is self-explanatory.
Only if deviation is judged to be
FAZEELAT MASOOD 16
17. 3. TAKING MANAGERIAL ACTION
Option 2: Correct actual (current) performance
Immediate corrective action to correct the
problem at once.
Basic corrective action to locate and to
correct the source of the deviation.
Change strategy, structure, compensation
scheme, or training programs; redesign jobs;
or fire employees.
FAZEELAT MASOOD 17
18. 3. TAKING MANAGERIAL ACTION
Option 3: Revise the standard
Examining the standard to ascertain
whether or not the standard is realistic,
fair, and achievable.
Upholding the validity of the standard.
Resetting goals that were initially set too
low or too high.
FAZEELAT MASOOD 18
20. CONTROLLING FOR ORGANIZATIONAL
What Is Performance?
The end result of an activity.
What Is Organizational Performance?
The accumulated end results of all the organization’s
work processes and activities.
It’s a multifaceted concept, but managers need to
understand the factors that contribute to
Designing strategies, work processes,
and work activities.
Coordinating the work of employees.
FAZEELAT MASOOD 20
21. TOOLS FOR MEASURING
All managers need appropriate tools
for monitoring and measuring
There are three specific types of
1) Feedforward Control;
2) Concurrent Control;
3) Feedback Control. FAZEELAT MASOOD 21
22. TOOLS FOR MEASURING
A control that prevents anticipated problems before actual
occurrences of the problem.
It is kind of control that prevents problems because it takes
place before the actual activity.
Building in quality through design.
Requiring suppliers conform to ISO 9002.
The key to feedforward controls is taking managerial
action before a problem occurs.
That way, problems can be prevented rather than having
to correct them after any damage (poor-quality
products, lost customers, lost revenue, etc.) has already
However, these controls require timely and accurate
information that isn’t always easy to get. FAZEELAT MASOOD 22
23. TOOLS FOR MEASURING
A control that takes place while (during)
the monitored activity is in progress.
The best-known form of concurrent
control is direct supervision or
Management by walking around.
All managers can benefit from using
concurrent control because they can
correct problems before they become
FAZEELAT MASOOD 23
24. TOOLS FOR MEASURING
A control that takes place after the activity is
Corrective action is after-the-fact, when the
problem has already occurred.
Advantages of feedback Controls
Provide managers with information on the
effectiveness of their planning efforts.
Enhance employee motivation by providing
them with information on how well they are
FAZEELAT MASOOD 24
26. TOOLS FOR MEASURING
Every business wants to earn a profit.
To achieve this goal, managers need
Managers might use traditional financial
measures such as ratio analysis and
FAZEELAT MASOOD 26
27. TOOLS FOR MEASURING
It is a way to evaluate organizational performance
from more than just the financial perspective.
A balanced scorecard typically looks at four areas
that contribute to a company’s performance.
3) Internal processes;
4) People/innovation/growth assets.
It is intended to emphasize that all of these areas
are important to an organization’s success and
that there should be a balance among them.
FAZEELAT MASOOD 27
28. INFORMATION CONTROLS
Purposes of Information Controls
As a tool to help managers control other
Managers need the right information at the right
time and in the right amount.
As an organizational area that managers
need to control.
Managers must have comprehensive and secure
controls in place to protect the organization’s
important information. FAZEELAT MASOOD 28
29. BENCHMARKING OF BEST
The standard of excellence against which to
measure and compare.
It is the search for the best practices among
competitors or noncompetitors that lead to
their superior performance.
It is a control tool for identifying and
measuring specific performance gaps and
areas for improvement. FAZEELAT MASOOD 29
31. CONTEMPORARY ISSUES IN
Adjusting Controls for Cross-Cultural
Workplace concerns such as monitoring
employees’ computer usage at work.
Employee theft - any unauthorized
taking of company property by
employees for their personal use.
FAZEELAT MASOOD 31
33. CONTEMPORARY ISSUES IN
Controlling Customer Interactions;
Corporate governance - the system
used to govern a corporation so that
the interests of corporate owners are
FAZEELAT MASOOD 33
34. REFERENCE READING &
Robbins, S., & Coulter, M. (2012). Management.
11th Edition. Pearson Education.
Chapter 18: Introduction to Controlling.
Post Class Readings
Watch & learn from video clip on controlling.
Post Class Assignment
Prepare for presentations next week.
FAZEELAT MASOOD 34