1. CONTROLLING

2. CONTROL
 For
all companies, past success is no
guarantee of future success. Even
successful companies fall short or face
challenges and thus have to make
changes.
 CONTROL is a regulatory process of
establishing standards to achieve
organizational goals, comparing actual
performance to the standards, and taking
corrective action when necessary to
restore performance to those standards.

3. CONTROL
 CONTROL
is achieved when behavior and
work procedures conform to standards
and company goals are accomplished.
 CONTROL
is not just an after-the-fact
process, however. Preventive measures
are also a form of control.

4. THE CONTROL PROCESS
 1.
BEGIN WITH THE ESTABLISHMENT OF
CLEAR STANDARDS OF PERFORMANCE.
 2. INVOLVES A COMPARISON OF
PERFORMANCE TO THOSE STANDARDS
 3. TAKES CORRECTIVE ACTION IF
NEEDED, TO REPAIR PERFORMANCE
DEFICIENCIES
 4. IS A DYNAMIC, CYBERNETIC PROCESS
 5. USES THREE BASIC METHODS –
FEEDBACK CONTROL, CONCURRENT
CONTROL, AND FEEDFORWARD CONTROL

5. 1. STANDARDS
 The
control process begins when
managers set goals, such as satisfying 90
percent of customers or increasing sales
by 5 percent. Companies then specify the
performance standards that must be met
to accomplish those goals. STANDARDS
are a basis of comparison for measuring
the extent to which organizational
performance is satisfactory or
unsatisfactory.

6. 1. HOW DO MANAGER SET
STANDARDS?
 How
do they decide which levels of
performance are satisfactory and which
are unsatisfactory?
 The first criterion for a GOOD STANDARD is
that it must enable GOAL ACHIEVEMENT.
 COMPANIES also determine standards by
listening to customer’s comments,
complaints and suggestions or by
observing competitors.

7. 1. HOW DO MANAGER SET
STANDARDS?
 Standards
can also be determined by
BENCHMARKING other companies.
Benchmarking is the process of
determining how well other companies
perform business functions or tasks. In
other words, BENCHMARKING is the
process of determining other companies
standards.
 Companies can benchmark anything
from cycle time (how fast), to quality
(how well) to price (how much)

8. 2. COMPARISON TO
STANDARDS
 The
next step to control process is to
compare actual performance to
performance standards. The quality of the
comparison largely depends on the
measurement and information systems a
company uses to keep track of
performance. The BETTER THE SYSTEM, the
easier it is for the company to track
performance and identify the problems
that need to be fixed.

9. 3. CORRECTIVE ACTION
 The
next step in the control process is to
identify performance deviations, analyze
those deviations, and then develop and
implement programs to correct them.

10. DYNAMIC, CYBERNETIC
PROCESS
 Control
is a
continuous, dynamic, cybernetic process.
Managers must repeat the entire process
again and again in an endless feedback
loop (a continuous process). Thus, is not a
one-time achievement or result. It
continuous overtime (it is dynamic) and
requires daily, weekly and monthly
attention from managers to maintain
performance levels at the standards.

11. DYNAMIC, CYBERNETIC
PROCESS
 This
constant attention is what makes a
control a cybernetic process. CYBERNETIC
derives from the Greek word kubernetes
meaning “steersman” that is one who
steers or keeps a craft on course.

12. FEEDBACK, CONCURRENT AND
FEEDFORWARD CONTROL

The three basic control methods. FEEDBACK
CONTROL is a mechanism for gathering
information about performance deficiencies
after they occur. This information is then used
to correct performance deficiencies or
prevent future deficiencies. Any feedback is
better than no feedback. CONCURRENT
CONTROL addresses the problems inherent in
feedback control by gathering information
about performance deficiencies as they
occur.

13. FEEDFORWARD CONTROL
 FEEDFORWARD
CONTROL is a mechanism
for gathering information about
performance deficiencies before they
occur.
 Feedforward control provides information
by monitoring inputs, not outputs. Thus
feedforward control seeks to prevent or
minimize performance deficiencies
before they happen.