Mainstream Approach to the Four-Step Control Process

Question 1

Step 1: Establish key performance standards

Answer 1

Establish a Value Chain: Sequence of activities required to convert (conversion process) organization inputs into outputs.

Question 2

Step 2: Monitor Performance

Answer 2

• Data: facts and figures deemed to be useful by managers (majority are not)
• Information: Data with meaning and deemed useful
• Information System: A system that identifies, collects, organizes, and disseminates information

Question 3

Step 3: Evaluate Performance

Answer 3

• Comparison of information collected in second step to goals or standards in first step
• Total Quality Management (TQM): continuous improvement in work systems to meet customer demands
• Edward Deming on Quality
• variation is always present in performance
• individual performance is defined more by systemic factors
• management is responsible for improving systemic factors
• less variation = higher quality performance

Question 4

Step 4: Respond accordingly

Answer 4

• Reward, punish and train workers as appropriate
• Refine each part of the control process
• “Change for the better” kaizen principle: continuous improvement of value chains