Topic 6: CONTROLLING Flashcards
The process of measuring performance, comparing it with established standards, and taking corrective actions when necessary to achieve the organization’s objective
Controlling
The final link in the functional chain of management activities and brings the functions of management cycle full circle;
It ensures that plans are being implemented properly
Controlling
Steps in the controlling process
- Establishment of standards
- Measurement of actual performance
- Comparison of actual performance with standard
- Corrective action if necessary
Plans / objectives / targets to be achieved which are established during planning function;
Established criteria against which actual results can be compared or judged
Standards
Measurable & tangible
- costs, output, revenue, expenditure, time, profit
Quantitative Standards
Non-Measurable & intangible
- attitude of workers, performance of managers, improving employee morale & motivation, etc.
Qualitative Standards
Performance is measured against set standards ________ task is completed
during & after
Techniques used in measuring actual performance
- Examination of written or documented data
- Actual observation of work being done
● Get firsthand knowledge
● Information isn’t filtered
● Intensive coverage of work activities
Personal Observations
● Easy to visualize
● Effective for showing relationsips
Statistical Reports
● Fast way to get information
● Allow verbal and nonverbal feedback
Oral Reports
● Comprehensive
● Formal
● Easy to file and retrieve
Written Reports
End result of an activity
Performance
Accumulated results of all the organization’s work activities
- Productivity
- Effectiveness
Organizational Performance
Specific measurable, metrics that help managers evaluate the success of an individual, team, or organization in achieving specific objectives
Key Performance Indicators (KPIs)
Tends to influence the other indicators; predictive in nature
Leading
Reflects past performance
Lagging
Allowable or acceptable range of variation/devition from standards
Acceptable Variance
Attempts to control only deviations that go beyond a certain limit
Management by Exception
Revision of standards;
Improvement of processes
Positive corrective action
Disciplinary sanction
Negative corrective action
Control that focuses on operations before they begin;
Goal is to PREVENT anticipated problems
Feedforward
Monitoring of ongoing operations to ensure that
they are being done according to plans — real time
Concurrent control
Measures the quality of results (outputs) after the
process is completed
Feedback control
