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Chapter 13 Fundamentals of Controlling Supervision: Concepts and Practices of Management, Second Canadian Edition Hilgert, Leonard, Shemko, and Docherty.

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Presentation on theme: "Chapter 13 Fundamentals of Controlling Supervision: Concepts and Practices of Management, Second Canadian Edition Hilgert, Leonard, Shemko, and Docherty."— Presentation transcript:

1 chapter 13 Fundamentals of Controlling Supervision: Concepts and Practices of Management, Second Canadian Edition Hilgert, Leonard, Shemko, and Docherty © 2005 by Nelson, a division of Thomson Canada Limited

2 13-2 Learning Objectives 1.Describe the nature and importance of the managerial controlling function. 2.Identify three types of control mechanisms based on time. 3.Explain the essential characteristics of effective controls. 4.Describe the essential steps in the control process.

3 13-3 Learning Objectives 5.Discuss the supervisors role in controlling through budgets. 6.Discuss the supervisors role in maintaining cost consciousness and in responding to higher-level managers orders to reduce costs. 7.Identify additional control areas and explain how the controlling function is closely related to the other managerial functions.

4 13-4 Controlling 1.Ensuring that actual performance is in line with intended performance and taking corrective action, if necessary. 2.Controls ensure that results match plans.

5 13-5 Controlling When performance and standards deviate from the plan, the supervisor must carry out the controlling function by taking corrective action, which may involve establishing new plans and different standards.

6 13-6 Employee Responses When controls are well designed and properly implemented, they can positively influence employee motivation and behaviour.

7 13-7 The Time Factor Feedforward controlsanticipatory Concurrent controls in-process Feedback controls after-the-process

8 13-8 Types of Controls 1.Feedforward control anticipatory action taken to ensure that problems do not occur 2.Concurrent control corrective action taken during the production or delivery process to ensure that standards are being met 3.Feedback control action taken after the activity, product, or service has been completed

9 13-9 Closeness of Supervision Supervisors must know how closely to monitor employees work based on the employees 1.Experience 2.Initiative 3.Dependability 4.Resourcefulness

10 13-10 Effective Controls Understandable Timely Suitable and economical Indicational Flexible

11 13-11 Steps in the Control Process

12 13-12 Dos and Donts for Controlling Be clear about objectives and assignments. Get agreement on standards and measures. Solicit ideas for improvement. Do not micromanage. Take corrective action. Demonstrate consistently the importance of budgets, standards, and controls. Convey that you will not accept any unsatisfactory performance.

13 13-13 Standards Tangible standardsstandards for performance results that are identifiable and measurable Intangible standardsstandards for performance results that are difficult to measure and often relate to human characteristics

14 13-14 Motion and Time Studies Motion studyanalysis of work activities to determine how to make a job easier and quicker to do Time studytechnique for analyzing jobs to determine time standards for performing each job

15 13-15 Employee Participation Workers are more apt to accept standards as reasonable and fair when they help formulate those standards.

16 13-16 Strategic Control Points Performance criteria chosen for assessment because they are key indicators of overall performance

17 13-17 Strategic Control Standards Number of voluntary resignations and requests for transfer Levels of absenteeism and tardiness Accident frequency and severity rates Number and types of employee grievances Number and types of customer complaints Amount of scrap and rejects

18 13-18 Checking Performance Against Standards Personal observation Oral and written reports Exception principle - concept that supervisors should concentrate their investigations on activities that deviate substantially from the standard

19 13-19 Checking Performance Against Standards Spot checks Sampling Techniques Sampling - the technique of evaluating some numbers from a large group to determine whether the group meets acceptable quality standards

20 13-20 Taking Corrective Action Before taking corrective action, analyze the situation to determine the causes of the deviation. Only after identifying specific causes can the supervisor decide which remedial actions will obtain better results.

21 13-21 Budgetary Control Budgetfinancial plan that projects expected revenues and expenditures during a set period Budgetary controlthe use of budgets to control operations so that they comply with organizational standards for making budgets

22 13-22 Budget Making Incremental budgeting technique for projecting revenues and expenses based on history Zero-base budgeting process of assessing, on a benefit-and-cost basis, all activities to justify their existence

23 13-23 Sharing Budgetary Responsibility Employees must understand financial data and have a basis for comparing their firms financial information with that of previous years and competitors. Involve employees in setting objectives and cutting costs.

24 13-24 Specialized Controls Inventory control Quality control Production control

25 13-25 Controlling and the Other Managerial Functions The better the supervisor plans, organizes, staffs, and leads, the better will be his or her ability to control activities and employees.

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