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CHAPTER 13: CONTROL PROCESSES AND SYSTEMS © John Wiley & Sons Canada, Ltd. John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest Business Leadership:

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Presentation on theme: "CHAPTER 13: CONTROL PROCESSES AND SYSTEMS © John Wiley & Sons Canada, Ltd. John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest Business Leadership:"— Presentation transcript:

1 CHAPTER 13: CONTROL PROCESSES AND SYSTEMS © John Wiley & Sons Canada, Ltd. John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest Business Leadership: Management Fundamentals John R. Schermerhorn, Jr., Barry Wright, and Lorie Guest

2 o Explain why and how managers control o Describe the steps in the control process o Explain the common control tools and techniques PLANNING AHEAD — CHAPTER 13 LEARNING GOALS

3 Controlling: – The process of measuring performance and taking action to ensure desired results – Has a positive and necessary role in the management process – Ensures that the right things happen, in the right way, at the right time – Organizational learning and after-action review © John Wiley & Sons Canada Ltd. WHY AND HOW MANAGERS ASSERT CONTROL

4 © John Wiley & Sons Canada Ltd. FIGURE 13.1 THE ROLE OF CONTROLLING IN THE MANAGEMENT PROCESS

5 Feedforward controls: – Employed before a work activity begins – Ensures that: Objectives are clear Proper directions are established Right resources are available – Focuses on quality of resources © John Wiley & Sons Canada Ltd. TYPES OF CONTROLS

6 Concurrent controls: – Focus on what happens during work process – Monitor ongoing operations to make sure they are being done according to plan – Can reduce waste in unacceptable finished products or services © John Wiley & Sons Canada Ltd. TYPES OF CONTROLS (CONT’D)

7 Feedback controls: – Take place after work is completed – Focus on quality of end results – Provide useful information for improving future operations © John Wiley & Sons Canada Ltd. TYPES OF CONTROLS (CONT’D)

8 © John Wiley & Sons Canada Ltd. FIGURE 13.2 THE ROLE OF FEEDFORWARD, CONCURRENT, AND FEEDBACK CONTROLS IN ORGANIZATIONS

9 Internal control: allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations External control: occurs through personal supervision and the use of formal administrative systems Bureaucratic control: influences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision Clan control: influences behaviour through norms and expectations set by the organizational culture Market control: influences behaviour through market competition © John Wiley & Sons Canada Ltd. INTERNAL AND EXTERNAL CONTROLS

10 Steps in the control process: – Step 1: establish objectives and standards – Step 2: measure actual performance – Step 3: compare results with objectives and standards – Step 4: take corrective action as needed © John Wiley & Sons Canada Ltd. STEPS IN THE CONTROL PROCESS

11 © John Wiley & Sons Canada Ltd. FIGURE 13.4 FOUR STEPS IN THE CONTROL PROCESS

12 Step 1: Establishing objectives and standards – Output standards: Measure performance results in terms of quantity, quality, cost, or time – Input standards: Measure effort in terms of amount of work expended in task performance © John Wiley & Sons Canada Ltd. STEPS IN THE CONTROL PROCESS (CONT’D)

13 Step 2: Measuring actual performance – Goal is accurate measurement of actual performance results and/or performance efforts – Must identify significant differences between actual results and original plan – Effective control requires measurement © John Wiley & Sons Canada Ltd. STEPS IN THE CONTROL PROCESS (CONT’D)

14 Step 3: Comparing results with objectives and standards – Need for action reflects the difference between desired performance and actual performance – Comparison methods: Historical comparison Relative comparison Engineering comparison © John Wiley & Sons Canada Ltd. STEPS IN THE CONTROL PROCESS (CONT’D)

15 Step 4: Taking corrective action – Taking action when a discrepancy exists between desired and actual performance – Management by exception: Giving attention to situations showing the greatest need for action Types of exceptions: – Problem situation – Opportunity situation © John Wiley & Sons Canada Ltd. STEPS IN THE CONTROL PROCESS (CONT’D)

16 Employee Discipline Systems: – Discipline is the act of influencing behaviour through reprimand – Discipline that is applied fairly, consistently, and systematically provides useful control © John Wiley & Sons Canada Ltd. CONTROL TOOLS AND TECHNIQUES

17 Employee Discipline Systems (cont’d): – Progressive discipline ties reprimands to the severity and frequency of the employee’s infractions – Progressive discipline seeks to achieve compliance with the least extreme reprimand possible © John Wiley & Sons Canada Ltd. CONTROL TOOLS AND TECHNIQUES (CONT’D)

18 To be effective, reprimands should: – Be immediate – Be directed toward actions, not personality – Be consistently applied – Be informative – Occur in a supportive setting – Support realistic rules © John Wiley & Sons Canada Ltd. “HOT STOVE RULES” OF EMPLOYEE DISCIPLINE

19 Project Management: – Overall planning, supervision, and control of projects Projects: unique one-time events that occur within a defined time period © John Wiley & Sons Canada Ltd. PROJECT MANAGEMENT AND CONTROL

20 Factors used to develop scorecard goals and measures: – Financial performance – Customer satisfaction – Internal process improvement – Innovation and learning © John Wiley & Sons Canada Ltd. BALANCE SCORECARD

21 © John Wiley & Sons Canada Ltd. Copyright © 2013 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein. COPYRIGHT


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