1. Controlling …in the right way,
… is the process of measuring performance and taking action to ensure desired results.
Make sure the right things happen,
…at the right time.
…in the right way,

2. Steps in the Control Process

3. Steps in the Control Process
Set performance objectives and standards.
Describe standards as the conditions that must exist before the performance can be rated satisfactory. 
Establish objectives that are broader in scope and go beyond day-to-day standards.
Measure actual performance.
Measurement must be accurate enough to catch differences between the planned and actual performance.
Compare actual performance against established standards.
Decide how much variance from the standard is acceptable.
Determine if action is needed.
Take corrective actions as necessary.
When standards are not met, it is important to find out why.
When standards are met and exceeded, this is a good time to offer employees positive reinforcement.

4. Types of Controls
Feedforward Controls focus on the control of inputs, i.e., human, material, and financial resources that flow into the organization, to ensure that they meet the necessary standards. These controls are sometimes called preliminary controls or preventive controls since their focus is preventing problems before they occur. They allow a manager to take action before getting too far away from the plan. One common example of a Feedforward Control is the careful hiring and training of new employees.
Concurrent Controls monitor employees’ work to ensure consistency with performance standards, rules, and regulations.  These controls take place while an activity is in progress and are designed to ensure that employee work produces the expected results. Concurrent Control sometimes is called Screening Control. It often involves checkpoints at which decisions are made about whether to continue progress, take corrective action, or stop work altogether. The focus is to solve problems while they are occurring. Direct supervision of employee work is the most common Concurrent Control.
Feedback Controls involve reviewing information to determine whether performance meets established standards. They are sometimes called Output Controls because they focus on the outputs of the organization after processing or production is complete. They may be used when Feedforward and Concurrent Controls are not feasible or too costly.
Feedback has two advantages over Feedforward and Concurrent Controls. First, Feedback provides managers with meaningful information on the effectiveness of the planning effort. If Feedback indicates little variance between standard and actual performance, this is evidence that planning is generally on target. If there is a large variance, a manager can use this information when formulating new plans to make them more effective. Second, Feedback Control can be used to enhance employees’ motivation.
The major drawback of this type of control is that problems can be addressed only after they occur. By the time the manager has the information, the damage is already done. Feedback Control is considered the least optimal control method, since the undesirable events already occurred well before the control function is initiated. Asking restaurant customers “How did you like your meal?” after they finished eating is an example of a Feedback Control.

5.  For example, a local automobile dealer can focus on activities before, during, or after sales of new cars. Careful inspection of new cars and cautious selection of sales employees are ways to ensure high quality or profitable sales even before those sales take place. Monitoring how sales people act with customers is a control during the sales task. Counting the number of new cars sold during the month and telephoning buyers about their satisfaction with sales transactions are controls after sales have occurred.

6. Checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve, and where they lack knowledge or information.
Management by objectives works if you first think through your objectives. Ninety percent of the time you haven't.
Objectives are not fate; they are direction. They are not commands; they are commitments. They do not determine the future; they are means to mobilize the resources and energies of the business for the making of the future.
Peter Drucker

7. Management by Objectives (MBO)
…is a process of joint objective setting between a supervisor and subordinate

8. 3 Types of Objectives Improvement Personal Maintenance
Improve performance in a specific way
“to reduce quality rejects by 10 percent”
Personal
Personal growth activities
“to learn the latest version of a computer spreadsheet package”
Maintenance
Maintain performance at a specific level
SMART – Specific, Measurable, Attainable, Referred to regularly, Time defined
PROs –
Cons -

9. Internal control
Allows motivated individuals and groups to exercise self-discipline in fulfilling job expectations.
Self-control
understand and believe in the organization’s mission,
know their own objectives,
have the resources to do their job well
high level of trust and respect. 
What management style does this sound like?

10. External control
Occurs through personal supervision or formal administrative systems.
Performance Appraisal
Compensation Systems (pg )
Pay for Performance (or merit Pay);
bonus pay;
Employee Stock Ownership (ESOP);
gain-sharing;
profit-sharing;
skills-based pay (or pay for knowledge).

11. Employee Discipline Systems
Progressive Discipline
Unacceptable work (e.g., absenteeism, lateness, lying, or sexual harassment)
Some types of misbehaviour are more severe than others.
The disciplinary action administered to an employee should vary according to:
how significant
how often the behaviour occurs.
The “ultimate” penalty of being fired, should only be used in the case of the most severe infractions or for repeated occurrences of minor infractions.
Lumberjack versus Gardener

12. “Hot Stove Rules” of Employee Discipline
Immediacy: A reprimand should be immediate;
a hot stove burns the first time you touch it.
Impartiality: A reprimand should be directed toward someone’s actions, not the individual’s personality;
a hot stove doesn’t hold grudges, doesn’t try to humiliate people, and doesn’t accept excuses.
Consistency: A reprimand should be consistently applied;
a hot stove burns anyone who touches it, and it does so every time.
Informative: A reprimand should be informative;
a hot stove lets a person know what to do to avoid getting burned in the future—”don’t touch.”
Supportive: A reprimand should occur in a supportive setting;
a hot stove conveys warmth but with an inflexible rule—”don’t touch.”
Forewarning: A reprimand should support realistic rules;
the don’t-touch-a-hot-stove rule isn’t a power play, a whim, or an emotion of the moment; it is a necessary rule of reason.

13. Possible problems with “hot stove” rules and Progressive Discipline
The focus is on past behaviour.
There is a risk that employees are disciplined in a punitive way.
They do not build commitment into their jobs.
Employees are not likely to feel better about the job or the company.