1. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 1 Chapter 7 Foundations of Control

2. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 2 Control Process of monitoring activities to ensure that what is being accomplished matches plans and corrects significant deviations

3. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 3 Planning- Controlling Linkage Planning OrganizingLeading Controlling

4. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 4 Purpose of Controls Measuring Performance Measuring Performance Comparing to Standards Comparing to Standards Taking Corrective Action Taking Corrective Action Goals and ObjectivesOrganizationalDivisionalDepartmentalIndividual

5. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 5 Approaches to Control Market Bureaucratic Clan

6. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 6 The Control Process Identify Causes Correct Performance Variance Acceptable? Revise Standard Attained? Standard Acceptable? Yes No Compare Performance to Standard Measure Performance Objectives Standard Do Nothing

7. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 7 How Do Managers Measure? Personal observations MBWA (management-by- walking about) Statistical reports Oral reports Written reports

8. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 8 What Do Managers Measure? Information Operations Finances People

9. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 9 Input ProcessesOutput Three Types of Control Feedback Control Anticipates problems Concurrent Control Corrects problems as they happen Feedback Control Corrects problems after they occur

10. Flexibility Qualities Of An Effective Control System Strategic Placement Understandability Reasonable Criteria EFFECTIVE CONTROL SYSTEM Timeliness Multiple Criteria Corrective Action Accuracy Economy Emphasis on Exceptions FOM 7.17 Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc.

11. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 11 Contemporary Issues in Control Rights that manager has to monitor employee behaviour Rights that manager has to control private lives of employees. Employers MAY be able to control employee behaviour outside the work environment

12. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 12 You and Your Computer Employers can read your e-mail Employers can listen to your phone calls Employers can monitor your work by computer

13. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 13 Employee Theft Ranges from embezzlement to fraudulent filing of expense reports to equipment removal Nearly 85% of all organizational theft and fraud is committed by employees Ready availability of information technology has made employee stealing an escalating problem

14. Robbins et al., Fundamentals of Management, 4th Canadian Edition ©2005 Pearson Education Canada, Inc. 14 Entrepreneurs Controlling for Growth Plan for growth Organize for growth Control for growth