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The Fundamentals of Controlling As the scale and complexity of modern organizations grow, the problem of control also grows.

Defining Control Control: is ensuring that an event occurs as it was planned to occur (It is making something happen the way it was planned) Planning and control are virtually inseparable functions (The Siamese Twins of Management) How is that? The planning process provides a map of what actions needed to meet the objectives (the scope & time of these actions) But it is not enough! If we don’t follow it, or did something wrong, we will not achieve the desired results a plan is a s good as we can make it happen. That’s why we need Controlling; we must (1) develop methods of measurements and control, (2) to know when a deviation from the plan happens, (3) then take a corrective action

Defining Control Murphy’s Law: anything that can go wrong will go wrong. That’s why managers should be alerts for possible problems (even if the system is operating well, it might be eroding under the surface) Managers should continually control. They should check to see that organizational activities and processes are going as planned, get feedback, and make corrective changes if needed.

Defining Controlling Controlling: is the process managers go through to control. Controlling: is a systematic effort by business management to compare performance to predetermined standards, plans, or objectives to determine whether performance is in line with these standards and presumably to take any remedial action required to see that human and other corporate resources are being used in the most effective and efficient way possible in achieving corporate objectives. (this definition is for understanding only) Example: Production workers If levels below goals Corrective action Set Daily & weekly production goals Compare Record Daily & weekly production levels If levels equal goals Continue

Power and Control To control successfully, managers must understand: The control process (nonhuman variable) How organization members relate to it (human-relater variable, e.g. Power)

Definition of Power The differences between Authority & Power: Authority: is the right to command or give orders Power: is the ability to influence others so they respond to orders (or take orders) Power and control are closely related, HOW? (book)

Total Power of a Manager Position power: derived from the organizational position a manager holds (lower-level v.s. upper-level) Personal power: derived from a manager’s relationships with others.

Steps for Increasing Total Power Managers can increase their total power by increasing: Position power, by moving to a higher organizational position. (but they have little control over it) Personal power (they have greater control over it), by developing the following attitudes and beliefs in other organization members: 1. Sense of obligation toward the manager. How? 2. Belief that the manager possesses a high level of expertise. How? 3. Sense of identification with the manager. How? 4. Perception that they are dependent on the manager. How?

Making Controlling Successful Factors to make controlling system successful and increase its quality: Specific Organizational Activities Being Focused On. Explain? Different Kinds of Organizational Goals. Explain? Timely Corrective Action. Explain? Communication of the Mechanics of the Control Process. Explain?