Copyright ©2015 Pearson Education, Inc.14-1 Chapter 8 Foundations of Control

Learning Outcomes Explain the nature and importance of control. Describe the three steps in the control process. Discuss the types of controls organizations and managers use. Discuss contemporary issues in control. Copyright ©2015 Pearson Education, Inc.14-2

Copyright ©2015 Pearson Education, Inc Explain the nature and importance of control.

The Communication Process Copyright ©2015 Pearson Education, Inc.14-4

The Importance of Control Copyright ©2015 Pearson Education, Inc.14-5

Copyright ©2015 Pearson Education, Inc Describe the three steps in the control process.

The Control Process Copyright ©2015 Pearson Education, Inc.14-7

Measuring Performance Copyright ©2015 Pearson Education, Inc.14-8 Sources of information: Personal observation Statistical reports Oral reports Written reports

Criteria for Measurement Copyright ©2015 Pearson Education, Inc.14-9 What managers measure is probably more important to the control process than how they measure.

Range of Variation Copyright ©2015 Pearson Education, Inc.14-10

Comparing Performance to Goals Copyright ©2015 Pearson Education, Inc.14-11

Correcting Performance Copyright ©2015 Pearson Education, Inc Immediate corrective action Basic correction action

Revising Standards Copyright ©2015 Pearson Education, Inc If performance consistently exceeds the goal, then the goal may need to be raised.

Copyright ©2015 Pearson Education, Inc Discuss the types of controls organizations and managers use.

Feedward Control Copyright ©2015 Pearson Education, Inc.14-15

Concurrent Control Copyright ©2015 Pearson Education, Inc Control that takes place while a work activity is in progress.

Feedback Control Copyright ©2015 Pearson Education, Inc Control that takes place after a work activity is done.

Keeping Track of an Organization’s Finances: Ratio Analysis Copyright ©2015 Pearson Education, Inc.14-18

Keeping Track of an Organization’s Finances: Budget Analysis Copyright ©2015 Pearson Education, Inc Budgets are used for both planning and controlling.

Keeping Track of an Organization's Information Copyright ©2015 Pearson Education, Inc Management information system (MIS): A system used to provide management with needed information on a regular basis.

Keeping Track of Employee Performance Copyright ©2015 Pearson Education, Inc.14-21

Keeping Track with a Balanced Scorecard Approach Copyright ©2015 Pearson Education, Inc Financial Customer Internal Processes People/innovation/growth assets

Copyright ©2015 Pearson Education, Inc Discuss contemporary issues in control.

Contemporary Issues Copyright ©2015 Pearson Education, Inc Cross-cultural differences 2.Workplace concerns

Cultural Differences Copyright ©2015 Pearson Education, Inc.14-25

Controlling Technology Usage Is my work computer really mine? Do I have a right to privacy at work? Copyright ©2015 Pearson Education, Inc.14-26

Controlling Employee Theft Copyright ©2015 Pearson Education, Inc.14-27

Controlling Workplace Violence Copyright ©2015 Pearson Education, Inc.14-28

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