Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-6 The Control Process The Process of Control 1.Measuring actual performance 2.Comparing actual performance against a standard 3.Taking action to correct deviations or inadequate standards

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-7 Exhibit 15.2 The Control Process GOALS Organizational Divisional Departmental Individual Measuring Actual Performance Comparing Actual Performance Against Standard Taking Managerial Action Step 1 Step 3 Step 2

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-8 How and What We Measure How: Sources of Information –Personal observations –Statistical reports –Oral reports –Written reports What: Control Criteria –Employees Satisfaction Turnover Absenteeism –Budgets Costs Output Sales

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada 15-9 Exhibit 15.3 Common Sources of Information for Measuring Performance

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada Comparing Determining the degree of variation between actual performance and the standard –Significance of variation is determined by: The acceptable range of variation from the standard (forecast or budget) The size (large or small) and direction (over or under) of the variation from the standard

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada Exhibit 15.4 Defining the Acceptable Range of Variation

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada Exhibit15.5 Sales Performance Figures for July, Beer Unlimited

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada Taking Managerial Action Courses of Action –“Doing nothing” Only if deviation is insignificant –Correcting actual (current) performance Immediate or basic corrective action –Revising the standard Determine whether the standard is realistic, fair, and achievable

Chapter 15, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Management, Ninth Canadian Edition Copyright © 2009 Pearson Education Canada Exhibit 15.7 Managerial Decisions in the Control Process