1. 6 CONTROLLING Supervision Today! 7th Edition Stephen Robbins
Planning, organizing, staffing, controlling, and decision making
CONTROLLING 6
Supervision Today!
7th Edition
Stephen Robbins
David DeCenzo
Robert Wolter

2. Chapter Outcomes Describe the control process.
Contrast two types of corrective action.
Compare preventive, concurrent, and corrective control.
Explain how a supervisor can reduce costs.
List the characteristics of an effective control system.
Explain potential negatives that controls can create.
Explain what is meant by the term just-in-time inventory systems.
Describe what is meant by the term value chain management.
Identify the ethical dilemmas in employee monitoring.
Explain what is meant by employee theft and its effect on the organization.
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

3. EXHIBIT 6–1 The control process. Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

4. Measuring actual performance
Personal observation
Statistical reports
Oral reports
Written reports
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

5. Example of a cause-effect (fishbone) diagram.
EXHIBIT 6–3
Example of a cause-effect (fishbone) diagram.
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

6. Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

7. Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

8. Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

9. EXHIBIT 6–7 Three types of control. Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

10. Major cost categories Direct labor costs Indirect labor costs
Raw material costs
Supportive supplies costs
Utility costs
Maintenance costs
Waste costs
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

11. Guide to Reducing costs
Improve methods
Level the work flow
Minimize waste
Install modern equipment
Invest in employee training
Make cuts selectively
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

12. Inventory control Just-in-time system Kanban
Inventory items arrive as needed instead of being in-stock
Kanban
“card” system that initiates a supplier shipment
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

13. Value chain management
Managing the sequence of activities and information about product flow from start to finish
Value added
Customer perceived value
How is value provided to the customer?
Effectiveness oriented
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

14. Supply chain management
An internal process focusing on the efficient flow of incoming materials to the organization
Efficiency oriented
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

15. Characteristics of effective controls.
EXHIBIT 6–9
Characteristics of effective controls.
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

16. Can controls create problems?
Employee resistance
Misdirection of effort
Ethics and control devices
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

17. Minimizing employee resistance
Encourage employee self-control
Employee participation in setting the standards
Provide regular feedback
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved

18. Contemporary control issues
Employee Theft
Annual losses in billions
85% of organization theft committed by employees
Sarbanes-Oxley Act
Legislation established in July 2002
Establishes procedures for public companies to regulate how they handle and report financial picture
Fines up to $1 million and ten years in prison
Supervision Today!, 7/e
Robbins, DeCenzo, Wolter
© 2013 Pearson Education
Uppers Saddle River, NJ 07458, All Rights Reserved