1. BBPP1103
Chapter 9
Controlling

2. Definition of control Purpose of control:
Rue: ~is a process in ensuring that organizational activities are running according to the plan. This process can be carried out by comparing the true performance with the standard that have been established and taking corrective actions in order to rectify any distortion that does not comply with the standard.
Purpose of control:
Quality assurance
Preparation to face changes

3. Steps in control process
Three basic needs :fixing standard, monitoring performance & corrective actions.
Proper control process :
Establish the performance standard
Evaluate the true performance
Compare true performance to standard
Taking corrective actions if necessary

4. Basic Methods of Control
Future control
Predicting problem before it happen
Concurrent control
Managing problem when it happen
Feedback control
Managing problem after it has happened

5. Forms of control Bureaucratic control Objective control
-uses of hierarchy authority in order to influence employees by rewarding those who obey or punishing those who do not obey policies, regulations and procedures
Objective control
-uses the measurement of observation towards the behavior of employees (behavior control) or output (output control)produced to evaluate work performance
Normative control
-method that arranges the behavior of employees and results through norms and beliefs shared together among members within organization
Concertive control
-method that uses norms and behavior discussed, formed and agreed by the work group (autonomous work group)
Self control
-managers and employees control their own behavior by establishing their own goals, monitor their own progress, and rewarding themselves for their own achievement

6. Factors that need to be controlled
Financial perspectives
Financial statements, economic value-added
Human resource perspective
To avoid shortage or surplus of employees, to avoid losing expert workforce, planning can motivate employees etc
Quality perspective
This can determine the level of production and organizational performance
Can strengthen customers’ perception, can reduce waste and product defects
Consumer perspective
Company will be able to increase profits
Cost in obtaining new customer is five times greater compared to the cost of retaining an existing customer