1. Leadership & Management
Reading for Lesson 10:
Foundations of Control

2. Lesson 10 Reading Objectives
1.The student will comprehend the concept of control.
2. The student will comprehend the two approaches to control.
3. The student will comprehend why control is important.
4. The student will comprehend the differences between the two types of control.
5. The student will comprehend the qualities of an effective control system.

3. Lesson 10 Discussion Objectives
The student will comprehend the concept of control.
2.  The student will apply control to him/herself.
3.  The student will comprehend why control is important.
4.  The student will comprehend the qualities of
an effective control system.

4. Concept of Control
Control is the process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations.
It is the last of the four functions of management and entails taking corrective action to fix a problem or correct a deviation in performance.
Actual performance is compared to the performance against a standard. Significant deviations are corrected.

5. Approaches to Control
There are two different approaches to designing organizational control systems.
Bureaucratic control
Clan control
Most organizations do not rely totally on just one of these approaches

6. Approaches to Control Bureaucratic control
Emphasizes organizational authority
Relies on the following to ensure employees exhibit appropriate behaviors and meet performance standards.
Administrative rules
Regulations
Procedures
Policies
Standardization of activities and other administrative mechanisms

7. Approaches to Control
Clan control is an approach to designing control systems in which employee behaviors are regulated by the following aspects of the organization’s culture:
Shared values
Norms
Traditions
Rituals
Beliefs

8. Importance of Control
Control serves as final link in the functional chain of management
The manager measures actual performance as compared to a standard, and acts to correct deviations or inadequate standards
Control may help lessen resistance to delegation

9. The Control Process
Figure 10-3 goes here

10. The Control Process Measuring
Personal observation
Statistical reports
Oral reports
Written reports
What we measure is more critical than how we measure

11. The Control Process Comparing
Determines the degree of variation between actual performance and the standard
Range of variation is the acceptable parameters of variance between actual performance and the standard

12. The Control Process Taking managerial action—two alternatives:
1. Correct actual performance
Immediate corrective action—change activity at once to get performance back on track
Basic corrective action—determine why performance deviated and correct the source of deviation
2. Revise the standard
May be set too high
May be set too low

13. Three Basic Types of Control
Feedforward control:
Control that prevents anticipated problems
Concurrent control:
Control that occurs while an activity is in progress
Feedback control:
Control imposed after an action has occurred

14. Qualities of an Effective Control System
Reasonable criteria
Strategic placement
Emphasis on the exception
Multiple criteria
Corrective action
Accuracy
Timeliness
Economy
Flexibility
Understandability