1. 14 Chapter Foundations of Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-1

2. Learning Outcomes After studying this chapter, you will be able to: Explain the nature and importance of control. Describe the three steps in the control process. Describe the types of controls organizations and managers use. Discuss contemporary issues in control. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-2

3. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-3

4. The Nature of Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-4

5. The Importance of Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-5

6. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-6

7. The Control Process Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-7

8. Measuring Performance Measures of performance: 1.Personal observation 2.Statistical reports 3.Oral reports 4.Written reports Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-8

9. Criteria for Measurement Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-9

10. Comparing Performance to Goals Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-10

11. Comparing Performance to Goals (cont.) Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-11

12. Correcting Performance Immediate corrective actions: Training programs Disciplinary action Changes in compensation practices Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-12

13. Revising the Standard Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-13

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15. Types of Control: Feedforward Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-15

16. Types of Control: Concurrent Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-16

17. Types of Control: Feedback Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-17

18. Areas Managers Control Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-18

19. Controlling Information Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-19

20. Balanced Scorecard Approach Balanced scorecard evaluates four areas of company performance: 1.Financial 2.Customer 3.Internal processes 4.People, innovation, and growth assets Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-20

21. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-21

22. Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-22 Contemporary Issues Cross-cultural differences Workplace concerns

23. Different Organizational Control Systems Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-23

24. Challenges of Controlling the Workplace Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-24

25. Employee Theft Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-25

26. Workplace Violence Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-26

27. Entrepreneurial Module Managing Entrepreneurial Ventures Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-27

28. What Is Entrepreneurship? Entrepreneurship – The process of starting new businesses, generally in response to opportunities Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-28

29. What Do Entrepreneurs Do? Steps to entrepreneurship: 1.Assess the potential for the venture, gather information, identify potential opportunities, and pinpoint competitive advantages 2.Research the venture’s feasibility 3.Develop mission, explore culture issues, and create a business plan 4.Organize the venture and structure how work will get done Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-29

30. What Do Entrepreneurs Do? (cont.) 5.Launch the venture 6.Manage the venture by hiring, training, and motivating employees and leading effectively 7.Manage the venture’s growth Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-30

31. Planning the Venture Three kinds of business plans: 1.Summary business plan 2.Full business plan 3.Operational business plan Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-31

32. Components of a Full Business Plan Six major areas: 1. Executive summary 2. Analysis of opportunity 3. Analysis of the context And... Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-32

33. Components of a Full Business Plan (cont.) 4.Description of the business 5.Financial data and projections 6.Supporting documentation Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-33

34. Legal Forms of Organization 1. Sole proprietorship 2. General partnership 3. Limited liability partnership (LLP) 4. C corporation 5. S corporation 6. Limited liability company (LLC) Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-34

35. Organizational Structure Organizational design decisions revolve around: Work specialization Departmentalization Chain of command Span of control Amount of centralization or decentralization Amount of formalization Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-35

36. Human Resource Management (HRM) Issues Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-36

37. Leading an Entrepreneurial Venture Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-37

38. Motivating Employees Entrepreneurs motivate employees by: Empowering employees Using participative decision making Delegating decisions or duties Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-38

39. Entrepreneurs as Leaders Entrepreneurs can lead by: Drawing out the best in people Creating a vision for the organization Developing teams that are empowered, self- directed, and cross-functional Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-39

40. Control Issues Control issues facing entrepreneurs include: Managing growth Managing downturns Exiting the venture Managing personal life choices and challenges Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-40

41. Personal Challenges Entrepreneurs manage personal challenges by: Becoming a pro at time management Identifying competent business advisors Dealing with conflicts as they arise Developing a network of trusted friends/peers Recognizing when stress levels are too high Copyright ©2012 Pearson Education, Inc. Publishing as Prentice Hall 14-41

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