1. Management, 6e Schermerhorn Prepared by Cheryl Wyrick California State Polytechnic University Pomona John Wiley & Sons, Inc

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3. Schermerhorn - Chapter 93 Chapter 9 Controlling to Ensure Results 4 Planning Ahead –What is the control process? –What types of controls are used in organizations? –How do organizational systems assist in control? –How can operations management improve control?

4. Schermerhorn - Chapter 94 Controlling as a Management Function 4 Steps in the Control Process –Establish objectives and standards –Measure actual performance –Compare results with objectives and standards –Take corrective action as needed

5. Schermerhorn - Chapter 95 Controlling as a Management Function 4 Step 1: Establishing Objectives and Standards –Types of Standards output –measure results in terms of performance criteria input –measure effort in terms of amount of work

6. Schermerhorn - Chapter 96 Controlling as a Management Function 4 Step2: Measuring Actual Performance –goal is accurate measurement of output and/or input standards

7. Schermerhorn - Chapter 97 Controlling as a Management Function 4 Step 3: Comparing Results with Objectives and Standards Need for action x desired performance - actual performance

8. Schermerhorn - Chapter 98 Controlling as a Management Function 4 Comparing Results with Objectives and Standards –Historical Comparison –Relative Comparison –Engineering Comparison

9. Schermerhorn - Chapter 99 Controlling as a Management Function 4 Step 4: Taking Corrective Action –Management by exception problem situation opportunity situation

10. Schermerhorn - Chapter 910 Controlling as a Management Function 4 Characteristics of Effective Controls –strategic and results oriented –understandable –encourage self-control –timely and exception oriented –positive in nature –fair and objective –flexible

11. Schermerhorn - Chapter 911 Types of Controls 4 Feedforward (Preliminary) Controls –ensure that objectives are clear proper directions are established right resources are available

12. Schermerhorn - Chapter 912 Types of Controls 4 Concurrent (Steering) Controls –monitor ongoing operations to make sure they are being done according to plan –focus on quality of task activities during the work process

13. Schermerhorn - Chapter 913 Types of Controls 4 Feedback (Postaction) Controls –take place after work is completed –focus on quality of end results

14. Schermerhorn - Chapter 914 Types of Controls 4 Internal Versus External Control –Internal allows motivated individuals to exercise self- discipline in fulfilling job expectations –External personal supervision formal administrative systems

15. Schermerhorn - Chapter 915 Organizational Control Systems 4 Management Process Controls –strategy and objectives –policies and procedures –selection and training –performance appraisal –job design and work structures –performance modeling –performance norms –organizational culture

16. Schermerhorn - Chapter 916 Organizational Control Systems 4 Compensation and Benefits –pay-for-performance –merit pay –fringe benefits

17. Schermerhorn - Chapter 917 Organizational Control Systems 4 Employee Discipline Systems –progressive discipline achieve compliance with organizational expectations use least extreme amount of reprimand possible

18. Schermerhorn - Chapter 918 Organizational Control Systems 4 Information and Financial Controls –liquidity –leverage –asset management –profitability

19. Schermerhorn - Chapter 919 Operations Management and Control 4 Purchasing Control –leverage buying power –small number of suppliers –supplier-purchaser partnerships

20. Schermerhorn - Chapter 920 Operations Management and Control 4 Inventory Control –economic order quantity minimize two costs –ordering –carrying –just-in-time scheduling

21. Schermerhorn - Chapter 921 Operations Management and Control 4 Project Management and Control –project management –program evaluation and review technique (PERT)

22. Schermerhorn - Chapter 922 Operations Management and Control 4 Quality Control –checking processes and services to ensure that they meet high standards –statistical quality contol control chart –upper and lower control limits