Topic/Objectives: Managerial Control Chapter 10 Essential Question: What does control mean? Class: Introduction to management Date: 4/04/2017 What are the steps in the control Process? > How is performance measured? What tools are used for controlling organisational performance? Questions: What is it? Importance of control? Types of control Role of controlling in the management process Control Process Steps in the control process Sources of information for measuring performance Steps in control process: Step 2. Compare results with objectives and standards Steps in control process: Step 3. Take managerial action Notes: Process of measuring performance and taking action to ensure the planned outcomes are achieved. · Important as it: o Links the management functions Helps empower employees o Provides protection for the organisation and its assets · Feedforward Control Anticipates problems o Input · Concurrent control Corrects problems as they happen o Processes · Feedback Control Corrects problems after they occur o Output . Standards · Measurements · Comparisons · Actions 1. Measuring actual performance 2. Comparing actual performance against standard 3. Taking managerial action 1. Measure actual performance a. Goal here is to accurately measure the performance results (output standards) and/or the performance efforts (input standards) . Personal observations · Statistical reports · Oral reports · Written reports 2. Compare results with objectives and standards · Need for action = desired performance - actual performance · A historical comparison uses past performance as a benchmark for evaluation · A relative comparison uses the performance achievements of others as the evaluation standard · An engineering comparison uses standards that are set scientifically 3. Take managerial action · Correct actual performance o Immediate corrective action o Basic corrective action · Revise the standard o An after-action review formally examines results to identify lessons learned in a competed project or special operation.
What is performance? Performance appraisal Examples of employee/ team performance controls Types of controls: Tools for measuring organisational performance Summary: · Accumulated end result of all work processes and activities · To measure performance, the organisations need to understand organisational and employee performance. Is a form of control? · To allow the supervisor to reflect the employees performance with the employee. · Feedforward o Set and communicate clears policies, standards and exceptions. o Provide structured support for employees o Pre-hire Screening · Provide employee training · Concurrent Monitoring · Direct supervision o Observing employee's health and happiness o Providing employee hotlines and other communication mechanisms · Feedback o o Performance appraisal (rewards and disciplinary actionfi Team reflection and after-action reviews o Communicate about incidents, and what is being done · Financial controls o Liquidity test o Leverage test o Operations test o Profitability · Balanced scorecard o Totals organisational performance in financial, customer service, internal process and innovation and learning areas. · Information control o Useful information is vital to managerial control o Provide managers w/ information to enable control o Information security is important in ensuring organisation performance data is controlled so that competitors cannot access information · Benchmarking of