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Chapter 12 Control. What is control? Three approaches to control systems The control process Types of control Qualities of an effective control system Contingency factors of control.

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chapter 12 control
Chapter 12 Control
  • What is control?
  • Three approaches to control systems
  • The control process
  • Types of control
  • Qualities of an effective control system
  • Contingency factors of control
slide2
Control is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations.
slide3
Market control is an approach to control that emphasizes the use of external market mechanisms such as price competition and market share.
  • Bureaucratic control is an approach to control that emphasizes authority and relies on administrative rules, regulations, procedures, and policies.
  • Clan control is an approach to designing control systems in which employee behaviors are regulated by the shared values, norms, traditions, rituals, beliefs, and other aspects of the organization’s culture.
exhibit 12 1 the control process

Is standard

being attained?

Yes

Do

nothing

Compare

actual

performance

with standard

No

Is variance

acceptable?

Yes

Do

nothing

Measure

actual

performance

Objectives

Standard

No

Is standard

acceptable?

Identify

cause of

variation

Yes

No

Revise

standard

Correct

performance

Exhibit 12-1 the Control Process
three steps
Three Steps:
  • Measuring actual performance
  • Comparing actual performance against a standard
  • Taking managerial action to correct deviations or inadequate standards.
how do managers measure means
How do managers measure?(means)
  • Personal observation
  • Statistical reports
  • Oral report
  • Written report
what do manager measure content
What do manager measure?(content)
  • Control areas: information, operations, finances, people
  • Quantifiable criteria
  • Subjective measure
exhibit 12 2 defining an acceptable range of variation

Acceptable

range of

variation

Standard

t

t+1

t+2

t+3

t+4

t+5

Exhibit 12-2 defining an acceptable range of variation

Acceptable

upper limit

Acceptable

lower limit

slide9
Do nothing
  • Correct the actual performance

Immediate corrective action

Basic corrective action

  • Revise the standard
exhibit 12 3 types of control

Input

Processes

Output

Feedforward

control

Concurrent

control

Feedback

Control

Anticipates

problems

Corrects problems

as they happen

Corrects problems

after they occur

Exhibit 12-3 Types of Control
qualities of an effective control system
Accuracy

Timeliness

Economy

Flexibility

Understandability

Reasonable criteria

Strategic placement

Emphasis on the exception

Multiple criteria

Corrective action

Qualities of an effective control system
exhibit 12 4 contingency factors

Small

Informal, personal, management by walking around

Organization size

Large

Formal, impersonal, extensive rules and regulation

Many criteria

High

Position and level

Low

Few, easy-to-measure criteria

High

Increased number and breath of controls

Degree of decentralization

Low

Reduced number of control

Open and supportive

Informal, self-control

Organizational culture

Formal, externally imposed controls

Threatening

High

Elaborate, comprehensive controls

Importance of an activity

Low

Loose, informal controls

Exhibit 12-4 Contingency Factors
practices
Practices:
  • Explain qualities of an effective control system
  • What managers who find discrepancies between actual performance and standard will do?
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