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Learn how to set standards, measure performance, compare to goals, take corrective action, and implement effective control tools. Understand the qualities of a successful control system and avoid common pitfalls.
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CONTROL MAKING SURE GOALS ARE ACHIEVED
1. SET STANDARDS • STATE GOALS IN MEASURABLE PERFORMANCE • STANDARDS COME FROM • GOALS • GOVERNMENT • CUSTOMER • HISTORICAL
2. MEASURE ACTUAL PERFORMANCE • WHAT • WHERE • WHEN • HOW
WHAT, WHERE, WHEN • CRITICAL, STRATEGIC CONTROL POINTS • IMPORTANT OPERATIONS, TASKS, OUTCOMES • WHEN PROBLEMS “SMALL,” CAN FIX • SEASONAL, CYCLICAL
HOW TO MEASURE • TOOLS • JUDGMENT • OBSERVATION
3. COMPARE ACTUAL TO STANDARD • SIGNIFICANT DEVIATION • ACCEPTABLE PERF., BEHAVIOR • EXCEPTION PRINCIPLE • WATCH TRENDS
SIGNIFICANT DEVIATION • BUDGET IS 10,000 UNITS/MONTH • VARIANCE = 400 +, - • POLICY • ACCEPTABLE LIMITS
EXCEPTION PRINCIPLE * ___________________________________ * * * * ___________________________________
TRENDS ___________________________________ * * * * * ___________________________________
4. CORRECTIVE ACTION • NEGATIVE DEVIATION • POSITIVE DEVIATION
+, - DEVIATION • BUDGET IS 10,000 UNITS/MONTH • VARIANCE = 400 +, - • ACTUAL = 9,100 • OUT OF CONTROL
+, - DEVIATION • BUDGET IS 10,000 UNITS/MONTH • VARIANCE = 400 +, - • ACTUAL = 10,500 • OUT OF CONTROL??
IF “OUT OF CONTROL” • OPERATIONS OUT OF CONTROL • GOALS NOT APPROPRIATE • CONTROLS NOT WORKING, NOT APPROPRIATE
CONTROL TOOLS • BUDGETS, STATEMENTS • RULES, PROCEDURES, POLICY • DIRECT SUPERVISION • GOALS • CHARTS
CONTROL TOOLS • COUNTERS • CULTURE • NORMS • RITUALS • BEHAVIOR OF MANAGER • PERCEPTIONS
CONTROL TOOLS • PERFORMANCE APPRAISAL • SELECTION • SOCIALIZATION • TRAINING • SELF MONITORING
TYPES OF CONTROLS • FEEDFORWARD • INPUT • PRELIMINARY
TYPES OF CONTROLS • CONCURRENT • PROCESS • STEERING
TYPES OF CONTROLS • FEEDBACK • POST ACTION • OUTPUT • YES/NO
POSSIBLE NEGATIVES OF CONTROLS • HIGHLIGHTS FAILURE • REWARD NOT TIED TO CONTROLS • EMPHASIS ON NUMBERS • EMPHASIS ON ONE PART • NOT UNDERSTOOD, ACCEPTED
POSSIBLE NEGATIVES OF CONTROLS • BEIGN “WATCHED” • IMPOSED FROM ABOVE • USEFUL THER, NOT TO PERSON • INADEQUATE TRAINING, SKILL • INADEQUATE INCENTIVE
QUALITIES OF EFFECTIVE CONTROL SYSTEM • ACCURATE • VALID • RELIABALE • TIMELY • STRATEGIC CONTROL POINTS • FORWARD LOOKING • EXCEPTION PRINCIPLE
QUALITIES OF EFFECTIVE CONTROL SYSTEM (CONT’D) • ECONOMICAL • FLEXIBLE • UNDERSTANDABLE • MULTIPLE CRITERIA
QUALITIES OF EFFECTIVE CONTROL SYSTEM (CONT’D) • LEAD TO CORRECTIVE ACTION • COORDINATED WITH WORK FLOW, ORG. DESIGN • COORDINATED WITH PEOPLE • FOCUSED ON MISSION
RELATIONSHIPS: GOALS AND • DELEGATION OF AUTHORITY • LEADER EXAMPLE • MOTIVATION • GOALS, PLANS, MISSION • COMMUNICATION • PERFORMANCE APPRAISAL