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1、PowerPoint Presentation by Charlie Cook Copyright 2005 Prentice Hall, Inc. All rights reserved.,L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.,What Is Control and Why Is It Important? Define control. Contrast the three approaches to designing control s
2、ystems. Discuss the reasons why control is important. The Control Process Describe the three steps in the control process. Tell why what is measured is more critical than how its measured. Explain the three courses of action managers can take in controlling.,2,Copyright 2005 Prentice Hall, Inc. All
3、rights reserved. *,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,Controlling Organizational Performance Define organizational performance. Describe the most frequently used measures of organizational performance Tools for Organizational Perfor
4、mance Contrast feedforward, concurrent, and feedback controls. Explain the types of financial and information controls managers can use. Describe how balanced scorecards and benchmarking are used in controlling.,3,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,L E A R N I N G O U T L I N
5、E (contd) Follow this Learning Outline as you read and study this chapter.,Contemporary Issues in Control Tell how managers may have to adjust controls for cross-cultural differences. Discuss the types of workplace concerns managers face and how they can address those concerns. Explain why control i
6、s important to customer interactions. Discuss what corporate governance is and how its changing.,4,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,What Is Control,Control The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any signif
7、icant deviations. The Purpose of Control To ensure that activities are completed in ways that lead to accomplishment of organizational goals.,5,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Designing Control Systems,Market Control Emphasizes the use of external market mechanisms to estab
8、lish the standards used in the control system. External measures: price competition and relative market share Bureaucratic Control Emphasizes organizational authority and relies on rules, regulations, procedures, and policies. Clan Control Regulates behavior by shared values, norms, traditions, ritu
9、als, and beliefs of the firms culture.,6,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Why Is Control Important?,As the final link in management functions: Planning Controls let managers know whether their goals and plans are on target and what future actions to take. Empowering employee
10、s Control systems provide managers with information and feedback on employee performance. Protecting the workplace Controls enhance physical security and help minimize workplace disruptions.,7,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,The Control Process,The Process of Control Measur
11、ing actual performance. Comparing actual performance against a standard. Taking action to correct deviations or inadequate standards.,8,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Measuring: How and What We Measure,Sources of Information Personal observation Statistical reports Oral re
12、ports Written reports,Control Criteria Employees Satisfaction Turnover Absenteeism Budgets Costs Output Sales,9,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Comparing,Determining the degree of variation between actual performance and the standard. Significance of variation is determined
13、 by: The acceptable range of variation from the standard (forecast or budget). The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget).,10,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Taking Managerial Action,Courses of Action “Doi
14、ng nothing” Only if deviation is judged to be insignificant. Correcting actual (current) performance Immediate corrective action to correct the problem at once. Basic corrective action to locate and to correct the source of the deviation. Corrective Actions Change strategy, structure, compensation s
15、cheme, or training programs; redesign jobs; or fire employees,11,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Taking Managerial Action (contd),Courses of Action (contd) Revising the standard Examining the standard to ascertain whether or not the standard is realistic, fair, and achievab
16、le. Upholding the validity of the standard Resetting goals that were initially set too low or too high.,12,Copyright 2005 Prentice Hall, Inc. All rights reserved. *,Controlling for Organizational Performance,What Is Performance? The end result of an activity What Is Organizational Performance? The accumulated end results of all of the organizations work processes and activities. Designing strategies, work processes, and work activities. Coordinating the work of employees,13,Copyright 2005 Prenti
