Chapter 7 Foundations of Control Robbins et al

Control Process of monitoring activities to ensure that what is being accomplished matches plans and corrects significant deviations Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 2

Controlling Planning. Controlling Linkage Leading Robbins et al. , Fundamentals of Management, 4 th

Purpose of Controls Goals and n Measuring Performance n Comparing to Standards n Taking Corrective Action Objectives Organizational Divisional Departmental Individual Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 4

Approaches to Control n n n Market Bureaucratic Clan Robbins et al. , Fundamentals

The Control Process Compare Performance to Standard Objectives Standard Attained? Do Nothing No Variance Acceptable? Measure Performance Yes Do Nothing No Standard Acceptable? Yes Identify Causes No Revise Standard Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Correct Performance 6

How Do Managers Measure? n Personal observations n n Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. MBWA (management -by-walking about) Statistical reports Oral reports Written reports 7

What Do Managers Measure? n n Information Operations Finances People Robbins et al. ,

Three Types of Control Input Processes Output Feedback Control Concurrent Control Feedback Control Corrects problems as they happen Corrects problems after they occur Anticipates problems Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 9

Qualities Of An Effective Control System Corrective Action Accuracy Multiple Criteria Emphasis on Exceptions Timeliness EFFECTIVE CONTROL SYSTEM Strategic Placement Economy Flexibility Reasonable Criteria Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. Understandability FOM 7. 17 10

Contemporary Issues in Control n n n Rights that manager has to monitor employee behaviour Rights that manager has to control private lives of employees. Employers MAY be able to control employee behaviour outside the work environment Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 11

You and Your Computer n n n Employers can read your e-mail Employers can listen to your phone calls Employers can monitor your work by computer Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 12

Employee Theft n n n Ranges from embezzlement to fraudulent filing of expense reports to equipment removal Nearly 85% of all organizational theft and fraud is committed by employees Ready availability of information technology has made employee stealing an escalating problem Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 13

Entrepreneurs Controlling for Growth n n n Plan for growth Organize for growth Control for growth Robbins et al. , Fundamentals of Management, 4 th Canadian Edition © 2005 Pearson Education Canada, Inc. 14