What is Control Process?
According to Terry and Franklin :
Controlling is determining what is being
accomplished I.e evaluating performance
and, if necessary , applying corrective
measures so that the performance takes
place according to plans
Control Involves
Ensures adjustment or conformity to
OBJECTIVES.
Ensures adjustment or conformity to
SPECIFICATIONS
Control
Regulates ACTIVITIES
Regulates BEHAVIOUR
Control and Other Functions of
Management.
The managerial function of Control comes
at the end of the chain of the other major
functions of planning , organizing and
leading .
Effect of prior functions lead to the
effectiveness of Controlling.
Control Feedback Loop
FEEDBACK
Control
Organizing
CHANGES IN
Planning
Steps in the Control Process
Establish Standards
Specification of what management expects
is critical.All the important aspects should
be considered.
The highest level should be able to
articulate a vision and form broad strategic
goals.
The establishment of standards require as
much specificity as possible.
Also participative management should be
kept in mind.
Issues in Establishing Standards
Standard
How difficult should they be to reach?
Measure Performance
Performance
Measurement
All necessary aspects of performance
Should be considered.
Companies such as Kodak, Motorola , GE
utilize the comprehensive control
Mechanism called STAGE-GATE, Through
out the life of the project.
Each project is divided into several
STAGES with GATES between them.
Compare performance against Standards.
Degree of Variation between the Actual
Performance and Standards set.
Defining acceptable Range of Variations
Importance and Magnitude of deviation needs to
be judged.
Acceptable
Upper limit
Acceptable
Range Of
Variation
Standard
Acceptable
Lower limit
t+1
t+2
t+3
t+4
t+5
Management By Exception
When the deviations are analyzed only
those major or exceptional, significant
deviations should be communicated to
the Top Management.
Managerial Judgment is the core issue.
Judgment is required to analyze the significance of
the deviations.
Evaluate Results and Take actions.
Actual Performance
better than expected
Actual
Performance
measured
against
std.for
performance
Gap
Detected
Reinforcing
action taken
(e.g. Increase
rewards, Consider
increase in
production, add
new product line.
Corrective
Action Taken.
Actual Performance
worse than expected
e.g Baby Food , Florida
(e.g. Increase
Training, Modify
Supervision, invest
in newer equipment)
Corrective Action
Corrective Action can be IMMEDIATE or BASIC.
Immediate Action: Corrects something
right now, but gets things back on the
track.
Basic Action: Is concerned with permanent
solution to the problem of Serious
deviations.
Forms of Operations Control
Forms of Operational Control.
Pre-Control Of Operations:
Controls the quality , quantity and other
characteristics of the inputs to the process.
Screening Controls:
Evaluates the conversion process as it occurs.e.g
Telle caller.
Post control Of Operations:
Focus is on the quality of the output.
Types Of Control
Feed forward/Concurrent/Feedback Control
Input
Processes
Output
Feed forward
Control
Concurrent
Control
Feedback
Control
Anticipates
Problems
Corrects
Problems as
they Happen
Corrects
Problems
after they
Occur
e.g . McDonald's
e.g .MBWA/Ombudsman
Characteristics of Effective Control
Integration with Planning
the more control is linked to planning, the more
effective the control system.
Flexibility
the control system must be flexible enough to
accommodate change.
Forward looking
Though many of the controls are instantaneous , they
must focus attention on how future actions can be
conformed to the plans.
Characteristics of Effective Control (contd)
Timeliness
A control system should provide information as often
as necessary.Updated data.
Objectivity
A control system
must be free from bias
and distortion.
Resistance to Control
Over control
Trying to control too many details becomes
problematic when control affects employee behavior
and employees perceive control attempts as
unreasonable.
Curb on creativity and Innovation.Creativity and
innovation can only be exploited if the environment is
conducive.Only if it is free from control and
regulations.
Resistance to Control (contd)
Rewards for Inefficiency
Rewarding operational inefficiency can lead
employees to behave in ways that are not in the best
interests of the organization.
Too much accountability
Efficient controls are resisted
by poorly performing
employees.
Overcoming Resistance to Control
Resistance to control can be overcome by:
Designing effective controls that are properly
integrated with organizational planning and aligned
with organizational goals and standards.
Creating controls that are flexible, accurate, timely,
and objective.
Avoiding overcontrol in the implementation of controls.
Guarding against creating controls that reward
inefficiencies.
Overcoming Resistance to Control (contd)
Resistance to control can be overcome by
(contd):
Encouraging employee participation in the planning
and implementing of control systems.
Developing a system of checks and balances in the
control systems through the use of multiple standards
and information systems that allow the organization to
verify the accuracy of performance indicators.
