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What is Control Process?

According to Terry and Franklin :

Controlling is determining what is being

accomplishedI.e evaluating performance

and, if necessary , applying corrective

measures so that the performance takesplace according to plans


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Control Involves

Control

Ensures adjustment or conformity to

OBJECTIVES.

Ensures adjustment or conformity to

SPECIFICATIONS

Regulates ACTIVITIES

Regulates BEHAVIOUR


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Control and Other Functions of

Management.

The managerial function of Control comes

at the end of the chain of the other majorfunctions of planning , organizing and

leading .

Effect of prior functions lead to theeffectiveness of Controlling.


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Control Feedback Loop

Planning

Organizing

ControlFEEDBACK

CHANGESIN


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Steps in the Control Process


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Issues in Establishing Standards

Standard

How difficult should they be to reach?


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Measure Performance

Performance

Measurement


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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 severalSTAGES with GATES between them.


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Compare performance against Standards.

Degree of Variation between the Actual

Performance and Standards set.


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Defining acceptable Range of Variations

t t+1 t+2 t+3 t+4 t+5

Acceptable

Upper limit

Standard

AcceptableLower limit

AcceptableRange OfVariation

Importance and Magnitude of deviation needs tobe judged.


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Management By Exception

When the deviations are analyzed onlythose 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 ofthe deviations.


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Evaluate Results and Take actions.

Actual

Performancemeasured

against

std.for

performance

Gap

Detected

Reinforcingaction taken

(e.g. Increase

rewards, Consider

increase in

production, addnew product line.

Corrective

Action Taken.(e.g. Increase

Training, Modify

Supervision, invest

in newer equipment)

Actual Performance

better than expected

Actual Performance

worse than expected

e.g Baby Food , Florida


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Corrective Action

Corrective Action can be IMMEDIATE or BASIC.

Immediate Action: Corrects somethingright now, but gets things back on the

track.

Basic Action: Is concerned with permanent

solution to the problem of Serious

deviations.


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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.


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Types Of Control

Feed forward/Concurrent/Feedback Control

Input Processes Output

Feed forwardControl

ConcurrentControl

FeedbackControl

AnticipatesProblems

CorrectsProblems asthey Happen

CorrectsProblemsafter they

Occur

e.g . McDonald's e.g .MBWA/Ombudsman


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Characteristics of Effective Control

Integration with Planningthe more control is linked to planning, the more

effective the control system.

Flexibility

the control system must be flexible enough toaccommodate change.

Forward looking

Though many of the controls are instantaneous , they

must focus attention on how future actions can beconformed to the plans.


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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.


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Resistance to Control

Over controlTrying 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.


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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.


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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 rewardinefficiencies.


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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.

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