Controlling
What is controlling ?
Comparing work performance
Correcting work performance
Monitoring work performance
Why control ?
Final link of the four functions
Employee empowerment (encourage delegation)
Protects the organisation and its assets
Planning control link
Organising (Structure, Human resource management)
Planning (Goals, objectives, strategies, plans)
Leading (Motivation, leadership, communication..)
Controlling (Standards, measurements, comparisons, actions)
The control process
Measuring actual performance
Comparing actual performance against standards
Taking managerial action
How ? Personal observation,
statistical reports, oral reports, and written reports
What ? Control criteria - employee satisfaction, turnover and absenteeism rates; budgets
Acceptable range of variation
Correct actual performance
Immediate corrective
Basic corrective
to get performance back on track
How and why performance deviated ?
Revise strandard
Too High/Too low ?
Controlling for organisational performance
Organisational performance
End results
Better asset management
Impact on organisational reputation
Increased ability to provide customer value
Measures of organisational performance
Organisational productivity
Organisational effectiveness
Industry rankings (BRW , Forbes)
Tools for measuring organisational performance
Concurrent control
Feedback control
Feedforward control
Anticipates problems
As they happend
After they happend
Financial control
Profitability: profit margin on sales
Budgets: monthly expenses
Liquidity ratios (current): ability to meet shortterm
debt obligations
Balanced scorecard approach
Four areas : people, customer, internal processes, financial
Information controls
Management Information Systems
Data encryption, system firewalls, data
backups
Benchmarking of best practise
Mechanism for identifying competitors’ best
practices->improvement
Dysfunctional effects of control
• Consumes resources
• Creates feelings of frustration and helplessness
• Creates “red tape”
• Creates inappropriate goals
• Fosters inappropriate behaviour
• Decreases satisfaction
• Increases absenteeism
• Increases turnover
• Creates stress
Contemporary issues relating to
controlling in the workplace
Adjusting for cross-cultural differences
Workplace privacy vs. workplace monitoring
Employee theft
Workplace violence
Controlling customer interactions
Corporate governance