CHAPTER 7 - CONTROL
DEFINITION
CONTROLLING is the process of regulating organizational activities, so that actual performance conforms to expected organizational standards and goals.
CONTROLLING means that manager develop appropriate standards, compare ongoing performance against those standards and take steps to ensure that corrective actions are taken when necessary.
PROCESS
STEP 3 - Comparing Actual Performance with Standards
STEP 4 - Responding to Deviations
STEP 2 - Measuring Actual Performance
STEP 1 - Stteing Standards for Performance
- Maintaining the status quo (do nothing)
- Correct the deviation
- Change the standard
TYPES
2. Concurrent Control - involves the regulation of ongoing activities that are part of the transformation process to ensure that they conform to organizational standards.
CONTROL can be classified on the basis of their timing (stage in the productive cycle) depending on whether they focus on inputs, transformation processes or output
1. Feed Forward Control - focus on the regulation of inputs to ensure that they meet the standards necessary for the transformation process.
3. Feedback Control - known as post action or output control is regulation that is exercised after a product or service has been completed
Input
Process
Output
Feedback control
Correct problems after the occur
Concurrent control
Correcs problem as they happen
Feed forward control
Anticipates problem