Controlling – management function, organizational activities

Role of manager:
Manager develop appropriate standards
Compare performance against those standards
Corrective actions are taken necessary
Depends on human behaviour – largely geared
Highlights needed behaviours & discourage behaviours

Roles of Controls (CHIDD)

Coping with uncertainty – uncertainty arises set for future events (changes in customer demands)
Handling complex situations – controls enhance coordination (erroneous results)
Identify opportunities – control highlight situations (monthly statistics census)
Detecting irregularities - poor quality, overruns, early detection save time (erroneous results)
Decentralizing authority – managers foster decision (decision Medtech to repeat test or not)

Roles of Controls (STO)

-parallel control responsibilities exist each level

Strategic Control – Top management. Environmental factors for strategic plans

Reporting is done annually, semi-annually, quarterly
Tactical Control- Middle management, tactical plans periodic results
Reporting is done weekly or monthly
Operational control- low management, implementation of operating plans
Daily plotting of QC graphs

Steps in the Control process (DEMCRAT)

1. Determine the areas to control – decide major areas to control (main control goals & objectives)
2. Establish Standards – purposes:
Timely identification of deficiencies take correlative action before become serious
Reduce the potential negative effects of global incongruence (major in incompatabilities)
Enables employers understand what is expected
Provide basis for detecting job difficulties to person limitations
3. Measure Performance – measuring will depend on standards set (measure actual performance)
4. Compare performance against the standard based on the reports that summarize planned
- Presentation orally, generated by computer
Management by Exception – control principle (managers informed in situation)
Management by Wandering Around – walk around
360-degree feedback mechanism – evaluation approach (individual ratings)
5. Recognize Positive Performance – performance meets or exceeds standards
- Spoken (welldone) , bonuses, pay raises
6. Adjust Standards & measures necessary – tended check standards periodically
Exceeding standards signal unforeseen opportunities
Standards are met changing condition may raise standards for future
7. Take corrective action as necessary –assessment of action (standards are inappropriate)

Types of control

 Major control by timing - basis on their timing/stage cycle

 Pre- analytical Analytical Post analytical
Feed forward Concurrent Feedback
 Preliminary  Screening  Post-Action
Other names  Pre-control  Yes or No Control  Output Control
 Preventive
 Steering Control
Regulation of inputs Regulation of ongoing process Regulation after product
Focus service completed

Emphasis Prevention to preclude Identifying the difficulties in *Serve for final means
serious difficulties productive process *Provide information
facilitate planning process
*Provides output
information rewarding
employee

 Multiple Control System – 2 or more feed forward (includes inputs & outputs)
 Cybernetic Control - Self regulating control system (corrective action)
 Non-cybernetic Control – relies human discretion

Managerial Approaches (CIMB)

 Clan Control – value, beliefs, traditions, Shared norms

 Instrumentalist approach – heavily clan & phased set of plans bureaucratic
- Managers strike appropriate balance encourage innovations
 Market Control – market mechanism
 Bureaucratic Control – rules, policies, budgets, schedules, supervision

Potential dysfunction (BONG)

Behavioral displacement
Operating delays
Negative altitudes
Game playing

Types of control

Multidimensional
Monitorable
Accurate
Realistic
Cost-effective
Timely
Flexible
Future oriented