Chapter 18 Foundations of Control

Chapter 18 Foundations of Control - Chapter 18 Foundations...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 18 Foundations of Control ANNOTATED OUTLINE 1. INTRODUCTION Even when managers carefully and thoroughly plan, a program or decision may be poorly or improperly implemented if an effective control system has not been established. 2. WHAT IS CONTROL? Control is the process of monitoring, comparing, and correcting work performance. Three main approaches are taken in designing organizational control systems. (See Exhibit 18-1 and PowerPoint slide18-7 .) A. Market control is an approach to control that emphasizes the use of external market mechanisms to establish the control standards. B. Bureaucratic control is an approach to control that emphasizes organizational authority and relies on administrative rules, regulations, procedures, and policies. C. Clan control is an approach to control in which employee behavior is regulated by the organization’s culture. D.Most organizations do not totally rely on any one of these approaches to designing an effective control system. 3. WHY IS CONTROL IMPORTANT? Control is important for two main reasons: A.Control serves as the final link in the functional chain of management. Exhibit 18- 2 and PowerPoint slide 18-9 show the planning-control link. B. Controlling is also important to delegation. The development of an effective control system may decrease resistance to delegation. 4. THE CONTROL PROCESS The control process is a three-step process including measuring actual performance, comparing actual performance against a standard, and taking managerial action. (See Exhibit 18-3 and PowerPoint slides 18-10 and 18-11 .) A.Measuring is the first step in the control process. 1. Measurement is frequently achieved through four common sources of information: a. Personal observation b. Statistical reports c. Oral reports
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
d. Written reports 2. What we measure is probably more critical than how we measure. What is measured often determines the area(s) in which employees will attempt to excel. B. Comparing is the next step in the control process. 1. Comparing determines the degree of variation between actual performance and the standard. 2. Of critical importance to the control process is determining the range of variation . The range of variation is the acceptable parameters of variance between actual performance and the standard. (See Exhibit 18-5 and PowerPoint slide 18-16 .) 3. An example of comparing actual performance to standards is presented in Exhibit 18-6 . C. Taking managerial action is the final step in the control process. Although the manager might decide to “do nothing,” two additional alternatives may be taken.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/03/2010 for the course MGT 7625 taught by Professor Trappey during the Spring '10 term at National Taiwan University.

Page1 / 6

Chapter 18 Foundations of Control - Chapter 18 Foundations...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online