Lesson08Controlling - Lesson:-08 CONTROLLING Controlling...

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CONTROLLING Controlling Concepts Feed forward control Control that attempts to identify and prevent deviations before they occur is called feed forward control, sometimes called preliminary or preventive control. It focuses on human, material, and financial resources that flow into the organization. Its purpose is to ensure that input quality is high enough to prevent problems when the organization performs its tasks. For example, managers in an organization may hire additional personnel as soon as they win a major contract. Feed forward control is future directed. It allows management to prevent problems rather than having to cure them later. Feed forward controls require timely and accurate information that is difficult to develop. Feed forward controls are evident in the selection and hiring of new employees. Organizations attempt to improve the likelihood that employees will perform up to standards by identifying the necessary skills and using tests and other screening devices to hire people who have those skills. Another type of feed forward control is to identify and manage risks. The large accounting firms have recognized that they can offer value to their clients by looking for risks the clients have knowingly or unknowingly taken on, rather than merely evaluating their financial performance after the fact. The firms have developed methods to study a client’s industry, strategy, and operations to identify key business risks not shown on typical financial statements. Concurrent control Control that monitors ongoing employee activities during their progress, to ensure they are consistent with quality standards, is called concurrent control. When control is enacted while the work is being performed, management can correct problems before they become too costly. Concurrent control assesses current work activities, relies on performance standards, and includes rules and regulations for guiding employee tasks and behaviors. Its intent is to ensure that workactivities produce the correct results. Many manufacturing operations include devices that measure whether the items being produced meet quality standards. Employees monitor the measurements; if they see that standards are not met in some area, they make a correction themselves or signal the appropriate person that a problem is occurring. Technology advancements are enabling concurrent controls in services as well. For example, trucking companies are using computers to help plan their routes for efficiency. These also employ electronic devices, satellites, and antennas to transmit data back to headquarters indicating their position at all times to enable monitoring the status of deliveries. An organization’s cultural norms and values influence employee behavior.
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This note was uploaded on 05/20/2010 for the course BUSINESS Organizati taught by Professor N/a during the Spring '10 term at Open Uni..

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Lesson08Controlling - Lesson:-08 CONTROLLING Controlling...

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