MGTOP 301 Test 3 Study Guide (BRYAN)

MGTOP 301 Test 3 Study Guide (BRYAN) - Chapter 7...

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Chapter 7 Controlling - is the process of measuring performance and taking action to ensure desired results. The purpose is to make sure plans are fulfilled and that actual performance meets or surpasses objectives. Control process - 4 steps, 1.establish objectives and standards 2.measure actual performance 3.compare results with objectives and standards 4.take corrective action as needed Step 1- Establishing objectives and standards Output standard- measures performance results in terms of quantity, quality, cost, or time Input standard - measures work efforts that go into a performance task, work attendance, efficiency. Step 2- Measuring actual performance A common failure is an unwillingness to rigorously measure performance, without it effective control is not possible Step 3- Comparing results with objectives and standards Establishes if there is a need for corrective action Need for action= Desired performance – Actual performance The equation can be applied on - Historical comparison (past performance as a standard for evaluating current performance. Relative comparison - (performance achievements of other people, work units, or organizations as evaluation benchmarks) Engineering comparison ( standards set scientifically through such methods as time and motion studies) Step 4- Taking corrective action Management by exception - focuses managerial attention on substantial differences between actual and desired performance. This can save valuable time, energy, and other resources, while allowing all efforts to be concentrated on the areas of greatest need. 2 types of exceptions 1) Problem situation - where actual performance is below the standard. This allows for corrective action to restore performance to the desired level. 2) Opportunity situation - where actual performance is above the standard. This allows for action to continue the higher level of accomplishment in the future. Effective Controls - Controls should be strategic and results oriented. They should support strategic plans and focus on significant activities that make a real difference to the organization. - Controls should be understandable. They should support decision making by presenting data in understandable terms.. - Controls should encourage self control. They should allow for mutual trust, good communication, and participation among everyone involved. - Controls should be timely and exception oriented - Controls should be positive in nature - Controls should be fair and objective - Controls should be flexible Three major types of controls Feedforward control (preliminary controls) - ensures that the right directions and resources are available before work begins. Concurrent controls (steering controls) – focuses on what happens during the work process Feedback Control (postaction controls) – takes place after an action is completed 2 Control Strategies Internal Control- allows motivated individuals and groups to exercise self-discipline and self-control in fulfilling job expectations External Control- Occurs through personal supervision and the use of formal administrative systems Figure 7.3
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