CONTROLLING
Planning-Controlling Link
Planning
Goals
Objectives
Strategies
Plans
Organizing
Structure
Human Resource Management
Leading
Motivation
Leadership
Communication
Individual and Group Behavior
Controlling
Standards
Measurements
Comparison
Actions
Management function that involves monitoring activities to ensure that they're being accomplished as planned and correcting any significant deviations
Controlling is a subsystem of company management that supports all the functions of management (Nowak, 2013)
Types of Controls
Feedforward Control
Control that takes place before a work activity is done
Concurrent Control
Control that takes place while a work activity is in progress
Feedback Control
Control that takes place after a work activity is done
Contemporary Issues In Control
Cross-Cultural Differences
Workplace Concerns
Control Challenges In The Workplace
Employees' Computer Usage
Employee Theft
Any unauthorized taking of company property by employees for their personal use
According to Omar et al. (2011) and Weber, Kurke, and Pentico (2003), employee theft affects approximately 95% of all busineese and costs them billions of dollars each year.
Workplace Violence
Value of the control function
Planning
To ensure that what employees are supposed to do is, in fact, being done and goals are being achieved.
Empowering employees
An effective control system can provide information and feedback on employee performance and minimize the chance of potential problems.
According to Randolph (1995) employee empowerment is the "transfer of power" from the employer to the employees.
Employee empowerment focuses on developing trust, motivation, and participating in decision-making (Meyerson & Dewettinck, 2012)
Empowerment gives an employee the authority to make decisions (Said & Saleh, 2013), thus, they can be motivated, committed, satisfied and help in dealing with customer needs (Jacquiline, 2014)
Huxtable (1994) asserts that employee empowerment is giving authority to employees to deal with daily job activities.
Protecting the workplace
Comprehensive controls and backup plans will help minimize work disruptions.
Control Process
A three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations
Measuring
To determine actual performance
Management by walking around (MBWA)
When a manager is out in the work area interacting with employees
Compare
Determines the variation between actual performance and the standard
Range of Variation
The acceptable parameters of variance between actual performance and a standard
Correct Actual Performance
Depending on what the problem is, a manager could take different corrective actions
Immediate Corrective Action
Corrective action that addresses problems at once to get performance back on track
Basic Corrective Action
Corrective action that looks at how and why performance deviated before correcting the source of deviation
Keeping Track of
An Organization's Finances
Traditional Financial Controls
Ratio Analysis
Liquidity Ratios
Leverage Ratios
Activity Ratios
Profitability Ratios
Budget Analysis
Planning Tool
Controlling Tool
Organization's Information
A critical tool for controlling other organizational activities
Management Information System (MIS)
A system used to provide management with needed information on a regular basis
An organizational resource that needs controlling
Employee Performance
Is needed to achieve employee performance itself and also for the success of the company (Siahaan et al., 2016)
Using a Balanced Scorecard Approach
A performance measurement tool that looks at more than just the financial perspective
By typically looking at FOUR areas
Financial
Customer
Internal processes
People/innovation/growth assets