Controlling
Importance of control
The planning-control link
Planning
Goals, Objectives, Strategies, Plans
Organizing
Structure, Human Resource Management
Leading
Motivation, Leadership, Communication, Individual and Group Behavior
Controlling
Standard Measurements, Comparison, Actions
Reason
Empowering employees
Provide manager with information and feedback on employee performance
Planning
let managers know whether goals and plans are on target and what future actions to take
Protecting workplace
Controls enhance physical security and help minimize workplace disruption
Three approaches to Control System
Market Control
Emphasizes the use of external market mechanisms to establish the standards used in the control system.
- eg, apple vs samsung, gojek vs grab vs taxis
Bureaucratic Control
organizational authority and relies on rules, regulations, procedures, and policies.
- eg MOM, MOE, MOF
Clan Control
Regulates behavior by shared values, norms, traditions, rituals, and beliefs of the firm’s culture.
eg, China: No 4 o’clock meetings , Japan: Keep an origami frog in your wallet
The control Process
1. Establishing performance objective and standards
2. Measure actual performance
3. Compare actual performance with objectives and standards
4. Take Necessary Action
Managerial Decisions in Control Process
Any decision regarding the operations of a firm
include setting target growth rates, hiring or firing employees, and deciding what products to sell
planning, organizing, staffing, directing and controlling.
Types of Control
Feedforward control
Takes place in advance of the actual activity
take managerial action before a problem occurs
Most desirable as it prevents problems rather than to cure them later
Feedback Control
provides meaningful information on how effective its planning effort was and can be used in future planning
enhance employee motivation as it provides feedback to employees on their performance
Major drawback is that the damage is already done by the time the manager received the information
Concurrent Control
Allow management to correct problems before they become too costly
- Most common form is direct supervision