Controlling

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controlling

Transcript of Controlling

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> POINTED OUT THAT THERE ARE TWO PARTS TO GIVING INSTRUCTIONS.

1. TO BE SURE THAT THE INSTRUCTIONS ARE CLEARLY UNDERSTOOD.

2. TO CHECK TO ENSURE THAT INSTRUCTIONS HAVE BEEN FOLLOWED.

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It is the measurement and feedback mechanism of setting objectives.

"Control refers to the task of ensuring that activities are producing the desired results. Control in this case is limited to monitoring the outcome of activities, reviewing feedback information about this outcome, and if necessary, taking corrective actions". - Reeves and Woodward

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"Controlling is determining what is being accomplished - that is, evealuating performance and, if necessary, applying corrective measures so that performance takes place according to plans". - Terry and Franklin.

It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.

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SETTING STANDARDS

MEASURING ACTUAL PERFORMANCE

COMPARE RESULTS WITH OBJECTIVES AND STANDARDS

TAKING CORRECTIVE ACTION

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2 TYPES OF STANDARDS:

1. OUTPUT STANDARDS

measures performance results in terms of quantity, quality, cost or time.

2. INPUT STANDARDS

measures work efforts that go into a performance task

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Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.

Without measurement, effective control is not possible.

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The comparison of actual performance with desired performance establishes the need for action.

Ways of making such comparisons include:

Historical/ Relative / Engineering

Benchmarking

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MANAGEMENT BY EXCEPTION

Focuses managerial attention on substantial differences between actual and desired performance.

It can save the managers time, energy and other resources, and concentrates efforts on areas showing the greatest need.

2 type of EXCEPTION:

Problems – below standard,

Opportunities – above standard

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The Best Controls in Organizations are:

Strategic and results oriented

Understandable

Encourage self control

Timely and exception oriented

Positive in nature

Fair and objective

Flexible

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Preliminary

Concurrent

Post-Action

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Sometimes called the feed-forward controls, they are accomplished before a work activity begins

They make sure that proper directions are set and that the right resources are available to accomplish them.

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Focus on what happens during the work process

Sometimes called steering controls

They monitor on-going operations and activities to make sure that things are being done correctly.

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Sometimes called feedback controls

They take place after an action is completed

They focus on end results, as opposed to inputs and activities

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1. They can rely on people to exercise self-control (internal) over their own behaviour.

2. Alternatively, managers can take direct action (external) to control the behaviour of others.

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Allows motivated individuals to exercise self-control in fulfilling job expectations

The potential for self-control is enhanced when capable people have clear performance objectives and proper resource support.

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1. Performance appraisal systems

2. Compensation and benefit systems

3. Employee discipline systems

4. Management by objectives

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1. Management processes

2. Compensation and benefits

3. Employee Discipline

4. Information and Financial

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Strategy and objectives

Policies and procedures

Selection and training

Performance appraisal

Job design and work structures

Performance modelling, norms, and organizational culture

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Attract talented people and retain them

Motivate people to exert maximum effort in their work

Recognize the value of their performance contributions

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Discipline is defined as influencing behaviour through reprimand

Progressive Discipline ties reprimand to the severity and frequency of the employee’s infractions

Positive Discipline tries to involve people more positively and directly in making decisions to improve their behaviour.

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1. Verbal warning

2. Written reprimand

3. One day suspension without pay

4. Three days suspension without pay

5. Termination

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1. In all the above processes, the immediate supervisor monitors the infractions and relays the occurrence to the Personnel Office / Nursing Service Office for recording in the Employee Disciplinary Tracking Sheet (EDTS)

2. The personnel office/Nursing Service office tracks down the frequency and stages of the infractions and initiates disciplinary process by preparing the warning letter.

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3. The Department head endorse the warning letter while the immediate supervisor conducts the disciplinary counselling with the offender. The warning letter is signed by both the supervisor and offender and then forwarded to the Personnel Office/Nursing Service Office for filing.

4. For MAJOR rule violations and in cases where investigations need to be conducted, the offender may be “immediately” suspended indefinitely pending investigation

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5. The decision to terminate lies with the ADMINISTRATOR based on the recommendation and findings of the Department and the Personnel Office.

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Activity based costing – the true cost of all products and services.

Economic value added – examine the value added by all activities

Understand the implication of key financial measures of (ratios) organizational performance.

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PURCHASING

PROJECT MANAGEMENT

STATISTICAL QUALITY CONTROL

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Economic Ordering Quantity

Automatic reorder points

Just-in time Scheduling

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Program evaluation and review technique (PERT)

Identifies and controls the many separate events in complex projects

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Based on the establishment of upper and lower control limits that can be graphically and statistically monitored to ensure that products meet standards

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One can control future happenings but not the happened. Hence in here all the past performance is measured for taking corrective actions for future periods.

Every manager in an organisation has to perform the control function. The control may be quality control, inventory control, production control, or even administrative control.

Control is a continuous process, it follow a definite pattern and time-table, month after month and year after year on a continuous basis.

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Control system acts as an adjustment in organisational operations. It mainly checks whether plans are being observed and suitable progress towards the objectives is being made or not, and if necessary any action to control the deviations.

Policies and other planning elements set by the managers become the basis and reason for control. Through control it is monitored whether the individuals adhere to those frameworks or not so that organisation and management can verify the quality of various policies.

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Exercising some authority and forming superior-subordinate relationship throughout the organisation can be established through controlling.

With the presence of authority or control the individuals will work properly and exhibit better performance to reach the targets set for them.

Control system ensures the organisational efficiency and effectiveness. When Proper system exists the organisation effectively achieves its objectives.