BUS 51 - Mosley7e ch13

Part 5

Controlling

Chapter 13

Exercising
Control

Mosley • Pietri
PowerPoint Presentation by Charlie Cook
The University of West Alabama

© 2008 Thomson/South-Western
All rights reserved.

Learning Objectives
Learning Objectives
After reading and studying this chapter, you should
be able to:
1. Define control and explain how it relates to planning.
2. Discuss the characteristics of effective control systems.
3. Discuss the three types of control systems.
4. Discuss the four steps in the control process.
5. Identify the different types of standards.
6. Explain the importance of strategic control points.
7. Discuss management by exception.
8. Discuss the impact of technology on control.
© 2008 Thomson/SouthWestern. All rights reserved.
13–2

What is Control?
• Controlling Defined
 Comparing actual performance with planned

performance and taking corrective action, if needed,
to ensure that objectives are achieved.

• Phases of Control
1. Anticipating the things that could go wrong and taking

preventive measures to see that they don’t
2. Monitoring or measuring performance to compare

what is actually happening with what is supposed to
be happening
3. Correcting performance problems that occur.


13–3

EXHIBIT 13.1

Murphy’s Laws

• Left to themselves, things always go from bad to worse.
• There’s never time to do it right, but always time to do it over.
• If anything can go wrong, it will.
• Of the things that can go wrong, the one that will is capable of the
most possible damage.
• If you think nothing can go wrong, you have obviously overlooked
something.
• Of those things that “cannot” go wrong, the most unlikely one will.
• Inside every large problem are many small problems struggling to
get out.
• Any object will fall so that it lands in the one spot where it is
capable of doing the most damage.


13–4

Control’s Close Links to Planning
• Importance of Controls
 Plans represent the setting of goals to be reached.
 Controls provide information about progress toward

goals which supervisors use to make adjustments to
achieve goals

• Effective Control Systems Are:
 Focused on appropriate activities.
 Timely.
 Cost-effective.
 Accurate and concise.
 Accepted by the people they affect.


13–5

EXHIBIT 13.2

Some Common Examples of Supervisory Control

• At the end of the workday, a production supervisor spends 30
minutes examining a printout showing each employee’s output,
quality, and scrap. The supervisor notes those employees whose
performance is below par and makes plans to discuss their
performance with them the next day.
• A nursing supervisor studies a survey completed by all patients
who were housed in her ward in the past 6 months. The survey
lists items such as nurses’ friendliness, professionalism,
appearance, and a number of other factors related to job
performance.
• A maintenance supervisor tours the building, examining the
progress of each worker or work team.
• After a college football game, the head defensive coach views the
game films several times, assigning performance grades to each
defensive player. Grades below 60 reflect areas to which the
© 2008 Thomson/South- attention during upcoming practices.
coach must devote special

Western. All rights reserved.

13–6

Types of Control Systems
• Feedforward Controls
 Preventive controls that try to anticipate problems

and take corrective action before they occur.

• Concurrent Controls (Screening Controls)
 Controls used while an activity is taking place.

• Feedback Controls
 Controls that measure completed activities and

then take corrective action if needed.

13–7

EXHIBIT 13.3

Tips for Establishing Preventive Controls

1. Identify your department’s major goals.
2. Identify those factors most crucial to accomplishing your
department’s major goals. These may be items such as properly
running machinery and equipment, availability of raw materials,
availability of key personnel, or a balanced demand for your
department’s services.
3. Determine the most likely problems or circumstances that could
prevent the items in (2) from occurring. These could be factors
such as machine breakdown or absence of key personnel.
4. Develop a plan for preventing the problems listed in (3). You might
consider input from employees, staff personnel, your immediate
supervisor, peers, and others in arriving at your preventive control
plans.


13–8

EXHIBIT 13.4

Steps in the Control Process


13–9

Types of Standards
• Tangible Standards
 Clear, concrete, specific, and generally measurable.

A unit of measurement that can serve as a reference
point for evaluating results.
 Numerical Standards
– Standards expressed in numbers.


Monetary standards
– Standards expressed in dollars and cents.



Physical Standards
– Refer to quality, durability, size, and weight.



Time Standards
– Standards expressed in terms of time.


13–10

EXHIBIT 13.5

Controlling Intangible Standards

Intangible Standards
Relate to human characteristics and are not expressed
in terms of numbers, money, physical qualities, or time.


13–11

Step 1: Establishing Performance
Standards

• How Standards Are Set
 Supervisors

 Various staff departments:
 Industrial

engineering
 Quality control
 Cost accounting
 Budgeting
 Personnel


13–12

EXHIBIT 13.6

Types of Standards for Various Positions

Position

Type of Standard

Bank teller

Monetary (balance), time (speed of teller
line), physical (orderliness of work area)

Postal letter carrier

Time (hours taken to complete run)

Server in a large restaurant

Physical (appearance), time (speed),
intangible (courtesy and friendliness)

Real estate salesperson

Monetary (volume), numerical (number of
listings and closings)

Offensive-line football coach

Numerical (yards per game rushing),
intangible (leadership of players)

Upholsterer in a manufacturing plant

Numerical (number of units completed),
physical (quality of units)

Third-grade teacher

Intangible (appearance, classroom behavior),
physical (quality of lesson plans)


13–13

Step 2: Measuring Performance
• Issues in Measuring Performance
 How often to measure performance?
 How to measure performance?

• Ways to Measure Performance
1. Personal observation
2. Written or oral reports by or about employees
3. Automatic methods
4. Inspections, tests, or samples


13–14

EXHIBIT 13.7

Setting Strategic Control Points in the Control Process

Strategic Control Point
A performance measurement point located early
in an activity to allow any corrective action to be
taken.


13–15

EXHIBIT 13.8

Example of a Written Report about an Employee


13–16

Step 3: Comparing Performance with
Standards and Analyzing
Deviations
• It is important to:
 Identify the causes of problems before taking

corrective action.
 To compare results that are substantially above

standard in order to determine why they varied from
standard.
 To find out the opinions of those close to a particular

problem to determine why standards are not being
met.

13–17

Step 4: Taking Corrective Action if
Necessary
• Taking Corrective Action:
 Modifications, adjustments, and fine-tuning done in

response to problems encountered earlier.
 Examples:
Making a decision to retrain a new operator whose
performance has not progressed as expected.
 Shifting employees from their normal jobs to help meet a
deadline on another job.
 Counseling an employee whose performance has recently
been below standard.
 Reprimanding an employee for failure to adhere to safety
rules.



13–18

EXHIBIT 13.9

Management by Exception

Management by Exception
A supervisor focuses on critical
control needs and allows
employees to handle most routine
deviations from the standard.


13–19

Self-Check: Week One
Suppose you are a sales supervisor and your departmental sales goal is
800 units weekly (or 3,200 units monthly). Each of your eight sales
representatives, then, has a goal of 100 units weekly (or 400 units monthly).
At the end of the first week, your sales results are as follows:

What corrective action will you take?


13–20

Self-Check: Week Two
Suppose that at the end of the second week, sales results are as shown:

What will you do now?


13–21

The Impact of Technology on Control
• The growth of information technology
has redistributed power in organizations,
thus enhancing the position of
supervisors.


13–22

Important Terms
Important Terms
•
•
•
•
•

concurrent controls
feedback controls
feedforward controls
intangible standards
management by
exception


•
•
•
•
•
•
•

monetary standards
numerical standards
physical standards
standard
strategic control point
tangible standards
time standards

13–23

BUS 51 - Mosley7e ch13

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