Chapter 9

Control

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Learning Outcomes
1. Define control
2. Explain why control is important
3. Describe the control process
4. Distinguish among the three
types of control
5. Describe the qualities of an
effective control system
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What Is Control?
Control
The process of monitoring activities to
ensure that they are being
accomplished as planned and of
correcting any significant deviations
An effective control system ensures
that activities are completed in ways
that lead to the attainment of the
organizations goals.
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Control Process
1. Establishing Performance
Standards
2. Measuring Performance
3. Comparing Measured Performance
to Established Standards
4. Taking Corrective Action

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1. Establishing
Performance Standards
A standard is a quantitative or
qualitative measuring device
designed to monitor people, money,
capital goods or processes. The exact
nature of a standard depends on:
Who design, works with, and receives the
output from controls
What is being monitored

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1. Establishing
Performance Standards
What is to be achieved through
monitoring.
Where monitoring efforts will take
place (location and functional area).
When controls will be used (before,
during or after operations).
What resources are available to
depend on the controls.

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2. Measuring Performance
Managers must measure actual
performance to determine any
variations from standard.
Computer-assisted equipment is
used to achieve timely and
accurate measurements.

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3. Comparing Measured
Performance to Established
Standards
This is an application asking a
comparison between the what is and
the what should be.
If the comparison results or
measurements are acceptable, no
action needs to be taken. If results
show a trend away from the acceptable
or show the unacceptable, action may
be called for.
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4. Taking Corrective Action
It depends on three things: the
standard, the accuracy of the
measurements that determined a
deviation exists, and the diagnosis of
the person or device investing the
cause for the deviation.
Corrective actions can be prescribed by
management in advance through
policies, procedures, and practices.
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4. Taking Corrective Action
Some corrective actions may be
automatic.
Some corrective actions may have to
take exception to established policy,
procedure, or practices.

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Types Of Control
1. Feedforward Controls
2. Concurrent Controls
3. Feedback Controls

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Types Of Control
1. Feedforward control
Feedforward controls are future directed:
they are designed to detect and
anticipate deviations from standards at
various points.
Such preventative controls focus on
establishing conditions that will make it
difficult or impossible for deviations from
norms to occur. (e.g. locks, bars on windows, safety
equipment, safety procedures, job descriptions, job
specifications, inductions and orientation.)

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Types Of Control
2. Concurrent Controls
Sometimes known as in-process
controls, these controls apply to
processes as they happen.
Readouts and audible warnings mark
this type of control.

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Types Of Control
3. Feedback Controls
These post-performance controls
focus upon the end results of the
process.
The information obtained is used for
corrective purposes.
Adjustments and/or corrections follow
the feedback input.

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Characteristics of Effective
Control
1. Focus on Critical Points
2. Integration
3. Acceptability
4. Timeliness
5. Economic Feasibility
6. Accuracy
7. Comprehensibility
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1. Focus on Critical Points
The critical control points include all the
areas of an organizations operations
that directly affect the success of its key
operations.
Such points focus specifically on those
areas wt which failures cannot be
tolerated and where time and costs are
crucial.

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2. Integration
Control must not be unsystematically
placed.
They must function harmoniously within the
established processes of the work. In short,
they should not bottleneck operations.
Trusts, confidence and acceptance of all
controls must be a part of the culture.
Employees must have3 faith in these
devices.

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3. Acceptability
As with integration, employees must
accept these devices or methods.
The necessity, usage and
appropriateness of the controls must
blend with the personnel involved.
The acceptability of controls is
important to effectiveness and
efficiency.

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4. Timeliness
Deadlines, time costs, and punctual
needs are apparent in this criteria.
Costs are frequently attributed to time
shortcomings or failures.

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5. Economic
How much does it cost? What will it
save? What are the returns on the
investment?
The above questions need to be
answered and the accompanying
expenses to any control or system of
controls must be analyzed.
In short, compare the costs to the
benefits.
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7.Comprehensibility
Complexity can cause confusion.
Managers should favor simplicity.
How simple or complex should the
system become?

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6. Accuracy
The information for the control must
be useful and accurate.
Reliability and validity of diagnosed
deviations from standards must be
accurate. Are they consistent? Do
they measure what is intended?

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Tutorial 9
1. Describe the steps in control process.
2. Describe the importance of a control
system.
3. Explain the characteristics of effective
control system.
4. Can organization function without
controls?

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