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Explainthe
natureandimportanceofcontrolDescribethe
threestepsinthecontrolprocessExplainhow
organizationalperformanceismeasuredDescribetools
usedtomeasureorganizationalperformanceDiscusscontemporaryissuesincontrolWhatIsControl?Controlling-theprocessofmonitoring,comparing,andcorrectingworkperformance.ThePurposeofControlToensurethatactivitiesarecompletedinwaysthatleadtotheaccomplishmentoforganizationalgoals.WhyIsControlImportant?Asthefinallinkinmanagementfunctions:PlanningControlsletmanagersknowwhethertheirgoalsandplansareontargetandwhatfutureactionstotake.EmpoweringemployeesControlsystemsprovidemanagerswithinformationandfeedbackonemployeeperformance.ProtectingtheworkplaceControlsenhancephysicalsecurityandhelpminimizeworkplacedisruptions.Exhibit18-1:Planning-ControllingLinkWhatistheControlProcess?Controlprocess-athree-stepprocessofmeasuringactualperformance,comparingactualperformanceagainstastandard,andtakingmanagerialactiontocorrectdeviationsorinadequatestandards.TheControlProcessTheProcessofControlMeasuringactualperformanceComparingactualperformanceagainstastandardTakingactiontocorrectdeviationsorinadequatestandardsExhibit18-2:TheControlProcessMeasuring:HowandWhat
WeMeasureSourcesofInformation(How)PersonalobservationStatisticalreportsOralreportsWrittenreportsControlCriteria(What)EmployeesSatisfactionTurnoverAbsenteeismBudgetsCostsOutputSalesExhibit18-3:SourcesofInformation
forMeasuringPerformanceComparingActualPerformance
AgainsttheStandardDeterminingthedegreeofvariationbetweenactualperformanceandthestandardRangeofvariation-theacceptableparametersofvariancebetweenactualperformanceandthestandard.Exhibit18-4:Acceptable
RangeofVariationTakingManagerialActionImmediatecorrectiveaction-correctiveactionthatcorrectsproblemsatonceinordertogetperformancebackontrack.Basiccorrectiveaction-correctiveactionthatlooksathowandwhyperformancedeviatedbeforecorrectingthesourceofdeviation.Exhibit18-5:GreenEarthGardening
Supply—JuneSalesExhibit18-6:ManagerialDecisions
intheControlProcessWhatIsOrganizationalPerformance?Performance-theendresultofanactivity.Organizationalperformance-theaccumulatedresultsofalltheorganization’sworkactivities.MeasuresofOrganizationalPerformanceProductivity-theamountofgoodsorservicesproduceddividedbytheinputsneededtogeneratethatoutput.Organizationaleffectiveness-ameasureofhowappropriateorganizationalgoalsareandhowwellthosegoalsarebeingmet.Exhibit18-7:PopularIndustryandCompanyRankingsExhibit18-7:PopularIndustryand
CompanyRankings(cont.)TypesofControlFeedforwardcontrol-controlthattakesplacebeforeaworkactivityisdone.Concurrentcontrol-controlthattakesplacewhileaworkactivityisinprogress.TypesofControl(cont.)Managementbywalkingaround-atermusedtodescribewhenamanagerisoutintheworkareainteractingdirectlywithemployees.Feedbackcontrol-controlthattakesplaceafteraworkactivityisdone.Exhibit18-8:TypesofControlFinancialControlsTraditionalControlsRatioanalysisLiquidityLeverageActivityProfitabilityBudgetAnalysisQuantitativestandardsDeviationsExhibit18-9:PopularFinancialRatiosExhibit18-9:PopularFinancialRatios(cont.)WhatistheBalancedScorecard?Balancedscorecard-aperformancemeasurementtoolthatexaminesmorethanjustthefinancialperspective.Measuresacompany’sperformanceinfourareas:FinancialCustomerInternalprocessesPeople/innovation/growthassetsInformationControlsManagementinformationsystem(MIS)-asystemusedtoprovidemanagementwithneededinformationonaregularbasis.Data-anunorganizedcollectionofraw,unanalyzedfacts(e.g.,anunsortedlistofcustomernames).Information-datathathasbeenanalyzedandorganizedsuchthatithasvalueandrelevancetomanagers.BenchmarkingofBestPracticesBenchmarking-thesearchforthebestpracticesamongcompetitorsornon-competitorsthatleadtotheirsuperiorperformance.Benchmark-thestandardofexcellencetomeasureandcompareagainst.Exhibit18-10:Suggestionsfor
InternalBenchmarkingWorkplaceConcernsEmployeetheft-anyunauthorizedtakingofcompanypropertybyemployeesfortheirpersonaluse.Exhibit18-11:ControllingEmployeeTheftExhibit18-11:Controlling
EmployeeTheft(cont.)Exhibit18-12:ControllingWorkplaceViolenceExhibit18-12:Controlling
WorkplaceViolence(cont.)CustomerInteractionsServiceprofitchain-theservicesequencefromemployeestocustomerstoprofit.Corporategovernance-thesystemusedtogovernacorporationsothattheinterestsofcorporateownersareprotected.TermstoKnowcontrollingmarketcontrolbureaucraticcontrolcontrolprocessrangeofvariationim
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