controlling

WHAT is controlling and why is it Management function that involves

important? monitoring, comparing, and correcting
work performance

Step 1: Measuring Actual Performance

Step 2: Comparing Actual Performance Against

the Standard

control process immediate corrective action

A three-step process of measuring Corrective action that corrects problems
actual performance, comparing actual at once to get performance back on
THE control process performance against a standard, and track
taking managerial action to correct Step 3: Taking Managerial Action
deviations or inadequate standards basic corrective action
Corrective action that looks at how
and why performance deviated before
correcting the source of deviation

Managerial Decisions in Controlling

performance
The end result of an activity
What Is Organizational Performance?
organizational performance
The accumulated results of all the
organization’s work activities

productivity
The amount of goods or services
produced divided by the inputs needed
to generate that output

CONTROLLING for organizational organizational effectiveness

A measure of how appropriate
and Measures of Organizational Performance
organizational goals are and how well
employee performance those goals are being met

INDUSTRY AND COMPANY RANKINGS

disciplinary actions
Actions taken by a manager to enforce
the organization’s work standards and
regulations

imposed

Controlling for Employee Performance progressive disciplinary action penalty appropriate to the offense is

An approach to ensure that the minimum

Controlling Activities
and Operations
feedforward control
Control that takes place before a work
activity is done

concurrent control
Control that takes place while a work
activity is in progress
Feedforward/Concurrent/Feedback Controls
management by walking around
A term used to describe when a
manager is out in the work area
interacting directly with employees

feedback control
Control that takes place after a work
activity is done

Financial Controls

HOW IS INFORMATION USED IN CONTROLLING?

TOOLS for measuring
Information Controls
organizational performance CONTROLLING INFORMATION

balanced scorecard
A performance measurement tool that
Balanced Scorecard
looks at more than just the financial
perspective

benchmarking
The search for the best practices among
competitors or noncompetitors that lead
to their superior performance
Benchmarking of Best Practices
benchmark
The standard of excellence against
which to measure and compare

Adjusting Controls for Cross-Cultural

Differences and
Global Turmoil

Workplace Privacy

employee theft
Any unauthorized taking of company
Employee Theft
property by employees for their personal
use

CONTEMPORARY issues in control Workplace Violence

service profit chain

Controlling Customer Interactions The service sequence from employees
to customers to profit

corporate governance
The system used to govern a corporation
so that the interests of corporate owners
are protected

Corporate Governance THE ROLE OF BOARDS OF DIRECTORS

FINANCIAL REPORTING AND THE AUDIT

COMMITTEE