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System and Control Process Explained

The System and Control Process is crucial for achieving organizational goals through a structured approach involving performance measurement, comparison against standards, and managerial action. This process includes using both qualitative and quantitative methods to assess performance, addressing deviations, and making adjustments to improve operations. Ultimately, effective control enhances quality, productivity, and alignment with organizational objectives for long-term success.

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5 views7 pages

System and Control Process Explained

The System and Control Process is crucial for achieving organizational goals through a structured approach involving performance measurement, comparison against standards, and managerial action. This process includes using both qualitative and quantitative methods to assess performance, addressing deviations, and making adjustments to improve operations. Ultimately, effective control enhances quality, productivity, and alignment with organizational objectives for long-term success.

Uploaded by

kevin.112210
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

System & Control

Process
What is System and Control Process

•Control ensures that organizational goals are achieved.


•Assumes standards of performance are already set during planning.
•KPI (Key Performance Indicator): Measurable targets to track
progress toward goals.
•System of controlling = How controlling is structured (standards,
measurements, feedback, corrective actions, tools).

•Process of controlling = Step-by-step cycle


Step 1: Measuring Actual
Performance
•What it means: Find out what is really happening in the organization.
•How to do it: Use qualitative methods (observations, reports, feedback) and
quantitative methods (graphs, stats, sensors, KPIs).
•Example: A sales manager tracks the number of products sold each month,
customer complaints, and delivery times. Walgreens changed pharmacist
evaluation from task-based metrics (number of prescriptions filled) to patient-
care metrics to improve quality.
Step 2 : Comparing Actual
Performance Against the Standard
•What it means: Check if actual results match the goals or
standards.
•Why it matters: Small differences are okay, but big differences
need attention.
•Example: If the sales target for vegetables is 1,000 units, but
only 850 are sold, it shows underperformance. If annual flowers
exceeded the target by 100 units, overperformance may need
adjustments like increasing stock.
Step 3 : Taking Managerial Action
• What it means: Decide what to do about deviations. targets if consistently exceeded or missed.

• Options: • Example:

• Do nothing – if performance is acceptable. • Immediate: Offer discounts to boost


underperforming vegetable sales.
• Correct performance:
• Basic: Train staff on sales techniques to improve
• Immediate action: Fix the issue quickly. performance permanently.

• Basic action: Analyze root causes and


correct them permanently. • Revise standard: If employees consistently exceed
targets, raise the goals to match realistic
performance.
• Revise the standard: Adjust unrealistic
Conclusion
• The control process is essential for ensuring that organizational goals
are achieved efficiently and effectively. By measuring performance,
comparing it against standards, and taking corrective action,
managers can identify deviations, address problems, and continuously
improve operations. Effective controlling not only helps maintain
quality and productivity but also aligns employee efforts with
organizational objectives, ensuring long-term success.
Thank You!!!

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