MGT 330 Principles Of Management

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MGT 330 Principles Of Management

• CHAPTER 15FOUNDATIONS OF CONTROLLING

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Control

• The process of monitoring activities to ensure
  that they are being accomplished as planned and
  of correcting any significant deviations.
• How are we doing?
• Are we meeting our goals?

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Types of Control Systems

• Market
• Bureaucratic
• Clan

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Characteristics of Three Approaches to Control
Systems
TYPE OF ESTABLISHES IS USED IN CONTROL
STANDARD FROM ORGANIZATIONS
Market Price competition Where products
or services are clearly specified Relative
market share That face considerable competition
Bureaucratic Rules, policies, stan- That
emphasize dardization of activities, authority.
Rely on well-defined job hierarchical
mechanisms descriptions and Budgets
Clan Shared values, norms, Where teams are
traditions, rituals, and common beliefs Org
anizational culture Where technology changes
rapidly
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The Control Process

• The 3 steps in the process
• 1. Measuring
• 2. Comparing
• 3. Taking Managerial Action

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The Control Process1. Measuring

• Measuring actual compared standard
• Measuring from 4 information sources
• 1. Personal observation
• 2. Statistical reports
• 3. Oral reports
• 4. Written reports

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The Control Process2. Comparing

• Range of Variation

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Mid-Western Distributors Sales Performance for
July (hundreds of cases)
BRAND STANDARD ACTUAL OVER(UNDER)
Heineken 1075 913 (162) Molson
630 634 4 Becks 800 912 112 Moosehead 620 622 2 L
abatts 540 672 132 Corona 160 140 (20) Amstel
Light 225 220 (5) Dos Equis 80 65 (15) Tecate 170
286 116 Total cases 4,300 4,464 164
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Defining an Acceptable Range of Variation
Acceptable Upper Limit
Acceptable Range of Variation
Standard
Acceptable Lower Limit
t t1 t2 t3 t4 t5
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The Control Process3. Taking Managerial Action

• Immediate Corrective Action
• Quickly solving the symptoms
• Basic Corrective Action
• Addresses the source of the problem

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The Control Process
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TYPES OF CONTROL

• Feedforward Control
• Concurrent Control
• Feedback Control

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Types of Control
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Qualities of an EffectiveControl System
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Contingency Factors of Control

• Several situational factors influence the
  effectiveness of a control system

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Contingency Factors
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Contingency Factors and Controls
Control Recommendations
Contingency Variable
Informal, personal, management by walking around
Small
1. Organization Size
Formal, impersonal, extensive rules and
regulations
Large
2. Position and Level
High
Many criteria
Few, easy-to-measure criteria
Low
3. Degree of Decentralization
Increased number of controls
High
Reduced number of controls
Low
4. Organizational Culture
Open and supportive
Informal, self-control
Threatening
formal, externally imposed controls
5. Importance of an Activity
Elaborate, comprehensive controls
High
Low
Loose, informal controls
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Dysfunctional Controls

• Rigid
• Unreasonable
• Easily manipulated

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• Questions Answers