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Topic 12

CONTROLLING

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LEARNING OUTCOMES
By end of this topic, you should able to:
• describe the control process;

• differentiate between the three types of control.

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The Control Process

• Controlling helps managers eliminate gaps between actual


performance and goals.

• Comparing whether the activities are carried out according to


the strategy. If this is not performed then necessary corrective
action should be taken.

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4 Steps of Control Process are:

• Establishing standards and methods for measuring.

• Measuring performance.

• Determining whether performance matches the


standard.

• Taking corrective action.

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Examples: “forward-looking basis” “change performance;
“Industrial enterprises” (detect deviations in change original standards”
(sales, production targets); advance)
“Service industries”
(customer waiting time,
no. of new clients)

“everything under control”.

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1. Establishing Standards and Methods for
Measuring Performance

Criteria of performance are selected, signals about how things are


going.

E.g. Industrial enterprises (sales, production targets);

Service industries (customer waiting time, new clients attracted by an


advertising campaign)

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2. Measuring the Performance

• Should be done on a forward-looking basis so that deviations


may be detected in advance.

• If standards are appropriately drawn, determining exactly what


subordinates are doing, appraisal of actual or expected
performance is fairly easy.

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3. Determining whether Performance
Matches the Standard

• If performance matches, managers may assume that


“everything is under control”.

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4. Taking Corrective Action

• The corrective action could involve a change in one or more


activities of the operations.

• It could involve a change in the original standards rather than a


change in performance.

• It should be on devising constructively to bring performance up


to a standard rather than merely identifying a past failure.

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Preventive Corrective

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Types of Control

Feedforward control:
• A controlled impact from which you are expecting output.

• Future-directed, they attempt to detect and anticipate problems


or deviations from the standards in advance of their occurrence.

• In-process control allowing corrective action to be taken in


advance of the problem.

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Concurrent control:
• A process of monitoring and adjusting ongoing activities.

• A real-time control as it relates to current.

• A set of procedures are implemented to monitor project


execution in order to find and solve problems or potential
problems in a timely manner.

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Feedback control:
• Gather information about a past activity, and evaluating that
information, and taking steps to improve similar activities or
action in the future.

• Historical in nature and is also known as post-action control.

• Feedback allows managers to use past performance information


to inform future performance in line with planned objectives.

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SUMMARY
• The “Controlling Process” is a method that can be used to make sure
standards are being met with an organizational goal, if not, taking
corrective measures for deviations which have occurred .

• Feedback control, concurrent control, and feedforward are some


types of management control.

• Controlling helps managers eliminate gaps between actual


performance and goals.

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