CH.14 Foundations of Control

CH.14 Foundations of Control

1. 14.1 Explain the nature and importance of control.

   • Control is the management function that involves monitoring activities to ensure that they’re being accomplished as planned and correcting any significant deviations.
   • IMPORTANCES OF CONTROL
     • 1. To know whether the goals and plans were achieved what future actions to take.
     • 2. Employee empowerment – provide information & feedback on employee performance & minimize chance of potential problems.
     • 3. Protect organization and its assets.

2. 14.2 Describe the three steps in the control process.

   • 3. Take managerial action to correct deviations/ inadequate standards
   • 2. Compare actual performance against a standard
   • 1. Measuring actual performance
     • HOW?
       • Personal observatiion
       • Statistical reports
       • Oral reports
       • Written reports
     • MEASURE WHAT?
       • Employee satisfaction/ turnover & abseenteeim rates
       • Cost
       • Diversity of activities among managers
       • Performance criteria

3. 14.3 Types of controls

   • Feedforward
   • Concurrent
   • Feedback
   • Financial Controls
     • Budgets
     • Financial Ratios
   • MIS
   • Comprehensive & secure controls
   • Balanced scorecard
   • Balanced scoreboard

4. 14.3 Contemporary issues in control

   • Cross Cultural Differences
     • Indirect control devices
     • Corrective action
     • Comparability
   • Workplace Concerns
     • Workplace Privacy
     • Employee theft
     • Workplace violence