Leonor LA
Flashcards by Leonor LA, updated more than 1 year ago
Leonor LA
Created by Leonor LA about 6 years ago


Based on Powerpoint Presentation of: Nina Pološki Vokić, Ph.D., full-time professor Management BDIB Graduate School of Economics and Business Academic year 2014/2015

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Question Answer
CONTROLLING (Definition) Controlling is the process of measuring performance and taking action to ensure desired results
CONTROLLING (Purpose) To make sure that plans are fulfilled and that actual performance meets or surpasses objectives That the right things happen, in the right way, and at the right time
CONTROLLING (Helps to ensure...) That the performance contributions of individuals and groups are consistent with organizational plans That people comply with organizational policies and procedures
Steps in the control process 1. Establishing performance objectives and standards 2. Measuring actual performance 3. Comparing results with objectives and standards 4. Taking neccessary corrective action
Types of standards Quantitative: - Financial - Phisical Qualitative: - Descriptive - Strategic - Goals - Programs
Types of control According to control holders (Internal & External) According to time frame (Short, Mid & Long term) According to business areas According to objectives of control (Performance & Results) According to resources it controls According to management hierarchy (Total, C. of Business Areas, C. of working places) According to organizational hierarchy (Strategic, tactical & Operational) According to its focus (Feedforward, Concurrent & Feedback)
Feedforward control Accomplished before a work activity begins Ensures that proper directions are set and that the right resources are available before the work begins Designed to eliminate the potential for problems later on in the process by asking an important but often neglected question: “What needs to be done before we begin?”
Concurrent control Focuses on what happens during the work process Monitors ongoing operations and activities to make sure things are being done according to plan Ideally allows corrective actions to be taken before a task is completed The key questions is “What can we do to improve things before we finish?”
Feedback control Takes place after work is completed Focuses on the quality of end results rather than on inputs and activities Asks the question “Now that we are finished, how well did we do
Characteristics of effective control Control should be strategic and results oriented Control should be understandable Control should encourage self-control Control should be timely and exception oriented Control should be positive in nature Control should be fair and objective Control should be flexible
Philosophies of control Birocratic control philosophy Decentralized control philosophy
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