ControlRegulation of activities to facilitate goal achievement

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Control-Regulation of activities to facilitate
goal achievement

• Adapt to environmental change
• Limit accumulation of error
• Cope with organizational uncertainty
• Minimize costs

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Types of Control

• Physical
• Inventory
• Quality
• Buildings/Equipment
• Human Control
• Selection
• Placement
• Training/Development
• Evaluation/Pay

• Information Control
• Sales/Marketing
• Public Relations
• Scheduling
• Forecasting
• Financial Control
• Cash on hand
• Excess Supply/Invent.
• Forecasting

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Level of Control

• Operations Control
• Operating Systems
• Quality Control
• Output
• Organizational Control
• Overall functioning of organization
• Strategic Control
• Environment Alignment

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Control ProcessMeasure, Compare, Action

• How to Measure
• Personal Observation
• Statistical Reports, graphs, charts
• Oral Reports
• Written Reports
• Objective/Subjective

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Take Action

• Immediate Correction
• Basic Correction
• Leave Alone

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Bureaucratic Clan

• Employee Compliance
• Rules, formality
• Meet minimum requirements
• Tall structure, top down influence
• Individual performance
• Limited and formal

• Employee Commitment
• Group norms, culture
• Enhanced performance
• Flat structure, shared influence
• Group performance
• Extended and formal

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Budgets as Control Tools(Numerical Plans)

• Financial Budget
• Cash-flow, cash budget
• Capital expenditures
• Balance sheet budget
• Operating Budget
• Sales/revenues
• Expenses
• Profits

• Nonmonetary Budgets
• Labor budget
• Space budget
• Production budget
• Effective, problem areas, coordination, records
• -Rigid, changes, process

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Tools of Financial Control

• Financial statements Profile of circumstances
• Balance sheet Assets and liabilities
• Income statements Performance over period
• Ratio analysis Liability, debt, return,
  operating
• Compare area to overall organizational finances
• Financial Audits Independent appraisal of
  financial records

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Effective ResistanceControl

• Integrated with planning
• Flexible
• Accurate
• Timely
• Objective

• Overcontrol
• Inappropriate focus
• Rewards inefficiency
• Too much accountability