The Control System. Control Definition monitoring monitoring employees activities, determining,...
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Transcript of The Control System. Control Definition monitoring monitoring employees activities, determining,...
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The Control System
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Control
Definition monitoringmonitoring employees’ activities, determining,
whether the organization is on target toward its goals, and making corrections as necessary.
Purpose To measure progress toward planned
performance and apply corrective measures.
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Why Is Control Important?
As the final link in management functions:Controls let managers know whether their
goals and plans are on target and what future actions to take.
Control systems provide managers with information and feedback on employee performance.
Controls enhance physical security and help minimize workplace disruptions.
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What is control system
Control systems are designed to measure progress toward planned performance and, if necessary, to apply corrective measure
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Four major steps
Setting performance standards;Measuring performance;Comparing performance against the
standards and determining deviationsTaking corrective action
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Setting performance standards
Standard The level of expected performance for a given
goal; Desired performance levels Job requirements, objective data; Reference: quantity; quality; time used; cost;
When do managers set standard?
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Measuring: How and What We MeasureControl Criteria
Employees Satisfaction Turnover Absenteeism
Budgets Costs Output Sales
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Measuring performance
Information collectionThree sources:
Written reports; Formal, broad level, precise;
Oral reports; Swift, two-way communication No records
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Personal observations; An intimate picture General and subjective Time consuming Misleading
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Comparing performance
To evaluate the performance;Note: range of variation acceptable; Exception
Significant deviations;
Managers should pay attention to exceptional cases;
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Comparing
Determining the degree of variation between actual performance and the standard. Significance of variation is determined by:
The acceptable range of variation from the standard (forecast or budget).
The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget).
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Taking corrective action
To adjust operation to achieve the initially planned results;
By whom? those having authority (Higher-ups) the operator at the point; Corrective action Immediate corrective action Basic corrective action
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Taking Managerial ActionCourses of Action
“Doing nothing” Only if deviation is judged to be insignificant.
Correcting actual (current) performance Immediate corrective action to correct the problem at once. Basic corrective action to locate and to correct the source of
the deviation. Corrective Actions
Change strategy, structure, compensation scheme, or training programs; redesign jobs; or fire employees
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Taking Managerial Action (cont’d)
Courses of Action (cont’d) Revising the standard
Examining the standard to ascertain whether or not the standard is realistic, fair, and achievable.• Upholding the validity of the standard• Resetting goals that were initially set too low or too high.
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Taking corrective action
Action A change in a procedure or method; A disciplinary action; A major organizational modification; A change of the standard.
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How does a teacher control study?
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Types of control
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Three types of control
Feedforward controlConcurrent controlFeedback control
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Feedforward Control
Definition:Process control in which changes are
detected at the process input and an anticipating correction signal is applied before process output is affected.
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Feedforward Control
Characteristic:Future orientedLimiting activities in advanceprevent the problems before they arise
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Advantages and disadvantages
Advantages:Prevents accidents before they occur.Easy to be accepted and implemented.
Disadvantages:Need massive accurate information.Hard to estimate the new situation and t
he question.
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examples
Inspection of raw materials Proper selection and training of employeesJapan’s unique cost management system
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Concurrent control
Definition:Take place while plans are carried out , is the heart of any control system.
Characteristic:While plans are being carried outDirecting , monitoring and fine-tuning
activities
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Advantages and disadvantages
Advantages:Is helpful to improve staff's working abili
ty and the self-control ability.Reduce loss quickly
Disadvantages:The cost is highhard to be accepted
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Examples
Supervisors monitor the employeesProduction line Question:How does Information technology affect
the concurrent control?
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Feedback control
Definition:Feedback control implies that performance
data were gathered and analyzed and the results returned to someone (or something) in the process to make corrections.
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Feedback control
Characteristic:Waiting for results and comparing them
with goalsanalyzing the reason taking corrective action
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Advantages and disadvantages
Advantages:Summarizing the rule for further
implementation, creating the condition , realizing the positive cycle, enhancing the efficiency and so on.
Disadvantages:The deviation has produced before the
implementation measure.cannot control the process in time
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Important aspect—Timing
If feedback on performance is not timely, managers cannot quickly identify and eliminate the problem and prevent more serious harm.
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examples
The product quality checksEvaluate an accomplishment
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Difference and connection
In put
Transformation processes
Out put
Feedforward control
Feedback control
Concurrent control
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Difference
Feedfordward control
Concurrent control
Feedback control
The time they take place
Focus on in a control system
Function
Control type
Aspect
Can you tell more difference?
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Difference
Feedfordward control
Concurrent control
Feedback control
The time they take place
Before operations begin
While plans are being carried out
After the fact
Focus on in a control system
input Transformation processes
Out put
Function Prevent problems before they arise
Monitor behavior Point out and correct improper performance
Control type
Aspect
Can you tell more difference?
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connection
Three type of control Compose a control system .They mutually affect.Preliminary control sets antecedents Concurrent control monitor behavior According to
the antecedents and find the information results.Feedback control analyze the results in order to
correct improper performance or revised the antecedents.
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which type of control do they belong to?
Rocket launchingLegislationsign contract Work summaryDirecting working reduce the staffrevises the law
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Question
Analyzes the control types of our school and their connection during the appraisal stage.
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Budgets and Their Types
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Budgets
The origin of budget: France in the Middle Ages
Definition: A budget is simply a financial plan listing in detail the resources or funds assigned to a particular product, division, or project.
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Developing a budget
Guidelines for budget preparation: detailed economic, sales, and profit forecasts
Who?1. Budgets are developed at the top
management levels.2. The department and individuals
responsible for implementation should be allowed to contribute to the development of budget.
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The advantages of the “bottom-up” approach
The process of developing a comprehensive budget
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Building flexibility into the budget
A serious drawback to many budgetsHow to avoid this problemVariable budget: a series of different
budgets based on different levels of outputFlexible budgets, sliding-scale budgets,
step budgets
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Program Planning Budgeting Systems (PPBS)
Five basic steps:1. List and analyze the objectives of the
activity.2. Analyze the results of a given program
or activity based on the objectives.3. Estimate future program costs as well
as original outlays.
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Program Planning Budgeting Systems (PPBS)
Five basic steps:4. Analyze alternatives.5. Integrate the first four steps into the
budgetary process.
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Program Planning Budgeting Systems (PPBS)
The advantages of PPBS:1. It relates the budget to agency or
departmental objectives and requires accountability.
2. It requires a realistic appraisal of future costs and requires managers to justify their decision.
3. It brings into sharp focus the relationship between costs and benefits.
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Zero-Base Budgeting (ZBB)
What is the essence of zero-base budgeting?
The steps of zero-base budgetingThe advantages and disadvantages of
zero-base budgetingThe development of ZBB concept
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Types of Budgets
Manufacturing:1. Manufacturing Budget2. Capital Expenditures Budget
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Types of Budgets
Marketing:1. Marketing Budget2. Product Budget
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Types of Budgets
Finance:1. Cash Flow Budget2. Budget Income Statement3. Balance Sheet Budget
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Types of Budgets
Research and General Management:1. Research and Development Budget2. Executive Staff Budget3. Branch and Regional Budget