MODULE 11

CONTROL AND CONTROL SYSTEMS

What gets measured happens
What is important to know about the control process?

What are some organizational control systems and techniques?

CONTROL AND CONTROL SYSTEMS

Control Systems
Module Guide 11.1

 Controlling is one of the four management functions.  Control begins with objectives and standards.  Control measures actual performance.  Control compares results with objectives and standards.  Control takes corrective action as needed.  Control focuses on work inputs, throughputs, and outputs.

CONTROL AND CONTROL SYSTEMS

Control Systems
 Controlling
The process of measuring performance and taking action to ensure desired results

CONTROL AND CONTROL SYSTEMS

Control Systems
 Output Standard
 Measures performance results in terms of quantity, quality, cost, or time.

 Input Standard
 Measures work efforts that go into a performance task

CONTROL SYSTEMS

Types Of Control Systems

 Management By Exception
 Focuses attention on substantial differences between desired and actual performance

 Feedforward Controls
 nsure the right directions are set and the right resource inputs are available f

 Concurrent Controls
 nsure the right things are being done as part of work-flow operations

 Feedback Controls
 nsure that final results are up to desired standards

CONTROL SYSTEMS

Types Of Control Systems

CONTROL AND CONTROL SYSTEMS

Organizational Control Systems and Techniques

MODULE GUIDE 11.2

 Control focuses on work inputs, throughputs, and outputs.  Management by objectives integrates planning and controlling.  Employee discipline is a form of managerial control.  Quality control is a foundation for Total Quality Management.  Purchasing and inventory controls help save costs.  Breakeven analysis shows where revenues will equal costs.

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Management By Objectives
 MBO (Management By Objectives)
A process of joint objective setting between superior and subordinate

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Employee Discipline
 Discipline
 is the act of influencing behavior through reprimand.

 Progressive Discipline
 ties reprimands to the severity and frequency of misbehavior.

MANAGEMENT TIPS  Hot stove rules of employee discipline

 Issue a reprimand immediately. A hot stove burns the first time you touch it.  Direct a reprimand toward someones actions, not their personality. A hot stove doesnt hold grudges, humiliate people, or accept excuses.  Apply a reprimand consistently. A hot stove burns anyone who touches it, and it does so every time.  Provide an informative reprimand. A hot stove lets a person know what to do to avoid getting burned again: Dont touch.  Give the reprimand within a supportive setting. A hot stove conveys warmth but with an Inflexible rule: Dont touch.  Support a reprimand with the relevant rules. The Dont-touch-a-hot-stove rule isnt a power play, a whim, or an emotion of the moment; it is a necessary rule of reason.

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Quality Control
 Total Quality Management (TQM)  commits to quality objectives, continuous improvement, and doing things right the first time.  Quality Circle  is a small group that meets regularly to discuss ways of improving work quality.
Four Absolutes of Quality Control 1. Quality means conformance to standards. Workers must know exactly what performance standards they are expected to meet. 2. Quality comes from defect prevention, not defect correction. Leadership, training, and discipline must prevent defects in the first place. 3. Quality as a performance standard must mean defect-free work. The only acceptable quality standard is perfect work. 4. Quality saves money. Doing things right the first time saves the cost of correcting poor work.

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Purchasing And Inventory Controls

 Purchasing Control
 buying what is needed at the right quality, at a good price, and for on-time delivery.

 Supply Chain Management

 uses information technology to link suppliers and purchasers in cost efficient ways.

 Inventory Control
 ensures that inventory is only big enough to meet immediate needs.

 Economic Order Quantity

 places new orders when inventory levels fall to predetermined points.

 Just-in-time Scheduling
 routes materials to workstations just in time for use.

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Breakeven Analysis
 Breakeven Point
is the point at which revenues equal costs

 Breakeven Analysis
calculates the point at which sales revenues cover costs.
How to Calculate a Breakeven Point
Breakeven Point = Fixed Costs / (Price - Variable Costs)

ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES

Breakeven Analysis