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Controlling System in Engineering Management

The document discusses various aspects of organizational control including establishing performance standards, measuring actual performance, comparing performance to standards, and taking corrective actions. It also outlines different types of control systems like feed forward, concurrent, and feedback controls. Finally, it describes the key components of an organizational control system which include the strategic plan, long-range financial plan, operating budget, and performance appraisals.

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Maged Abdoon
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2K views

Controlling System in Engineering Management

The document discusses various aspects of organizational control including establishing performance standards, measuring actual performance, comparing performance to standards, and taking corrective actions. It also outlines different types of control systems like feed forward, concurrent, and feedback controls. Finally, it describes the key components of an organizational control system which include the strategic plan, long-range financial plan, operating budget, and performance appraisals.

Uploaded by

Maged Abdoon
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Distributions of Report

Reporter 1 = meaning to importance of controlling


Reporter 2 = steps in control process to establishing performance
Reporter 3 = measuring actual performance, comparing actual performance to taking necessary actions
Note : Reporter 2 and 3 join force kayo kasi same din lang ididiscuss niyo
Reporter 4 = types of control
Reporter 5 and 6 = Components of organizational control system
Note: Pwede dito yung dalawang foreigner tig3 sila kasi 6 components to
Reporter 7 = Strategic control system
Reporter 8 = Identifying control problems

Note: Pagaralan niyo nalang po mga assigned report niyo para makasagot kayo then makaexplain ng
maayos. Madami naman sa net yan kelangan din pagintindi. Goodluck! 
PS: Delete this slide after seeing your report assigned.
Engineering Management
 refers to the process of ascertaining whether organizational objectives

have been achieved; if not, why not; and determining what activities
should then be taken to achieve objectives better in the future.

 Objectives and goals that are set at the planning stage are verified as to

achievement or completion at any given point in the organizing and


implementing stages. When expectations are not met at scheduled dates,
corrective measures are usually undertaken.
 When controlling is properly implemented, it will help the

organization achieve its goal in the most efficient and effective


manner possible.

 Proper control measures minimize the ill effects of such negative

occurrences (Deviations, mistakes, and shortcomings).


The control process consists of four (4) steps, namely :
 Establishing performance objectives and standards.

 Measuring actual performance.

 Comparing actual performance to objectives and standards, and

 Taking necessary action based on the results of the comparisons.


In controlling, what was to be achieved must first be determined.
Examples of such objectives and standards are the following:
 Sales targets - which are expressed in quantity or monetary terms.

 Production targets - which are expressed in quantity or quality.

 Worker attendance - which are expressed in terms of rate of absences;

 Safety record - which are expressed in number of accidents for given


periods;
 Supplies used - which are expressed in quantity or monetary terms for
given periods.
There is a need to measure actual performance so that when
shortcomings occur, adjustments could be made.
The measuring tools will differ from organization to
organization, as each have their own unique objectives. Some firms
will use annual growth rate standard basis, while other firms will
use some other tools like the market share approach and position
in the industry.
Once actual performance has been determined, this will be
compared with what organization seeks to achieve. Actual
production output, for instance, will be compared with the target
output.
The purpose of comparing actual performance with the
desired result is to provide management with the opportunity to
take corrective action when necessary.

1. Hire additional personnel


2. Use more equipment
3. Require overtime
FEED FORWARD CONTROL

CONCURRENT CONTROL

FEEDBACK CONTROL
It is sometimes called preliminary or preventive controls,
attempt to identify and prevent deviations in the standards before
they occur. Feed forward controls focus on human, material, and
financial resources within the organization
Concurrent control takes place while an activity is in
progress. It involves the regulation of ongoing activities that are
part of transformation process to ensure that they conform to
organizational standards. Concurrent control is designed to ensure
that employee work activities produce the correct results.
This type of control focuses on the outputs of the organization after
transformation is complete. Sometimes called post action or output
control, fulfills a number of important functions. For one thing, it often is
used when feed forward and concurrent controls are not feasible or are to
costly.
Control Proactivity Behavioral control Outcome control

Feedforward control Organizational culture Market demand or economic


forecasts

Concurrent control Hands-on management supervision The real-time speed of a


during a project production line

Feedback control Qualitative measures of customer Financial measures such as


satisfaction profitability, sales growth
Organizational control systems consists of the following:
 Strategic plan

 The long-range financial plan


 The operating budget
 Performance appraisals

 Statistical reports
 Policies and procedures
A strategic plan provides the basic control mechanism for the
organization. When there are indications that activities do not facilitate the
accomplishment of strategic goals, these activities are either set aside,
modified or expanded. These corrective measures are made possible
with the adoption of strategic plans.
The planning horizon differs from company to company. Most
firms will be satisfied with one year. Engineering firms, will require
longer term financial plans. This is because of the long head times
needed for capital projects.
An operating budget indicates the expenditures, revenues, or
profits planned for some future period regarding operations.
Performance appraisals measures employee
performance. Performance appraisals also function as
effective checks on new policies and programs.
Statistical Reports pertain to those that contain data
on various developments within the firm.
Policies refer to the “ the framework within which the
objectives must be pursued”. A procedures is a “ plan that
describes the exact series of actions to be taken in a given
situations”.
To be able to assure the accomplishment of the strategic
objectives of the company, strategic control systems become
necessary. These systems consists of the following :

 Financial analysis

 Financial ratio analysis


The success of most organizations depend heavily on its
financial performance. It is just fitting that certain measurements of
financial performance be made so that whatever deviations from
standards are found out, corrective actions may be introduced.
Financial ratio analysis is a more elaborate approach used in
controlling activities. Under this method, one account appearing in the
financial statement is paired with another to constitute a ratio. The
result will be compared with a required norm which is usually related
to what other companies in the industry have achieved, or what the
company has achieved in the past
Recognition the need for the control is one thing, actually
implementing it is another. When operations become complex, the
engineer manager must consider useful steps in controlling. Kreitner
mentions three approaches.
 Executive reality check

 Comprehensive internal audit

 General checklist of symptoms of inadequate control


Employees at the frontline often complains that management
imposes certain requirements that are not realistic. In a certain state
college, for instance, requests for purchase of classroom materials
ad supplies take last priority. This is irregular because requests of
such kind must be of the highest priority considering that the
organization is an educational institution.
An internal audit is one undertaken to determine the
efficiency and affectivity of the activities of an organization.
If a comprehensive internal audit cannot be availed of for
some reason, the use of a checklist for symptoms of inadequate
control may be used.

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