Measuring Actual Performance

Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.

Without measurement, effective control is not possible.

Comparing Results with Objectives and Standards

-The comparison of actual performance with desired performance establishes the need for action.

-Ways of making such comparisons include:

-Historical / Relative / Engineering

-Benchmarking

Taking Corrective Action

· Taking any action necessary to correct or improve things.

· Management-by-Exception focuses managerial attention on substantial differences between actual and desired performance.

· Management-by Exception can save the managers time, energy, and other resources, and concentrates efforts on areas showing the greatest need.

· There are two types of exceptions:

ü Problems - below standard

ü Opportunities - above standard

Effective Controls

The Best Controls in Organizations are:

-Strategic and results oriented

-Understandable

-Encourage self-control

-Timely and exception oriented

-Positive in nature

-Fair and objective

-Flexible

 

Types of control

ü Preliminary

- Sometimes called the feedforward controls, they are accomplished before a work activity begins.

- They make sure that proper directions are set and that the right resources are available to accomplish them.

ü Concurrent

Focus on what happens during the work process. Sometimes called steering controls, they monitor ongoing operations and activities to make sure that things are being done correctly.

ü Postaction

Sometimes called feedback controls, they take place after an action is completed. They focus on end results, as opposed to inputs and activities.

Managers have two broad options with respect to control.

· They can rely on people to exercise self-control (internal) over their own behavior.

· Alternatively, managers can take direct action (external) to control the behavior of others.

Internal Controls. Allows motivated individuals to exercise self-control in fulfilling job expectations. The potential for self-control is enhanced when capable people have clear performance objectives and proper resource support.

External Controls. It occurs through personal supervision and the use of formal administrative systems. Performance appraisal systems, compensation and benefit systems, employee discipline systems, and management-by-objectives.