Transcript Controlling- CHAPTERS 27, 28, & 29

Controlling- CHAPTERS 27,
28, & 29
CHAPTER 27
Controlling:
• It monitors performance and takes corrective
action when there is a deviation in standards
• It ensures that performance is consistent with
plans and the goals and objectives of the
department and organization is achieved
• It is performed simultaneously with planning,
organizing, staffing, and influencing
• It regulates employee behavior
Three Types of Control systems
•
Anticipatory
- Proactive approach
- Controls are built into the system to prevent mistakes by taking care of
potential problems in advance
•
Concurrent
- Monitors processes or activities and discovers problems as they
occur
•
Feedback
- Signals the supervisor after the event has occurred
- Helps the supervisor to make improvements on processes and
prevent further deviation and recurrence
- it is the least desirable type of control system
Basic Requirements of a Control
system
•
•
•
•
•
Be understandable
Reports deviations quickly and timely
Be appropriate, adequate, and economical
Be flexible
Indicates where corrected action should
be applied
CHAPTER 28
Four steps in a control model:
• The supervisor sets tangible and intangible standards
- Examples of tangible standards are physical and cost standards
- Tangible standards are both qualitative and quantitative in nature
- Examples of intangible standards are reputation, quality of
medicine, excellence in patient care, level of employee morale
- Tools for measuring intangible standards include attitude surveys,
questionnaire, and interviews
- It is much more difficult to set intangible standards than tangible
standards
- Standards state what should be done, are derived from
organizational goals and objectives, and should be expressed in
terms that can be measured
Steps in the Control Model Contd.
• The supervisor must check and appraise performance
and compare against expected standards on an ongoing
basis
- Techniques used to measure
performance include direct observation,
and oral and written reports
• The supervisor takes corrective action if standards are
not met
• The supervisor must follow up to determine the
effectiveness of the corrective action
CHAPTER 29
Budgeting as a Control device:
• It is an effective managerial tool
• It is a written plan expressed in dollars and
cents, representing income and expenses
• Of all available control devices, the budget
is probably the device that the supervisor
is most familiar
• Budgets usually cover a one year period
Budgeting Approaches
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Rolling
Flexible
Traditional
Zero-base
Types of Budgets
• Revenue and expense
• Capital
• Cash
Three Approaches in Preparing the
Budget
• Pre-approach
• Proof
• Publication