Steps In the Control Process & Issues in Control System. ppt.pptx

Steps In the Control Process & Issues in Control System. ppt.pptx

• 1.
  Steps In theControl Process Prepared By: HASANIE M. ALI
• 2.
  • Controlling isthe measurement and correction of performance in order to make sure that objectives and the plans formulated to attain them are being accomplished, as we all know, the controlling function will be unnecessary to the management if other functions of management are performed properly and if there is any imperfection in the planning and actual performance, control will be needed. Controlling assures that the right things are done in the right manner at the right time. Control may be seen as a process by which the management assures that the actual activities conform to the planned activities. By controlling, the manager of an organization or agency checks the progress and compares it to the planned system. If the planned and actual processes are not running on the same lines, then the required corrective action can be taken.
• 3.
  The first stepin the control process is the Determination of Smart Standards, a standard means a benchmark. It means a specific set of factors relating to any organization, individuals, or groups of individuals working in departments or divisions of an organization. A standard should be SMART, meaning Specific, Measurable, Achievable, Realistic and Time- based. Another is that Standards indicate the criteria against which actual performance is measured. They reflect the desired results or acceptable level of performance.
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  There are twotypes of standards: Quantitative standards a set of physical or monetary terms. Such standards are set up in production, sales, finance and other areas where results can be measured in quantitative terms. Qualitative standard which refers to the goodwill, employee morale, motivation, industrial relations, etc. In these areas standards are laid down in intangible terms.
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  • Measuring ofthe performance in respect of a work in terms of control standards. Measurement becomes easy when the concern has clearly laid down its objectives and established standards. If measurement detects deviations at the earliest, then it will enable appropriate action in time. If that is not possible, then deviations should be detected as early as possible.
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  • Comparison ofactual performance with standard performance. This comparison will reveal the deviation between actual and desired results. Comparison is very easy when standards are expressed in quantitative terms. If results are intangible or qualitative, personal observation will be used to find out the extent of deviation.
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  • The fourthstep is Analysis of deviations; all deviations need not be brought to the notice of top management. When the deviation is beyond the prescribed limit, an analysis of deviations is made to identify the causes of deviations. The causes of deviation are reported to the managers. The managers take necessary corrective actions.
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  • Remedial actions;Variations are reported to the management for action. The manager takes necessary corrective actions so that deviations may not occur again, corrective actions may be: Revision of standards, Change in the assignment of task, Training of employees and Improvement in the technique of direction.
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  ISSUES THAT MANAGERHAVE TO DEAL IN DESIGNING A CONTROL SYSTEM
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  • One ofthe issue is the Magnitude of change, management control system is designed to cope with changes of a limited magnitude. While designing the control system certain as assumptions are made concerning the variables expected to change and the degree of change. For example, overtime may be decided on the assumption that five per cent of the employees will on an average be absent. When the magnitude of change is too high, the corrective action cannot work, if 90 per cent of the employees remain absent, on a particular day due to a strike, management can do little to correct the change. Thus, the control system fails when the variables go outside the range, which the system was design to handle.
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  • Second issueis the Time Rate of change, control system in any organization depends upon accurate and timely feedback’s on actual performance. Such feedback largely comes through written report. It takes time to write and transmit the control reports. When an activity is changing very fast, the feedback becomes outdated by the time reports reach the higher authorities. Such time log in feedback slowdowns the adaptive process. The control system takes greater time to respond.
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  • Third issueis the Faulty Standard, when the control standards are erroneous, It becomes difficult to discriminate between proper and improper performance be decision-maker is not certain whether the deviation in performance is due to the activity being out of control or due to the improperly set standard.
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  • Fourth issueidentified is the Information Overload, too much information is harmful for control, as incomplete information. When managers, at all levels receive identical information they may be overburdened and may suggest remedies before giving subordinates an opportunity to take action. Therefore, management must decide the quantity and type of information that should reach to every manager.
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  • Resistance- employeesoften consider any control system as a tool to exert pressure on them. They complain that the targets, are non-feasible, time span of appraisal is too short to permit fair assessment and control staff lacks objectivity. Employees may also resent the control department to sit in judgment. They may question the location of the decision level regarding corrective action. Therefore, a control system must first be sold to employees before it is installed.
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  THANK YOU!