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After reading this chapter, you should be able to answer the following questions: How and why do managers use the control process? What types of controls are used by managers? What are some useful organizational control tools and techniques? | Chapter 6 Controls and Control Systems Exploring Management Chapter 6 How and why do managers use the control process? What types of controls are used by managers? What are some useful organizational control tools and techniques? Control is measurement. Grades in a management class are a great example. 2 6.1 Control 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 is intended to allow management to see if things are going according to plan. 3 CONTROL Control as a Management Function Controlling is the process of measuring performance and taking action to ensure desired results. The sooner you can take corrective action, the easier it will be to correct the problem. 4 CONTROL Control Process Step 1: Control starts with objectives and standards Output standards measure results in terms of quantity, quality, cost or time Input standards measure the work efforts that go into the performance task Input standards include material, labor and overhead in the form of administrative and operating costs. 5 CONTROL Control Process Step 2: Control measures actual performance Agreed-upon standards Accurate and timely measurement What to measure and when to measure it are important to the process. 6 CONTROL Control Process Step 3: Control compares results with objectives and standards Desired Performance - Actual Performance Need for action The question to ask is “did we do what we intended to do?” 7 CONTROL Control Process Step 4: Control takes corrective action as needed Management by exception is the practice of giving attention to situations that show the greatest need Management by exception establishes priorities for action. 8 6.2 How Managers Use Control Managers use feedforward, concurrent and feedback controls Managers use both internal and external controls Management by . | Chapter 6 Controls and Control Systems Exploring Management Chapter 6 How and why do managers use the control process? What types of controls are used by managers? What are some useful organizational control tools and techniques? Control is measurement. Grades in a management class are a great example. 2 6.1 Control 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 is intended to allow management to see if things are going according to plan. 3 CONTROL Control as a Management Function Controlling is the process of measuring performance and taking action to ensure desired results. The sooner you can take corrective action, the easier it will be to correct the problem. 4 CONTROL Control Process Step 1: Control starts with objectives and standards Output standards measure results in terms of .
