Agnes Lorenza

2101657202

LE53

Controlling

1. What is definition of Controlling?

2. Explain about three step of Controlling.
3. How to measure the individual performance.
4. Explain how to measure organization performance?

Answer

1. Controlling is the process of monitoring, comparing, and correcting work performance. All
managers should control even if their units are performing as planned because they can’t
really know that unless they’ve evaluated what activities have been done and compared
actual performance against the desired standard.
Effective controls ensure that activities are completed in ways that lead to the attainment of
goals. Whether controls are effective, then, is determined by how well they help employees
and managers achieve their goals.
2. Three step of Controlling:
 Measuring actual performance. Most organizations prepare formal reports of
performance measurements that managers review regularly. These measurements
should be related to the standards set in the first step of the control process. For
example, if sales growth is a target, the organization should have a means of
gathering and reporting sales data.
 Comparing actual performance against a standard This step compares actual
activities to performance standards. When managers read computer reports or walk
through their plants, they identify whether actual performance meets, exceeds, or
falls short of standards. Typically, performance reports simplify such comparison by
placing the performance standards for the reporting period alongside the actual
performance for the same period and by computing the variance—that is, the
difference between each actual amount and the associated standard.
 Taking managerial action to correct deviations or inadequate standards. When
performance deviates from standards, managers must determine what changes, if
any, are necessary and how to apply them. In the productivity and quality‐centered
environment, workers and managers are often empowered to evaluate their own
work. After the evaluator determines the cause or causes of deviation, he or she can
take the fourth step—corrective action. The most effective course may be
prescribed by policies or may be best left up to employees' judgment and initiative.
3. How to measure the individual performance:
 Punctuality: Employees who regularly arrive late for work or are frequently absent
from the office are unlikely to be meeting their performance objectives. The
underlying issue needs to be addressed here – have they received adequate
training? Do they get along with their co-workers and manager? Issues with
punctuality mean an employee is not doing their job to their full potential and a
negative attitude may also be affecting their colleagues.
  Quality of work: The timely completion of projects to the desired standard is a key
indicator in measuring employee performance. Is the work being carried out average
or outstanding? Are they committing maximum effort to projects? Is their attitude
affecting their ability to meet your expectations? Do they understand their personal
performance objectives? The answers to those questions will help you to
understand the root causes of any problems.
 Observe personal habits: Perpetual bad habits can detract from employee
performance. This may include indulging in office gossip, taking unauthorized
breaks, disruptive behavior and the use of computers for personal reasons (such as
social media, online shopping). In order to prevent these habits from being adopted
by their co-workers, you must be clear on what is acceptable in your business and
issue an appropriate behavioral code.
 Check their attitude: A bad attitude will often manifest itself in insubordinate
behavior. Again, this is indicative of an individual who is unlikely to be meeting their
performance objectives. Typically, these employees will not comply with company
policies and are likely to display disrespect for your company and co-workers.
 Review personal presentation: Most companies operate a professional dress code
appropriate to their industry sector and company culture. Employees who disregard
your expectations and present a dishevelled or careless appearance reflect badly on
your brand image. It’s likely that their performance will be failing to meet your
expectations too.
 Carry out a client survey: The consequences of poor employee performance will
ultimately manifest themselves in customer service. A client survey can quickly
identify issues with individuals and enable you to get your business goals back on
track. A positive response means that your employee performance is meeting or
exceeding your expectations. What is the overall customer service experience of
your company?
 Carry out random checks: Depending on the nature of your business consider
implementing random checks against quality standards. This may include reviewing
telephone calls and project meetings and inspecting records. While your employees
may be aware of this policy, the random nature of the checks can motivate staff to
put in a consistent performance.
4. How to measure organization performance:
 Identify the Strategic Measurements Right Down to Departmental Level
When it comes to performance, it is always a challenge to determine what to
measure and of course how to measure it. In many organizations we find that one
department will determine what they should measure (For example, average hours
an employee works each week) and another department will determine that these
are not important areas to measure; they may determine that measuring an
employee’s output or extent to which their work performance is met, to be of
greater importance. As a result, the organization misses out on getting an overall
performance measurement with performance improvement opportunities.
The senior leadership team creates the strategic plan. The departmental heads
cascade this plan to their employees. This communication may include how the
strategy’s success will be measured, but usually, this is at too high a level, resulting
in each department interpreting this information and creating their own systems of
measurement.
 To avoid this problem, we worked with one of our clients to help their senior
leadership identify strategic measurements for delivery of the strategic plan, right
down to the departmental level. This client wanted to include “innovation” as one
of their strategic imperatives in their strategic plan. They identified the number of
new and/or significantly improved products and services they required as their
measurement of success. Then, each department identified various measurements
to reach the innovation goal. These included: the number of new ideas generated,
the number of innovation teams, the amount of time taken to go through each
innovation gate, potential sales or revenue that each innovation would generate,
and so on. As a result of creating department level performance measurements to
achieve the overall strategic plan the organization was able to realize its overall
measurements for success.
 Simplify Your Performance Measures
We often hear the phrase: “What gets measured gets done.” Organizations that
successfully measure their performance achieve superior results. Conversely,
organizations that over complicate their performance measures find it more difficult
to measurably know the extent to which they’ve realized their goals. You don’t have
to measure everything; keep to the essentials and keep in mind that performance
measures must be defined for each level of performance accountability. That is, for
the key business processes within the organization.
For example, a CEO and the executive leadership team may be ultimately
accountable for the strategic measure of “overall customer satisfaction.” An
operations manager and their field supervisors can only be held accountable for a
customer satisfaction rating from the feedback of the customers they service and
the processes they manage. What ultimately defines success for the top level
customer satisfaction index will be the collection of data from all departments and
their staff engagement in customer interaction at each level of accountability. The
activities and processes necessary for systematically defining, deploying and linking
measures throughout an entire organization need to be well-timed and carefully
orchestrated. This will involve the engagement of senior executives, managers at all
levels, technology support and front-line employees.
 Measure the Right Things
Performance outcomes are more important measures of work than
output. Outcomes are benefits or changes that result from the work being
performed. They are the measurements of work performed that makes a difference
to the organization and is in keeping with achieving the strategic organizational and
departmental objectives. This work performed will be the key business processes.
Establish criteria to determine the key business processes. For example; use the
measurements of the impact on customers, the bottom-line, the sales, the profits
and so on. This will determine which organizational processes are the key business
processes and which are the ones that support or fit into, the key business
processes. Identify all of the key business processes throughout the
organization. Ensure that their performance measurements are measuring the right
things so that management can create a “desired results or outcomes” list of key
organizational performance measures.
 Eliminate “Silo” Thinking
While dividing organizations into departments may have some advantages, it can
also be highly divisive and can prevent organizations from realizing performance
synergies and collaboration. This is evident when directors, departments, managers,
teams or staff may be high performers individually, but fail to choreograph their
activities to create peak performance for the organization. This symptom is so
widespread that it is often accepted as an inevitable problem within all
organizations; except that it is not inevitable. Some pervasive drivers of “silo”
thinking are competition among functional and structural groups over resources
such as: money, budget, credit, equipment and workforce.
To reduce the impact of “silo” thinking it is important to allow data and information
to flow across the organization and reduce competition for resources through
prioritization of initiatives in accordance with the organization’s strategic direction
and planning. But when cross-functional problems occur, it is important to make
efforts to successfully tackle them though collaborative problem solving. Put simply,
nothing drives people back into their silos more quickly and effectively than
unresolved problems, and conversely, nothing brings people out of their silos more
quickly and effectively than tackling problems together as a collaborative group.