Republic of the Philippines BATANGAS STATE UNIVERSITY College of Engineering, Architecture, Fine Arts and Computing Sciences Mechanical

Engineering Department

FINAL EXAMINATION

ME 555 Engineering Management

Mendoza, John Archie C. ME 5101

Engr. Adrian Ferdinand M. Melo Instructor

October 04, 2011

I. Enumerate and briefly explain the steps in controlling. Are they applicable to all companies and in every situation?

The control process involves carefully collecting information about a system, process, person, or group of people in order to make necessary decisions about each. Managers set up control systems that consist of four key steps: A. Establish standards to measure performance. Within an organization's overall strategic plan, managers define goals for organizational departments in specific, operational terms that include standards of performance to compare with organizational activities.Standards are created when objectives are set during the planning process. Standard is a guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard. B. Measure actual performance. Most organizations prepare formal reports of performance measurements that manager 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. C. Compare performance with the standards. 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 variancethat is, the difference between each actual amount and the associated standard. D. Take corrective actions. When performance deviates from standards, managers must determine what changes, if any, are necessary and how to apply them. In the productivity and quality-centred 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 stepcorrective action. The most effective course may be prescribed by policies or may be best left up to employees' judgment and initiative. Yes, these steps of controlling are applicable to all companies in every situation in such a way that they are used in evaluating the effectiveness of the production of their company. These steps must be repeated periodically until the company goal is achieved.

II. Planning and controlling are often thought of as a system. What is meant by this concept?

Of the five management functions planning, organizing, staffing, leading and controlling planning is the most fundamental. All other functions stem from planning. However, planning doesn't always get the attention that it deserves; when it does, many managers discover that the planning process isn't as easy as they thought it would be or that even the best-laid plans can go awry. Regardless of the thoroughness of the planning done, a program or decision still may be poorly or improperly implemented without a satisfactory control system in place. In management functions, there also exists a special relationship between the planning function of management and controlling. Planning, essentially, is the deciding of goals and objectives and the means of reaching them. Controlling lets manager tell if the organization is on track for goal achievement, and if not, why not. A well-developed plan should provide benchmarks that can be used in the control process. Controls serve other important roles including helping managers cope with uncertainty, detecting irregularities, identifying opportunities, handling complex situations, and decentralizing authority. Like planning, controlling responsibilities differ by managerial level with control responsibilities paralleling planning responsibilities at the strategic, tactical, and operational level.

III. In what way is performance appraisal a component of management control system?

Most major organisations have performance appraisal systems, but there are considerable variations as to what is appraised and how the appraisal is carried out. A major reason for this is the broad range of purposes that appraisal is expected to achieve. These include determining individual contributions to organisational goals; providing feedback on past performance; encouraging learning and personal development; allocating financial or other rewards; identifying and, some would say, promoting staff values; identifying future potential; promoting rapport between managers and individual employees. No process can be expected to successfully achieve all of this, which is probably why so much dissatisfaction is expressed about performance appraisal. The extent to which any of these purposes are achieved will depend on the approach followed by the particular organisation, both in terms of its espoused philosophy and the reality of how appraisal is carried out.

IV. Some supervisors are able to literally hold their subordinates by the nose. How effective is this management style as a control devise?

This was a method described and used to great effect by General George S. Patton. The underlying pattern is that you are doing what the rival expects, creating a pattern of forward conflict and engaging their attention whilst the main force pulls a flanking move. This is an analogy that can be applied as management style as a control devise. In an organization, managers come face-to-face with their subordinates, whether in asking for a particular procedure or with complement on production and products. In such cases split your reaction. First, do what your subordinates is likely to think you will do, for example by being strict to them and engaging them in fear to boss feeling. Whilst this is going on, develop a kind superior approach, for example by quickly bringing out a boss feeling to a very good complement.

performance appraisal that will turn their fear to

V. Distinguish planning from controlling.

Controlling is that process of regulating organizational activities so that actual performance conforms to expected organizational goals and standards. Controlling acts as an adjustment in

organisational operations. It mainly checks whether plans are being observed and suitable progress towards the objectives is being made or not, and if necessary any action to control the deviations. It ensures the organisational efficiency and effectiveness. When Proper system exists the organisation effectively achieves its objectives. Controlling is determining what is being accomplished - that is, evaluating performance and, if necessary, applying corrective measures so that performance takes place according to plans. Control is a continuous process, it follow a definite pattern and time-table, month after month and year after year on a continuous basis. Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. It involves setting objectives and developing appropriate courses of action to achieve these objectives. Planning allows managers the opportunity to adjust to the environment instead of merely reacting to it. Planning increases the possibility of survival in business by actively anticipating and managing the risks that may occur in the future

VI. What makes planning and controlling inseparable?

Planning and controlling are two separate functions of management, yet they are inseparable. The scope of activities if both is overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absence of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other. According to Billy Goetz, Relationship between the two can be summarized in the following points 1. Planning precedes controlling and controlling succeeds planning. 2. Planning and controlling are inseparable functions of management. 3. Activities are put on rails by planning and they are kept at right place through controlling. 4. The process of planning and controlling works on Systems Approach which is as follows: Planning Results Corrective Action

Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise. 5. Planning and controlling reinforce each other. Each drives the other function of management. Since dynamic environment affects the organization, the strong relationship between the two is critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling comes to the rescue. And once controlling is done effectively, it gives stimulus to make better plans. Therefore, planning and controlling are inseparable functions of management.

REFERENCES: http://www. changingminds.org/ management / disciplines /tactics/hold_nose.html http://www.cliffsnotes.com/study_guide/The-Organizational-Control-Process.topicArticleId8944,articleId-8925.html http://www.docstoc.com/docs/8392422/Relationship-between-Planning-and-Controlling-functions-ofManagement http://www.reportbd.com/articles/148/1/Control-Process-Steps-Last-Part/Page1.html http://www.satc.org.uk/33/performance-appraisal-a-means-of-development-or-control/ http://www.zainbooks.com/books/management/principles-of-management_44_controlling-and-amanagement-function.html