Beruflich Dokumente
Kultur Dokumente
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Introduction
The process of setting standards and evaluation performance against the set standards to make corrective adjustments if needed to meet the desired objectives as stated in the plan.
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Minimize costs
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Types of Controls
Areas of Control
Physical resourcesinventory management, quality control, and equipment control. Human resourcesselection and placement, training and development, performance appraisal, and compensation. Information resourcessales and marketing forecasts, environmental analysis, public relations, production scheduling, and economic forecasting.
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Controlling process
Steps.
1 Establi sh standar ds Meas ure performan ce 2 Comp are performance against standards 3 4
Chan ge standar ds
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Establish Standards
Control standards should be expressed in measurable terms. Control standards should be consistent with organizational goals. Control standards should be identifiable indicators of performance.
Measure Performance
Performance measurement is an ongoing process.
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Contd.
Define what is a permissible deviation from the performance standard. Utilize the appropriate timetable for measurement.
Maintain the status quo (do nothing). Correct the deviation to bring operations into compliance with the standard.
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Preliminary control
Screening control
Postaction control
Focuses on outputs from the organizational system
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Financial Control
Control of financial resources (i.e., revenues, shareholder investment) as they flow into the organization, are held by the organization (i.e., working capital, retained earnings), and flow out of the organization (i.e., payment of expenses).
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the more control is linked to planning, the more effective the control system.
Flexibility
Accuracy
Inaccurate information results in bad decision making and inappropriate managerial actions.
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Contd.
Timeliness
Objectivity
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