1. Designing and Implementing Controls The Control Process The management function concerned with monitoring activities to ensure that they are being accomplished as planned and/or correcting any significant deviations.

2. The Control Process Measure actual performance Compare results with standards Take corrective action

3. Measuring Performance Common Sources of Information *Personal observation *Statistical reports *Oral reports *Written reports

4. Measuring Performance What You Measure What you measure is probably more important than how you measure it. And What you measure determines, to a great extent, what employees will attempt to emphasize.

5. Comparing Results with Standards Determining the Acceptable “Range of Variation” Cause-effect Diagrams Flow Charts Scatter Diagrams Control Charts

6. Taking Corrective Action Immediate Actions that adjusts something right now and gets things back on track. Basic Action that asks how and why performance diverted and seeks permanent solutions.

7. Types of Controls Preventative Concurrent Correctional (post action)

8. Preventive (Preliminary) Hiring - Training Testing - Screening - Drilling Rules - Regulations Policies - Codes Preventive Maintenance

9. Concurrent Monitoring Workers Equipment Processes Providing “immediate responses” to deviations.

10. Correctional (Post Action) *Inspections *Audits *Reviews *Reports *Results

11. Focus of Control Cost (labor, materials, operating expenses) Improved Efficiency (cost reduction) Inventories Quality Services Safety (accident prevention, OSHA) Employee Performance

12. Characteristics of Effective Controls Timeliness Economy Flexibility Understanding Reasonable Critical Placement Emphasis on the exception

13. Potential Control Problems Employee Resistance Misdirection of Effort Ethics and Control Devices