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Effective Control Systems for Achieving Goals: Standards, Measurement, and Corrective Actions

Discover how to set effective standards and measure performance to ensure your organizational goals are met. This guide walks you through the process of defining measurable goals, evaluating actual performance against these standards, and identifying significant deviations that require corrective action. Learn to implement strategic control points and leverage tools for effective monitoring. Understand the qualities of an effective control system and how to avoid pitfalls that might hinder success. Achieve operational excellence through structured control measures and focused leadership.

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Effective Control Systems for Achieving Goals: Standards, Measurement, and Corrective Actions

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Presentation Transcript

  1. CONTROL MAKING SURE GOALS ARE ACHIEVED

  2. 1. SET STANDARDS • STATE GOALS IN MEASURABLE PERFORMANCE • STANDARDS COME FROM • GOALS • GOVERNMENT • CUSTOMER • HISTORICAL

  3. 2. MEASURE ACTUAL PERFORMANCE • WHAT • WHERE • WHEN • HOW

  4. WHAT, WHERE, WHEN • CRITICAL, STRATEGIC CONTROL POINTS • IMPORTANT OPERATIONS, TASKS, OUTCOMES • WHEN PROBLEMS “SMALL,” CAN FIX • SEASONAL, CYCLICAL

  5. HOW TO MEASURE • TOOLS • JUDGMENT • OBSERVATION

  6. 3. COMPARE ACTUAL TO STANDARD • SIGNIFICANT DEVIATION • ACCEPTABLE PERF., BEHAVIOR • EXCEPTION PRINCIPLE • WATCH TRENDS

  7. SIGNIFICANT DEVIATION • BUDGET IS 10,000 UNITS/MONTH • VARIANCE = 400 +, - • POLICY • ACCEPTABLE LIMITS

  8. EXCEPTION PRINCIPLE * ___________________________________ * * * * ___________________________________

  9. TRENDS ___________________________________ * * * * * ___________________________________

  10. 4. CORRECTIVE ACTION • NEGATIVE DEVIATION • POSITIVE DEVIATION

  11. +, - DEVIATION • BUDGET IS 10,000 UNITS/MONTH • VARIANCE = 400 +, - • ACTUAL = 9,100 • OUT OF CONTROL

  12. +, - DEVIATION • BUDGET IS 10,000 UNITS/MONTH • VARIANCE = 400 +, - • ACTUAL = 10,500 • OUT OF CONTROL??

  13. IF “OUT OF CONTROL” • OPERATIONS OUT OF CONTROL • GOALS NOT APPROPRIATE • CONTROLS NOT WORKING, NOT APPROPRIATE

  14. CONTROL TOOLS • BUDGETS, STATEMENTS • RULES, PROCEDURES, POLICY • DIRECT SUPERVISION • GOALS • CHARTS

  15. CONTROL TOOLS • COUNTERS • CULTURE • NORMS • RITUALS • BEHAVIOR OF MANAGER • PERCEPTIONS

  16. CONTROL TOOLS • PERFORMANCE APPRAISAL • SELECTION • SOCIALIZATION • TRAINING • SELF MONITORING

  17. TYPES OF CONTROLS • FEEDFORWARD • INPUT • PRELIMINARY

  18. TYPES OF CONTROLS • CONCURRENT • PROCESS • STEERING

  19. TYPES OF CONTROLS • FEEDBACK • POST ACTION • OUTPUT • YES/NO

  20. POSSIBLE NEGATIVES OF CONTROLS • HIGHLIGHTS FAILURE • REWARD NOT TIED TO CONTROLS • EMPHASIS ON NUMBERS • EMPHASIS ON ONE PART • NOT UNDERSTOOD, ACCEPTED

  21. POSSIBLE NEGATIVES OF CONTROLS • BEIGN “WATCHED” • IMPOSED FROM ABOVE • USEFUL THER, NOT TO PERSON • INADEQUATE TRAINING, SKILL • INADEQUATE INCENTIVE

  22. QUALITIES OF EFFECTIVE CONTROL SYSTEM • ACCURATE • VALID • RELIABALE • TIMELY • STRATEGIC CONTROL POINTS • FORWARD LOOKING • EXCEPTION PRINCIPLE

  23. QUALITIES OF EFFECTIVE CONTROL SYSTEM (CONT’D) • ECONOMICAL • FLEXIBLE • UNDERSTANDABLE • MULTIPLE CRITERIA

  24. QUALITIES OF EFFECTIVE CONTROL SYSTEM (CONT’D) • LEAD TO CORRECTIVE ACTION • COORDINATED WITH WORK FLOW, ORG. DESIGN • COORDINATED WITH PEOPLE • FOCUSED ON MISSION

  25. RELATIONSHIPS: GOALS AND • DELEGATION OF AUTHORITY • LEADER EXAMPLE • MOTIVATION • GOALS, PLANS, MISSION • COMMUNICATION • PERFORMANCE APPRAISAL

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