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Controlling- CHAPTERS 27, 28, & 29

Controlling- CHAPTERS 27, 28, & 29. CHAPTER 27. Controlling: It monitors performance and takes corrective action when there is a deviation in standards It ensures that performance is consistent with plans and the goals and objectives of the department and organization is achieved

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Controlling- CHAPTERS 27, 28, & 29

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  1. Controlling- CHAPTERS 27, 28, & 29

  2. CHAPTER 27 Controlling: • It monitors performance and takes corrective action when there is a deviation in standards • It ensures that performance is consistent with plans and the goals and objectives of the department and organization is achieved • It is performed simultaneously with planning, organizing, staffing, and influencing • It regulates employee behavior

  3. Three Types of Control systems • Anticipatory - Proactive approach - Controls are built into the system to prevent mistakes by taking care of potential problems in advance • Concurrent - Monitors processes or activities and discovers problems as they occur • Feedback - Signals the supervisor after the event has occurred - Helps the supervisor to make improvements on processes and prevent further deviation and recurrence - it is the least desirable type of control system

  4. Basic Requirements of a Control system • Be understandable • Reports deviations quickly and timely • Be appropriate, adequate, and economical • Be flexible • Indicates where corrected action should be applied

  5. CHAPTER 28 Four steps in a control model: • The supervisor sets tangible and intangible standards - Examples of tangible standards are physical and cost standards - Tangible standards are both qualitative and quantitative in nature - Examples of intangible standards are reputation, quality of medicine, excellence in patient care, level of employee morale - Tools for measuring intangible standards include attitude surveys, questionnaire, and interviews - It is much more difficult to set intangible standards than tangible standards - Standards state what should be done, are derived from organizational goals and objectives, and should be expressed in terms that can be measured

  6. Steps in the Control Model Contd. • The supervisor must check and appraise performance and compare against expected standards on an ongoing basis - Techniques used to measure performance include direct observation, and oral and written reports • The supervisor takes corrective action if standards are not met • The supervisor must follow up to determine the effectiveness of the corrective action

  7. CHAPTER 29 Budgeting as a Control device: • It is an effective managerial tool • It is a written plan expressed in dollars and cents, representing income and expenses • Of all available control devices, the budget is probably the device that the supervisor is most familiar • Budgets usually cover a one year period

  8. Budgeting Approaches • Rolling • Flexible • Traditional • Zero-base

  9. Types of Budgets • Revenue and expense • Capital • Cash

  10. Three Approaches in Preparing the Budget • Pre-approach • Proof • Publication

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