Chap 7 MGT162

Management ControlManagement Control

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The meaning of controlThe meaning of control

• A systematic effort to set performance standards with planning objectives, to design information feedback systems, to compare actual performance with standards, to determine whether there are any deviations and to take any action if required.

• Control is the process of ensuring that actual activities conform to planned activities.

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Process of Control Slide 3 of 3

Process of Control Slide 3 of 3

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Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

Steps in the control Steps in the control processprocess

• 1.Establish standards and methods for measuring performance.-standards should be stated in clear, measurable terms that include specific deadlines.

• 2.Measure performance-measurement is an ongoing repetitive process.

• 3.Determine whether performance matches the standard-This is the easiest step in the control process

• 4.Take corrective action-This step is necessary if performance falls short of standards and the analysis indicates action is required.

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The importance of control

• 1.Change-Control systems should be able to detect changes affecting org.

• 2.Complexity-A more formal and careful control approach is required.

• 3.Mistakes-allows managers to detect mistakes before they become critical

• 4.Delegation-allows managers to check on subordinates progress

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Types of control methodsTypes of control methods

• 1.Pre-action control• 2.Steering control• 3.Screening or Yes/No control• 4.Post-action control

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1.Pre-Action Contro1.Pre-Action Controll

• Control before an action is undertaken e.g before a new product is launch, marketers conduct market testing.

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Allow corrective action to be taken before a particular sequence of actions is completed.e.g after launching a new product, marketers will monitor competitors, customers and dealers reaction and take corrective actions if required.

3.Screening or Yes/No controls3.Screening or Yes/No controls

Provides a screening process in which specific aspects of a procedure must be met before the operations is allowed to proceed.e.g large customers withdrawal must be approved by a bank officer.

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4.Post-action controls4.Post-action controls

Measure the result of a completed action e.g marketers conducted Profitability analysis to assess the profitability of the new product

Selecting the Focal Point for Control

Selecting the Focal Point for Control

• Feedforward (Preventive) Control– Focuses on detecting undesirable material,

financial, or human resources that serve as inputs to the transformation process.

• Concurrent Control– Focuses on the transformation process to

ensure that it is functioning properly.

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Selecting the Focal Point for Control Slide 2 of 2

Selecting the Focal Point for Control Slide 2 of 2

• Feedback Control– Focuses on discovering undesirable output and

implementing corrective action.

• Multiple Focal Points– Most organizations use several control systems

focused on various phases of the transformation process.

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Control Focal PointsControl Focal Points

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Control system

Transformationprocess

Inputs Outputs

Feedforward control

Concurrent control

Feedback control

Characteristics of effective control Characteristics of effective control systemssystems

1.Accurate-provide accurate info

2.Timely-up to date info

3.Objective and comprehensive-clear and measurable

4.Focused on strategic control points-focus on key areas such as finance and quality

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Characteristics of effective control systems

5.Economically realistic-cost should be less than the benefits

6.Organizationally realistic-org should have adequate resources

7.Flexible-adaptable to changes8.Prescriptive and operational-describe the corrective

actions to be taken9.Accepted by organizational members

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Management from the Islamic Management from the Islamic perspectiveperspective

The management process based on the Quran and the Sunnah to promote societal well being and Islamic values.-Islamic mgt seek to achieve a balance between org profit, customer satisfaction,

societal well being and Islamic values.

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The principles Management from the The principles Management from the Islamic perspectiveIslamic perspective

1.Tauhid-work an an Ibadah or way of submission to Allah

2.Syura-the importance of teamwork3.Justice-the importance of fairness4.Masruai’ah-the concept of legality based on the

syariah laws5.Qualification-based on competencies 6.Maslahah-priority based on Islamic values

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