14 Chapter Foundations of Control © Pearson Education Limited 2015 14-1 Learning Outcomes • Explain the nature and importance of control • Describe the three steps in the control process • Discuss the types of controls organizations and managers use • Discuss contemporary issues in control © Pearson Education Limited 2015 14-2 14.1 Explain the nature and importance of control © Pearson Education Limited 2015 14-3 The Communication Process © Pearson Education Limited 2015 14-4 The Importance of Control © Pearson Education Limited 2015 14-5 14.2 Describe the three steps in the control process © Pearson Education Limited 2015 14-6 The Control Process © Pearson Education Limited 2015 14-7 Measuring Performance Sources of information: • Personal observation • Statistical reports • Oral reports • Written reports © Pearson Education Limited 2015 14-8 Criteria for Measurement What managers measure is probably more important to the control process than how they measure © Pearson Education Limited 2015 14-9 Range of Variation © Pearson Education Limited 2015 14-10 Feedward Control © Pearson Education Limited 2015 14-15 Concurrent Control Control that takes place while a work activity is in progress © Pearson Education Limited 2015 14-16 Feedback Control Control that takes place after a work activity is done © Pearson Education Limited 2015 14-17 Keeping Track of an Organization’s Finances: Ratio Analysis © Pearson Education Limited 2015 14-18 Keeping Track of an Organization’s Finances: Budget Analysis Budgets are used for both planning and controlling © Pearson Education Limited 2015 14-19 Keeping Track of an Organization's Information Management information system (MIS): A system used to provide management with needed information on a regular basis © Pearson Education Limited 2015 14-20 Keeping Track of Employee Performance © Pearson Education Limited 2015 14-21 Keeping Track with a Balanced Scorecard Approach • • • • Financial Customer Internal Processes People/innovation/growth assets © Pearson Education Limited 2015 14-22 14.4 Discuss contemporary issues in control © Pearson Education Limited 2015 14-23 Contemporary Issues Cross-cultural differences Workplace concerns © Pearson Education Limited 2015 14-24 Cultural Differences © Pearson Education Limited 2015 14-25 Controlling Technology Usage Is my work computer really mine? Do I have a right to privacy at work? © Pearson Education Limited 2015 14-26 Controlling Employee Theft © Pearson Education Limited 2015 14-27 Controlling Workplace Violence © Pearson Education Limited 2015 14-28 © Pearson Education Limited 2015 14-29