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Control
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Dominic Lococo
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Updated May 13, 2021
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Chapters
00:00
Control
00:28
The process of monitoring, comparing and correcting work performance.
02:46
Why is control important?
03:01
Because it is the only way managers know whether organisational goals are being met.
03:50
Because of employee empowerment. It encourages manager to delegate
05:38
Because it protects the organisation and its assets with comprehensive controls, and backup plans
06:46
Feedback control method
07:35
Establish standards of performance
08:21
Measure actual performance
08:40
Compare performance to standards
08:59
Take corrective action
10:14
The balanced scorecard
10:55
Financial performance
11:48
Customer service
12:32
Internal business processes
13:24
Potential for learning and growth
Audio Transcript
Auto-generated
00:02 - 00:02
Hi everyone.
00:03 - 00:07
This is week nine in Bu MGT 15 oh one
00:07 - 00:11
Management principles um and week nine is on control.
00:12 - 00:14
So managers all need to control their staff.
00:15 - 00:17
But there are different ways to control their traditional ways
00:17 - 00:20
and more um modern, progressive ways.
00:20 - 00:23
We're going to be looking in this short video just
00:23 - 00:25
at the at the meaning of control.
00:26 - 00:31
So um let's have a look at that.
00:31 - 00:36
That's the working definition is the process of monitoring, comparing
00:36 - 00:38
and correcting work performance.
00:39 - 00:42
Alright, so monitoring is referring to the ability to be
00:42 - 00:43
able to supervise.
00:43 - 00:45
You don't actually have to supervise with your eyes.
00:46 - 00:48
You can actually look at different ways to monitor staff.
00:49 - 00:53
And that could be through some type of electronic forms
00:53 - 00:55
or it could be through a checklist or it could
00:55 - 00:56
be through meetings or something like that.
00:57 - 01:00
Um Then there needs to be some type of comparison
01:01 - 01:07
as well because uh control is really a conclusion um
01:07 - 01:10
uh from the occurrence of something else.
01:11 - 01:14
So you need to compare um staff one staff member
01:14 - 01:18
against another staff member or even one team against another
01:18 - 01:20
team or one group against another group.
01:20 - 01:25
And from there you can identify where the similarities are,
01:26 - 01:29
where the differences are, where the uh strengths are where
01:29 - 01:29
the weaknesses are.
01:30 - 01:33
And there you can make conclusions after making the conclusions.
01:34 - 01:39
You can then make decisions on what are the weaknesses
01:40 - 01:44
or the um the disadvantage is that need to be
01:44 - 01:47
fixed within that individual the group the team.
01:48 - 01:51
And then you can undertake some corrective action.
01:52 - 02:00
So that corrective action could um be a change in
02:00 - 02:03
the tasks that change in the strategy is the change
02:03 - 02:08
in the approach to the work, the delivery of the
02:08 - 02:13
work, the attitude of um the individual, the group, the
02:13 - 02:14
team and so forth.
02:14 - 02:17
So that's really up to managers to decide as to
02:18 - 02:19
how to make that correction.
02:20 - 02:26
But that is the working definition of control, the way
02:26 - 02:26
that you do.
02:27 - 02:31
That is obviously um uh up for discussion, up for
02:31 - 02:35
debate. There are lots of theories and philosophies about that.
02:36 - 02:38
So we will look at some of those um in
02:39 - 02:43
this um uh present video as well as future present
02:44 - 02:44
videos too.
02:48 - 02:51
But first I want to talk about why control is
02:51 - 02:56
important. So um control is important for a number of
02:57 - 03:05
reasons. Um firstly it's because it is the only way
03:05 - 03:09
managers know whether organizational goals are being met.
03:10 - 03:17
So um if uh a goal is not being met,
03:17 - 03:20
then there is not sufficient control.
03:20 - 03:21
There isn't sufficient monitoring.
03:22 - 03:26
There isn't sufficient comparison of strengths and weaknesses and there
03:26 - 03:28
isn't sufficient corrective action.
03:29 - 03:31
So it is important to understand what the goals of
03:31 - 03:34
the organization are and then to be able to use
03:35 - 03:39
that as the measure of determining whether um uh more
03:40 - 03:45
control or less control is needed and what type of
03:45 - 03:57
control should that be control also empowers workers.
03:58 - 04:03
So, female empowerment is a big issue at the moment,
04:03 - 04:07
making sure that women are included in the workforce, women
04:07 - 04:11
are included at higher levels and senior levels in the
04:11 - 04:14
workforce, and making sure that there is a parody of
04:14 - 04:16
wages amongst women.
04:17 - 04:23
Um But control from the manager perspective allows um the
04:23 - 04:28
ability to overview the situation and to compare the situations
04:29 - 04:29
in this case.
04:30 - 04:32
Um If it's to do with female empowerment is to
04:32 - 04:37
compare the situation of the female worker in the workplace
04:37 - 04:40
with um situation of the male worker in the workplace
04:41 - 04:43
and then to make some corrective action.
04:44 - 04:49
If there is disparity of wages, there is a different
04:49 - 04:54
percentage of men compared to women in senior positions and
04:55 - 04:55
so forth.
04:56 - 05:00
That could be done though, in relation to all types
05:00 - 05:00
of tasks.
05:01 - 05:05
So that could be done in relation to making sure
05:06 - 05:09
that you empower workers so that they have a level
05:10 - 05:13
of independence to be able to innovate, to be able
05:13 - 05:16
to make decisions that they are technically capable of doing
05:17 - 05:24
so. Control ensures that there is a sufficient level of
05:25 - 05:31
um uh management as well as a sufficient level of
05:32 - 05:35
um worker ability to complete their tasks.
05:42 - 05:45
Control also protects the organization and its assets with comprehensive
05:47 - 05:52
control activities strategies, but also backup plans.
05:53 - 05:58
So it's important to have backup plans because if um
05:58 - 06:03
the initial ideas of how to control workers in an
06:03 - 06:10
organization fails to be able to achieve the goals that
06:10 - 06:13
are set by the organization, then it's important to consider
06:14 - 06:16
what other alternatives are there.
06:16 - 06:18
How else can we achieve those goals?
06:18 - 06:23
What activities or strategies or plans can be put in
06:23 - 06:29
place, enable to achieve those goals more efficiently or effectively
06:30 - 06:31
or at all.
06:32 - 06:37
Um So control um comes in uh as a very
06:37 - 06:42
important concept in workplaces and there are three main reasons
06:43 - 06:43
for that.
06:50 - 06:52
All right, I want to move on now and talk
06:52 - 06:54
about a particular type of control method.
06:55 - 06:58
So there are different types of of ways of controlling
06:59 - 07:05
staff for organizational goals, um as I mentioned, but we
07:05 - 07:07
need to look at some concrete examples.
07:08 - 07:12
Hopefully that will give you some more understanding practical understandings
07:12 - 07:13
of the concept.
07:14 - 07:18
Um So the feedback control method is a control method
07:19 - 07:21
that focuses on the organization's outputs.
07:22 - 07:25
Um So sometimes it's also called the post action or
07:25 - 07:29
output control method, um and it involves a number of
07:29 - 07:40
steps. The first step is to establish standards of performance,
07:41 - 07:46
so standards um that are established what needs to be
07:46 - 07:50
achieved. That that's the level or the level that needs
07:50 - 07:53
to be achieved by workers, needs to relate to the
07:53 - 07:57
strategic goals of the organization, because that's what gives it
07:57 - 07:59
its legitimacy, its justification.
08:00 - 08:05
Um, so once you have these standards, uh, then you
08:06 - 08:10
can actually look at the performance of staff and you
08:10 - 08:15
can then make comparisons and if necessary, take corrective action.
08:16 - 08:20
So having a standard that all staff need to meet
08:21 - 08:26
is essential, then you need to actually measure the actual
08:26 - 08:27
performance of the staff.
08:28 - 08:32
So there's no point having a standard if you're not
08:32 - 08:35
going to utilize that as a, you know, as a
08:36 - 08:40
measuring stick for actual performance of workers.
08:42 - 08:46
Once you uh measure the performance of workers, you can
08:46 - 08:48
compare that performance against the standards.
08:48 - 08:53
So you've got a benchmark, uh and uh an ability
08:54 - 08:57
to make a comparison and ability to make a conclusion.
08:58 - 09:02
Um Once you do that, then you can take corrective
09:03 - 09:07
action. If corrective action is needed, obviously it's not needed
09:07 - 09:07
in all cases.
09:08 - 09:13
And that's something that you'll need to uh decide as
09:13 - 09:13
a manager.
09:14 - 09:16
So it is a judgment court, but it's a judgment
09:17 - 09:22
call based on um uh an objective criteria and then
09:24 - 09:27
a way of of understanding performance.
09:28 - 09:31
Obviously, you need to consider how you're going to measure
09:32 - 09:32
actual performance.
09:33 - 09:37
Um You may use observations, you may get feedback from
09:37 - 09:42
others, you may use statistics, um but you'll need to
09:42 - 09:45
develop a way of measuring actual performance.
09:47 - 09:50
Um then you can compare it and you can make
09:51 - 09:52
some corrective action if necessary.
09:53 - 09:55
If no action is needed, then that's fine.
09:56 - 10:02
Um You've addressed the um standard and that the standards
10:02 - 10:05
being met and and therefore the strategic goals of the
10:06 - 10:10
of the organization should be able to be achieved from
10:10 - 10:10
the actual performance.
10:17 - 10:23
Another example um of control is the balance school sheet.
10:24 - 10:28
Now the balance school shape um is a management control
10:28 - 10:35
system that balances traditional financial measures with operational measures relating
10:35 - 10:38
to a company's critical success factors.
10:39 - 10:45
So it's a very comprehensive way of analyzing um the
10:45 - 10:49
performance of of um workers and an organization.
10:50 - 10:57
And there are actually four perspectives for main perspectives in
10:57 - 10:59
relation to this type of control system.
11:00 - 11:03
Um So one issue is the financial control.
11:05 - 11:15
So financial control is able to address um financial targets
11:15 - 11:21
and um and then able to measure those um actual
11:22 - 11:28
financial achievements uh and then determine whether the targets have
11:28 - 11:28
been met.
11:29 - 11:32
Uh And if not then corrective action could be taken.
11:32 - 11:38
So it looks at um the organization from four perspectives
11:39 - 11:40
and the key one.
11:40 - 11:43
The first one not the only one, but the key
11:43 - 11:44
one is financial performance.
11:45 - 11:51
And then um the next consideration it's customer service.
11:52 - 11:55
So again, the same thing takes place here.
11:55 - 11:57
There needs to be some targets set.
11:57 - 12:00
And then your niche actually need to measure um customer
12:01 - 12:02
service performance.
12:03 - 12:06
And then you need to determine whether that's been um
12:08 - 12:09
uh with the targets have been achieved.
12:10 - 12:12
And if not, then there needs to be some corrective
12:13 - 12:14
action taken.
12:14 - 12:21
So it's um similar to the feedback control method, but
12:21 - 12:26
it has a more comprehensive approach by looking at the
12:27 - 12:29
organization from a number of perspectives.
12:31 - 12:36
The third perspective is the internal business processes.
12:39 - 12:47
So there again, you'd be looking at whether the uh
12:47 - 12:53
you know, whether the way that businesses manufacture or deliver
12:54 - 13:02
or produce goods and services um uh is meeting target.
13:02 - 13:06
So again, you set the targets, You have to assess
13:06 - 13:12
the um whether those targets have been met, uh and
13:12 - 13:16
then uh once you compare that you can make a
13:16 - 13:21
conclusion as to uh whether corrective action needs to be
13:21 - 13:22
taken or not.
13:28 - 13:33
And the fourth perspective, in relation to the balanced scorecard
13:33 - 13:37
control method is to look at the learning and growth
13:38 - 13:39
that takes place within the organization.
13:40 - 13:43
So there should be some targets there and it really
13:43 - 13:47
depends on the organization, but um you could normally put
13:47 - 13:54
in targets such as uh improved qualifications or improved um
13:54 - 13:59
training in particular software or new software, um and then
14:00 - 14:06
to assess the actual measurements um to actually assess whether
14:06 - 14:09
they've been achieved and if they haven't been achieved, that
14:09 - 14:11
some corrective action needs to be taken.
14:14 - 14:17
So um that's all I wanted to discuss in this
14:17 - 14:18
Prezi video.
14:19 - 14:23
Um And so in summary, it's just a look at
14:23 - 14:28
uh an introduction that control and understanding of the definition
14:29 - 14:34
of control um and an understanding of how control can
14:35 - 14:42
um take place by looking at the balanced scorecard, a
14:42 - 14:45
system as well as the feedback control model.
14:47 - 14:49
Hopefully that's been informative for you.
14:49 - 14:50
I'll see you in the next video.
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