Chapter 5 - Controls and control systems: What gets measured happens. After reading this chapter, you should be able to answer the following questions: How and why do managers use the control process? What types of controls are used by managers? What are some useful organizational control tools and techniques? | Chapter 5 Controls and Control Systems Exploring Management Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-1 Chapter 5 “Self-awareness is crucial . . . but when it comes to understanding how others see us, many of us are in the dark . . . leads to bad decisions and spoiled relationships.” Research study on how others see us. Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-2 2 Learning Objectives Chapter 5 How and why do managers use the control process? () What types of controls are used by managers? () What are some useful organizational control tools and techniques? () Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-3 3 CONTROL Takeaway – answers to come Controlling is one of the four management functions. Step 1 - Control begins with objectives and standards. Step 2 - Control measures actual performance. Step 3 - Control compares results with objectives and standards. Step 4 - Control takes corrective action as needed. Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-4 4 CONTROL Control as a Management Function Controlling is the process of measuring performance and taking action to ensure desired results. Figure Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-5 5 CONTROL Control Process Step 1: Control begins with objectives and standards. Output standards measure results in terms of quantity, quality, cost, or time. Input standards measure the work efforts that go into the performance task. Figure Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-5 6 CONTROL Control Process Step 2: Control measures actual performance. Agreed-upon standards Accurate and timely measurement Figure Schermerhorn, Exploring Management, . | Chapter 5 Controls and Control Systems Exploring Management Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-1 Chapter 5 “Self-awareness is crucial . . . but when it comes to understanding how others see us, many of us are in the dark . . . leads to bad decisions and spoiled relationships.” Research study on how others see us. Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-2 2 Learning Objectives Chapter 5 How and why do managers use the control process? () What types of controls are used by managers? () What are some useful organizational control tools and techniques? () Schermerhorn, Exploring Management, Fifth Edition, © John Wiley & Sons, Inc. All rights reserved. 5-3 3 CONTROL Takeaway – answers to come Controlling is one of the four management functions. Step 1 - Control begins with objectives and standards. Step 2 - Control measures actual performance. Step 3 - .