Sandwich Blitz Inc. 4 Controls

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How can Lei apply the four step control process outlined in the text to address the problem of misreporting hours? Solution: A Control system has four control steps i.e. Setting performance standards, Measuring performance, Comparing performance against the standards and determining deviations, Taking action to correct problems and reinforce successes. Lei can apply all the four control process in the following ways: 1. Setting performance standards: Lie can set the standard performance for achieving organizational goals. Standards can be set on departmental level such as financing, operating, legal etc. Performance standards are set to compare it with the actual performance & take corrective action. 2. Measuring performance: After setting performance standard for Sandwich Blitz Inc., compare it with the actual performance. In this situation no. of units produced & the no. of working hours reported in the time sheet can be measured. 3. Comparing performance against the standards and determining deviations: After measuring the actual performance by employees, it must be compared with the set performance standard. If the deviation exists determine the cause of deviation. In this situation if the no. of units produced is less than standard than determine the reason for deviation by enquiring supervisors. 4. Taking action to correct problems and reinforce successes: After comparing & determining the deviation corrective actions must be taken immediately by the management. In this case Lie should take corrective action by immediately modifying or update the employee handbook, so that this type of discrepancy will not be repeated in the future.
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