PART 5: CONTROLLING
CHAPTER 13 - FOUNDATIONS OF CONTROL
After reading this chapter students should be able to:
1. Explain the nature and importance of control.
2. Describe the three steps in the control process.
3. Discuss the types of controls organizations and managers use. 4. Discuss contemporary issues in control.
Opening Vignette—Baggage Blunders
Terminal 5 (T5), built by British Airways for $8.6 billion, is London Heathrow Airport’s newest state-of-the art facility. Made of glass, concrete, and steel, it’s the largest free-standing building in the United Kingdom and has over 10 miles of belts for moving luggage. After two decades in planning and 100 million hours in manpower, opening day didn’t work out as planned. Endless lines and major baggage handling delays led to numerous flight cancellations stranding many irate passengers. Airport operators said the problems were triggered by glitches in the terminal’s high-tech baggage-handling system. With its massive automation features, T5 was planned to ease congestion at Heathrow and improve the flying experience for the 30 million passengers expected to pass through it annually. With 96 self-service check-in kiosks, over 90 fast check-in bag drops, 54 standard check-in desks, and over 10 miles in suitcase moving belts that were supposed to be able to process 12,000 bags per hour, the facility’s design seemed to support those goals. Teaching Tips:
1. Why is the control stage so important?
2. What went wrong?
3. Were the goals accomplished?
1. WHAT IS CONTROL AND WHY IS IT IMPORTANT?
2. Control is the management function involving the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations. a) An effective control system ensures that activities are completed in ways that lead to the attainment of the organization’s goals. b) The effectiveness of a control system is determined by how well it facilitates goal achievement.
Right or Wrong?
The practice is called “sweethearting.” It’s when cashiers use subtle tricks to pass free goods to friends, doing things such as concealing the barcode, slipping an item behind the scanner, passing two items at a time but only charging for one. It’s impossible for even the most watchful human eyes to keep it from happening. So retailers are using technology to block it. Surveillance cameras are used to record and study cashiers staffing checkout lines. 1. What do you think?
2. Is surveillance less invasive when it’s a computer watching instead of a human? 3. How could an organization make sure it’s doing things ethically? c) Why is Control Important?
3. There is no assurance that activities are going as planned and that the goals managers are seeking are, in fact, being attained. 4. Control is the final link in the functional chain of management. 5. The value of control lies predominantly in its relation to planning and delegating activities. a) Objectives give specific direction to managers.
b) The effective manager needs to follow up.
c) The Control Process
6. Three separate and distinct steps: (1) measuring actual performance, (2) comparing actual performance against a standard, and (3) taking managerial action to correct deviations or inadequate standards. (See Exhibit 13-1.) 7. The control process assumes that standards of performance are created in the planning function. a) Then objectives are set—tangible, verifiable, and measurable. b) Objectives then are the standards against which progress is measured and compared. c) Planning must precede control.
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