Text a controlling process Part 1. Four steps in the Controll Process

Controlling is directly related to planning. The controlling process ensures that plans are being implemented properly. It is the final link in the functional chain of management activities and brings the functions of management cycle full circle. Control is the process through which standards for performance of people and processes are set, communicated, and applied. There are four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action.

Establishing performance standards:

Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard. Performance variance can be the result of an unrealistic standard. The natural response for employees whose performance falls short is to blame the standard or the manager. If the standard is appropriate, then it is up to the manager to stand his or her ground and take the necessary corrective action.

Measuring actual performance:

Managers collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information.

Comparing measured performance against established standards:

Managers compare results with standards determining variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Taking corrective action:

The manager must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a manager can take immediate corrective action and get performance back on track. Also, he or she can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation.

Part 2. Forms of Control

Controls are most effective when they are applied at key places. Managers can implement controls

before the process begins (feedforward),

during the process (concurrent), or

after it ceases (feedback).

Feedforward controls focus on operations before they begin. Their goal is to prevent anticipated problems. An example of feedforward control is scheduled maintenance on automobiles and machinery. Regular maintenance feeds forward to prevent problems. Other examples include safety systems, training programs, and budgets.

Concurrent controls apply to processes as they are happening. Concurrent controls enacted while work is being performed include any type of steering or guiding mechanism such as direct supervision, automated systems (such as computers programmed to inform the user when they have issued the wrong command), and organizational quality programs.

Feedback controls focus on the results of operations. They guide future planning, inputs, and process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual) reports so that almost instantaneous adjustments can be made.

Supervisors help employees achieve objectives on a daily basis. Coaching is a behavioral control technique used by the supervisor to give on-going guidance and instruction, to follow day-to-day progress, and to give feedback. Coaching is the informal, day-to-day ongoing instructing of employees, the ability to improve the job performance of employees. It involves teaching, the passing on of knowledge. Coaching is active, instead of passive, and is involved with guiding performance.

Supervisors, who emphasize formal training and day-to-day coaching, reap the benefits of competence, high performance, commitment, and cooperative behavior.

Counseling is a behavioral control technique used by the supervisor to solve performance problems. As a counselor, the supervisor is a helper, discusses the employee's personal problems that are affecting his or her job performance, aiming to resolve them. Managerial counseling is guidance of the employee's behavior.

The control function provides supervisors with opportunities to improve systems on a continuous basis. An emphasis on coaching and counseling can prevent discipline problems.

For example, poor performance due to low ability or inadequate training, learning problems, drug and alcohol dependency, physical or mental illness, marginal health, or disability respond much better to coaching and counseling than to punitive measures. However, disciplinary action as a behavioral control technique is necessary when self-discipline breaks down. Discipline is corrective actions taken by a supervisor when an employee does not abide by organizational rules and standards. Effective discipline can eliminate ineffective employee behavior.

Exercise 5. Comprehension. Answer the questions.

1. What kind of a process is control?

2. What are the steps of the control process?

3. Why is it so important to establish real performance standards?

4. How do managers measure actual performance?

5. Why do managers compare results with standards?

6. In what case can a manager take immediate corrective action?

7. What does management by exception mean?

8. How can deviations be corrected?

9. What types of control can managers implement?

10. What is the difference between feedforward controls and feedback controls?

11. What do concurrent controls imply?

12. How can supervisors help employees achieve objectives on a daily basis?

13. What behavioral control techniques do you know?

14. What do coaching and counseling imply?

15. When is disciplinary action necessary?

Exercise 6. Find the synonyms to the words from list A in list B.

A: query; costs; cease; tolerance; constraint; tardiness; deviation; coaching; accountable; tool; conform; measurement; permissible; blame; deficit;

___________________________________________________

B: survey; responsible; accuse; divergence; correspond; retardation; question; allowed; expenditures; compulsion; leave off; instructing; admittance; shortage; implement;

Exercise 7. Match the words to get word partners from the text.

1. behavioral 2. establishing 3. measuring 4. taking 5. permissible 6. anticipated 7. scheduled 8. organizational 9. direct 10. automated 11. managerial 12. feedback

a. maintenance b. corrective action c. deviation d. controls e. quality programs f. systems g. performance standards h. counseling i. actual performance j. control technique k. supervision l. problems

Exercise 8. Match the terms and their definitions.

1.carrying costs 2. concurrent controls 3. management by exception 4. management by walking around 5. ordering costs 6. purchase costs 7. stockout costs

a) applying to processes as they are happening b) observing employees working c) loss of income from the product not being available d) lets operations continue as long as they fall within the prescribed control limits e) the purchase price plus delivery charges minus discounts f) money tied up in inventory, storage, insurance, taxes etc. g) processing costs including the paperwork, follow up, inspection upon arrival, and others

Exercise 9. Crossword puzzle. All the terms are taken from text A and exercise 3.

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ACROSS

3. The process through which standards are set, communicated and applied.

4. Variation in work performance.

6. Guidance of the employee’s behavior.

7. Promising encouragement.

8. Controls cost or expense related standards.

9. Controls focusing on beginning operations.

10. Controls focusing on the results of operation.

DOWN

1. Basis for measurement.

2. Informal approach to instructing of employees.

5. Permissible deviation from the standards.

Exercise 10. Say what you’ve learned from the text about

1. controlling process;

2. types of control;

3. behavioral control technique;

4. the control function in general.

Exercise 11. Insert the following words into the texts below.

organization access to identify filed

relationships monitoring corrective information

dependent control tools through the use

Evaluating individual work performance is a form of …… because it ties performance feedback to rewards and …… actions. Employee evaluation is an on-going process, taking place informally every day in the ……. One example is computer …… , which tracks an employee's performance as it is taking place.

Computers give supervisors direct access to real time, unaltered data, and ……. On line systems enable managers …… problems as they occur. Database programs allow managers to query, spend less time gathering facts, and be less …… on other people. Managers have ……. to information at their fingertips. Employees can supply progress reports ….. of networks and electronic mail. Statistical reports are easy to visualize and effective at demonstrating ……. Written reports provide comprehensive feedback that can be easily …… and referenced. Computers are important …… for measuring performance.

Exercise 12. Say it in English.

1. Чтобы скорректировать отклонения, нужно определить людей, ответственных за результат, и затем принять необходимые меры.

2. План направляет менеджеров в использовании ресурсов, но затем их работа должна проверяться для того, чтобы определить, соответствует ли она плану. Каждое средство контроля показывает, насколько планы работают.

3. Контроль состоит из установки стандартов, измерения фактически достигнутых результатов и проведения корректировки

4. Допуск – это разрешенное отклонение от стандарта. в том случае, если есть негативные отклонения.

5. Отклонение от норм при выполнении производственной задачи может случиться в результате нереальности разработанных нормативов.

6. Статистический контроль за технологическим процессом – это применение статистических методов и действий для того, чтобы определить, правильно ли выполняются производственные операции, выявить возможные отклонения, а также найти и устранить приведшие к ним причины.

7. Менеджеры собирают данные для того, чтобы измерить фактический экономический показатель и определить отклонения от стандартов.

8. Устные доклады способствуют быстрой и эффективной обратной связи с работниками предприятия.

9. Если результат отличается от запланированного действия, вряд ли можно что-то изменить, если не знать, кто был ответственным за выполнение плана.

10. Предприятие старается минимизировать текущие расходы, расходы, связанные с выполнением заказа, уравновешивая затраты на приобретение, расходы по выполнению заказа и издержки, вызванные дефицитом товара.

11. Менеджеры низшего звена ежедневно помогают работникам в достижении стоящей перед организацией цели.

12. Наказание – это коррективные действия, предпринимаемые менеджеров в том случае, если работник не придерживается твердо норм и правил организации.

Exercise 13. Discussion: discipline action plan.

Identify an employee who has a performance problem that may require you to take disciplinary action now or in the future:

1. Describe the person’s actual performance.

2. Describe the desired performance.

3. Discuss discipline with the employee.

4. List the major points of the discipline discussion with the person.

In the back of the book you will find a discussion of the possible solutions.

See “Commentary on the Exercises”.

Exercise 14. Read and translate text B making use of the vocabulary.

collaborate v сотрудничать morale n моральное состояние scheduling календарное планирование		verify v проверять, подтверждать, удостоверять imply v значить; подразумевать
Management by Objectives (MBO) 1) управление на основе жесткого контроля выполнения; 2) совместное определение руководством и исполнителями круга должностных обязанностей последних, а также проверка исполнения этих обязанностей	policy n план действий, определяемый руководством организации; политика; направление established routine -установившаяся практика enable v давать возможность, право (что-либо сделать)

Text B

OBJECTIVE SETTING

Part 1. Management by Objectives

An objective is the object or aim of an action. It implies an explicit direction for the action to take and a specific quality of work to be accomplished within a given period of time. Objectives reflect the desired outcomes for individuals, groups and organizations. They provide direction for decision-making and a criterion against which outcomes are measured.

An effective tool to help the manager obtain the skill of setting objectives is Management by Objectives (MBO), a collaborative process whereby the manager and each subordinate jointly determine objectives for that subordinate

MBO begins when the manager explains the goals for the department in a meeting. The subordinate takes the goals and proposes objectives for his or her particular job. The manager meets with the subordinate to approve and, if necessary, modify the individual objectives. Modification of the individual's objectives is accomplished through negotiation since the manager has resources to help the subordinate commit to the achievement of the objective. Thus, a set of verifiable objectives for each individual are jointly determined, prioritized, and formalized.

The manager and the subordinate meet periodically to review the latter's progress. Communication skill is the key factor in determining MBO's success or failure. The manager gives feedback and may authorize modifications to the objectives or their timetables as circumstances dictate. Finally, the employee's performance is measured against his or her objectives, and he or she is rewarded accordingly.

Each objective should include an action plan, which "operationally defines" the objective by expressing it in terms of specific actions or operations. An action plan can help the manager stay organized, coordinate his or her team's activities, and keep projects on schedule. The action plan states specifically what steps or tasks will be accomplished to achieve the objective. It includes a schedule with deadlines for significant actions, resources necessary to achieve the objective, and methods to measure the objective. Preparing action plans addresses potential problem areas, considers the cross-functional impact of the actions, and ultimately increases productivity.

Scheduling coordinates resources. It is important to schedule employees, as well as scarce or time-based resources, such as equipment delivery schedules. Also, schedules should include project dependencies, resource dependencies, and resource allocation.