9-6 Control Process Steps Figure 9.2 Establish standards of performance, goals, or targets against which performance is evaluated Measure actual performance Compare actual performance against chosen standards Evaluate results and take corrective action when the standard is not being achieved " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
9-6 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 Control Process Steps Establish standards of performance, goals, or targets against which performance is evaluated. Measure actual performance Compare actual performance against chosen standards Evaluate results and take corrective action when the standard is not being achieved. 1. 2. 3. 4. Figure 9.2
9-7 The Control process 1. Establish standards, goals, or targets against which performance is to be evaluated Standards must be consistent with strategy, for a low cost strategy, standards should focus closely on cost a Managers at each level need to set their own standards 2. Measure actual performance: managers can measure outputs resulting from worker behavior or they can measure the behavior themselves e The more non-routine the task the harder to measure a Managers then measure the behavior(come to work on time) not the output " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
9-7 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 The Control Process 1. Establish standards, goals, or targets against which performance is to be evaluated. ◆ Standards must be consistent with strategy, for a low cost strategy, standards should focus closely on cost. ◼ Managers at each level need to set their own standards. 2. Measure actual performance: managers can measure outputs resulting from worker behavior or they can measure the behavior themselves. ◆ The more non-routine the task, the harder to measure. ◼ Managers then measure the behavior (come to work on time) not the output
9-8 The Control process 3. Compare actual performance against chosen standards Managers must decide if performance actually deviates a Often, several problems combine creating low performance 4. Evaluate result and take corrective action a Perhaps the standards have been set too high a Workers may need additional training, or equipment This step is often hard since the environment is constantly changing " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
9-8 Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 The Control Process 3. Compare actual performance against chosen standards. ◆ Managers must decide if performance actually deviates. ◼ Often, several problems combine creating low performance. 4. Evaluate result and take corrective action. ◼ Perhaps the standards have been set too high. ◼ Workers may need additional training, or equipment. ◆ This step is often hard since the environment is constantly changing