Control Process and Costs Overview

The Control Process

• Control is a continuous, dynamic, and cybernetic process of monitoring performance, comparing it to standards, and taking corrective action.
• Standards are predetermined performance expectations, which can be quantitative (e.g., sales targets) or qualitative (e.g., customer satisfaction levels). Benchmarking involves comparing performance to industry best practices.
• Feedback control uses after-the-fact information to correct deviations from standards. It's reactive and doesn't prevent problems.
• Concurrent control uses real-time information to monitor performance and take immediate corrective action. It's more proactive than feedback control.
• Feedforward control uses anticipatory information to prevent deviations from standards. It's the most proactive type of control.
• Control loss occurs when performance deviates significantly from standards and corrective action is ineffective.

Control Costs and Feasibility

• Regulation costs are the costs associated with implementing and maintaining control systems. Costs must be weighed against benefits.
• Cybernetic feasibility is the extent to which a control system can be effectively implemented and maintained, considering the organization's resources and capabilities.

Control Methods

• Bureaucratic Control: Relies on rules, policies, and procedures to guide behavior; top-down approach, can be inflexible.
• Objective Control: Measures performance based on observable behaviors or outputs. Can be quantitative (e.g., sales figures) or qualitative (e.g., customer feedback). Behavior control focuses on actions, while output control focuses on results.
• Normative Control: Shapes behavior through shared values, beliefs, and norms; a more organic approach that relies on strong organizational culture.
• Concertive Control: Develops values, beliefs, and rules within autonomous work groups; a decentralized approach that empowers employees.
• Self-Control (Self-Management): Individuals set their own goals, monitor their own performance, and reward or punish themselves accordingly. Requires high self-discipline and motivation.

This quiz covers the essential aspects of the control process, including the types of controls: feedback, concurrent, and feedforward. It also addresses how control costs and feasibility play an important role in effective management. Test your understanding of how monitoring and corrective actions can impact organizational performance.