Management Chapter 18: Monitoring and Controlling

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Questions and Answers

What is the primary purpose of the controlling function in management?

To create employee satisfaction

To develop organizational standards

To set financial budgets

To monitor, compare, and correct work performance (correct)

Which step in the control process involves establishing benchmarks for performance?

Comparing with Standards

Measuring Actual Performance

Setting a Standard (correct)

Correcting Deviations

What is involved in the second step of the control process?

Assessing employee satisfaction

Measuring actual performance (correct)

Setting performance goals

Comparing actual with planned outcomes

What does the range of variation refer to in the comparison step of the control process?

The acceptable differences between actual performance and established standards Signup and view all the answers

Which source of information is NOT typically used for measuring actual performance?

Market analysis Signup and view all the answers

Which of the following statements about the controlling function is false?

It is only conducted at the end of the management cycle. Signup and view all the answers

What might a manager measure as control criteria related to employee performance?

Sales volume Signup and view all the answers

In the context of the control process, which aspect should managers focus on during corrective action?

Addressing deviations from performance standards Signup and view all the answers

What is immediate corrective action intended to achieve?

Correct problems at once to realign performance Signup and view all the answers

Which of the following describes basic corrective action?

It focuses on understanding the reasons behind performance deviations. Signup and view all the answers

What should a manager do if performance consistently exceeds established goals?

Evaluate whether the goals need to be raised Signup and view all the answers

How is organizational effectiveness defined?

The degree to which organizational goals are appropriate and being met Signup and view all the answers

Which action is a part of disciplinary action within an organization?

Imposing the minimum penalty necessary for an offense Signup and view all the answers

What is a potential consequence of revising a standard downward?

It could demotivate high-performing employees. Signup and view all the answers

What does organizational productivity measure?

The relationship between input and output rates Signup and view all the answers

Which of the following managerial actions is NOT a corrective action?

Conducting frequent employee surveys Signup and view all the answers

Study Notes

Chapter 18: Monitoring and Controlling

Controlling is a management function focused on monitoring, comparing, and correcting work performance.
The control process is a four-step process:
- Setting a standard: Managers determine the standards to use in the organization; a benchmark for comparison; aspirational. This can be a budget or a forecast of results.
- Measuring actual performance: Evaluating actual performance using different sources.
  - Sources of information
    - Personal observation, statistical reports, oral reports, and written reports.
  - Control criteria are factors like employee satisfaction, turnover, absenteeism, costs, output, and sales.
  - Advantages and drawbacks of each measurement source:
    - Personal observation: firsthand knowledge, intensive coverage, easy to visualize relationships. Disadvantages: subject to biases, time-consuming, obtrusive.
    - Statistical Reports: visualizing relationships, fast to gain information, comprehensive, formal, easy to file. Disadvantages: limited information, subjective factor ignored, information filtered, takes more time to prepare.
    - Oral Reports: Fast, use of verbal and nonverbal feedback. Disadvantages: information filtered, not documented.
    - Written Reports: Comprehensive information, formal, easy to file/retrieve. Disadvantages: information is filtered, take time to prepare.
- Comparing actual performance against the standard: Evaluating performance against previously set standards, taking into account a range of possible variation.
- Taking managerial action: Depending on the comparison, managers take actions to correct deviations or inadequacies:
  - Do nothing (if variance is acceptable.)
  - Immediate corrective action (quick fixes.)
  - Basic corrective action (examining the root causes of deviations.)
  - Corrective actions (changing strategy, structure, compensation schemes, training programs, redesigning jobs, or firing employees.)
  - Revising the standard: Evaluating the standard's realism, fairness, achievability, validity (adjusting goals if performance is consistently above or below expectations). This must be done carefully; cautions about lowering the standard.
Organizational performance is the combined results of all organizational activities.
Measures of organizational performance include:
- Productivity: quantity of goods or services produced in comparison to the inputs used.
- Effectiveness: appropriateness of organizational goals and the degree to which they're accomplished.
Controlling employee performance:
- Disciplinary action: Measures taken to enforce organizational standards/regulations.
- Progressive disciplinary action: A penalty system targeting the minimum appropriate penalty for each infraction, escalating when needed.
Types of control:
- Feedforward control: Takes place before an activity occurs(anticipating problems).
- Concurrent control: Takes place during the activity (correcting problems as they happen).
- Feedback control: Takes place after the activity (correcting problems after they occur.)
- Management by walking around is used by managers to interact with employees

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Description

This quiz focuses on Chapter 18 that covers the management function of monitoring and controlling. It delves into the four-step control process, including setting standards and measuring performance. You'll explore various sources of information and their advantages and drawbacks in assessing organizational effectiveness.