Managerial Roles and Functions PDF

MANAGERIAL ROLES AND FUNCTIONS DANIEL OPUNI,MD 1 Course Objectives 1. To broaden the outlook of participants and thereby improve their operational effectiveness. 2. To acquaint with some relevant concepts underlying day-to day pract...

MANAGERIAL ROLES AND FUNCTIONS DANIEL OPUNI,MD 1 Course Objectives 1. To broaden the outlook of participants and thereby improve their operational effectiveness. 2. To acquaint with some relevant concepts underlying day-to day practices in management. 3. To equip them with the basic techniques and skills of management to enable 2 Course Objectives (contd). them function as managers in their respective environments. 4. Provides opportunities for the exchange of experiences and ideas on management. 3 CONTENTS 1. Definitions of Management 2. Features of Management 3. Why is Management so important. 4. Management Skills. 5. Managerial roles. 6. Management Functions. 4 Definitions of Management There are various definitions. All of these emphasise one or other important aspects of management activity and connects management to organisational goals. Some of these are as follows: 1. Management is the art of getting things done through informal organised groups…..a way of optimising efficiency in reaching goals.(Koontz) 5 Definitions of Management (Contd). 2. Management consists of all organisational activities that involve goal formation and accomplishment, performance, appraisal and the development of an operating philosophy that ensures the organisation’s survival within the social system. (W. Jack Duncan). 6 Definitions of Management (contd) 3. Management is the process of achieving organisational goals through engaging in the four major functions of planning, organising, leading and controlling. (Bartol & Martin, 1991). 4. Management is a distinct process … performed to determine and accomplish stated objectives by the use of human beings and other resources. (GR Terry). 7 Features of Management 1. Universal: applied in all types of institutions (social, religious, commercial, educational, political). 2. Integrative – harmonises individual goals with organisational goals. 3. Make things happen – organising and employing resources to accomplish predetermined objectives. 8 Features of Management (contd). 4. People centred- Takes place through people. 5. Intangible Force – Managerial ability is a social skill which cannot be seen with the eyes but it is evidenced by the quality and level of an organisation. 6. Dynamic – It is on going and changes from time to time depending upon circumstances of the business. 7. Science and Art – It is science because it makes use of underlying knowledge and an art because some essential management skills are unique to some individuals. 9 Why Is Management so important 1. We are affected by the decisions of a manager. (Chief Directors, Ministers of State etc). 2. People find themselves in management positions at one point or the other (Teachers, Politicians etc). 3. Equips the individual to cope with changes and to deal with problems). 10 Why is Management so important (contd). 4. Equips people with techniques of innovation and creativity. 5. Determines effectiveness in attaining organisational and group goals. 6. Provides skills for the management and use of scarce resources to meet competing needs. 11  Management Skills There are various skills which are essential in solving some of the complex problems of modern management. Robert L. Katz identified three of these as follows: Technical Human Conceptual Other skills identified by AJ Dubrin are Diagnostic and Political 12  Technical Skill This is the ability to work with resources in a particular area of expertise. Technical knowledge and proficiency in special area to accomplish specialized task e.g. An accountant should know how to handle accounts, a manager should know management principles e.g. planning, organising, controlling etc. Without technical skill one is not able to manage effectively. 13  Human Ability to interact effectively with people Lead, motivate manage conflicts and work with others. Ability to work effectively as a group member and to build cooperative effort within the team managed. 14  Conceptual skills The ability to see the organisation as a whole and recognise how the various functions of the organisation depend on one another. Formation of ideas, understanding of relationships of the parts to the whole Understanding and analyzing data for decision making Visualising the relationship of the individual business to the industry, the community and the political, social and economic forces of the nation as a whole. 15 Diagnostic Managers use this skill to investigate a problem and then decide on implementing a solution. They require other skills including technical, human and conceptual skills to solve the problems they diagnose 16 Political Managers need this skill to acquire the power necessary to achieve objectives. This also includes establishing the right connections and impressing the right people. However, too much time invested in office politics takes time away from dealing with the real work issues. 17 Managerial Roles Henry Mintzberg identified the following as the role of managers: i. Interpersonal Role a. Figure Head – symbolic head, represents organisation in all matters e.g. conferences, ceremonies etc. b. Leader role – directing employees, staffing, promotion, motivating etc. 18 Managerial Roles (contd). c. Liaison – maintains network of outside contacts, interaction with peers and colleagues outside the organisation to gain favours, gives and receives information and develops and maintains external relationships. 19 Managerial Roles (contd) ii) Informational a. Monitor – receives and communicates information e.g. briefing, brainstorming, reporting, data analysis, media relations etc, b. Disseminator – receives and transmits information from internal sources to other parts of the organisation. 20 Managerial Roles (contd) c. Spokesperson – provides information concerning the work of organisation to internal/external groups; transmits information on plans, policies, actions and results. Also serve as an expert on organisation’s industry. 21 Managerial Roles (contd) iii. Decisional a. Entrepreneur – initiates and designs change within the organisation e.g. organisational structure, training and development programmes, performance appraisals, work design, risk taker, and initiate changes. Look for opportunities. 22 Managerial Roles (contd) b. Disturbance Handler – deals with threats and unplanned changes from politics, competition, unions, conflicts etc. Responsible for corrective action when the organisation faces unexpected disturbance.. 23 Managerial Roles (contd) c. Decides on the allocation of resources e.g. money, equipment and personnel. d. Negotiator – negotiates on behalf of the organisation both internally and externally e.g., unions, purchases, training, purchase and use of equipment. 24 Functions of Management (Introduction). Management is the process of 1. Planning – a. Thinking in advance the sequence of actions to accomplish objectives. b. All activities that lead to the definition of the objectives. 2. Organising a. Identifying what needs to be done, how it should be done, where it should be done, who should do it, and when it should be done and Activities that lead to the definition of objectives 25 Functions of Management (Introduction). (contd). 3. Coordination a. Making the necessary contacts to ensure that work is effectively carried out without any hitch b. It is the integration of all aspects of the programmes to achieve desired outcomes. 26 Functions of Management (Introduction). (contd). 4. Controlling Setting up points at which to check results. Regulation of all activities so that actual performance conforms to expected organisational standards and goals. 27 Functions of Management (Introduction). (contd). 5. Directing a. Enabling the organisational members to work efficiently for the objectives of the organisation. 6. Staffing Employing people in line with the organisational structure through proper and effective selection process,appraisal and the development of personnel to fill the roles designed in the structure. 28 Management Functions Planning Organizing Coordinating Controlling 29 Definition of Planning A plan is a determined course of action. It seeks to anticipate the future in order to achieve better performance. Generally speaking, planning is deciding in advance, what is to be done (MH Newman) A plan is a trap laid to capture the future. (Allen). 30 Definition of Planning (contd). Plans are therefore concerned with setting of organisational objectives and determining the approach by which the objectives are to be met. 31 Types of Plans Strategic plans Broad future of the organization External environmental demands Internal resources Tactical plans Translate strategic plans into specific goals Specific parts of the organization 32 Types of Plans Operational plans Translate tactical plans into specific goals and actions Small units of the organization 33  Types of Plans Strategic Plans Tactical Plans Operational Plans Time horizon Typically 3-5 years Often focused on 1-2 Usually focused on the years in the future next 12 months or less. Scope Broadest, originating Rarely broader than a Narrower, usually cen- with a focus on the strategic business unit tered on departments or entire organization smaller units of the organization Complexity The most complex and Somewhat complex but The least complex, general, because of the more specific, because because they usually different industries and of the more limited focus on small business potentially domain of application homogenous units covered Adapted from Exhibit 8.1: Types of Plans: Key Differences 34 Time horizon Long-term An extended time, typically 5 years or more into the future Intermediate A period of 1 to 5 years into the future Short-term Goals Goals set for the very near future, typically less than 1 year 35  Types of Plans Strategic Plans Tactical Plans Operational Plans Impact Have the potential to Can affect specific Impact is usually dramatically impact, businesses but restricted to specific both positively and generally not the department or negatively, the fortunes fortunes or survivability organization unit and survival of the of the entire organization organization Interdependence High interdependence, Moderate Low interdependence, must take into account interdependence, must the plan may be linked to the resources and take into account the higher-level tactical and capabilities of the entire resources and strategic plans but is less organization and its capabilities of several interdependent with them external environments units within a business Adapted from Exhibit 8.1: Types of Plans: Key Differences 36 Hierarchy of Plans Strategic Plans Plans reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals Tactical Plans Generally short-range plans concerned with implementing specific aspects of a company’s strategic plans Operational Plans Plans setting short-term targets for daily, weekly, or monthly performance 37 Essentials of a good Plan. These are summarised as follows: 1. It should be based on clearly defined objectives. 2. It must be simple. 3. It should be rational, appropriate and comprehensive. 4. It must be flexible. 38 Essentials of a good plan (contd). 5. It must use all available resources and opportunities before creating new authorities and resources. 6. There should be a proper coordination among short term and long term plans. 7. It should be free from social and psychological biases from all parties involved. (P. Diwan, 2002). 39 Organizational Levels Corporate level (Strategic) What industries should the firm be in? What markets should the firm be in? In which businesses should the firm invest money? Business level (Tactical) Who are our direct competitors? What are their strengths and weaknesses? What advantages do we have over them? What are our own strengths and weaknesses? What do customers value in our products/services? 40 Organizational Levels Functional level (Operational) What activities must my unit perform well in order to meet customer expectations? What information about competitors does my unit need in order to help the firm compete effectively? What are our unit’s strengths and weaknesses? 41 Organizational Levels Corporate Level Brunswich Facilities Construction Management Business Level (Strategic Business Units) Health Care Educational Hospitality Functional Level Marketing and Operations Finance Sales department department department Adapted from Exhibit 8.2: Organizational Levels 42  Business Plans and Levels Types of Plans Organizational Levels Strategic Plans Corporate Level Tactical Plans Business Level Operational Plans Functional Level Adapted from Exhibit 8.3: Interaction Between Business Plans and Levels 43 Planning Process Define the purpose or problem and set objectives Collect and evaluate data relevant to forecasting the future (focus on the present) Develop alternative courses of action Decide on the best course of action Carry out the plan 44 Reducing Risk. You reduce risk when you collect relevant data and apply it to your forecast. In some food services the degree of certainty about tomorrow is high. Contingency Plan: Reduce risk by having an alternate plan in reserve. Keeping records can reduce the risks for repetitive situations. Consulting with people that have more experience also can help to reduce risk. 45 Qualities of a Good Plan Provides a workable solution and meets the stated objectives. Is comprehensive; it raises all relevant questions and answers them. Minimizes the degree of risks. Is specific as to time, place, supplies, tools, etc. Is flexible (can be adapted to a change in the situation). 46 Other types of Plans Standing Plan: established routine, formula, or set of procedures designed to be used in a reoccurring situation. They standardize actions so the supervisors need to manage is reduced to seeing that workers meet standards and dealing with unexpected events known as management by exception. Potential drawback: Rigidity, must make them flexible enough to deal with daily realities. These plans must be updated regularly. 47 The Single Use Plan A one time plan developed for a single occasion or purpose. The amount of time you spend on it depends on its nature and importance. Often its purpose is a major change of some sort or budgets. 48 Day-by-Day Planning Top priority of the first line supervisor. Primary concern is what is to be done, who will be doing it, and adjusting various standing plans. Plan before the day begins. Establish routines simplify planning. Whenever possible reduce risks by increasing predictability. 49  Planning for Change Define problem and set objectives Gather past, present, and probable future data Evaluate pros and cons, generate alternatives Make the necessary decisions Implement the plan 50 Planning for Change Planning for change must be done carefully and thoroughly. It is very much like making other plans but the main differences are the extent of forecasting, the degree of risk, and providing for the impact of the change. 51 Workers Response and Resistance Workers respond to change through: resistance, insecurity, anxiety, resentment of personal losses, and rumours. How to deal with resistance to change: Establish open communication Emphasize advantages (avoid overselling) Involve the workers in planning and carrying out change 52 Planning Your Own Time Track your present time use, and analyze your use of time. Get rid of activities that waste your time (socializing, poor organization, procrastination, etc.). Set priorities. Initiate long-range solutions. Set aside regular periods of time without interruption for interviews, etc. 53 Nature of Planning Planning: looking ahead to chart the best courses of future action. Strategic planning: Long range planning to set organizational goals, objectives, and policies to determine strategies, tactics, and programs for achieving them. Top management makes strategic plans. Middle Management makes annual plans (to implement the above). For supervisors the planning period is usually a week, day, or shift ( to deal with daily work). 54 The Planning Process Analyze environment (forecasts, benchmarks, contingencies, competitor analysis, scenarios) Set objectives Determine Assess requirements resources Develop action plans Implement plans Feedback Feedback Monitor outcomes Adapted from Exhibit 8.4: Planning Process 55  Analyzing the Environment The Planning Process Analyzing the environment Forecasts: what does the future look like? Environmental uncertainty Contingency plans: identify key factors that could affect the desired results and specify what actions will be taken if key events change Benchmarking Investigation of the best results among competitors and noncompetitors and the practices that lead to those results 56  Setting Objectives The Planning Process Setting objectives Priorities and multiple objectives Establish which objectives are most important and which have temporal priorities, Measuring objectives Financial performance Profits relative to sales Profits relative to assets Many others Non-financial performance 57  Determining Requirements The Planning Process Determining requirements Assess current performance What will it take in order to get from current levels of performance to that level specified in the objectives? What drives market share? What capital will be required? 58  Assessing Resources The Planning Process Assessing resources Resources required What resources are needed to achieve the stated objectives? Resources available Do we have the needed human talent to meet the requirements? Do we have the financial resources available? Do we have the required technology? 59  Developing Action Plans The Planning Process Developing action plans Sequence and timing Raw materials, manpower and components must be brought together in the right amounts and sequences Accountability Who is accountable for which actions? 60  Gantt Chart May June July August Sept Oct Nov Contact clients Obtain contract specifications Submit bid Receive feedback Revise bid Submit revised bid Final approval or rejection Complete bid review Adapted from Exhibit 8.5: Gantt Chart 61  Implementing Plans The Planning Process Implementing Plans Monitoring the implementation Monitor the progress of the plan and its implementation Monitor the level of support that the plan receives as it is being implemented Monitor the level of resistance Real-time adjustment 62  Monitoring Outcomes The Planning Process Monitoring outcomes Unanticipated consequences Negative unanticipated consequences Positive unanticipated consequences Feedback loop Apply what has been learned to modify and improve the planning process 63 Planning Tools Budgets Capital expenditure budget Specifies the amount of money to be spent on specific items that have long-term use and require significant amounts Expense budget Includes all activities on which a unit or organization plans to spend money and the amount allocated for the upcoming year 64  Planning Tools Budgets Proposed budget Provides a plan for how much money is needed, and is submitted to a superior or budget review committee Approved budget Specifies what the manager is actually authorized to spend money on and how much 65  Planning Tools Two budgetary approaches Incremental budgeting approach From the approved budget of the previous year present arguments for why the upcoming budget should be more or less Zero-based budgeting approach Justify all allocations of funds from zero each year 66 Goal Setting Attributes of effective goals Specific Measured Agreed Realistic Time bound 67 Coordination - Definition Coordination is concerned with bringing together different types of activities. Coordination is the orderly arrangement of group efforts to provide unity of action in pursuit of a common purpose. (Mooney and Reiley). 68 Characteristics of good Coordination. 1.It must be timely and results-oriented 2. It should be continuous. 3. It must be motivating and corrective as well. 4. It must be internal as well as external 5. It must anticipate and prevent problems from occurring. 69 Types of Coordination A. INTERNAL 1. Between different groups of employees of the same department or section. 2. Managers and workers at different levels 3. Boards of directors and departmental managers 70 Types of Coordination (contd). 4. Different Departments, branches and other parts of the organisation. B. External This exits between the organisation and the other stakeholders such as customers, suppliers, government , members of the community. 71 Objectives of Coordination 1. Reconciliation of goals of individuals with that of organisation. Coordination is necessary to bring unity of action in the organisation. 2. Total accomplishment. Through coordination, duplication of effort is prevented and the time and energy saved are utilised in more creative tasks. 3. Economy and efficiency. Coordination avoids duplication and thus economises on the use of labour and other resources and make them more efficient. 72 Objectives of Coordination (contd). 4. Good personal relations. It prevents conflict between managers and staff through proper coordination of their efforts. 5. Retention of managerial and other staff. This because it leads to job satisfaction and thus help to retain staff. 73 Principles of Coordination 1. Direct contact: Direct personal contact helps in exchanging the opinions and ideas in a better way and clarifying misunderstandings more easily. 2. Early start: Coordination can be achieved more easily in the early stages of planning and policy making. 3. Reciprocal relationship : There should be integration of all efforts and interests towards the same purpose. 74 Principles of coordination (contd) 4. Continuity It should be a continuous process starting with planning through to the other management processes. 75 Steps to achieve Coordination 1. Clearly defined goals: The objectives of coordination should be clearly defined for each individual and the contribution of their post to achieve this. 2. There should be precise and comprehensive programmes and policies. 76 Steps to Achieve Coordination (contd). 3. There should be clear lines of responsibility. 4. There should be effective collaboration. 5. There should be effective leadership and supervision. 6. There should be cooperation among individuals in the organisation. 77 Techniques of Coordination 1. Coordination by common purpose – ensuring that all staff are working efficiently by directing and motivating them. 2. Coordination through managerial functions e.g. communication, leadership and authority delegation. 3. Coordination through simplified and lean organisational structures. 4. Having harmonised programmes and policies i.e. all plans add up to the unified programme. 78 Techniques of Coordination (contd) 5. By group meetings – Such meetings bring officials together and provide opportunities for coordination. 6. Use of liaison officers/Personal Assistants: Using liaison officers to maintain relations with government and other agencies. 7. Others – through other meetings, internet, e-mail, newsletters, Teams and Committees. 79  ORGANISING Arranging activities such that they systematically contribute to the organisation’s goals Process of determining the structure for allocating individual tasks and coordinating activities toward the organization’s goals Basic choice: mechanistic or organic 80  Organizing Lack of organization is a major contributor to crisis. A well-organized and efficient unit is one in which: Lines of authority and responsibility are clearly drawn—and observed. Jobs, procedures, and standards are clearly defined—and followed. People know what to do and how to do it—and they do it. Standards of quality, quantity, and performance are clearly set—and met. 81 Organizing for Success Organizing: setting things up to run efficiently Step 1:Clarify how you and your job fit into the organization Step 2: Investigate possible sources of problems Chain of command Job content and procedures Evaluation and controls Standing plans Step 3: Evaluate the situation Step 4: Plan for improvement 82 Organizing Even very small organisations need to organize. If you have a one-body construction company, you should still have an organizational chart showing all of the different hats that you wear. For larger organizations, the organization chart will show: Position titles: should be descriptive. The chain of command: authority for each area, accountability for actions Who occupies each position 83 The Organization Chart First Step: decide on the type of organization, consider span of control, tall vs. flat, functional vs. geographic Second Step: decide what positions you need, create position titles Third Step: assign people to fill the positions. TIP 1: Try to avoid picking the people first and then designing a position to fit the person. TIP 2: Careful about Span of Control 84  Organizational Chart of a Manufacturing Firm Board Board Board Board Board Board Board Board member member member member member member member member Chief Chief Executive Legal Legal Executive counsel Officer Officer counsel President President V.P V.PSales/ Sales/ V.P V.PHuman Human V.P V.P V.P V.PResearch Research Marketing Marketing Resources Resources Production Production and Development and Development Industrial Consumer Industrial Consumer Industrial Industrial Products Consumer Products Industrial Products Products Consumer Products Products Industrial Consumer Products Consumer Industrial Products Industrial Consumer Products Consumer Products Products Director- Products Director- Director- Director- Director- Director- Products Director- Products Director- Products Director- Products Director- Director- Sales Director- Sales Human Human Director- Production Director- Director- Director- Sales Sales Human Resources Resources Human Resources Resources Production Production Production R&D R&D R&D R&D Western Western Eastern Eastern Western Western Eastern Eastern Region Region Region Region Region Region Region Region Industrial Industrial Industrial Industrial Consumer Consumer Consumer Consumer Products Products Products Products Products Products Products Products etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. etc. Sales Sales Sales Sales Sales Sales Sales Sales Manager Manager Manager Manager Manager Manager Manager Manager 85  Span of Control Number of subordinates reporting directly to a supervisor If 64 workers and 8 supervisors, the average span of control is 8, with one manager. If the desired span of control is 4, the same number of workers would require 16 supervisors with 4 managers Old management theory: max span of control is 6 New: 15 to 25 subordinates per supervisor Will depend on the type of organization, training of subordinates 86 Span of control Factors that affect span of control: 1. Competence of the manager/subordinates 2. Complexity of the jobs to be supervised. 3. Similarity of jobs to be supervised. 4. Direction and control needed by subordinates. 5. Geographical dispersal of subordinates. 87 Contrasting Contrasting Spans Spans of of Control Control 88 Flat vs. Tall Flat organization: few layers of management, large/wide span of control Tall organization: more layers of management, smaller/narrow span of control, better supervisions For any large organization, 5 layers is the maximum A tall organization slows decision making, provides better supervision Today: consensus is that flatter is better, fewer managers, lower costs, better for trained and empowered employees. 89 Flat vs. Tall A flat organization reduces the chances for miscommunication. Managers have a larger span of control but causes managers to over burdened and subordinates to receive little guidance. It was once thought that a manager could only supervise a limited number of people. With modern communication systems this is probably not true. 90 Tall/Narrow span a. Advantages 1. Closer and more frequent contact between managers and subordinates. Could result in better guidance of subordinates. 2. Tight control and tight supervision which could result in improved performance. 3. Managers able to better manage staff because of the fewer numbers. 4. Development of more managers since there are more managerial positions. 91 Tall/Narrow span (contd) b. Disadvantages. 1. Additional costs of more managers. 2. Complexity of communication and coordination. 3. Staff could become demoralised as they feel the upper manager is out of touch/deterioration of manager- employee relationship. 92 Flat/Wide span a. Advantages 1. Reduced costs for fewer managers. 2. Better and easier communication structure/ better decision making structure. 3. Subordinates are able to work on their own initiative with less meddling from managers. Could result in higher staff morale through the feeling that they are their ‘own boss’. 93 Flat/Wide span b. Disadvantages 1. The manager is unable to exercise direct control and supervision. - Less able to establish rapport with subordinates. 2. High quality and more expensive people are needed because they able to work more independently. 3. The manager’s day is overly occupied with supervision, leaving too little time for other managerial functions. 94  Tall versus Flat Organizations Chief Chief Executive Executive Tall Organization hierarchy Tallhierarchy Tall Chief Relatively narrow Flat Organization Chief Executive Executive span of control hierarchy Flathierarchy Flat Relatively wide span of control 95 Informal Organization Know and use your informal organization. This is how your people really work. Who talks to whom. Who really leads and directs? Who is the “gate-keeper” Formal authority is the power to take action, make decisions, and direct others. Informal authority is the power a leader has over others by charisma or whatever. 96 Types of Organizations Functional Geographic Service/Product Matrix 97 Advantages/Disadvantages of Functional Organization Advantages Disadvantages Functionally specialized Responsibility performance people are usually more rest only with the boss efficient. Less duplication of effort Can overwork the boss and slow down decision making Simpler training May reduce attention to specific areas of concern. Increased returns to scale Produces specialist instead of general managers Simple and proven to work Allow tight control by the boss 98 Geographic Organization Each self-contained unit focuses on the clients, subs, suppliers, regulations, customs in its area. Provides better local knowledge and relationships Requires more general managers, training is more difficult, sometimes competition for company resources. 99 Service/Product Organization Organized around particular production or service operations Provides focus on the specific problems of the activities. 100 Matrix Organization Usually functional departments with a project team superimposed. People from estimating, scheduling, purchasing, construction, post- construction, all report to the Project Manager and also to their functional manager. 101  A President President Matrix Organization Farm FarmMachinery Machinery Division Division Functional authority Project Production Legal Engineering Accounting Production Legal Engineering Accounting authority department department department department department department department department Project Project Production Production Legal Legal Engineering Engineering Accounting Accounting Alpha Alpha support support support support support support support support manager manager group group group group group group group group Project Project Production Production Legal Legal Engineering Engineering Accounting Accounting Beta Beta support support support support support support support support manager manager group group group group group group group group Project Project Production Production Legal Legal Engineering Engineering Accounting Accounting Gamma Gamma support support support support support support support support manager manager group group group group group group group group 102  Controlling Control is the task of ensuring that activities have the desired results Control requires targets and goals be set Controlling involves setting targets, measuring performance, and taking corrective action 103 Types of Control Systems Steering control (feed forward or precontrol in future rather than the past. Corrective action before problem occurs Preventive in nature- presence of control systems minimises losses etc. in the future. Intermediate milestones Concurrent control (yes/no) Control as the activity takes place Rules and procedures Feedback control (post-action) Compare results to standard Profit at end of project 104  Checklist for Effective Control System 1. Controls should reflect nature/needs of activity 2. Should report deviations promptly 3. Should be forward-looking/future looking. 4. Should point out exceptions at strategic points 5. Should be objective 6. Should be flexible 7. Should reflect the organizational structure 8. Should be economical 9. Should be understandable 10. Should indicate corrective action 105 Two Basic Control Approaches The Traditional Approach: 1. Set a standards, target, or goal 2. Measure actual performance against standards 3. Take corrective action The Commitment-Based Approach: 1. Getting people to want to build in quality 2. Hire the right people and invest in them 3. Foster self-control 4. People centered, sense of community, shared fate 5. Guarantee organizational justice 6. Use financial rewards and profit-sharing 106 7. Encourage self-actualization Scope or areas of control 1. Control over policies and procedures 2. Control over organisation 3. Control over staff 4. Control over methods 5. Control over expenditure/income 6. Control over research and development 107 Scope or areas of control (contd). 7. Control over external relations. 8. Overall control – responsibility of the management team. 108 Process of Control 1. Setting Objectives. 2. Establishing performance indicators. 3. Establishing standard of performance/targets. 4. Monitoring/evaluating performance targets against actual results. 109 END THANK YOU. 110