Lesson 4_ Controlling.pptx

Controlling BOH4M Learning Goals & Success Criteria I am learning to: • Implement the four steps of control. • Use different types of control. • Form SMART goals. I’ll succeed when I can: • Create output standards and consider input standards. • Make accurate historical, relative, and engineering...

Controlling BOH4M Learning Goals & Success Criteria I am learning to: • Implement the four steps of control. • Use different types of control. • Form SMART goals. I’ll succeed when I can: • Create output standards and consider input standards. • Make accurate historical, relative, and engineering comparisons. • Manipulate and develop authentic SMART goals for managers. The Control Process • Controlling – is the process of measuring performance and taking action to ensure desired results • It helps ensure that performance by individuals and groups are consistent with plans • An after-action review identifies lessons learned in a completed project, task force, or special operation • What was the intent? What actually happened? What did we learn? Steps in the Control Process • The process of management control involves the four steps shown 1. Establish objectives and standards 2. Measure actual performance 3. Compare results with objectives and standards 4. Take corrective action as needed Steps in the Control Process Step 1 - Establish Objectives and Standards • Key results that one wants to accomplish • Quantitative and qualitative goals • Measure quarterly, annually, ect. • An output standard, measures performance results in terms of quantity, quality, cost, or time e.g. percentage error rate, dollar deviation from budgeted expenditures, and the number of units produced or customers serviced in a time period BRAINSTORM output standards for 3 different jobs. Share 1. Types of Control Step 1- Establish Objectives and Standards • An input standard measures work efforts that go into a performance task • Used when outputs are difficult or expensive to measure • E.g. conformance to rules and procedures, efficiency in the use of resources, and work attendance or punctuality. Ex) We expect all employees at Squaretech to receive a Level 6 performance rating Step 2 – Measure Actual Performance • Measurement must be accurate enough to spot significant differences between what is really taking place and what was originally planned Ex) Jane was measured to be a Level 5 performing employee at Squaretech Step 3- Compare Results with Objectives and Standards • Compare objectives with results • Control equation: Need for action = desired performance – Actual performance 1. Historical Comparison: using past performance as a basis for evaluating current performance 2. Relative Comparison- Uses the performance achievements of other persons, work units, or organizations as the evaluation benchmark 3. Engineering Comparison- uses standards set scientifically through such methods as time and motion studies. • Ex) As a company, we measured how long it SHOULD take an employee to manufacture one of our cars. Now, we compare their actual performance against that standard. Case Study – Coaching Football • You manage a football team. You have a developed a plan to help your Quarterback (the player who throws the ball) improve his throwing power. • You are now in Step 3 of controlling that plan (comparing performance with objectives). Develop an example of a historical, relative, and engineering comparison for this QB. • If you hate football it’s okay to pick a player from another sport or activity. • Discuss in groups of 2-3. Record your answers. Step 4- Take Corrective Action Management by Exception focuses attention on substantial differences between actual and desired performance • In the practice of giving attention to situation that show the greatest need for action • In other words, let’s select what our biggest problem is and place our focus on that issue • 1 – problem situation – corrective action on desired vs. actual performance, find reason • 2 – opportunity situation – in which actual performance is above the standard • Ex) Giving Jane extra job training to help her improve to a Level 6. Types of Control • Feedforward Control – ensures that directions and resources are correct before the work begins (preventative from wrong direction, proactive) • Preliminary controls, take places before a work activity begins • Ensure that objectives are clear, that proper directions are established , and that the right resources are available to accomplish them • Ask questions before they occur “What needs to be done before we begin?” Types of Control • Concurrent Controls- focuses on what happens during the work process • The goal is to solve problems as they are occurring. The key question is “What can we do to improve things right now?” • Leaders observe even when doing the work, intervene immediately to correct things on the spot (McDonald’s) • Detailed instruction manuals also “steer” workers in the right directions as their jobs are performed Types of Control • Feedback Controls- takes place after an action is completed, post-action controls • Focus on the quality of end results rather than on inputs and activities • “Now that we are finished, how well did we do?” • Course evaluations, final course evaluations, budget summary SMART GOALS SMART is often changed. Sometimes, certain letters refer to different terms than what is listed on this slide. In this course, follow the definition on this slide. SMART GOALS • Specific – targets a key result to be accomplished • Measurable – there is a quantifiable aspect to the goal • Attainable – target is something that is realistic yet challenging • Results Oriented – supports the organization’s vision • Time Defined – identifies a date for achieving the desired results