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Chapter 13
Exercising Control
After reading and studying this chapter, the student
should be able to:
Define control and explain how it relates to plan-
ning.
Discuss the characteristics of effective control
systems.
Discuss the three types of control systems.
Discuss the four steps in the control process.
Identify the different types of standards.
Explain the importance of strategic control
points.
Discuss management by exception.
Discuss the impact of technology on control.
Brief Outline
What Is Control?
Control’s Close Links to Planning
Importance of Controls
Examples of Controls
Characteristics of Effective Control
Systems
Types of Control Systems
Steps in the Control Process
Step 1: Establishing Performance
Standards
Step 2: Measuring Performance
Step 3: Comparing Performance
with Standards and Analyzing De-
viations
Step 4: Taking Corrective Action if
Necessary
Management by Exception
The Impact of Technology on
Control
Learning Objectives
SUPERVISORY MANAGEMENT Instructor’s Manual
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The City of Fairhope is a Resort Retirement Community
The opening case focuses on The City of Fairhope ,a resort retirement community, situated along the
shores of the gulf coast. Their mission statement is to continue to economically provide and improve the
quality of life, to embrace, nurture and support open information and the exchange of information through
public participation, and to a sustainable future. With the help of the leaders of The City of Fair Hope,
James Gillespie, a longtime employee, initiated a citywide survey to obtain employee opinions and assess
the morale and “health” of those that serve the citizens. The city leaders surmised from the data it would
be wise to invest in additional employee support, such as supervisory leadership training to build strong,
lasting relationships with employees, which would ultimately improve employee retention and service.
I. What Is Control?
• Managers and supervisors go along not knowing whether things are as they should be.
• Unfortunately, many of them find things are not right only when it is too late to do anything about
it.
• Controlling is defined as the management function that compares actual performance with planned
performance and taking corrective action, if needed, to ensure objectives are achieved.
• Control has three phases:
o Anticipating the things that could go wrong and taking preventive measures to see they don’t
o Monitoring or measuring performance in some ways to compare what is actually happening
with what is supposed to be happening
o Correcting performance problems that occur
A. Control’s Close Links to Planning
• Planning and controlling are closely related.
• Planning “sets the ship’s course” and controlling “keeps it on course.”
• Controlling maybe thought of the process supervisors use to help carry out their plans.
B. Importance of Controls
• “Things never go as planned.” That truth is a primary reason supervisors need to perform the con-
trolling function effectively.
• Supervisors must use control to monitor progress and make intelligent adjustments as required.
C. Examples of Controls
Preview
Lecture Outline
CHAPTER NOTES Chapter 13
• We live in a world of controls; for example, circuit breakers in our homes and offices.
II. Characteristics of Effective Control Systems
• To be effective, a control system must have certain characteristics. Among them, these are the most
important:
o Controls Need to Focus on Appropriate Activities. Effective controls should focus on critical
factors that affect both the individuals’ and the organization’s abilities to achieve objectives.
o Controls should be timely. Information needed for comparisons and control purposes needs
to be in a supervisor’s hands for him or her to take effective corrective action.
o Controls must be cost effective. The benefits of using appropriate controls should be worth
the cost of their installation and operation.
o Controls should be accurate and concise. Controls must provide information about operations
and people in sufficient quality and quantity to enable managers to make meaningful com-
parisons to operations standards.
o Controls should be accepted by people they affect. Controls and their applicability to specific
situations should be communicated clearly to those responsible for implementing them and
to those who will be governed by them.
III. Types of Control Systems
• There are essentially three types of control systems.
• They are (1) feedforward controls, (2) concurrent controls, and (3) feedback controls.
o Feedforward controls are preventive controls that try to anticipate problems and take cor-
rective action before they occur. This type of control allows corrective action before a real
problem develops.
o Concurrent controls, also called screening controls, occur while an activity is taking place.
Thus, an inspector or an inspection system can check items on the assembly line to see if
they meet standards.
o Feedback controls measure activities already completed. Thus, corrections can take place
after performance is over.
IV. Steps in the Controlling Process
• The steps in the control process are illustrated in Exhibit 13-4.
• Note that step 4 may require going back to any of the previous three steps. It may consist of modi-
fying the original standard, changing the frequency and manner of measuring performance, or
achieving more insight into the possible cause of the problem.
A. Step 1: Establishing Performance Standards
• This is really a part of the planning step.
• The supervisor exercises control by comparing performance to some standard or goal.
• A standard is a unit of measurement that serves as a reference point for evaluating results.
1. Types of standards
• Standards can be either tangible or intangible.
o Tangible standards are quite clear, concrete, specific, and generally measurable.
o Tangible standards can be further categorized as numerical, monetary, physical, or
time related.
▪ Numerical standards are expressed in numbers, such as number of items pro-
duced number of absences, percentage of successful sales calls, or number of
personnel who successfully complete training.
▪ Monetary standards are expressed in dollars and cents, such as profit margins.
▪ Physical standards refer to quality, durability, size, weight, and other factors
related to physical composition`.
▪ Time standards refer to the speed with which the job should be done.
o Intangible standards are not expressed in terms of numbers, money, physical quali-
ties, or time because they relate to human characteristics that are difficult to measure.
o It is much more difficult to clearly explain intangible standards.
2. How Standards Are Set
• The supervisor frequently sets standards based on familiarity with the jobs being performed.
• Supervisors can gain insights from past records of performance, if available, and from fellow
1. How Often to Measure Performance
• Determining how often to measure performance is an important control decision supervisors
make.
• In some type of jobs, performance may be constantly monitored.
• More often, the supervisor should establish a strategic control point.
o Strategic control point is a performance measurement point located sufficiently early
in an activity to allow any necessary corrective actions to be taken to accomplish the
CHAPTER NOTES Chapter 13
objective.
• Measurement takes time, unless an automated system is in place.
• Some jobs are crucial and should be monitored more closely than others.
2. How to Measure
• A supervisor can measure performance in several basic ways:
o Personal observation.
o Written or oral reports by or about employees.
o Automatic methods.
o Inspections, tests, or samples.
• In some jobs, supervisors and their employees work in the same area. The supervisor can
easily move among the workers, observing their performance.
• The supervisor may have workers spread out in various locations, making direct observation
impractical. Such supervisors must depend on written or oral reports or occasional inspec-
tions as the primary means of measurement.
• Supervisors need to find some manner of making sure the measurements are reliable. Be-
cause of pressures to conform to standards, employees may attempt to falsify reports to make
themselves appear better.
C. Step 3: Comparing Performance with Standards and Analyze Deviations
• Failure to meet standards may result from a variety of causes.
• A supervisor needs to analyze the reasons for below-average performance before undertaking
corrective action.
• It is also important to compare results that are substantially above standard to determine why
they varied from standard.
• It is important to find out the opinions of those close to a particular problem to determine why
standards are not being met.
D. Step 4: Taking Corrective Action If Necessary
• The final step in the control process is to take corrective action if necessary.
• Adjustments, fine-tuning, or more drastic actions may be necessary to pull off important tasks or
maintain standards.
V. Management by Exception
• Given the broad range of areas over that supervisors exert control, it is essential to distinguish be-
tween critical and less-critical deviations.
• Under management by exception, a supervisor focuses on the most critical control needs and al-
lows employees to handle most routine deviations from standards.
• The key issue is whether a deviation is exceptional.
SUPERVISORY MANAGEMENT Instructor’s Manual
• Managers should set priorities for activities, depending on their importance, and then focus efforts
on top-priority items.
• Managers should be focused on exceptional, rather than routine, problems.
• Temporary or minor deviations from standard should simply be monitored.
• Significant deviations below standard should be investigated and corrective actions taken.
• Significant deviations above standard also should be investigated.
VI. The Impact of Technology on Controls
• As the world’s economies—and their environments—continue to become more dynamic and com-
plex, managers—including supervisors—must obtain, organize, and use huge amounts of infor-
mation to make decisions and exercise control over them.
• Progressive managers are realizing realize that a high-speed information infrastructure is needed to
cope with the rapid pace of operations in all types of economic activities.
• One result of this “information revolution” is the redistribution of power in today’s advanced or-
ganizations.
• Decision making and control have been shifted downward to lower levels of management, includ-
ing the supervisory level.
• With practically unlimited types and sources of information at their fingertips, even operative em-
ployees no longer have to rely on others for facts and figures to make decisions.
• Organizations now have information and monitoring systems that permit supervisors to give in-
structions and control operations from a distance away from those activities.
VII. Chapter Review
The PowerPoint slides correlated with the Lecture Outline above are available on the Instructors CD-
ROM and on the product support website.
PowerPoint Slide 13-1 Chapter 13 Title
PowerPoint Slide 13-2 Learning Objectives
PowerPoint Slide 13-3 Learning Objectives (cont’d)
PowerPoint Slide 13-4 Control
PowerPoint Slide 13-5 Murphy’s Laws (Text Exhibit 13-1)
PowerPoint Slide 13-6 Some Common Examples of Supervisory Control (Text Exhibit 13-2)
PowerPoint Slide 13-7 Types of Control Systems
PowerPoint Slide 13-8 Tips for Establishing Preventive Controls (Text Exhibit 13-3)
PowerPoint Slide 13-9 The Process of Control (Text Exhibit 13-4)
PowerPoint Slide 13-10 Establishing Performance Standards
PowerPoint Slide 13-11 Establishing Performance Standards (cont’d)
PowerPoint Slide 13-12 Measuring Performance
Visual Resources
CHAPTER NOTES Chapter 13
PowerPoint Slide 13-13 Setting Strategic Control Points in the Control Process (Text Exhibit 13-6)
PowerPoint Slide 13-14 Comparing Performance with Standards and Analyzing Deviations
PowerPoint Slide 13-15 Taking Corrective Action if Necessary
PowerPoint Slide 13-16 Management by Exception
PowerPoint Slide 13-17 Management by Exception (Text Exhibit 13-8)
PowerPoint Slide 13-18 Impact of Technology on Control
PowerPoint Slide 13-19 Important Terms
1. In what ways are planning and controlling related?
2. Discuss the following statement made by a supervisor: “I don’t have to worry much about control-
ling. My view is if you plan a job properly, things will go right; so you don’t have to worry about
3. Name the primary characteristic of effective control systems.
4. Identify and explain each of the four steps in controlling.
The four steps in controlling are: (1) establishing performance standards, (2) measuring performance,
(3) comparing performance with standards and analyze deviations, and (4) taking corrective action if
necessary.
5. Give an example of each type of standard:
a. Numerical standards involve numbersCnumbers of times an employee is absent, number of de-
fective products, or number of sales calls in a month.
b. Monetary standards are expressed in dollars and centsCprofit margins, overtime costs, or dollar
volume of sales.
SUPERVISORY MANAGEMENT Instructor’s Manual
c. Physical standards involve some physical factor relating to the productCquality, durability, size,
weight, and so forth. Examples could be number of ounces in the product container, percentage
of butterfat in milk, or minimum size tolerances for lumber.
d. Time standards relate to speed or other time-related factorsCdeadlines for completion of a re-
port, rates of production, or typing speed.
e. Intangible standards are not expressed in terms of numbers, money, physical qualities, or time,
because they relate to human characteristics that are difficult to measure. Examples include de-
sirable attitude, professional conduct with clients, cooperation, and high morale.
6. Name and explain the three types of control systems.
Feedforward controls are preventive controls that try to anticipate problems and take corrective
action before they occur. This allows corrective action to be taken before a real problem develops.
Concurrent controls (also called screening controls) occur while an activity is taking place.
Feedback controls measure activities that are already completed; corrections take place after
performance is over.
7. In management by exception, the supervisor focuses on exceptional deviations from standard, rather
than every deviation. Will employees grow lax when they realize they can perform below standard,
so long as they are not too far below? Discuss.
8. Explain the impact technology has on control.
The growth of information technology has redistributed power in organizations, thus enhancing the
position of supervisors. Decision making and control have now been shifted downward. As a result,
organizations are becoming more integrated. Information and monitoring systems let supervisors
give instructions and control operations from a distance.
Skill Builder 13.1
The Overcontrolling Supervisor
Works with SCANS competencies: Interpersonal Skill
1. What should Clarise do?
Students’ answers may vary, but some of the following ideas can be discussed: Since Clarise is a
new supervisor she needs to spend some time learning the current control systems by watching the
Solutions to the Skill Builders
CHAPTER NOTES Chapter 13
employees at work. Once she has a good grasp of what responsibility each employee she supervises
has, she should take a step back and put her trust in the employees. If problems start to arise once she
has backed off, Clarise should hold a meeting with the employees in which they should discuss
performance standards.
2. Suppose Clarise had just taken over one of the poorest performing departments in the company.
Would this make a difference in the control techniques she should use? How?
Yes. She would now be dealing with an entirely different situation that requires different control
techniques.
Skill Builder 13.2
Setting Standards and Measuring Performance (Group Activity)
Works with SCANS competencies: Interpersonal Skill, Systems
Instructions:
Form into small groups to discuss each of the jobs listed below. Assume each group member directly su-
pervises that position. In each case, indicate the major type(s) of standard(s) that would be used (physical,
monetary, time, or intangible) and the frequency and manner of measuring performance for each job. Dis-
cuss with group members your ideas about how to handle each situation.
The following standards could be used in each situation:
• Bank teller: physical, monetary, time, intangible, bondable.
• Postal letter carrier: physical, time, intangible, stamina.
• Server in a large restaurant: physical, monetary, time, intangible, health.
• Real estate salesperson: physical, monetary, time, intangible, knowledge of area.
• Offensive-line football coach: physical, time, intangible, team leadership qualities.
• Upholsterer in a furniture manufacturing plant: physical, time, intangible.
• Third-grade teacher in an elementary school: physical, time, intangible, health.
Skill Builder 13.3
Competitor Assessment (Group Activity)
Works with SCANS competencies: Systems
This is a group exercise where students in teams of three to five members will begin by choosing two
well-known direct competitors (e.g., Jimmy Johns and Firehouse, Walgreens and CVS, and Walmart and
Target), and using the Internet, find information (articles, blogs, company websites, etc.) about each or-
ganization. After making their selections, each team should do the following:
Instructions:
1. Identify and classify (feedforward, concurrent, and feedback) the different types of control systems
each competitor utilizes.
SUPERVISORY MANAGEMENT Instructor’s Manual
2. Pick one form of control for each company and evaluate its effectiveness based on the characteris-
tics of effective control systems presented in this chapter. What improvements could each company
make?
3. Prepare and give a 10-minute PowerPoint presentation of your overall findings to the class.
Discuss with the class the affect of competition on businesses and consumers.
Case 13.1
Controlling Absenteeism
1. What additional information should Anna attempt to obtain regarding the absenteeism problem?
2. Advise Anna on the steps she should take to control absenteeism.
She could take numerous approaches, ranging from minimal to very harsh. She should schedule
3. What types of standards should she use?
4. What strategic control points should she establish?
Solutions to the Case