Performance Standards Can Be Set With Respect to Which of the Following?

Learning Outcomes

• Explain the bones control process.
• Differentiate between feedback, proactive, and concurrent controls.

The proper performance of the direction control part is critical to the success of an organization. After plans are set in place, direction must execute a series of steps to ensure that the plans are carried out. The steps in the basic control process tin can be followed for well-nigh any application, such as improving production quality, reducing waste material, and increasing sales. The basic command procedure includes the following steps:

1. Setting performance standards: Managers must translate plans into performance standards. These performance standards tin be in the grade of goals, such as revenue from sales over a menstruation of time. The standards should exist attainable, measurable, and articulate.
2. Measuring actual operation: If performance is not measured, it cannot be ascertained whether standards have been met.
3. Comparison actual operation with standards or goals: Have or reject the product or outcome.
4. Analyzing deviations: Managers must determine why standards were not met. This pace also involves determining whether more than control is necessary or if the standard should be inverse.
5. Taking corrective action: After the reasons for deviations take been adamant, managers tin then develop solutions for bug with meeting the standards and make changes to processes or behaviors.

Consider a state of affairs in which a fictional company, The XYZ Group, has suffered a decrease in the profits from its high-end sunglasses due to employee theft. Senior executives establish a plan to eliminate the occurrence of employee theft. It has been determined that the items are beingness stolen from the company warehouse. The executives establish a goal of nothing thefts ($0) within a three-month flow (Stride i). The company currently loses an average of $1,000 per month due to employee theft.

To discourage the undesired behavior, XYZ installed cameras in the warehouse and placed locks on the cabinets where the well-nigh expensive sunglasses are stored. Only the warehouse managers have keys to these cabinets.

After three months, XYZ managers contact the bookkeeper to get the sales and inventory figures for the past three-month period (Step 2). The managers and then compare the figures with the previous period, taking into account orders for deliveries, returns, and defective merchandise (Step 3). It has been determined that the visitor lost $200 the first month, $300 the 2d month, and $200 the third month due to theft, which is an improvement but curt of the goal. Managers then come up upward with suggestions for making adjustments to the control arrangement (Stride 4).

XYZ senior executives corroborate of the suggestion to plant a zero-tolerance policy for employee theft. Now, if in that location is evidence that an employee has stolen a pair of sunglasses, that employee'south job will be terminated. The employee handbook is updated to include the modify, and XYZ executives hold a meeting with all warehouse employees to communicate the policy change (Pace 5).

Practise Question

Timing of Controls

Controls can exist categorized according to the fourth dimension in which a procedure or activity occurs. The controls related to time include feedback, proactive, and concurrent controls. Feedback control concerns the past. Proactive control anticipates future implications. Concurrent command concerns the nowadays.

Feedback

Feedback occurs later an activity or process is completed. It is reactive. For example, feedback control would involve evaluating a team's progress by comparing the production standard to the bodily product output. If the standard or goal is met, product continues. If not, adjustments can be made to the process or to the standard.

An example of feedback command is when a sales goal is set, the sales team works to reach that goal for 3 months, and at the end of the 3-calendar month period, managers review the results and determine whether the sales goal was achieved. Every bit part of the process, managers may likewise implement changes if the goal is non achieved. Iii months subsequently the changes are implemented, managers volition review the new results to see whether the goal was achieved.

The disadvantage of feedback command is that modifications tin exist made only afterwards a process has already been completed or an action has taken place. A situation may accept concluded before managers are aware of any issues. Therefore, feedback control is more suited for processes, behaviors, or events that are repeated over time, rather than those that are not repeated.

Proactive control

Proactive control, besides known as preliminary, preventive, or feed-forwards control, involves anticipating trouble, rather than waiting for a poor result and reacting later. It is most prevention or intervention. An example of proactive command is when an engineer performs tests on the braking system of a prototype vehicle before the vehicle design is moved on to be mass produced.

Proactive control looks frontward to problems that could reasonably occur and devises methods to foreclose the issues. It cannot control unforeseen and unlikely incidents, such as "acts of God."

Concurrent control

With concurrent control, monitoring takes place during the process or action. Concurrent control may be based on standards, rules, codes, and policies.

Ane example of concurrent control is fleet tracking. Fleet tracking past GPS allows managers to monitor company vehicles. Managers can determine when vehicles reach their destinations and the speed in which they motion between destinations. Managers are able to plan more efficient routes and alert drivers to change routes to avoid heavy traffic. It besides discourages employees from running personal errands during work hours.

In another instance, Keen Media tries to reduce employee inefficiency by monitoring Internet activity. In accordance with visitor policy, employees proceed a digital record of their activities during the workday. It staff can besides access employee computers to determine how much fourth dimension is being spent on the Net to deport personal business concern and "surf the Spider web."

Practice Question

The following diagram shows the command process. Note that the production process is central, and the command procedure surrounds it.

The control procedure

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Source: https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/the-control-process/

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