BBA102 Lecture Notes - Lecture 11: Bachelor Of Business Administration, Human Resources, Financial Statement
4 Sep 2018
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Controlling: monitoring performance, comparing it with goals and taking corrective action as needed. Why is control needed: to adapt to change and uncertainty, to discover irregularities and errors, to reduce costs, increase productivity or add value, to detect opportunities, to deal with complexity, to decentralise decision making and facilitate teamwork. Control process: establish standards, measure performance, compare performance to standards, take corrective action, if necessary, yes: take corrective action; perhaps revise standards, no: continue work progress and recognise success. Levels of control: strategic control, tactical control, operational control. Six areas of control: physical, human resources. Gives top managers a fast but comprehensive view of the organisation via four indicators: customer satisfaction. The organisational culture emphasises teamwork and allows risk taking. Managers put too much trust in informal feedback systems. Companies focus too much on measuring activities instead of results. They are realistic, positive, understandable and encourage self-control. Overemphasis on one instead of multiple approaches.
