The Fundamentals of Controlling
by S. Trevis Certo, Samuel C. Certo
Modern Management: concepts and skills, 14/e
- Full-Circle Learning MyLab™: Learning Full Circle for Marketing, Management, Business Communication, Intro to Business, and MIS
- Modern Management concepts and skills
- Modern Management concepts and skills
- Brief Contents
- Contents
- Preface
- About the Authors
- Part 1 Introduction to Modern Management
- 1 Introducing Modern Management Concepts and Skills
- Part 2 Modern Management Challenges
- 2 Managers, Society, and SustainabilityManagers, Society, and Sustainability
- Target Skill
- Fundamentals of Social Responsibility
- Social Responsiveness
- The Social Audit Challenge
- The Philanthropy Challenge
- The Sustainable Organization Challenge
- Managers and Ethics
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 3 Management and Diversity
- Target Skill
- Defining Diversity
- Advantages of Diversity in Organizations
- Challenges that Managers Face in Working with Diverse Populations
- Strategies for Promoting Diversity in Organizations
- How Managers Promote Diversity
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 4 Managing in the Global Arena
- Target Skill
- Fundamentals of International Management
- Categorizing Organizations by Level of International Involvement
- Multinational Corporations
- The Workforce of Multinational Corporations
- Management Functions and Multinational Corporations
- Transnational Organizations
- International Management: Special Issues
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 2 Managers, Society, and SustainabilityManagers, Society, and Sustainability
- Part 3 Planning
- 5 Plans and Planning Tools
- Target Skill
- General Characteristics of Planning
- Types of Plans
- Steps in the Planning Process
- Organizational Objectives: Planning’s Foundation
- Management by Objectives (MBO)
- Planning Tools
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 6 Making Decisions
- 7 Strategic Planning Strategies, Tactics, and Competitive Dynamics
- Target Skill
- Strategic Planning and Strategy
- Strategic Management Process
- Environmental Analysis
- Establishing Organizational Direction
- Strategy Formulation: Tools
- Strategy Implementation
- Strategic Control
- Tactical Planning
- Competitive Dynamics
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 5 Plans and Planning Tools
- Part 4 Organizing
- 8 Fundamentals of Organizing
- 9 Responsibility, Authority, and Delegation
- 10 Human Resource Management
- 11 Changing Organizations Stress, Conflict, and Virtuality
- Target Skill
- Fundamentals of Changing an Organization
- Factors to Consider When Changing An Organization
- Change and Stress
- Change and Conflict45
- Virtuality
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- Part 5 Influencing
- 12 Influencing and Communication
- Target Skill
- Fundamentals of Influencing
- Emotional Intelligence
- Communication
- Interpersonal Communication
- How Interpersonal Communication Works
- Successful and Unsuccessful Interpersonal Communication
- Barriers to Successful Interpersonal Communication
- Feedback and Interpersonal Communication
- Gathering and Using Feedback
- Achieving Communication Effectiveness
- Verbal and Nonverbal Interpersonal Communication
- The Importance of Nonverbal Communication
- Interpersonal Communication
- Interpersonal Communication in Organizations
- Encouraging Organizational Communication
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 13 Leadership
- Target Skill
- Defining Leadership
- Early Approaches to Leadership
- More Recent Approaches to Leadership
- A Special Situation: How Leaders Make Decisions
- Leaders Changing Organizations
- Leaders Coaching Others
- Leadership: Emerging Concepts for Modern Times
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 14 Motivation
- Target Skill
- Defining Motivation
- Process Theories of Motivation
- Content Theories of Motivation: Human Needs
- Importance Of Motivating Organization Members
- Strategies for Motivating Organization Members
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management SkillS Exercises
- Endnotes
- 15 Groups and Teams
- Target Skill
- Groups
- Kinds of Groups in Organizations
- Managing Work Groups
- Teams
- Stages of Team Development
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- 16 Managing Organization Culture
- Target Skill
- Fundamentals of Organization Culture
- Functions of Organization Culture
- Types of Organization Culture
- Building A High-Performance Organization Culture
- Keeping Organization Culture Alive and Well
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Experiential Exercises Exploring the Values of New Recruits
- You and Your Career
- Building Your Management Skills Portfolio
- Skills Activities
- Endnotes
- 12 Influencing and Communication
- Part 6 Controlling
- 17 Controlling, Information, and Technology
- 18 Production and Control
- Target Skill
- Production and productivity
- Quality and Productivity
- Operations Management
- Operations Control
- Operations Control Tools
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Endnotes
- Appendix 1 Managing History and Current Thinking
- Target Skill
- The Classical Approach
- The Behavioral Approach
- The Management Science Approach
- The Contingency Approach
- The System Approach
- Learning Organization: A New Approach?
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Experiential Exercises
- Appendix 2 Management and Entrepreneurship: Handling Start-Ups and New Ventures
- Target Skill
- Fundamentals of Entrepreneurship
- Types of Opportunities
- Opportunity Identification
- Opportunity Evaluation
- Opportunity Exploitation
- Financing Exploitation
- Corporate Entrepreneurship
- Social Entrepreneurship
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Experiential Exercises
- Appendix 3 Encouraging Creativity and Innovation
- Target Skill
- Creativity
- Creativity in Individuals
- Increasing Creativity in Organizations
- Innovation and Creativity
- The Innovation Process
- Catalyst for Creativity and Innovation: Total Quality Management
- The Quality Improvement Process
- Challenge Case Summary
- Developing Management Skill
- Class Preparation and Personal Study
- Management Skills Exercises
- Experiential Exercises
- Glossary
- Author Index
- Subject Index
The Fundamentals of Controlling
As the scale and complexity of modern organizations grow, so does the problem of control in organizations. Prospective managers, therefore, need a working knowledge of the essentials of the controlling function.2 To this end, the following sections provide a definition of control, a definition of the process of controlling, and a discussion of the various types of control that can be used in organizations.
Defining Control
Stated simply, control entails ensuring that an event occurs as it was planned to occur.3 As implied by this definition, planning and control are virtually inseparable functions.4 In fact, these two functions have been called the Siamese twins of management.5
Murphy’s Law is a lighthearted adage that makes the serious point that managers should continually control—that is, they should check to see that organizational activities and processes are going as planned. According to Murphy’s Law, anything that can go wrong will go wrong.6 This law reminds managers to remain alert for possible problems because even if a management system appears to be operating well, it might actually be eroding under the surface. Therefore, managers must always seek feedback on how the system is performing and must make corrective changes whenever warranted.
Controlling is the process managers go through to control. According to Robert Mockler, controlling is
a systematic effort by business management to compare performance to predetermined standards, plans, or objectives to determine whether performance is in line with these standards and presumably to take any remedial action required to see that human and other corporate resources are being used in the most effective and efficient way possible in achieving corporate objectives.7
For example, production workers generally have daily production goals. At the end of each working day, the number of units produced by each worker is recorded so that weekly production levels can be determined. If these weekly totals are significantly below weekly goals, the supervisor must take corrective action to ensure that actual production levels equal planned production levels. If, on the other hand, production goals are being met, the supervisor should allow work to continue as it has in the past.8
The following sections discuss the controlling subsystem and provide more details about the control process itself.
The Controlling Subsystem
As with the planning, organizing, and influencing functions described in earlier chapters, c ontrolling can be viewed as a subsystem of the overall management system. The purpose of this subsystem is to help managers enhance the success of the overall management system through effective controlling. Figure 17.1 shows the specific components of the controlling subsystem.
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