CONTROL | Identify and describe the four steps in the control process

Identify and describe the four steps in the control process.

ANSWER

The four steps in the control process are: step 1 –– establish objectives and standards; step 2 –– measure actual performance; step 3 –– compare results with objectives and standards; and step 4 –– take corrective action as needed. A brief description of each step is provided below.

•        Step 1 –– establishing objectives and standards. The control process begins when performance objectives and standards are set through planning. Both output standards and input standards are established at this step.

•        Step 2 –– measuring actual performance. During this step, attention is devoted to accurately measuring actual performance results (output standards) and/or performance efforts (input standards).

•        Step 3 –– comparing results with objectives and standards. The comparison made at this step is summarized by the following control equation: Need for Action = Desired Performance – Actual Performance. Methods of comparing desired and actual performance can be assessed through any of the following alternatives: a historical comparison, a relative comparison, or an engineering comparison.

•        Step 4 –– taking necessary action. This step involves taking any action necessary to appropriately address differences between desired and actual performance. Managerial attention is focused on those situations with the most significant deviations between desired and actual performance. Two types of exceptions can be recognized with the control equation: a problem situation and an opportunity situation.

Source: Management, 11th Edition & 12th Edition- John R. Schermerhorn