• Home
• Module overview
• 1. The challenge of management
  • Introduction
  • 1.1 Defining management
    • 1.1.1 The art of getting things done through people
    • 1.1.2 Defining management by its functions
    • 1.1.3 Is management a profession?
  • 1.2 Management knowledge , skills and performance
    • 1.2.1 Types of managers
    • 1.2.2 Effectiveness and efficiency
    • 1.2.3 Managing the customer within
  • 1.3 The evolution of management thought
  • Conclusion

• 2. Understanding external environments

  • Introduction
  • 2.1 Putting the e xternal environment into focus
    • 2.1.1 Classifying external elements
    • 2.1.2 The changing environment
    • 2.1.3 The international dimension
  • 2.2 Relating the o rganisation to its environment
    • 2.2.1 So many issues: Which should you focus on?
    • 2.2.2 How do you acquire the relevant information?
    • 2.2.3 Clarifying the relationship between the internal and external environments
  • Conclusion

• 3. Social responsibility and ethics in management

  • Introduction
  • 3.1 Business is not value neutral: Social responsibility, obligation and responsiveness
  • 3.2 Focussing on ethics
    • 3.2.1 Why business ethics now?
    • 3.2.2 Ethical quandaries
    • 3.2.3 Approaches to ethical dilemmas
    • 3.2.4 Defining your ethics
  • Conclusion

• 4. Managerial decision making

  • Introduction
  • 4.1 Decision making and problem solving
  • 4.2 The nature of decision making as part of management
    • 4.2.1 Programmed and non-programmed decisions
    • 4.2.2 Certainty, risk and uncertainty
    • 4.2.3 Urgent vs important decisions
  • 4.3 Problem solving: making the most of opportunities
    • 4.3.1 Looking further at problem solving
    • 4.3.2 The effective decision making process
    • 4.3.3 Improving managerial problem solving: overcoming barriers
    • 4.3.4 Thinking 'outside the box' and creativity
  • 4.4 Interrelated problems
  • Conclusion

• 5. Managing strategically

  • Introduction
  • 5.1 Planning ahead
  • 5.2 Strategic management
    • 5.2.1 Some definitions
    • 5.2.2 The process of strategic management
  • Conclusion

• 6. Organisational design and structure

  • Introduction
  • 6.1 The terminology of organisational design
  • 6.2 Strategic organisational design and structure
    • 6.2.1 Types of organisational structure
    • 6.2.2 Strategic organisational design
  • 6.3 Teamwork
    • 6.3.1 The success of teamwork
  • Conclusion

• 7. Organisational culture and workforce diversity

  • Introduction
  • 7.1 Defining organisational or corporate culture
    • 7.1.1 Culture defined through its response to change
    • 7.1.2 Culture defined through the influence of the external environment
  • 7.2 Strong and weak cultures
  • 7.3 The functions of culture
  • 7.4 Creating and sustaining culture
  • 7.5 Types of culture
    • 7.5.1 Dominant culture
    • 7.5.2 Subculture
    • 7.5.3 Core values
  • 7.6 Changing culture
  • 7.7 Cultural diversity in the maritime industry
  • Conclusion

• 8. Change management

  • Introduction
  • 8.1 Dealing with change and the changing nature of change
    • 8.1.1 In what areas of the organisation can managers expect change?
    • 8.1.2 Reacting to change
  • 8.2 Key issues accelerating change
    • 8.2.1 External forces
    • 8.2.2 Internal forces
  • 8.3 Managing change
    • 8.3.1 Reactions to change
    • 8.3.2 Why employees resist change
    • 8.3.3 Emotions accompanying change
    • 8.3.4 Overcoming resistance
    • 8.3.5 Leadership and successful change
  • Conclusion

• 9. Motivating for performance

  • Introduction
  • 9.1 The nature of motivation
  • 9.2 Theories of motivation
    • 9.2.1 Do rewards really work? needs theories
    • 9.2.2 Are substantive rewards the only motivator? process theories
    • 9.2.3 Learning behaviour reinforcement theory
    • 9.2.4 Social learning theory
    • 9.2.5 Putting it all together systems theory
  • 9.3 The power of positive thinking
  • 9.4 Motivation: The implications for managers
  • Conclusion

• 10. Leadership

  • Introduction
  • 10.1 The nature of leadership
    • 10.1.1 Thinking about 'leaders' and 'leadership'
    • 10.1.2 Theories of leadership
    • 10.1.3 Refining our definition of leadership
  • 10.2 Perspectives on leadership
    • 10.2.1 Manager, leader, or both?
  • Conclusion

• 11. Teamwork

  • Introduction
  • 11.1 Work groups and group dynamics
    • 11.1.1 Work groups, work teams, taskforces, self-managing teams and team building
    • 11.1.2 High-performance teams
  • 11.2 Managing meetings and committees
  • 11.3 Group decision making
    • 11.3.1 Some advantages and disadvantages
    • 11.3.2 So, do groups make better decisions than individuals?
  • Conclusion

• 12. Managerial evaluation and control

  • Introduction
  • 12.1 Evaluation and control as a management process
    • 12.1.1 Why evaluate and control performance?
    • 12.1.2 Getting and using necessary information
  • 12.2 Levels of control
  • 12.3 Steps in the control process
  • 12.4 Assessing control systems
  • 12.5 Back to ethics
  • 12.6 Quality control systems
  • Conclusion

12.3 Steps in the control process

You will find that most management textbooks outline the 'steps' in the control process. These may differ slightly, but in general they include the following.

Figure 12.1 The control process

Step 1: determine what to measure
Establishing objectives

Establishing objectives is in effect deciding what to measure. What you measure is as critical to the control process as how you measure.

You should work together with colleagues and employees to determine your section's or department's objectives. Objectives should state how employees should perform, how equipment should operate and how money should be used. They should be expressed in tangible and measurable terms.

Below are some examples of objectives that might be set.

• Reduce the expense budget by 5 per cent over the next 12 months.
• Reduce the number of customer complaints by 10 per cent over the next 6 months.
• Increase the client base by 5 per cent over the next 12 months.
• Reduce the truck waiting time by half an hour per vehicle over the next 6 months.
• Increase the number of container lifts per working hour by 5 per cent in the next 6 months.
• Decrease the number of manufacturing defects from 50 in 10 000 to 5 in 10 000.

It is important that the objectives and criteria set are realistic and achievable. The selection of improper criteria can lead to dysfunctional consequences. For example, pressure to increase production may cause an employee to overlook an important safety requirement.

Step 2: evaluate performance
Comparing deviations

The second step in the control process involves determining the deviation of actual performance from the established objectives. Having established your objectives you need to compare actual performance with these objectives. To do this you have to determine what information to collect (in order to determine if there have been any deviations from the objectives) and how to collect it.

How often you should assess deviations from your objectives depends on the nature of your organisation and its industry. Production, sales, expense and manufacturing figures and turnaround times are commonly collected. These are often presented in daily, weekly, monthly and twice-yearly totals.

In most activities some variation can be expected between established objectives and actual performance. Therefore it is critical to determine the acceptable degree of deviation from your objectives or aims. Some examples may make this clearer.

For example

Let us assume that one objective your section had put in place was to:

Reduce truck waiting time by half an hour per vehicle over the next six months.

Assume that the relevant figures are kept daily. You have chosen a 'basket' of indicators that allows you to analyse the improvement for each month. You discover that in the six months from January to June February's performance is considerably poorer than those of the other months. Despite this the average truck waiting time for the six-month period has been reduced by 29 minutes. Is the 29 minutes close enough to your target of 30 minutes? Are you going to investigate the month of February?

Let's say you wanted to:

Reduce your expense budget by 5 per cent over the next 12 months.

At the end of the twelve months you discover that you reduced the budget by 4.9 per cent. Are you going to investigate?

An important point needs to be made here. When an objective has been achieved or exceeded do not overlook the opportunity to recognise performance and praise staff. This is a wonderful tool for motivation.

Step 3: Take action

Having determined that there has been a deviation from the objectives you have two options (assuming that doing nothing is not really an option).

• Correct the actual performance (of equipment or human resources).
  If the source of the deviation is inadequate performance you have a number of options. For example, you may change your section's strategy or how you structure your section; you may alter your compensation or remuneration practices; you may introduce training programs or new technologies; or you may redesign jobs.
• Revise the criteria of performance or the established objectives.
  You may determine that one or more of the original objectives was unrealistic or inappropriate. In this case it is the objectives, and not the performance, that need to be altered.

The next reading looks at the control process in general and the types of control.

In your text

Bartol, K M; Martin, D C; Tein, M H and Matthews, G W (2001),
pages 496-511.

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