Lesson 9 Control Methods and Systems Methods of Control

CONTROL METHODS AND SYSTEMS METHODS OF CONTROL
There are two (2) control techniques or methods that a firm may apply,
these are the following:
A.Quantitative Methods
 It makes use of data and different quantitative tools for monitoring and
controlling production output.
The chart is the most widely recognized quantitative. Charts used as control
tools normally contrast time and performance. The visual impact of a
chart often provides the quickest method of relating data. A difference in
numbers is much more noticeable when displayed graphically.
Two common quantitative tools are (1) Budgets and (2) Audits.
1. BUDGET
 It is considered the best-known control device. Budgets and control are,
in fact, synonymous. An organization’s budget is an expression in
financial terms of a plan for meeting the organization’s goals for a
specific period. A budget is an instrument of planning,
management, and control.
Budgets are used in two (2) ways:

a. To establish facts that must be taken into account during planning;
b. To prepare a description and financial information to be used by the
chain of command to request and manage funds.
1. AUDITS
 Internal auditing involves the independent review and evaluation of
the organization’s non-tactical operations, such as accounting
and finances.
 As a management tool, audit measures and evaluates the
effectiveness of management controls.
A. Non- Quantitative Methods

 These refer to the overall control performance instead of only those
of specific organizational processes.
 These methods use tools such as inspections, reports, direct
supervision, and on-the spot-checking and performance
evaluation or counseling to accomplish goals.
Types of Non-Quantitative Methods
1. FEEDFORWARD CONTROL
 A control method that prevents problems in a firm because managerial
action is taken before the actual problem occurs.
2. CONCURRENT CONTROL
 It is a method that takes place while work activity is happening.
Example: Direct supervision or management by walking around.
3. FEEDBACK CONTROL
 It is a control that takes place after the occurrence of the activity. It is
disadvantageous because, by the time the manager receives the
information, the problem had already occurred.
Note: When the above three control methods are compared,

managers choose the feedforward method as the most desirable
because of its preventive action. The concurrent control’s advantage is
that it can help managers’ correct problems before they become too
costly or damaging. Feedback Control’s advantage is the exhibiting of
variance between the standard and the actual work performance.
Little variance indicates that planning is successful while significant
variance may give managers an idea of how to plan better.
4. EMPLOYEE DISCIPLINE
 It is a control challenge for managers, for enforcing discipline in the
workplace is not easy.
 This includes workplace privacy, employee theft, and workplace
violence, among others, are some of the concerns in employee
discipline.
 From simple monitoring of employees’ computer usage at work to
protecting employees at work from psychologically unstable
workers who may have hidden desires to harm them, managers need
discipline control to ensure that tasks can be efficiently and effectively
carried out as planned.
5. PROJECT MANAGEMENT
 It ensures that the task of getting a project’s activities done on
time, within the budget, and according to specifications, is
successfully carried out.
 Project Managers need technical and interpersonal skills to control the
implementation of the project efficiently and efficiently.
Project Planning Process Controls include the ff:

a. Defining objectives
b. Identifying activities & resources
c. Establishing sequence & estimating time for activities
d. Determining the project completion date
e. Comparing with objectives and determining additional resource
requirements.
BENCHMARKING
 It is an approach or process of measuring a company’s services and
practices against those of recognized leaders in the industry to
identify areas for improvement.
 It is a widely used and well-accepted approach because it helps
organizations gather data and information against which
performance can be measured and controlled.
Three (3) Types of benchmarking according to Weihrich and Koontz

(2005):
1. Strategic Benchmarking
 It compares various strategies and identifies the key strategic elements
of success.
2. Operational Benchmarking
 It compares relative cost or possibilities for product differentiation.
3. Management Benchmarking
 It focuses on support functions such as market planning and
information systems, logistics, and human resource management,
among others.
Many companies used benchmarking. Some prefer to benchmark

only the top 10% or the best companies in their particular industry. Other
benchmarks best global practices and go further away from their own industry
and reason out that their goal is competitive superiority and not just
competitive parity.
The benchmarking process begins with determining which company
functions are to be benchmarked and the key performance indicators to
be measured. Then, the best industry performers have to be identified.
Data gathering and analysis follow and these become the foundations for
performance goals. New programs are implemented, and during this step,
performance is measured at regular intervals. Corrective actions are taken to
close the gap between the organization and the best-in-class companies. The
monitoring of results must be continuous to ensure benchmarking success.

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CONTROL METHODS AND SYSTEMS METHODS OF CONTROL

Budgets are used in two (2) ways:

A. Non- Quantitative Methods

Types of Non-Quantitative Methods

Note: When the above three control methods are compared,

Project Planning Process Controls include the ff:

Three (3) Types of benchmarking according to Weihrich and Koontz

Many companies used benchmarking. Some prefer to benchmark

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