Text 2. CONTROLLING

The managerial function of controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accompli­shed. It is the function of every manager from president to supervisor.

Control techniques and systems are basically the same regardless of what is being controlled. The basic control process involves three steps: establishing standards; measuring performance against these standards; correcting deviations from standards and plans.

There are different kinds of standards and they should point out deviations at critical point. Standards are criteria of performance. They are selected points in a whole planning program which inform managers about every step in execution of plans. Standards should reflect various positions in an organisation structure. If performance is measured accordingly, it is easier to correct deviations. Managers know exactly where the corrective measures must be applied. Managers may correct deviations by redrawing their plans or by modifying their goals. They may as well correct them by exercising their organising function through reassignment or clarification of duties. They may correct deviations by additional staffing, by better selection and training of subordinates or through better leading – fuller explanation of the job and more effective leadership techniques.

Managerial control is usually perceived as a simple feedback system similar to the common household thermostat. Effective control requires attention to those factors that are critical to evaluating performance against plans. Control is a feedback system.

However, no matter how quickly information is available on what is occurring there are unavoidable delays in analysing deviations, developing plans for taking corrective action and implementing these programs. In order to overcome these time lags in control, it is suggested that managers utilise a feedforward control approach and not rely on simple feedback alone. Feedforward control requires designing a model of a process or system and monitoring inputs with a view to detecting future deviations of results from standards and plans, thereby giving managers time to take corrective action.

If controls are to work, they must be specially tailored to plans and positions; to individual managers; and to the needs for efficiency and effectiveness. To be effective, controls also should be designed to point out exceptions at critical points, to be objective, to be flexible, to fit to organisational culture, to be economical and to lead to corrective action.

A variety of tools and techniques have been used in controlling. One of the older control devices is the budget. Budgeting is the formulation of plans for a given future period in numerical terms. There are several types of budgets: revenue and expense budgets; time, space, material and product budgets; capital expenditure budgets; cash budgets.

Among the traditional nonbudgetary control devices there are statistical data and their analyses, special reports and analyses, the operational audit and personal observation.

The management information system is a formal system of gathering, integrating, comparing, analysing and dispersing informa­tion internal and external to the enterprise in a timely, effective and efficient manner.

Computers are now extensively used. Their impact on managers at various organisational levels differs. Computers have also contri­buted to telecommuting, which means that people may work at home at a computer terminal that is linked to a company’s mainframe computer. The more techniques and information are understandable to individual managers who must utilise them, the more they will actually be used and the more they will result in effective control.

Task 33. Translate the sentences into English:

1. Є декілька підходів до визначення поняття “менеджмент”. 2. Контролювання – це вимірювання і корекція роботи, щоб пере­конатися, що цілі і плани підприємства досягнуто. 3. Менеджери повинні знати, які саме коригуючі заходи треба вживати. 4. З цією проблемою не можна зволікати, її треба розглянути і вирі­шити. 5. Стандарти роботи нашої фірми повністю відповідають сучасним критеріям оцінки. 6. Нова програма роботи, розроблена нашим керівництвом, була поштовхом для подальшого успіш­ного існування нашої фірми. 7. Одним із найдавніших засобів контролювання є бюджет. 8. Інформаційна система управління – це формальна система підбору, інтеграції, порівняння, аналізу і поширення інформації ефективно і швидко. 9. Будь-який праців­ник бажає бути достойно оціненим. 10. Банкрутство нашої фірми здавалося неминучим ще рік тому. 11. Кожна компанія оцінює ситуацію на ринку. 12. Випереджувальний контроль вимагає мо­делювання діяльності в майбутньому. 13. Розроблення бюджету – це планування майбутнього періоду діяльності фірми. 14. Конт­ролювання передбачає три етапи: встановлення стандартів, порів­няння діяльності з стандартами та внесення коректив до плану. 15. Тренування підлеглих, пояснення обов’язків сприяє підви­щенню ефективності праці.

Task 34. Think over and then write for half an hour on one of the following issues:

A. Some pieces of advice on how to reach total quality management are presented in the text “Directing”. Choose any three of them to comment on how, in your opinion, they are really important for quality management.

B. How important, do you think, are well-defined criteria for effective controlling? Provide examples from your student life: is it easier for you to prepare for tests and examinations when the criteria for evaluation have been clearly defined?

C. Some people think that they can work better by themselves than when they are being directed. Others think that it is always better to have somebody to direct you. What do you prefer? Use specific reasons to support your ideas.