Compare actual performance with standard
Is standard being attained?
Yes
Do nothing
No
Is variance acceptable? Yes Do nothing
Objectives
Standard
Measure actual performance
How do managers measure?(means)
Personal observation Statistical reports Oral report Written report
What do manager measure?(content)
Control areas: information, operations, finances, people Quantifiable criteria Subjective measure
Exhibit 12-4 Contingency Factors
Small Organization size Large Position and level Degree of decentralization High Low Informal, personal, management by walking around Formal, impersonal, extensive rules and regulation Many criteria Few, easy-to-measure criteria Increased number and breath of controls Reduced number of control Informal, self-control Formal, externally imposed controls Elaborate, comprehensive controls Loose, informal controls