1.

4 steps in control process

1 Setting Appropriate Performance Standards Measuring Actual Performance

Comparing Actual Performance to standards

Taking Corrective Action

2. Setting Appropriate Performance Standards

Standard is a unit of measurement used to evaluate results Performance standards should be realistic and acceptable to the people involved Standards can be: + Quantitative (time, cost, grades) + Qualitative (perception, judgement) An effective standard shares the same characteristics as an effective objective

- Quantitative: 500000 accounts added, most visited social network site, shares continue sto rise at rate 30. - Qualitative: positive comments from user "We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company."

3. Measuring actual performance:

Performance evaluations are on of the major ways of measuring performance 3 importants conditions for effective performance: - Agree on the specific aspects of performance to be measured - Agree on the accuracy of measurement + Quantitative + Qualitative - Agree on who will use the measurement

Facebook appliance:
aspects of performance: number of views and accounts accuracy of measurement: reports twice a week who will use the measurement: managers at higher level

4. Comparing actual performance to standards:

Key: Measuring the deviation and communicating information about it a. Deviation: indicates the size of the discrepancy between performance standards and actual results Based on: + Statistics number + Wisdom and experience b. Results be communicated to the right people

Step 3: Compare, based on reports - Deviation: Compare % of results in reality to standards - Exceptional deviations exist or not?

5. Taking corrective Action:

Depends on the results of the evaluation, there are 3 courses of action:
Action Do nothing Solve the problem Revise the standard When/ How
Events are proceeding according to plan - Deviation is significant => Discuss nature of problem Drastic solution or without overhauling

- Unrealistic performance standard => Standards be revised due to external environment changing - Judge standard: difficult/easy

 Step 4: Corrective - Do nothing: everything keeps track with the plan

Solve the problem: when the situationis accounts decrease in March, shares stay the same, negativecomments about thetimeline

Revise standard: when the statistics increase but not outstanding, which indicates the difficulties to reach target. Reason: Others social network such as Twitter or Tumblr