Page 449 - Fundamentals of Management Myths Debunked (2017)_Flat

448 Part 5 • Controlling
Exhibit 14–2 The Control Process

Is standard Yes Do
Compare being attained? nothing
actual
performance
with standard No

Is variance Yes Do
acceptable? nothing

Measure No
Goals Standard actual
performance
Identify
Is standard Yes cause of
acceptable? variation

No

Revise Correct
standard performance

and exchanging information about what’s going on. Management by walking around can
Greeting customers with a handshake, a pick up factual omissions, facial expressions, and tones of voice that may be missed by other
smile, and a warm welcome is a practice
Apple stores adopted from Ritz-Carlton, sources. Unfortunately, in a time when quantitative information suggests objectivity, per-
the luxury hotel chain known as the gold sonal observation is often considered an inferior information source. It is subject to percep-
standard of customer service. Apple bench- tual biases; what one manager sees, another might not. Personal observation also consumes
marked with Ritz-Carlton because it wants its
employees to excel at customer service that a good deal of time. Finally, this method suffers from obtrusiveness. Employees might
leads to customer loyalty. interpret a manager’s overt observation as a lack of confidence or
a sign of mistrust.
The widespread use of computers has led managers to
rely increasingly on statistical reports for measuring
actual performance. This measuring device, however,
isn’t limited to computer outputs. It also includes
graphs, bar charts, and numerical displays of
any form that managers can use for assessing
performance. Although statistical information
is easy to visualize and effective for showing
relationships, it provides limited information
about an activity. Statistics report on only a
few key areas and may often ignore other
important, often subjective, factors.
Information can also be acquired
through oral reports—that is, through
conferences, meetings, one-to-one conver-
sations, or telephone calls. In employee-
oriented organizations where employees
work closely together, this approach may
Nati Harnik/AP Images