An example of proactive control is when an engineer performs tests on the braking system of a prototype vehicle before the vehicle design is moved on to be mass produced. Proactive control, also known as preliminary, preventive, or feed-forward control, involves anticipating trouble, rather than waiting for a poor outcome and reacting afterward. Therefore, feedback control is more suited for processes, behaviors, or events that are repeated over time, rather than those that are not repeated. A situation may have ended before managers are aware of any issues. The disadvantage of feedback control is that modifications can be made only after a process has already been completed or an action has taken place. Three months after the changes are implemented, managers will review the new results to see whether the goal was achieved. As part of the process, managers may also implement changes if the goal is not achieved. If not, adjustments can be made to the process or to the standard.Īn example of feedback control is when a sales goal is set, the sales team works to reach that goal for three months, and at the end of the three-month period, managers review the results and determine whether the sales goal was achieved. If the standard or goal is met, production continues. For example, feedback control would involve evaluating a team’s progress by comparing the production standard to the actual production output. Feedbackįeedback occurs after an activity or process is completed. Proactive control anticipates future implications. The controls related to time include feedback, proactive, and concurrent controls. The employee handbook is updated to include the change, and XYZ executives hold a meeting with all warehouse employees to communicate the policy change (Step 5).Ĭontrols can be categorized according to the time in which a process or activity occurs. Now, if there is evidence that an employee has stolen a pair of sunglasses, that employee’s job will be terminated. XYZ senior executives approve of the suggestion to institute a zero-tolerance policy for employee theft. Managers then come up with suggestions for making adjustments to the control system (Step 4). It has been determined that the company lost $200 the first month, $300 the second month, and $200 the third month due to theft, which is an improvement but short of the goal. The managers then compare the figures with the previous period, taking into account orders for deliveries, returns, and defective merchandise (Step 3). Only the warehouse managers have keys to these cabinets.Īfter three months, XYZ managers contact the bookkeeper to get the sales and inventory figures for the past three-month period (Step 2). To discourage the undesired behavior, XYZ installed cameras in the warehouse and placed locks on the cabinets where the most expensive sunglasses are stored. The company currently loses an average of $1,000 per month due to employee theft. The executives establish a goal of zero thefts ($0) within a three-month period (Step 1). It has been determined that the items are being stolen from the company warehouse. Senior executives establish a plan to eliminate the occurrence of employee theft. Taking corrective action: After the reasons for deviations have been determined, managers can then develop solutions for issues with meeting the standards and make changes to processes or behaviors.Ĭonsider a situation in which a fictional company, The XYZ Group, has suffered a decrease in the profits from its high-end sunglasses due to employee theft. This step also involves determining whether more control is necessary or if the standard should be changed. Analyzing deviations: Managers must determine why standards were not met.
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