N5 Entrepreneurship 2. Control process


Step 1 Effective performance The first step in a control process is to define effective performance. Small business managers and workers must know exactly what is required and, in specific terms, what is to be achieved. This relates closely to the determination of specific objectives and the criteria for such objectives. The job description of a worker will also increase the understanding of what is required.


Step 2 Measuring current performance Current performance must be measured against the standards (objectives) that were set. Deviations from the standards will be detected in this manner. This process is, in most instances, perceived to be negative since it means determining the progress that was made. However, deviations such as performing above standard, must also be detected and reported. If a small business manager is prepared to take action if sub- standard work is delivered, then action must also be taken when exceptional work is done. Performance appraisals should then follow.


Step 3 Informing the worker The worker responsible must be informed when a deviation (change) is detected. The process that follows after the diagnosis is very important for the future. Labour relations can be in jeopardy if this is done in a haphazard fashion. Inform the worker about the deviations and jointly formulate a diagnosis. This is not a process of accusing; it is a process of determining the origin of the deviation.


Step 4 Select remedial action Selecting remedial or corrective action implies that a decision is taken on how best to rectify the situation. If the worker was performing very well, a bonus or a promotion might be appropriate. If sub-standard work was delivered, a variety of steps can be taken. This depends on the nature of the problem. If it is faulty equipment, then the appropriate question is whether it is faulty because of a lack of maintenance, which means that it is a human error. However, if the machine capacity is not sufficient, then corrective action might imply the purchase of another machine.


Remedial action for human error can be divided into two sections, namely: 1


Steps that the manager can take to rectify the situation. These include: – Corrective discipline – Improving communication – Increasing motivation – Lower performance standards – Demotion – move the worker to a level in which he/she is more competent


2


Programmes in the business to rectify the problem. These include: – Training and development i.e. courses – Stress management – take steps to reduce the stress levels – Redesigning the job to suit the worker skills and interests


Step 5 Re-evaluating performance Once corrective action is taken, follow-ups must take place. The effectiveness of the corrective action programme must be determined. If it is necessary, additional steps must be taken to rectify the problem.


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