Week 5 Practice: Types of Controls Scenario
Review the three types of controls that are used by managers (feedforward, concurrent, and feedback).
Provide an example in a total of 2 to 4 sentences of when each type of control would be used.
This is sometimes referred to as preliminary or preventive controls, as they try to prevent deviations in standards before they occur. The feedforward controls focus on human, material, and financial resources within the company. The feedforward controls are most relevant in the hiring process of new employees. An example would be that the organization is wanting to improve the likelihood of employees performing to standards, so they look for these necessary job skills with the use of tests and screenings to hire the people that have these particular skills.
Concurrent controls are those that monitor the ongoing employee activity to help ensure there is consistency in quality standards. These are the controls that rely on performance standards, rules and regulations to guide the tasks and behaviors of the employees. The concurrent controls have the responsibility of making sure that work activities are producing the desired results. An example would be for an employee to monitor their measures and if they see an area is not meeting the standard, they either make the correction themselves or speak to a manager about the problem.
Feedback controls are when information is reviewed to determine if employee performances are meeting the standards that have been set. An example would be that a company is looking to increase their profits by 10 percent next year. To ensure this goal is met, the company would want to monitor the profits monthly, so they can see if they are on track to meet this overall goal.