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Management and Organization Behavior. MGMT 3140 Managerial Control. Twins. Planning Control. Types of Business Controls. Bureaucratic control Market control “Clan control” (organization culture). Steps in a Control Procedure. Steps in a Control Procedure.

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management and organization behavior

Management and Organization Behavior

MGMT 3140

Managerial Control

twins
Twins
  • Planning
  • Control
types of business controls
Types of Business Controls
  • Bureaucratic control
  • Market control
  • “Clan control” (organization culture)
steps in a control procedure1
Steps in a Control Procedure
  • Setting performance standards (plan) (speed)
  • Measuring performance (measure speed)
  • Comparing actual to plan
  • Taking action to correct problems and reinforce success
common standards
Common Standards
  • Sales level
  • Profit level
  • Number of customers
  • Number of orders
  • Project completion dates (step/milestones dates)
  • Quality measures
  • Time to resolve issues
  • Costs (both variable and fixed)
  • Return on Investment
measuring performance
Measuring Performance
  • Financial reports (most common)
    • Balance sheet
    • Income statement
    • Cash flow
  • Project reviews
  • MBWA
  • Phone calls, visits
  • Surveys
principle of exception
Principle of Exception
  • Quality
  • 5 pieces per 1000?
    • Old fashioned standard…
three approaches
Three Approaches
  • Feedforward (system design)
  • Concurrent
  • Feedback
six sigma
Six Sigma
  • A statistically based control tool to analyze processes, identify problems or opportunities, make changes, then compare results to insure obtaining the desired improvement
audits
Audits
  • Internal
  • External
  • Accounting
  • Other
budget controls
Budget Controls
  • Most common general control
  • Reason for “managerial accounting”
  • Must consider cycles, seasons
  • Can be (and often is) specific projects
common budgets
Common Budgets
  • Sales
  • Production
  • Cost
  • Cash
  • Capital
  • Master (profit plan)
making budgets
Making Budgets
  • Top down
  • Bottom up
  • Combination is most common today
importance
Importance
  • Balance sheet
  • Profit and Loss statement
balance sheet keys
Balance Sheet Keys
  • Liquidity
  • Investment (ROI)
  • Debt
  • Quality of assets
  • Intangibles
designing bureaucratic controls
Designing Bureaucratic Controls
  • Make sure that controls don’t bring about unethical behavior
  • Modern control systems
more on controls
More on Controls
  • Use valid standards
  • Use a team approach
  • Watch the “deadly sins (Hammer, Deming)
  • Provide good base information and feedback
  • Balanced scorecard
market control
Market Control
  • Impact on all
  • Freedman
  • Transfer price
clan control culture
Clan Control (Culture)
  • People what to use their brains
  • Empowerment
  • “A fish rots at the head first”
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