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Chapter 13

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Chapter 13

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  1. Chapter 13 Foundations of Control 控制的基礎

  2. OUTLINE S • Define control. • Three approaches to control. • The control process. • Three types of control. • Qualities of an effective control system. • Contingency factors in the control process. • How controls can become dysfunctional. • How an entrepreneur controls for growth. Management—Control Mike Wu 2008

  3. What Is Control? • Control • The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations 用以確保活動能按計畫完成並矯正任何重大的偏離的監視程序。 • An effective control system ensures that activities are completed in ways that lead to the attainment of the organization’s goals. Management—Control Mike Wu 2008

  4. Three Approaches to Control Systems • Market市場控制 • Uses external market mechanisms, such as price competition and relative market share, to establish standards used in system to gain competitive advantage. 使用外部市場機制來進行控制的方式,例如價格競爭或市場佔有率。 • Bureaucratic科層體制控制 • Emphasizes organizational authority of administrative and hierarchical mechanisms to ensure appropriate employee behaviors and to meet performance standards.強調運用組織行政上的職權,並且依賴管理規則、規定、程序以及政策的控制方法 • Clan群體控制 • Regulates employee behavior by the shared values, norms, traditions, rituals, beliefs, and other aspects of the organization’s culture.藉由共有的評價、規範、傳統、儀式典範、信念及其他方面的組織文化來管理員工行為所設計的控制系統 Management—Control Mike Wu 2008

  5. The Control Process 控制程序 與實際績效比較 量測實際績效 標準 目標 修正標準 修正績效 Management—Control Mike Wu 2008

  6. Steps in the Control Process (No.1) • Measuring actual performance衡量實際績效 • Personal observation, statistical reports, oral reports, and written reports個人觀察、統計報告、口頭報告、書面報告、資訊系統 • Management by walking around (MBWA)走動式管理 • A phrase used to describe when a manager is out in the work area interacting with employees Management—Control Mike Wu 2008

  7. Steps in the Control Process (No.2) • Comparing actual performance against a standard依據標準比較實際的績效 • Comparison to objective measures: budgets, standards, goals • Range of variation變異區間 • The acceptable parameters of variance between actual performance and the standard Management—Control Mike Wu 2008

  8. Defining an Acceptable Range of Variation 接授上限 可接授的變異區間 接授下限 EXHIBIT 13.3 Management—Control Mike Wu 2008

  9. Steps in the Control Process (No.3) • Taking managerial action to correct deviations or inadequate standards採取管理行動來改正偏離或不當的標準 • Correct actual performance改善績效 • Immediate corrective action治標改善行動:Correcting a problem at once to get performance back on track馬上修正問題並導正偏差。 • Basic corrective action治本改善行動:Determining how and why performance has deviated and then correcting the source of deviation探討績效如何及為何產生偏差,然後再正本清源來修正偏差。 • Revising the standard修改標準 • Adjusting the performance standard to reflect current and predicted future performance capabilities Management—Control Mike Wu 2008

  10. Mid-Western Distributors’ Sales Performance for July (hundreds of cases) BRAND STANDARD ACTUAL OVER (UNDER) Heineken 1,075 913 (162) Molson 630 634 4 Beck’s 800 912 112 Moosehead 620 622 2 Labatt’s 540 672 132 Corona 160 140 (20) Amstel Light 225 220 (5) Dos Equis 80 65 (15) Tecate 170 286 116 Total cases 4,300 4,464 164 EXHIBIT 13.4 Management—Control Mike Wu 2008

  11. Types Of Control • Feedforward control事前控制 • Control that prevents anticipated problems控制預期未來發生的問題 • Concurrent control事中並行控制 • Control that takes place while an activity is in progress控制發生在活動進行中 • Feedback control回饋(事後)控制 • Control that takes place after an action控制發生在行動之後 • Provides evidence of planning effectiveness • Provides motivational information to employees Management—Control Mike Wu 2008

  12. Types of Control Management—Control Mike Wu 2008

  13. Schedule the feedback session in advance and be prepared. • Put the employee at ease. • Make sure the employee knows the purpose of the feedback session. • Focus on specific rather than general work behaviors. • Keep comments impersonal and job related. • Support feedback with hard data. • Direct the negative feedback toward work-related behavior that the employee controls. • Let the employee speak. • Ensure that the employee has a clear and full understanding of the feedback. • Detail a future plan of action. Steps in Performance Feedback Management—Control Mike Wu 2008

  14. Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on the exception Multiple criteria Corrective action Qualities Of An Effective Control System • 正確性 • 時效性 • 經濟 • 彈性 • 可了解度 • 合理的標準 • 策略性的配置 • 著重例外 • 多重標準 • 修正行動 Management—Control Mike Wu 2008

  15. Contingency Factors權變因素 in the Design of Control Systems Management—Control Mike Wu 2008

  16. Management—Control Mike Wu 2008

  17. Controls And Cultural Differences控制與文化差異 • Methods of controlling employee behavior and operations can be quite different in different countries. • Distance creates a tendency for formalized controls in the form of extensive, formal reports. • In less technologically advanced countries, direct supervision and highly centralized decision making are the basic means of control. • Local laws constraint the corrective actions that managers can take foreign countries. Management—Control Mike Wu 2008

  18. The Dysfunctional Side Of Control控制之不良面 • unfocused controls • Failure to achieve desired or intended results occur when control measures lack specificity • incomplete control measures • Individuals or organizational units attempt to look good exclusively on control measures. • inflexible or unreasonable control standards • Controls and organizational goals will be ignored or manipulated. Management—Control Mike Wu 2008

  19. Control Measures for Deterring Employee Theft or Fraud Management—Control Mike Wu 2008

  20. Contemporary Issues In Control控制的現代議題 • The right to personal privacy in the workplace versus: • Employer’s monitoring of employee activities in the workplace • Employer’s liability for employees creating a hostile environment • Employer’s need to protect intellectual property Remember: The computer on your desk belongs to the company Management—Control Mike Wu 2008

  21. How An Entrepreneur Can Control For Growth • Planning for growth • By addressing growth strategies as part of business planning but not being overly rigid in planning. • Organizing for growth • The key challenges include finding capital, finding people, and strengthening the organizational culture. • Controlling for growth. • Maintaining good financial records and financial controls over cash flow, inventory, customer data, sales orders, receivables, payables, and costs. Management—Control Mike Wu 2008

  22. Suggestions for Achieving a Supportive Growth-Oriented Culture • Keep the lines of communication open—inform employees about major issues. • Establish trust by being honest, open, and forthright about the challenges and rewards of being a growing organization. • Be a good listener—find out what employees are thinking and facing. • Be willing to delegate duties. • Be flexible—be willing to change your plans if necessary. EXHIBIT 13.8a Management—Control Mike Wu 2008

  23. Suggestions for Achieving a Supportive Growth-Oriented Culture (cont’d) • Provide consistent and regular feedback by letting employees know the outcomes—good and bad. • Reinforce the contributions of each person by recognizing employees’ efforts. • Continually train employees to enhance their capabilities and skills. • Maintain the focus on the venture’s mission even as it grows. • Establish and reinforce a “we” spirit since a successful growing venture takes the coordinated efforts of all the employees. EXHIBIT 13.8b Management—Control Mike Wu 2008