chapter 7 controlling to ensure results n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Chapter 7 Controlling - To Ensure Results PowerPoint Presentation
Download Presentation
Chapter 7 Controlling - To Ensure Results

Loading in 2 Seconds...

play fullscreen
1 / 24

Chapter 7 Controlling - To Ensure Results - PowerPoint PPT Presentation


  • 138 Views
  • Uploaded on

Chapter 7 Controlling - To Ensure Results. Planning Ahead How do controls work in organizations? Plan metrics and measurements use feedback How do organizational systems assist in control? See model of control process How can operations management improve control? Economic Order Quantity

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 7 Controlling - To Ensure Results' - harley


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 7 controlling to ensure results
Chapter 7Controlling - To Ensure Results
  • Planning Ahead
    • How do controls work in organizations?
      • Plan metrics and measurements use feedback
    • How do organizational systems assist in control? See model of control process
    • How can operations management improve control? Economic Order Quantity
    • How can planning and controlling be integrated? MBO

Schermerhorn - Chapter 7

how controls work
How Controls Work
  • Steps in the Control Process
    • Establish objectives and standards(metrics)
      • Use your past performance metrics
      • Use metrics from competitors
      • Use benchmark companies to measure against
    • Measure actual performance (measures)
    • Compare results with objectives and standards
    • Take corrective action as needed

Schermerhorn - Chapter 7

how controls work1
How Controls Work
  • Step 1: Establishing Objectives and Standards
    • Types of Standards
      • output
        • measure results in terms of performance criteria
        • Output is more important, for instance on tests

doing well regardless of how much time you study

      • input
        • measure effort in terms of amount of work (inputs versus
        • outputs is efficiency) You measure inputs to control costs.

Schermerhorn - Chapter 7

how controls work2
How Controls Work
  • Step2: Measuring Actual Performance
    • goal is accurate measurement of output and/or input standards
    • Are you giving your customers what they want, the quality of products and the service.

Schermerhorn - Chapter 7

how controls work3
How Controls Work
  • Step 3: Comparing Results with Objectives and Standards
  • Need foraction x desired performance - actual performance
    • Historical Comparison (e. g. Your financial ratios against your past performance)
    • Relative Comparison (e.g. Your ratios against others in industry
    • Engineering Comparison
      • IS0 9000 can tell you how much each piece of
      • work should be from time and motion studies and past history of those processes.

Schermerhorn - Chapter 7

how controls work4
How Controls Work
  • Step 4: Taking Corrective Action
    • Management by exception
      • problem situation
      • opportunity situation

Note we are

Trying to overcome

problems or exploit

opportunities

Schermerhorn - Chapter 7

how controls work5
How Controls Work
  • Characteristics of Effective Controls
    • strategic and results oriented
    • understandable (for those that use controls)
    • encourage self-control
    • timely (quick enough to avoid defective work)
    • exception oriented
    • positive in nature
    • fair and objective
    • Flexible ( for emergencies)

Schermerhorn - Chapter 7

types of controls
Types of Controls
  • Feedforward (Preliminary) Controls
        • ensure that
          • objectives are clear
          • proper directions are established
          • right resources are available
    • focus on conditions before a work activity begins (Process engineering) Many in quality management believe employees rarely do a poor job if you have engineered the job correctly

Schermerhorn - Chapter 7

types of controls1
Types of Controls
  • Concurrent (Steering) Controls
    • monitor ongoing operations to make sure they are being done according to plan
    • focus on quality of task activities during work process
    • In Six Sigma quality control, we want to monitor what is going on so well that a few times in a million a product/service is not correctly accomplished.

Schermerhorn - Chapter 7

types of controls2
Types of Controls
  • Feedback (Post action) Controls
    • take place after work is completed
    • focus on quality of end results
    • recently we also focus on speed
    • Quick Response is a strategy for some companies.

Schermerhorn - Chapter 7

types of controls3
Types of Controls
  • Internal Versus External Control
    • Internal
      • allows motivated individuals to exercise self-discipline in fulfilling job expectations. You get the feedback before management has to correct your work. Most people rather control themselves and are not called out by management
    • External
      • personal supervision
      • formal administrative systems (HRM discipline)
      • progressively sanctions increase

Schermerhorn - Chapter 7

organizational control systems
Organizational Control Systems
  • Employee Discipline Systems
    • progressive discipline
      • achieve compliance with organizational expectations
      • use least extreme amount of reprimand possible
      • Negative control systems are real iffy

Schermerhorn - Chapter 7

organizational control systems1
Organizational Control Systems
  • Management Process Controls to Measure
    • strategy and objectives
    • policies and procedures
    • selection and training
    • performance appraisal
    • job design and work structures
    • performance modeling
    • performance norms
    • organizational culture
      • Don’t over control

Schermerhorn - Chapter 7

organizational control systems2
Organizational Control Systems
  • Information and Financial Controls ( are Comprehensive Controls)
    • liquidity
    • leverage
    • asset management
    • profitability

Schermerhorn - Chapter 7

operations management and control
Operations Management and Control
  • Purchasing Control
    • leverage buying power– looking for quantity discounts
    • small number of suppliers– looking for control over products and services of suppliers
    • supplier-purchaser partnerships – we are likely to have cross-functional teams with our suppliers to control processes up and down the value chain across businesses

Schermerhorn - Chapter 7

operations management and control1
Operations Management and Control
  • Inventory Control
    • Economic Order Quantity (EOQ)
      • minimize two costs
        • ordering
        • carrying
    • just-in-time scheduling
      • JIT Inventory reduces total carrying costs, losses due to lack of products, goods getting old

Schermerhorn - Chapter 7

operations management and control2
Operations Management and Control
  • Quality Control
    • Involves checking processes, materials, products, and services to ensure that they meet high standards.
    • Statistical quality control involves:
    • Taking samples of work
      • Measuring quality in the samples
      • Determining the acceptability of results
      • Our processes engineering, training ect should be so good
      • we almost never have a reject.

Schermerhorn - Chapter 7

management by objectives mbo
Management by Objectives (MBO)
  • MBO
    • structured process of regular communication
    • supervisor and worker jointly set performance objectives
    • jointly review results

Schermerhorn - Chapter 7

management by objectives mbo1
Management by Objectives (MBO)
  • Formal agreement
    • worker’s performance objectives for a specific time period
    • plans through which they will be accomplished
    • standards for measuring results
    • procedures for reviewing results

Schermerhorn - Chapter 7

management by objectives mbo2
Management by Objectives (MBO)
  • Advantages
    • clearly focuses employee work efforts
    • clearly focuses manager’s work efforts on areas of support
    • relationship building between manager and employee
    • employee participates in decisions that affect work

Schermerhorn - Chapter 7

management by objectives mbo3
Management by Objectives (MBO)
  • Performance objectives
    • improvement
    • personal development
    • maintenance

Schermerhorn - Chapter 7

management by objectives mbo4
Management by Objectives (MBO)
  • Performance objective criteria
    • specific
    • time defined
    • challenging
    • measurable

Schermerhorn - Chapter 7

management by objectives mbo5
Management by Objectives (MBO)
  • How to make MBO work
    • hire best people
    • work with them to set challenging performance objectives
    • give best possible support
    • hold employee accountable

Schermerhorn - Chapter 7

management by objectives mbo6
Management by Objectives (MBO)
  • Pitfalls to avoid
    • tying MBO to pay
    • focusing too much attention on easily quantifiable objectives
    • requiring excessive paperwork
    • have managers tell workers objectives
    • Employee learns how to work system and sets goals low so they can easily make them.

Schermerhorn - Chapter 7