1、Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,171,Introduction toControlling,Chapter17-18,Management Stephen P. Robbins Mary Coulter,tenth edition,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,172,Learning OutcomesFollow this Learning Outline as you read and

2、 study this chapter.,17.1 What Is Control and Why Is It Important? 17.2 The Control Process 17.3 Tools for Measuring Organizational Performance Contrast feedforward, concurrent, and feedback controls. Explain the types of financial and information controls managers can use. Describe how balanced sco

3、recards and benchmarking are used in controlling.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,173,What Is Control?,Controlling The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations. The Purpose o

4、f Control To ensure that activities are completed in ways that lead to accomplishment of organizational goals.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,174,Exhibit 171The PlanningControlling Link,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,175,The Con

5、trol Process,The Process of Control Measuring actual performance. Comparing actual performance against a standard. Taking action to correct deviations or inadequate standards.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,176,Measuring: How and What We Measure,Sources of Informa

6、tion (How) Personal observation Statistical reports Oral reports Written reports,Control Criteria (What) Employees Satisfaction Turnover Absenteeism Budgets Costs Output Sales,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,177,Comparing,Determining the degree of variation between

7、 actual performance and the standard. Significance of variation is determined by: The acceptable range of variation from the standard (forecast or budget). The size (large or small) and direction (over or under) of the variation from the standard (forecast or budget).,Copyright 2010 Pearson Educatio

8、n, Inc. Publishing as Prentice Hall,178,Exhibit 174 Defining the Acceptable Range of Variation,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,179,Taking Managerial Action,Courses of Action “Doing nothing” Only if deviation is judged to be insignificant. Correcting actual (current

9、) performance Immediate corrective action to correct the problem at once. Basic corrective action to locate and to correct the source of the deviation. Corrective Actions Change strategy, structure, compensation scheme, or training programs; redesign jobs; or fire employees,Copyright 2010 Pearson Ed

10、ucation, Inc. Publishing as Prentice Hall,1710,Taking Managerial Action,Courses of Action (contd) Revising the standard Examining the standard to ascertain whether or not the standard is realistic, fair, and achievable. Upholding the validity of the standard. Resetting goals that were initially set

11、too low or too high.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1711,Exhibit 176 Managerial Decisions in the Control Process,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1712,Controlling for Organizational Performance,What Is Performance? The end result

12、of an activity What Is Organizational Performance? The accumulated end results of all of the organizations work processes and activities Designing strategies, work processes, and work activities. Coordinating the work of employees.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1

13、713,Organizational Performance Measures,Organizational Productivity Productivity: the overall output of goods and/or services divided by the inputs needed to generate that output. Output: sales revenues Inputs: costs of resources (materials, labor expense, and facilities) Ultimately, productivity is

14、 a measure of how efficiently employees do their work.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1714,Organizational Performance Measures (contd),Organizational Effectiveness Measuring how appropriate organizational goals are and how well the organization is achieving its go

15、als. Systems resource model The ability of the organization to exploit its environment in acquiring scarce and valued resources. The process model The efficiency of an organizations transformation process in converting inputs to outputs. The multiple constituencies model The effectiveness of the org

16、anization in meeting each constituencies needs.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1715,Tools for Measuring Organizational Performance,Feedforward Control A control that prevents anticipated problems before actual occurrences of the problem. Building in quality throug

17、h design. Requiring suppliers conform to ISO 9002. Concurrent Control A control that takes place while the monitored activity is in progress. Direct supervision: management by walking around.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1716,Tools for Measuring Organizational P

18、erformance (contd),Feedback Control A control that takes place after an activity is done. Corrective action is after-the-fact, when the problem has already occurred. Advantages of feedback controls: Provide managers with information on the effectiveness of their planning efforts. Enhance employee mo

19、tivation by providing them with information on how well they are doing.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1717,Exhibit 178 Types of Control,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1718,Financial Controls,Traditional Controls Ratio analysis

20、Liquidity Leverage Activity Profitability Budget Analysis Quantitative standards Deviations,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1719,Exhibit 179 Popular Financial Ratios,ObjectiveRatioCalculationMeaning,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

21、,1720,Exhibit 179 Popular Financial Ratios (contd),ObjectiveRatioCalculationMeaning,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1721,Tools for Measuring Organizational Performance (contd.),Balanced Scorecard Is a measurement tool that uses goals set by managers in four areas t

22、o measure a companys performance: Financial Customer Internal processes People/innovation/growth assets Is intended to emphasize that all of these areas are important to an organizations success and that there should be a balance among them.,Copyright 2010 Pearson Education, Inc. Publishing as Prent

23、ice Hall,1722,Information Controls (contd),Management Information Systems (MIS) A system used to provide management with needed information on a regular basis. Data: an unorganized collection of raw, unanalyzed facts (e.g., unsorted list of customer names). Information: data that has been analyzed a

24、nd organized such that it has value and relevance to managers.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1723,Benchmarking of Best Practices,Benchmark The standard of excellence against which to measure and compare. Benchmarking Is the search for the best practices among com

25、petitors or noncompetitors that lead to their superior performance. Is a control tool for identifying and measuring specific performance gaps and areas for improvement.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1724,Contemporary Issues in Control,Cross-Cultural Issues The us

26、e of technology to increase direct corporate control of local operations Legal constraints on corrective actions in foreign countries Difficulty with the comparability of data collected from operations in different countries,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1725,Con

27、temporary Issues in Control (contd),Workplace Concerns Workplace privacy versus workplace monitoring: E-mail, telephone, computer, and Internet usage Productivity, harassment, security, confidentiality, intellectual property protection Employee theft The unauthorized taking of company property by em

28、ployees for their personal use. Workplace violence Anger, rage, and violence in the workplace is affecting employee productivity.,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1726,Contemporary Issues in Control (contd),Customer Interactions Service profit chain Is the service s

29、equence from employees to customers to profit. Service capability affects service value which impacts on customer satisfaction that, in turn, leads to customer loyalty in the form of repeat business (profit).,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1727,Contemporary Issues

30、 in Control (contd),Corporate Governance The system used to govern a corporation so that the interests of the corporate owners are protected. Changes in the role of boards of directors Increased scrutiny of financial reporting (Sarbanes-Oxley Act of 2002) More disclosure and transparency of corporat

31、e financial information Certification of financial results by senior management,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,1828,What Is Operations Management?,Operations Management The design, operation, and control of the transformation process that converts such resources as labor and raw materials into goods and services that are sold to customers. The Importance of Operations Management It encompasses both services and manufacturing. It