Professional Documents
Culture Documents
What is Controlling?
Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accomplished Bureaucratic or formal Control Market Control Clan Control
Use of formal rules, standards, hierarchy, legitimate authority tasks are certain and workers are independent
Use of price, competition, profit centres exchange relationship- tangible outputs can be identified market can be developed between parties
Involves culture, shared values, beliefs, expectations and trust- no one best way to do and employees are empowered to make decisions
Features of controlling
Positive
force Continuous process Forward looking Universal Dynamic Goal-oriented Key to control based on planning
Importance of controlling
Achievement
of goals Execution and revision of plans Brings order and discipline Facilitates decentralization of authority Promotes coordination Coping with uncertainty and change
Limitations of controlling
Enterprise
has very little control over external influences Employees do not like to be watched and offer resistance Setting control points is not easy It is expensive and takes time and effort Many areas defy measurement in quantitative terms
establishing standards, measurement of actual performance comparing performance against the standards, and correcting variations from standards and plans
Standards
Resistance to control
Over-control
Inappropriate
controls Unachievable standards Unpredictable standards Rewards for efficiency Uncontrollable variables
participation Justifiable controls Precise and understandable standards Realistic standards Timely communication of findings Accurate findings Assuring support Positive reinforcement
Dimensions of Control
Principle of Critical-Point Control Strategic control comprises systematic monitoring at strategic control points as well as modifying the organization's strategy on the basis of this evaluation Effective control requires attention to those factors critical to evaluating performance against plans Examples of critical-point standards (1) physical standards, (2) cost standards, (3) capital standards, (4) revenue standards, (5) program standards, (6) intangible standards, (7) goals as standards, and (8) strategic plans as control points for strategic control
Dimensions of Control
Management by Exception (MBE) It tries to focus attention on exceptionally serious deviations from the plans and standards
Saves time Identifies critical problem areas Stimulates communication Reduces the frequency of decision-making Leads to concentration of efforts on important things Makes more use of knowledge and data
What is Benchmarking?
Benchmarking
is an approach for setting goals and productivity measures based on best-industry practices Three types of benchmarking:
strategic, operational, and management
control is usually perceived as a feedback system similar to that which operates in the common household thermostat
Information and Control Real-time information is information about what is happening while it is happening
Real-Time
Feedforward Control
What
managers need for effective control is a system that will tell them potential problems, giving them time to take corrective action before problems occur Feedforward systems monitor inputs into a process to ascertain if the inputs are as planned; if they are not, the inputs or the process is changed in order to obtain the desired results
overall planning is applied to enterprise, in the same way overall control is applied Decentralization of authority Measuring total efforts Financial controls have to be tailored to the specific needs
and Loss controls are used in departments and divisions where each has to make a profit But high cost of accounting and paper transactions give rise to limitations. Though computer technology has made things easier
What is Budgeting?
Budgeting
is the formulation of plans for a given future period in numerical terms Zero-base budgeting is dividing enterprise programs into "packages" composed of goals, activities, and needed resources and calculating the costs for each package from the base zero
Information Technology
Data
are the raw facts that may not be very useful until they become information, that is, after they are processed and become meaningful and understandable by the receiver The information system is defined as a formal system of gathering, processing, and dispersing information internal and external to the enterprise in a timely, effective, and efficient manner
Groupware
Groupware makes it possible to collaborate with others over long distances at the same time
Information Security
CAD/CAM
CAD/CAMs
help engineers design products much more quickly than they could with the traditional paperand-pencil approach
The Digital Economy, E-commerce, and M-commerce The Emerging Digital Economy Four Kinds of Transactions Business to Consumers (B2C). Consumer to Business (C2B). Consumer to Consumer (C2C). Business to Business (B2B). M-Commerce and Wireless Communication
What is Productivity?
Productivity
is the input-output ratio within a time period with due consideration for quality
management was the term used to refer to those activities necessary to manufacture products Operations management refers to activities necessary to produce and deliver a service as well as a physical product
Outsourcing means that production and operations are contracted to outside vendors that have expertise in specific areas
research is the application of scientific methods to the study of alternatives in a problem situation, with a view to obtaining a quantitative basis for arriving at a best solution
LEAN PRODUCTION
Sporadic and inconsistent improvements Satisfied with good enough High inventory acceptable Me management with emphasis on individual performance Workers considered the cause of poor quality
Continuous improvements (kaizen) with strategic breakthroughs Aim at zero defects Just-in-time inventory system We or team management Everyone is the problem; especially management