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Karteikarten

BUS066

Anton Lindfors Business/Economics Englisch 48 Karten

Karten in diesem Stapel (48)

  1. 11920s PMProductivity Management
    - Supply focus
  2. 21950s PMQuality Management
    - Increase supply and manage quality
    - Financial indicators
    - Globalization
  3. 31960s-1980s PMIntegrated Performance Measurement
    - Demand focus
    - Multidimensional (quality, time, customer needs)
  4. 41990s PMIntegrated Performance Management
    - PM converge with strategic control
    - Emergence of models and frameworks
  5. 52000s PMFocus on use of PM
    - Alignment of PM with organizational goals, key objectives and processes
  6. 6Strategic PMDoing the right things
    - What to measure and how these things are connected to strategy
    - Deal with complex tasks, turbulent environment, knowledge-intense contexts
    - support strategy development
    - long-term
    - ROC focus
  7. 7Relevance lost1987
    Critique against financial accounting
    - Info comes too late, is too aggregated, and too distorted (acc.based)
    - Cannot be efficiently used for decision-making, planning, and control
    - Lagging measures
  8. 8Use of PM1. Operational use (op.planning, process monitoring, diagnostic system).
    2. Incentive use (target setting, rewards, influence behaviors)
    3. Exploratory use (strategic priority setting, interactive systems, strategy management)
    4. Communication (external/internal stakeholders)
    5. Legitimization
  9. 9Traditional PMFor implementation of strategy
    - Short-term
    - Cost focus
  10. 10Simons' LOC Strengths1. Focuses on strategic issues and its implications for control system
    2. Broad perspective, but also how it is used
    3. Provides typology for the alternative use of MCs
  11. 11Simons' LOC Weaknesses1. Insufficient emphasis given to socio-ideological (socialization) controls
    2. Focused on top management
    3. Does not consider informal controls (Norms, shared values that are inherent in organization)
    4. Does not consider MC at different org. levels
  12. 12Management Control"The process by which managers ensure the organizational members implement the strategic objectives"
  13. 13Ferriera and Otley's definition of PMS1. evolving formal and informal mechanisms, processes, and systems,
    2. used by organizations for conveying key objectives and goals elicited by management,
    --> Managing performance
    --> Assist strategic process
  14. 14Simons' Levers of Control (and key control issues)1. BELIEF SYSTEM- Core values
    2. BOUNDARY SYSTEM- Risks to be avoided
    3. DIAGNOSTIC SYSTEM- Critical Performance Variables
    4. INTERACTIVE SYSTEM- Strategic Uncertainties
  15. 15Coercive ControlSpecifies organizational rules with the aim of producing a foolproof system
    Gives workers limited options for action
    Imposes design and logic on org members
    Policing adherence to preplanned objectives and standards
  16. 16Enabling ControlReckons with intelligence of workers
    Enables workers to deal more effectively with contingencies
    Supports users' decision making- empowering
    Increases autonomy, empowerment, and engagement
  17. 17Design Principles of Enabling Control1. Repair
    - Capability to fix breakdown
    2. Flexibility
    - Ability to override standards, and use controls selectively
    3. Local transparency
    - See local processes internally
    4. Global transparency
    - how local processes fit into organization as a whole
  18. 18Belief SystemShared values, purpose, and direction
    - Provides guidance
    Addresses control issues in core values
    Created through missions statements, visions creedos, and statements of purpose
  19. 19Boundary SystemStated limits and rules
    - Allows for creativity within defined limits
    Addresses control issues in risks to be avoided
    Created through codes of conduct, strategic planning
  20. 20Diagnostic SystemMonitor performance and evaluate against preset standards
    - Provide motivation and information to ensure achievement of organization strategy
    Addresses control issues in critical performance variables
    Created through budgets, BI systems
  21. 21Interactive SystemManagement involvement in subordinate decision activities
    - Focus organization attention to strategic issues
    - Promote emergence of new strategic initiatives
    Addresses control issues in strategic uncertainties
    Created through meetings with employees, involvement. Any system can be made interactive
  22. 22S in SMARTSpecific
    - Target a specific area for improvement
  23. 23M in SMARTMeasurable
    - able to quantify an indicator of progress
  24. 24A in SMARTAssignable
    - Designates who will do it
  25. 25R in SMARTRealistic
    - achievable within given time frame and resources
  26. 26T in SMARTTimely
    - Specifies a time-frame for completion
  27. 27Production ModelStructure/Input
    Process
    Results
    Outcomes
  28. 28First part of Production modelStructure/Input
    - Training and facilities
  29. 29Second part of Production modelProcess
    - Compliance to guidelines, activities
  30. 30Third part of Production modelResults
    - Short-term, measurable, results of activities
  31. 31Fourth part of Production modelOutcomes
    - Long-term, harder to measure, outcomes of results
  32. 32Challenges in Implementing PMS1. Alignment between individual goals and strategic goals
    - Rewarding A, hoping for B
    - Box ticking, Crowding out
    2. Alignment between PMS and strategic objectives
    - Not linking measures to strategy (choice of metrics, causal link)
    - Not validating the links (proving causality)
    - Not setting the right targets (80/20, time lags)
    - Measuring incorrectly (relevant and measurable)
  33. 33Mitigating Challenges to PMS1. Instrumental Approach (Ittner & Larckner, 2003)
    - Develop causal model
    - Pull together data
    - Continuously test model and links
    - Plan, Do, Check, Act
    2. Participatory Approach
    - Involving employees in developing PM
    - Improve "employee initiative": work-related motivation (intrinsic), through improving Attitude, Norms, and Capability in PMS
  34. 34Hidden Traps in Decision Making (9)1. Framing
    2. Endowment Effect (Status quo)
    3. Short-termism
    4. Confirmation Bias
    5. Sunk Costs
    6. Representativeness / Recallability
    7. Anchoring
    8. Overconfidence
    9. Overcautiousness
  35. 35How to improve decision making1. Awareness
    2. Formalization (procedures)
    3. Visualization (dashboards)
    4. Outside view (change of perspective, type 2)
  36. 36Performance Measurement"Regular collection and feedback of data concerning resources, results, and outcomes"
  37. 37Balanced Scorecards Key IdeasLink performance to strategy
    - Only includes measures with link to strategy
    Strategy is everyone's idea
    Holistic approach and balance between dimensions
  38. 38BSC Traditional PerspectivesFinancial
    Customer
    Process
    Learning
  39. 39BSC CritiqueConnection of all metrics to strategy?
    Too many metrics, which ones are the most important? (Measuring too much)
    Causal links to performance lacking
  40. 40Financially Focused Control Systems+ Comparable and Simple
    + Useful for benchmarking
    Large pressure from investors and capital market for financial metrics
    Too backward looking?
    Relevant for future decision making?
    Lagging?
    Easier to tamper with- accounting based
  41. 41Intangible assets and future valueOften little connection between measurement of intangible assets and performance- lacking causal links (preconceptions)
    Also, implementation issues: difficulties in reliably measuring intangible assets
  42. 42Value-based measuresSupply-side driven management accounting measures based on financial theory
    Comparability over time is the aim
  43. 43EVAMeasure income relative to cost of capital
    + Simple to use
    - Accounting-based, dependent on accounting measures
    Used for compensation, creating incentives
  44. 44Creating intrinsic motivation (Fowler) 3 focus areasAutonomy
    Relatedness
    Competence
  45. 45Anchoring TrapGiving disproportionate weight to the first information it receives
  46. 46Status Quo Trap Endowment effectBias toward alternatives that perpetuate status quo
  47. 47Sunk-cost trapOld investments that have become unrecoverable- leads to suboptimal decisions
  48. 48Confirmation biasFinding information that confirmation current stance
    Avoiding information that contradicts it

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Beschreibung
Business/Economics (ISM) Karteikarten am BUS066, erstellt von Anton Lindfors am 16/12/2021.
Erstellt von
Anton Lindfors
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