Karteikarten
su 6
Karten in diesem Stapel (22)
- 1Meaning of Control and Control ProcessIt’s the process of monitoring, comparing, and correcting work performance.
Control is the management function involving the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations.
- An effective control system ensures that activities are completed in ways that lead to the attainment of the organisation’s goals.
- The effectiveness of a control system is determined by how well it facilitates goal achievement. - 2value of control functionthree specific areas:
1. planning
2. empowering employees
3. protecting the workplace. - 3Why is control important?The control function is important as it provides a critical link back to planning
It’s the only way that managers know whether organisational goals are being met and if not, the reasons why.
An effective control system can provide information and feedback on employee performance and minimise the chance of potential problems.
Comprehensive controls and back-up plans will help assure minimal work disruptions. Managers use control to protect the organisation and its assets, much so in today’s environment with increased threats from natural disasters and financial scandals. - 4The Control ProcessThe control process to address the issues leading to and resolving the problems.
Three-step process:
1. measuring actual performance
2. comparing actual performance against a standard
3. taking managerial action to correct deviations or to address inadequate standards - 5Step 1 - Measuring actual performanceThis step involves addressing two key control issues:
a) How managers measure: four approaches (i) personal observations, (ii) statistical reports, (iii) oral reports, (iv) written reports
b) What managers measure: very critical as measuring wrong criteria may result in serious consequences. Some common criteria that managers usually measure include employee satisfaction or turnover, absenteeism rates and costs within budget. - 6*Advantages and Drawbacks of the four approaches on how managers measure
- 7Step 2 – Comparing Actual Performance against StandardThis step determining the degree of variation between actual performance and the standard involves identifying the range of variation - the acceptable parameters of variance between actual performance and the standard.
Both over-variance and under-variance may require managerial attention. - 8Step 3 - Taking Managerial ActionThis step requires mangers to take three different corrective actions (depending on the nature of the problem)
three different corrective actions:
1. do nothing
2. take corrective action
3. revise standard
type of corrective actions:
a) immediate corrective action which corrects problems at once to get performance back on track
b) basic corrective action which is more diagnostic in nature (how and why performance deviated before correcting the source of deviation)
Effective managers analyse deviations and, if the benefits justify it, take the time to pinpoint and correct the causes of variance.
3. possible that variance was a result of an unrealistic standard—too low or too high a goal:
- standard needs the corrective action, not the performance
If standard is realistic, fair, and achievable, tell employees that you expect future work to improve, and then take the necessary corrective action to help make that happen. - 9Types of ControlManagers can implement controls:
1. feedforward control - before an activity
2. concurrent control - during the time the activity is going on
3. feedback control - after the activity has been completed - 10Feedforward ControlPreliminary or preventive control
- Focus on prevention
- Anticipates problems
- Controls quality and quantity of input resources: (i) human resources, (ii) raw materials - 11Concurrent controlFocus on ongoing activities
- ensure consistency to performance standards
- Assesses current work activities.
- Relies on:
(i) performance standards, (ii) rules and regulations for guiding employee tasks - 12Feedback controlPost-action or output control
- Focus of control on outputs
- eg; Budgeting - 13Control ToolsAll managers need appropriate tools for monitoring and measuring organisational performance.
1. financial controls
2. information controls
3. balance scorecard
4. benchmarking - 141. Financial controlsTraditional Financial Control Measures
1. Ratio analysis
• Liquidity
• Leverage
• Activity
• Profitability
2. Budget Analysis
• Quantitative standards • Deviations - 152. Information ControlsManagement Information System (MIS) provides managers with needed information on regular basis.
1. Data - an unorganised collection of raw, unanalysed facts (e.g., an unsorted list of customer names).
2. Information - data that has been analysed and organised such that it has value and relevance to managers. - 163. Balance Scorecard1. A balanced scorecard evaluates organisational performance from several perspectives and not just from a financial perspective.
2. Four Perspectives:
- financial
- customer
- internal processes
- people/innovation/growth assets
3. According to this approach, managers should develop goals in each of the four perspectives and then measure whether the goals are being met. - 174. Benchmarking1. Benchmarking is the search for the best practices among competitors or non-competitors that lead to superior performance
- Benchmark - the standard of excellence to measure and compare against.
2. This practice can be used to identify specific performance gaps and potential areas of improvement
3. Internal Benchmarking?
When best practices are found inside the organisation - 18Contemporary Issues in ControlFour Control issues that managers face today:
1. Cross-cultural differences
2. Work-place concerns
3. Customer interactions
4. Corporate governance - 191. Cross-cultural differences1. Managers must be aware of cultural differences in exercising control function as control techniques can be quite different for different countries.
- differences are primarily in measurement and corrective steps of control function.
2. Impact of technology on control – levels of sophistication of
technology
3. Legal constraints in different countries. - 202. Work-place concerns1. Workplace privacy
2. employee theft
3. workplace violence
Managers must have right policies in place to control any inappropriate actions and ensure that work gets done effectively. - 213. Customer interactionsControlling Customer interactions:
The service profit chain is the service sequence from employees to
customers to profit - 224. Corporate governanceCorporate governance is the system used to govern a corporation so that the interests of corporate owners are protected.
1. The Role of Boards of Directors - a group, independent from management, looking out for the interests of shareholders who were not involved in the day-to-day management of the organization
2. Financial reporting - Senior managers are now required by law to certify their companies’ financial results.
Informationen
- Beschreibung
- 1 BUS101: Management Karteikarten am su 6, erstellt von shan lin am 15/11/2015.
- Erstellt von
- shan lin
- Aufrufe
- 2
- Bewertung