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MGMT5 © 2012 Cengage Learning Control 16
© 2012 Cengage Learning 1.describe the basic control process 2.discuss the various methods that managers can use to maintain control 3.describe the behaviors, processes, and outcomes that today’s managers are choosing to control in their organizations
© 2012 Cengage Learning Basics of Control 1. describe the basic control process
© 2012 Cengage Learning The Control Process Establishment of clear standards of performance Comparing performance to those standards, Corrective action to repair performance deficiencies Dynamic, cybernetic process Three basic methods: feedback control, concurrent control, and feedforward control. Control isn’t always worthwhile or possible.
© 2012 Cengage Learning Standards Must enable goal achievement Listen to customer’s comments, complaints, and suggestions Benchmarking – determining other companies’ standards
© 2012 Cengage Learning Comparison to Standards The quality of the comparison depends largely on the measurement and information systems a company uses to keep track of performance. The better the system, the easier it is for a company to track performance and identify problems that need to be fixed.
© 2012 Cengage Learning Corrective Action Identify performance deviations Analyze deviations Development and implement corrective programs
© 2012 Cengage Learning Cybernetic Control Process
© 2012 Cengage Learning Control Methods Feedback control Concurrent control Feedforward control
© 2012 Cengage Learning Control Isn’t Always Worthwhile or Possible Control loss Regulation costs Cybernetic feasibility
© 2012 Cengage Learning How and What to Control 2.discuss the various methods that managers can use to maintain control 3. describe the behaviors, processes, and outcomes that today’s managers are choosing to control in their organizations
© 2012 Cengage Learning Bureaucratic Control Top-down control; managers try to influence employee behavior by rewarding or punishing employees for compliance or non-compliance. Managers emphasize following rules above all else. Companies are highly resistant to change and slow to respond to customers and competitors.
© 2012 Cengage Learning Objective Control The use of observable measures of employee behavior or output to assess performance and influence behavior. Behavior control Output control –measures must be reliable, fair, and accurate –employees and managers must believe that they can produce the desired results –rewards must be dependent on achieving established standards of performance
© 2012 Cengage Learning Normative Controls A company’s widely shared values and beliefs guide workers’ behavior and decisions. Created by… Who companies hire Observing experienced employees and listening to their stories
© 2012 Cengage Learning Concertive Controls Based on beliefs that are shaped and negotiated by work groups. Develop in two phases: Group members learn to work with each other, supervise each other’s work, and develop guiding values and beliefs The emergence and formalization of objective rules to guide and control behavior
© 2012 Cengage Learning Self-Control (Self- Management) A control system in which managers and workers control their own behavior. Leaders and managers provide workers with clear boundaries within which they may guide and control their own goals and behaviors. Leaders and managers teach others the skills they need to maximize and monitor their own goals and theories. Individuals establish self-control by setting their own goals, monitoring their own progress, rewarding and punishing themselves, and constructing positive thought patterns.
© 2012 Cengage Learning The Balanced Scorecard Encourages managers to look at four different perspectives on company performance. Customer perspective Internal perspective Innovation and learning perspective Financial perspective
© 2012 Cengage Learning Southwest Airlines’ Balanced Scorecard
© 2012 Cengage Learning Controlling Financial Performance Traditional approaches Cash flow analysis Balance sheets Income statements Financial ratios Budgets
© 2012 Cengage Learning Economic Value Added Not the same thing as profits… The amount by which profits exceed the cost of capital in a given year. EVA is positive when company profits exceed the cost of capital in a given year. Includes the cost of capital Can be easily determine for subsets of a company
© 2012 Cengage Learning Calculating Economic Value Added (EVA)
© 2012 Cengage Learning Top Ten U.S. Companies by Market Value Added and Economic Value Added
© 2012 Cengage Learning Controlling Customer Defections Companies can do a better job of answering “How do customers see us?” by identifying which customers are leaving the company and measuring the rate at which they are leaving. Customers who have left are much more likely than current customers to tell you what you were doing wrong.
© 2012 Cengage Learning Controlling Quality Quality is measured in three ways: Excellence Value Conformance to specifications
© 2012 Cengage Learning Conformance to Specifications Checklist for Buying Fresh Fish
© 2012 Cengage Learning Advantages and Disadvantages of Different Measures of Quality
© 2012 Cengage Learning Controlling Waste and Pollution Waste prevention and reduction –good housekeeping –material/product substitution –process modification Recycle and reuse Waste treatment Waste disposal
© 2012 Cengage Learning Four Levels of Waste Minimization
REELTOREAL © 2012 Cengage Learning Friday Night Lights 1.The control process begins when managers set goals and create standards. In this scene, what does Coach Gaines state that he expects from the members of his team? 2.Based on the topics discussed in this chapter, what similarities could you draw between what a coach and the manager of a company must do to ensure success for their team? 3.Which method of control do you think most football coaches exert over their teams: bureaucratic, objective, normative, or concertive? Why?
REELTOREAL © 2012 Cengage Learning Barcelona Restaurant Group 1.How do managers at Barcelona control the company’s financial performance? 2.What is the “balanced scorecard” approach to measuring corporate performance, and in what ways does Barcelona utilize this approach? 3.Describe the feedback control model and describe an instance where Barcelona followed this process to improve its performance.
Chapter 16 Control © 2014 Cengage Learning MGMT6.
Unit 12 Organizational Control. Discussion Topics describe the basic control process discuss some of the methods that managers can use to maintain control.
Chapter 16 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 The Control Process Begins with establishment of clear.
©2008 by Nelson, a division of Thomson Canada Limited 1 Management Second Canadian Edition Chuck Williams Alex Z. Kondra Conor Vibert Slides Prepared by:
©2004 by Nelson, a division of Thomson Canada Limited 1 Chapter 7 Control.
Chapter 7 Control. 2 What Would You Do? Movie theaters have changed greatly in the last 20 years Should Regal build its own megaplexes? What resources.
1 Chapter 16 Control Designed & Prepared by B-books, Ltd. MGMT 2008 Chuck Williams.
Effective Management, by Williams South-Western College Publishing Copyright © 2002 Chapter 6 Control.
Management, 2e by Chuck Williams South-Western/Thompson Learning Copyright © 2003 Chapter 7 Control.
1 Chapter 16 Control Designed & Prepared by B-books, Ltd. MGMT Chuck Williams.
Chapter 16 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Chapter 16 Control.
Management, by Williams South-Western College Publishing Copyright © 2000 Chapter 7 Control.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 1 CHAPTER SEVEN CHAPTER SEVEN Management 3rd Edition Chuck Williams.
Copyright ©2011 by Cengage Learning. All rights reserved 1 Chapter 16 Control Designed & Prepared by B-books, Ltd. MGMT3 Chuck Williams.
UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning.
Louis, the owner of a neighbourhood deli, likes to check all fresh produce deliveries to make sure that quality is high. He is practising __________ control.
Chapter 16 Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 1 Chapter 16 Prepared by Deborah Baker Texas Christian.
1 Chapter 10 Evaluation and Control. 2 Evaluation & Control: –Process that ensures that the company is achieving what it set out to accomplish. Compares.
Managerial and Quality Control CHAPTER 19. Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 2 Learning Objectives.
HO VAN HIEN (MBA) 13Chapter Organizational Control What is Organizational Control Output Control Behavior Control The Role of Culture Organizational Control.
11-1 Learning Objectives Define organizational control, and describe the four steps of the control process. Identify the main output controls, and discuss.
Organizational Control and Change McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Schermerhorn - Chapter 71 Chapter 7 Controlling - To Ensure Results 4 Planning Ahead –How do controls work in organizations? Plan metrics and measurements.
Management 11e John Schermerhorn Chapter 18 Control Processes and Systems.
PowerPoint Presentation by Charlie Cook Controlling Gary Dessler Principles and Practices for Tomorrow’s Leaders Copyright © 2004 Prentice Hall, Inc. All.
Chapter 11 Management Skills. Objectives Name the three functions of management Describe the management techniques used by effective managers Explain.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
B0H4M CHAPTER 16. Controlling ◦ The process of measuring performance and taking action to ensure desired results. ◦ Has a positive and necessary role.
Quiz 4 Availability – see calendar Will cover Chapters 13, 14, 15, 16, & 17.
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin Chapter 16 Management Control.
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Control ◦ Any process that directs the activities of individuals toward the achievement of organizational goals.
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 08 Control, Change, and Entrepreneurship.
PowerPoint Presentation by Charlie Cook Control Systems: Financial and Human Chapter 14 Copyright © 2003 South-Western/Thomson Learning. All rights reserved.
Control and Change Chapter Eight Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
8-1 Ch.8 – Control, Change and Entrepreneurship 1. Review Ch.8 2. Review Slide Deck and Lecture Notes (canvas) 3. Review opening chapter case – Toyota.
Chapter 15 Management Control Systems © 2015 YOLO Learning Solutions.
1 Ch. 16 Outline 1. Bureaucratic Control Systems The Control Cycle Different Approaches to Bureaucratic control Financial Controls The Downside to Bureaucratic.
Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 9-1 ©2013 John Wiley & Sons, Inc. All rights reserved. JOHN R. SCHERMERHORN,
MANAGEMENT RICHARD L. DAFT. Managing Quality and Performance CHAPTER 18.
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Developed by Cool Pictures & MultiMedia PresentationsCopyright © 2003 by South-Western, a division of Thomson Learning. All rights reserved. chp20 Controlling.
Control, Change and Entrepreneurship Chapter Eight Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Organizational Systems Controls Controlling –The process of establishing and implementing mechanisms to ensure that objectives are achieved. Preliminary.
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M A N A G E M E N T M A N A G E M E N T 1 st E D I T I O N 1 st E D I T I O N Gulati | Mayo | Nohria Gulati | Mayo | Nohria Chapter 10 Chapter 10 PERFORMANCE.
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