Fundamental of Management Chap 17

8/18/2019 Fundamental of Management Chap 17

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PowerPoint Presentation

to Accompany

Management, 10/eJohn R. Schermerhorn, Jr .

Prepared by: Jim LoPresti

University of Colorado, Boulder

Published by: John Wiley & Sons, In!

Chapter 17:Fundamentals of Control


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Management 10/e - Chapter 17 2

Planning Ahead — Chapter 17 Study Questions

Why and how do managers control?

What are the steps n the control

process? What are the common control

systems and techn!ues?


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Management 10/e - Chapter 17 ,

#igure 17.1 $he role o% controlling in themanagement process.


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Management 10/e - Chapter 17

Study Question 1 !hy and how do managers

control"

Feedforward controls

(mployed .efore a wor$ act'ty

.egns% (nsures that:

*.ect'es are clear%

roper drectons are esta.lshed%

ght resources are a'ala.le%

Focuses on !ualty of resources%


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Management 10/e - Chapter 17


control"

Concurrent controls

Focus on what happens durng wor$

process%Montor ongong operatons to ma$e

sure they are .eng done accordng to

plan%Can reduce waste n unaccepta.le

fnshed products or ser'ces%


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control"

Feed.ac$ controls

#a$e place after wor$ s completed%

Focus on !ualty of end results%

ro'de useful nformaton for

mpro'ng future operatons%


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#igure 17.& $he role o% %eed%orward, concurrent, and

%eed'ac( controls in organi)ations.


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control"

5nternal and e6ternal control

5nternal control

llows mot'ated nd'duals and groups

to e6ercse self-dscplne n fulfllng o.

e6pectatons%

(6ternal control *ccurs through personal super'son and

the use of formal admnstrat'e systems%


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control"

8ureaucratc control

nfluences .eha'or through authorty)

polces) procedures) o. descrptons).udgets) and day-to-day super'son

Clan control

nfluences .eha'or through norms ande6pectatons set .y the organ+atonal

culture%


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Study Question & !hat are the steps in the control

process"

9teps n the control process:

9tep 1 esta.lsh o.ect'es and

standards%

9tep 2 measure actual performance%

9tep " compare results wth o.ect'es

and standards%

9tep , ta$e correct'e acton as needed%


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#igure 17.* #our steps in the control process.


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Management 10/e - Chapter 17 1"


process"

9tep 1 esta.lshng o.ect'es

and standards

*utput standards Measure performance results n terms of

!uantty) !ualty) cost) or tme%

5nput standards

Measure effort n terms of amount of wor$e6pended n tas$ performance%


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Management 10/e - Chapter 17 1,


process"

9tep 2 measurng actual performance

;oal s accurate measurement of actual

performance results and/or performance efforts%

Must dentfy sgnfcant dfferences .etween

actual results and orgnal plan%

(ffect'e control re!ures measurement%


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process"

9tep " comparng results wth

o.ect'es and standards


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process"

9tep , ta$ng correct'e acton #a$ng acton when a dscrepancy e6sts

.etween desred and actualperformance%

Management .y e6cepton ;'ng attenton to stuatons showng the

greatest need for acton%

#ypes of e6ceptons ro.lem stuaton

*pportunty stuaton


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Study Question * !hat are the common control

systems and techni+ues"

(mployee dscplne systems

=scplne s the act of nfluencng

.eha'or through reprmand%

=scplne that s appled farly)

consstently) and systematcallypro'des useful control%


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(mployee dscplne systems

rogress'e dscplne tes reprmands

to the se'erty and fre!uency of theemployee>s nfractons%

rogress'e dscplne see$s to ache'e

complance wth the least e6tremereprmand poss.le%


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#o .e effect'e) reprmands should

8e mmedate%

8e drected toward actons) notpersonalty%

8e consstently appled%

8e nformat'e%

*ccur n a support'e settng%

9upport realstc rules%


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roect Management

*'erall plannng) super'son) and control of

proects%

roects un!ue one-tme e'ents that

occur wthn a defned tme perod

;antt chart graphc dsplay of scheduled

tas$s re!ured to complete a proectCM/(# com.naton of the crtcal

path method and program e'aluaton and

re'ew techn!ue


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(conomc @alue dded a performance measure of economc 'alue

created n respect to profts .eng hgherthan the cost of captal

Mar$et @alue dded

a performance measure of stoc$ mar$et'alue relat'e to the cost of captal


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8asc Fnancal atos A!udty

#he a.lty to generate cash to pay .lls%

Ae'erage #he a.lty to earn more n returns than the costof de.t%

sset management #he a.lty to use resources effcently and

operate at mnmum cost% rofta.lty

#he a.lty to earn re'enues greater than costs%


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Management 10/e - Chapter 17 2"



8alanced 9corecardFactors used to de'elop scorecard goals andmeasures:

Fnancal performance

Customer 9atsfacton

5nternal process mpro'ement

5nno'aton and learnng


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Management 10/e - Chapter 17 2,

#igure 17. -annt chart


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#igure 17. CP/0PR$


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Fundamental of Management Chap 17