2000-1 王青 - 管理学院 - 上海交通大学 8-1 8 8 organizational control and culture...

2000-1 王青 - 管理学院 - 上海交通大学 8-1

88OrganizationalControl and CultureOrganizationalControl and Culture

1 1 concept of control

2 2 types of control

3 3 control process

4 4 Org. key-point control

5 5 goal setting management


Organizational ControlOrganizational Control

Managers must monitor & evaluate:Are we efficiently converting inputs

into outputs?Is product quality improving?Are employees responsive to

customers?Are our managers innovative in

outlook?


Control SystemsControl Systems Formal, target-setting, monitoring, evaluation and feedback systems to provide managers with information to determine if strategy and structure are working effectively and efficiently.

A good control system should: Accuracy , Timeliness, Economy, Flexibility, Understandability


Three Types of ControlThree Types of Control

InputsInputsInputsInputs OutputsOutputsOutputsOutputsConversionConversionProcessProcess

ConversionConversionProcessProcess

Feed forwardControl Control

(anticipate (anticipate problems)problems)

Feed forwardControl Control

(anticipate (anticipate problems)problems)

ConcurrentControl Control

(manage problems(manage problemsas they occur)as they occur)

ConcurrentControl Control

(manage problems(manage problemsas they occur)as they occur)

FeedbackControl Control

(manage problems(manage problemsafter they occur)after they occur)

FeedbackControl Control

(manage problems(manage problemsafter they occur)after they occur)

Figure 9.1


Feed-forward Control Feed-forward Control

Feed-forward: use in the input stage of the process.Managers anticipate problems before

they arise.Managers can give rigorous

specifications to suppliers to avoid problems in quality.


Concurrent Control

Concurrent: gives immediate feedback on how inputs are converted into outputs.

Allows managers to correct problems as they arise.

Managers can see that a machine is becoming out of alignment and fix it.


Feedback Control

Feedback: provides after the fact information managers can use in the future.Customer reaction to products are used

to take corrective action in the future.


Control Process StepsControl Process StepsEstablish standards ..

Measure actual performance

Compare actual performance

Evaluate results and take corrective action

1.

2.

3.

4.

Figure 9.2


Establish standardsEstablish standards

Establish standards, goals, or targets against which performance is to be evaluated.Standards must be consistent with

strategy, for a low cost strategy, standards should focus closely on cost.


Measure actual performance

Measure actual performance: managers can measure outputs resulting from worker behavior or they can measure the behavior themselves.The more non-routine the task, the

harder to measure. ——primary school teacher,


Compare actual performance against chosen standards. Managers must decide if performance

actually deviates.Pay attention to the size and direction

of variation----acceptable range of variation

Compare actual performance


Evaluate and Action

Evaluate result and take corrective action.Perhaps the standards have been set too

high.Workers may need additional training,

or equipment.


Control Process


Organizational Key-point Control Organizational Key-point Control

Financial Financial ControlControl

Operating Operating ControlControl

Human Resource Human Resource ControlControl

Financial ReportFinancial ReportBudgetsBudgets

Table of Org.Table of Org.Indirect Labor RatioIndirect Labor Ratio

Performance AppraisalPerformance Appraisal

Material Control

Production Control

Quality Control


Financial ControlFinancial ControlFinancial Statement

Balance sheetIncome statementStatement of cash flows

Budget Variable BudgetOverhead Budget


Financial IndexesFinancial Controls are objective and allow comparison to other firms. Profit ratios--measures how efficiently managers

convert resources into profits. Liquidity ratios -- measure how well managers

protect resources to meet short term debt. Leverage ratios -- show how much debt is used

to finance operations. Activity ratios -- measures how managers create

value from assets


Materials Control

Economic order quantity (EOQ)Perpetual inventory controlMaterials requirements planning (MRP)Just-in-Time Inventory Control (JIT) Japanese Kan ban


Production schedulingSequential schedulingParallel schedulingSequential-parallel scheduling

Network planningCPM---Critical path methodsPERT—Program evaluation and review

technique

Production Control


Total Quality Management(TQM)

Quality Control （ QC ）


*The Goal-Setting Process*The Goal-Setting Process

Corporate level managers set goals for Corporate level managers set goals for individual decisions to allow organizationindividual decisions to allow organization

to achieve corporate goals.to achieve corporate goals.

Divisional managers set goals for Divisional managers set goals for each function to allow the divisioneach function to allow the division

to achieve its goals.to achieve its goals.

Functional managers set goals for Functional managers set goals for each worker to allow the functioneach worker to allow the function

to achieve its goals.to achieve its goals.

Figure 9.4


Management by Objectives Management by Objectives

Management by Objectives (MBO): evaluates workers by attainment of specific objectives. Goals are set at each level of the firm. Goal setting is participatory with manager AND worker. Reviews held looking at progress toward goals.

Pay raises and promotions are tied to goal attainment. Teams are also measured in this way with goals and

performance measured for the team.


Chart of mbo

2000-1 王青 - 管理学院 - 上海交通大学 8-1 8 8 organizational control and culture...

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