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
2000-1 王青 - 管理学院 - 上海交通大学 8-2
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?
2000-1 王青 - 管理学院 - 上海交通大学 8-3
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
2000-1 王青 - 管理学院 - 上海交通大学 8-4
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
2000-1 王青 - 管理学院 - 上海交通大学 8-5
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.
2000-1 王青 - 管理学院 - 上海交通大学 8-6
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.
2000-1 王青 - 管理学院 - 上海交通大学 8-7
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.
2000-1 王青 - 管理学院 - 上海交通大学 8-8
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
2000-1 王青 - 管理学院 - 上海交通大学 8-9
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.
2000-1 王青 - 管理学院 - 上海交通大学 8-10
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,
2000-1 王青 - 管理学院 - 上海交通大学 8-11
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
2000-1 王青 - 管理学院 - 上海交通大学 8-12
Evaluate and Action
Evaluate result and take corrective action.Perhaps the standards have been set too
high.Workers may need additional training,
or equipment.
2000-1 王青 - 管理学院 - 上海交通大学 8-13
Control Process
2000-1 王青 - 管理学院 - 上海交通大学 8-14
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
2000-1 王青 - 管理学院 - 上海交通大学 8-15
Financial ControlFinancial ControlFinancial Statement
Balance sheetIncome statementStatement of cash flows
Budget Variable BudgetOverhead Budget
2000-1 王青 - 管理学院 - 上海交通大学 8-16
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
2000-1 王青 - 管理学院 - 上海交通大学 8-17
Materials Control
Economic order quantity (EOQ)Perpetual inventory controlMaterials requirements planning (MRP)Just-in-Time Inventory Control (JIT) Japanese Kan ban
2000-1 王青 - 管理学院 - 上海交通大学 8-18
Production schedulingSequential schedulingParallel schedulingSequential-parallel scheduling
Network planningCPM---Critical path methodsPERT—Program evaluation and review
technique
Production Control
2000-1 王青 - 管理学院 - 上海交通大学 8-19
Total Quality Management(TQM)
Quality Control ( QC )
2000-1 王青 - 管理学院 - 上海交通大学 8-20
*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
2000-1 王青 - 管理学院 - 上海交通大学 8-21
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.
2000-1 王青 - 管理学院 - 上海交通大学 8-22
Chart of mbo