CH16

1.0x

CH16

Created 2 years ago

Duration 0:29:45
lesson view count 79
Select the file type you wish to download
Slide Content
  1. Chapter 16Control

    Slide 1 - Chapter 16Control

    • © 2015 Cengage Learning
    • MGMT7
  2. © 2015 Cengage Learning

    Slide 2 - © 2015 Cengage Learning

    • 16-1 describe the basic control process
    • 16-2 discuss the various methods that managers can use to maintain control
    • 16-3 describe the behaviors, processes, and outcomes that today’s managers are choosing to control in their organizations
  3. The Control Process

    Slide 3 - The Control Process

    • © 2015 Cengage Learning
    • 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 feed forward control.
    • Control isn’t always worthwhile or possible.
    • 16-1
  4. Standards

    Slide 4 - Standards

    • Must enable goal achievement
    • Listen to customer’s comments, complaints, and suggestions
    • Benchmarking
    • determining other companies’ standards
    • © 2015 Cengage Learning
    • 16-1
  5. Comparison to Standards

    Slide 5 - 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.
    • © 2015 Cengage Learning
    • 16-1
  6. Corrective Action

    Slide 6 - Corrective Action

    • Identify performance deviations
    • Analyze deviations
    • Development and implement corrective programs
    • © 2015 Cengage Learning
    • 16-1
  7. Cybernetic Control Process

    Slide 7 - Cybernetic Control Process

    • © 2015 Cengage Learning
    • 16-1
  8. Control Methods

    Slide 8 - Control Methods

    • Feedback control
    • Concurrent control
    • Feedforward control
    • © 2015 Cengage Learning
    • 16-1
  9. Control Isn’t Always Worthwhile or Possible

    Slide 9 - Control Isn’t Always Worthwhile or Possible

    • Control loss
    • Regulation costs
    • Cybernetic feasibility
    • © 2015 Cengage Learning
    • 16-1
  10. Bureaucratic Control

    Slide 10 - Bureaucratic Control

    • © 2015 Cengage Learning
    • 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.
    • 16-2
  11. Objective Control

    Slide 11 - 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
    • © 2015 Cengage Learning
    • 16-2
  12. Normative Controls

    Slide 12 - Normative Controls

    • A company’s widely shared values and beliefs guide workers’ behavior and decisions.
    • Created by…
    • Who companies hire
    • Observing experienced employees
    • © 2015 Cengage Learning
    • 16-2
  13. Concertive Controls

    Slide 13 - Concertive Controls

    • © 2015 Cengage Learning
    • Based on beliefs that are shaped and
    • negotiated by work groups.
    • 16-2
  14. Self-Control (Self-Management)

    Slide 14 - Self-Control (Self-Management)

    • © 2015 Cengage Learning
    • A control system in which managers and workers control their own behavior.
    • 16-2
  15. The Balanced Scorecard

    Slide 15 - The Balanced Scorecard

    • Encourages managers to look at four different perspectives on company performance.
    • Customer perspective
    • Internal perspective
    • Innovation and learning perspective
    • Financial perspective
    • © 2015 Cengage Learning
    • 16-3
  16. Southwest Airlines’s Balanced Scorecard

    Slide 16 - Southwest Airlines’s Balanced Scorecard

    • 16-3
    • © 2015 Cengage Learning
  17. Controlling Financial Performance

    Slide 17 - Controlling Financial Performance

    • Traditional approaches
    • Cash flow analysis
    • Balance sheets
    • Income statements
    • Financial ratios
    • Budgets
    • © 2015 Cengage Learning
    • 16-3
  18. Economic Value Added

    Slide 18 - 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
    • © 2015 Cengage Learning
    • 16-3
  19. Calculating Economic Value Added (EVA)

    Slide 19 - Calculating Economic Value Added (EVA)

    • 16-3
    • © 2015 Cengage Learning
  20. Controlling Customer Defections

    Slide 20 - 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.
    • © 2015 Cengage Learning
    • 16-3
  21. Controlling Quality

    Slide 21 - Controlling Quality

    • Quality is measured in three ways:
    • Excellence
    • Value
    • Conformance to specifications
    • © 2015 Cengage Learning
    • 16-3
  22. Conformance to Specifications Checklist for Buying Fresh Fish

    Slide 22 - Conformance to Specifications Checklist for Buying Fresh Fish

    • 16-3
    • © 2015 Cengage Learning
  23. Advantages and Disadvantages of Different Measures of Quality

    Slide 23 - Advantages and Disadvantages of Different Measures of Quality

    • 16-3
    • © 2015 Cengage Learning
  24. Controlling Waste and Pollution

    Slide 24 - Controlling Waste and Pollution

    • Waste prevention and reduction
    • good housekeeping
    • material/product substitution
    • process modification
    • Recycle and reuse
    • Waste treatment
    • Waste disposal
    • © 2015 Cengage Learning
    • 16-3
  25. Barcelona Restaurant Group

    Slide 25 - Barcelona Restaurant Group

    • How do managers at Barcelona control the company’s financial performance?
    • What is the “balanced scorecard” approach to measuring corporate performance, and in what ways does Barcelona utilize this approach?
    • Describe the feedback control model and describe an instance where Barcelona followed this process to improve its performance.
  26. Barcelona Restaurant Group

    Slide 26 - Barcelona Restaurant Group