Business Management 316 Final Chp. 16 Controlling

Front 1

What is the purpose of controlling?

Back 1

To MEASURE, plan, organize, and lead. Control behaviors NOT PEOPLE, so that the company functions well.

Control is the regulatory process of establishing standards and goals, comparing actual performance, and taking corrective action when necessary.

*continues over time (dynamic) requires constant attention

*JC penny No more sales,
control employee theft

Front 2

What is benchmarking?

Back 2

the process of determining other companies' standards and how they perform functions and tasks.

*Cycle time (how fast), quality (how well), to price (how much).

Walmart observes target

Front 3

What are standards?

Back 3

*measure- set goals, satisfy 90 percent of customers or increase sales by 5 percent.

*Setting standards: 1. Be open, 2. look around industry and determine what customers want and who are your competitors. 3. Who is setting the standard (compare and contrast-benchmarking).

Example: cars: gas prices, safety, quality, reputation..

Front 4

Comparison to standards?

Back 4

compare actual performance to performance standards. Example: Secret Shoppers, Duck store and customer service.

Front 5

What is a dynamic or cybernetic process?

Back 5

*set standards, measure performance, compare. If it deviates from standards implement corrective programs.

**constant attention-continues over time-"steers or keeps on course"

Front 6

What are the 3 forms of control?
Describe

Back 6

1. Feedback
2. Concurrent
3. Feedforward Control

1. gather info about performance deficiencies AFTER they occur: example: restaurant asks how was your meal, how was your service... Survey, analysis, evaluation...

2.based on outcomes and results. Gather info about performance deficiencies AS they occur. Ex: McDonalds: would you like a drink? fries with that? *Attempts to eliminate or shorten the delay between performance and feedback about it.

3. Gather info BEFORE deficiencies occur. Preventitive. monitor performance input. Example: microsoft-trial runs for software.

Front 7

What is control loss?

Back 7

when behavior and work procedures do not conform to standards.

Front 8

What is the Cybernetic Control Process?

Back 8

Steering or keeping on course-required constant attention and continues over time.
1.Set Standards:
2.Measure Performance-3.Compare with standards, 4.Identify deviations
5.Analyze deviations,
6.develop and implement program for corrective action-7.measure performance....etc.

Front 9

What are the main control methods?
Describe

Back 9

1. Bureaucratic control: top down, managers try to influence employee behavior by rewarding/punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

2. Objective: observing and measuring worker behavior or output to assess performance. 2 types:

A. Behavior control: reward/punish behaviors that lead to goal achievement. (measuring breaks..) Measures, guides, and regulates behavior on the job


B. Output control: measures results of employees efforts, allows behavior as seen fit as long as they accomplish pre-specified measurable results. Rewards and Incentives.
*measures must be reliable, fair, and accurate
*believe u can produce results
*rewards based on achieving established standards of performance.

3. Normative control: shape beliefs and values of the people who work there. Companies widely shared values guide worker's behavior and decisions. (Ex: Roths-extraordinary customer service)
*Requires selective hiring based on attitude and values
*learned what they should and shouldn't do by observing employees and stories..Ex: .Nordstrom-shop across the street.

Front 10

What are the advantages of the balanced scorecard

Back 10

1.Forces managers to set goals and measure
performance in each of the four areas

2. Minimizes the chances of suboptimization
 performance improves in one area, but
at the expense of others

Front 11

What is the balanced scorecard?

Back 11

measurement of organizational performance in 4 areas:

1. Finances: (profits come in many different forms) budgets (forecasting-expenditures), cash flow, economic value, balance sheets, income statement, financial ratios.

2. Customers:
Monitoring customer defections:
identify which customers are leaving the
company
measuring the rate at which they are
leaving

Obtaining a new customer costs five times as much as
keeping a current one

Customers who have left are likely to tell you what you
are doing wrong

Understanding why a customer leaves can help fix
problems and make changes


3. Internal Operations/perspective:
Total quality management- controlling quality improvements, excellence*value* conformance to expectations ex: course evaluations.

4. Innovation and learning: waste and pollution.
housekeeping, material product substitution, compost, recycle, reuse (UO go Green), process modification.
waste prevention and reduction
recycle and reuse
waste treatment
waste disposal



(Facebook @ work example)

Front 12

What is Self control/Management

Back 12

leaders/managers provide workers with clear boundaries within which they may guide and control their own goals and behaviors.

*Teach skills to maximize and monitor own work effectiveness.

*set goals, self observation, self reward, feedback....

Front 13

What should managers control?

Back 13

* manage costs, provide value, keep customers and employees satisfied

Front 14

What is Economic value added?
EVA

Back 14

amount company profits (revenues-expenses-taxes) exceed the cost of capital in a given year.

Front 15

What are the 3 methods in controlling waste and pollution?

Back 15

1. Good Housekeeping,
2. Material/Product Substitution: replacing toxic materials with less harmful materials
3. Process Modification: changing steps or procedures to eliminate or reduce waste.