Essentials Of Contemporary Management, Chapter 8

Front 1

Nokia Example Point?

Back 1

the ways in which managers use organizational control and culture affects the way employees behave.

Front 2

Purpose of organizational control:

Back 2

to provide managers with a means to direct and motivate subordinates to work toward achieving org. goals and to provide managers with specific feedback on how weel and org and its members are performing.

Front 3

controlling

Back 3

the process whereby managers monitor an dregulate how efficiently and effectively an organizaton and its memebers are performing th eactivities nevessary to achieve organization goals.

Front 4

control systems

Back 4

formal target setting, monitoring, evlatioation and feedback systems that provide managers with info about how well the org's strategy and structure are working.

Front 5

Effective control system characteristics:

Back 5

1) flexible
2) accurate
3) timely

Front 6

Three types of control

Back 6

Input stage-conversion stage-output stage
feedforward control-concurrent control- feedback control

Front 7

feedforward control

Back 7

control that allows managers to anticipate problems beore they arise. (at input stage)

Front 8

concurrent control

Back 8

control that gives managers immediate feedback on how efficiently imnuts are being transformed into outputs so that managers can correct probelms as they arise. at concurrent stage

Front 9

feedback control

Back 9

control that gives managers information about customers reactions to goods and services so that corrective action can be taken if necessary, at the output stage

Front 10

Control process step one

Back 10

establish the standards of performace, goals or targets against which performance is to be evaluated.

Front 11

Control process step two

Back 11

measure actual performance: actual outputs and behaviors

Front 12

Control Process Step Three

Back 12

Compare actual performance against chosen standards of performance

Front 13

Control Process Step Four

Back 13

Evaluate th eresult an dinitiate corrective action if the standards is not being achieved.

Front 14

Profit ratios

Back 14

measure how efficiently manages are using the orgs resources to generate profits

Front 15

Return on Investment

Back 15

org's netincome before taxes divided by its total assets- financial performance measure

Front 16

Gross profit margin

Back 16

difference between the amount of revenue generated by a product and the resourcesused to produce the product

Front 17

Liquidity ratios

Back 17

measure how well managers have protected org resources to be able to meet short term obligations

Front 18

current ratio:

Back 18

current assets/current liabilities, tells managers whether they have the resources avail. to meet claims of short t erm creditors

Front 19

quick ratio

Back 19

tells wehtehr they can pay these claims w/out selling inventory

Front 20

leverage ratios

Back 20

measure the degree to which managers use debt or equity to finance ongoing operations

Front 21

debt to assets ratio

Back 21

total debt/total assets, to what extent have managers borrowed funds to finance invest?

Front 22

times-covered ratio

Back 22

profit before int. and taxes/total interest charge: measures how far profots can decline before managers cannot meet interest changes

Front 23

activity ratios

Back 23

measures of how well managers ar ecreating value from org. assets

Front 24

inventory turnover

Back 24

measures how efficiently managers are turning inv over so that excess inv is not carried. COGS/Inventory

Front 25

Days sales outstanding

Back 25

accounts recievable/total sales/300- provides info on how efficiently managers are collecting revenue from customers to pay expenses

Front 26

The best goals are :

Back 26

specific, difficult goals, that will challenge and stretch manager's ability but not out of reach, stretch goals

Front 27

Operating Budget

Back 27

a budge that states how managers intend t o use org resources to achieve org goals

Front 28

cost/expense budget approach

Back 28

given fixed budget, measured on amoutn of goods or services produced using those resources

Front 29

revenue budget approach

Back 29

maximize the revenues from the sales of goods and services produced

Front 30

profit budget approach

Back 30

difference betweem revenues generated by the sales of goods and services and the budgeted cost of makeing those goods and services

Front 31

Gillette Example Point?

Back 31

an unhappy outcome often results when orgs use the wrong set of goals to control and motivate their employees

Front 32

Direct Supervision

Back 32

form of behavior control. managers actively monitor and observe the behavior of their suborginates, teach sub orgs the behaviors that are appro. andinappro. and intervene to take corrective action as needed

Front 33

Problems with direct supervision

Back 33

expensive, can demotivate subordinates, subords may not take resposibility, not always feasible

Front 34

management by objectives

Back 34

a goal setting process in which a manager and his or her subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodcally evaluate the extent to which the subordinate is achievingthose goals

Front 35

Management by objective step one:

Back 35

specific goals and objectives are establish at each level of the organization

Front 36

management by objective step two:

Back 36

managers and their subordinates together determine the subordinates goals

Front 37

Management by objective step three:

Back 37

managers and their subordinates periodically review the subordinates progress toward meeting goals

Front 38

Cypress semiconductor's Example Point:

Back 38

made a system that allowed him to exercise control over organzation without resorting to exp. layers of management hierarchy and direct supervision

Front 39

Bereaucratic Control

Back 39

control of behavior by means of a comprehensive system or rules and standard operativing procedures

Front 40

standardized behavior

Back 40

actions a re performed the same way time and time again, and the outcomes of work are predictable

Front 41

siteROCK's example point:

Back 41

using beaurcratic control with lots of written down ways for things to do for employees

Front 42

problems with bureaucratic control:

Back 42

establish rules is easier than discarding them, rules constrain people and people stop thinking for themselves

Front 43

When output control and behavioral control are inappropriate:

Back 43

managers cannot evaluate performance of doctors, etc on day to day basis, cannot respond to emergency situations or discovering new things, surgery doesnt need a time limit

Front 44

Organizational culture

Back 44

the set of values, normams, standards for behavior, and shared expectations tha tinfluence the way sin which individuals, groups and teams interact with each other and cooperate to achieve org. goals

Front 45

clan control

Back 45

the control exerted on individuals and groups in and organization by shared values, norms, standards for behavior and expectations

Front 46

why is organizational culture important?

Back 46

1) makes control possible when other methods arent possible
2)makes employees think about whats better for the org in the long run

Front 47

Factors that create a strong organizational culture

Back 47

values of the founder, ceremonies and rites, socialization, stories and language

Front 48

Values of the Founder

Back 48

founders set the scene for values and norms, org vision

Front 49

Organizational socialization

Back 49

the process by which newcomers learn an organizations value sand normas and acquire the work behaviors necessary to perform jobs effectively

Front 50

Ceremonies and Rites

Back 50

formal events that recognize incidents of importance to the org as a whole and to specific employees

Front 51

Rites of passage

Back 51

detemine how individuals enter, advance within or leave the org.

Front 52

Rites of Integration

Back 52

shared announcements of org successes, office parties, company cookouts

Front 53

Rites of enhancement

Back 53

awards dinners, newspaper releases, employee promotions

Front 54

Stories and Language

Back 54

can reveal the kinds of behaviors that are valued by the organization and the kinds of practices that are frowned upon.