to Accompany Management Third Canadian Edition John R Schermerhorn Jr Barry Wright Prepared by Jim LoPresti University of Colorado Boulder Revised by Dr Shavin Malhotra Ryerson University Toronto Ontario ID: 619888
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PowerPoint Presentation to Accompany ManagementThird Canadian EditionJohn R. Schermerhorn, Jr.Barry Wright
Prepared by: Jim LoPrestiUniversity of Colorado, BoulderRevised by: Dr. Shavin MalhotraRyerson University, Toronto, OntarioSlide2
Management 2e - Chapter 162
Chapter 16: Control Processes and SystemsSlide3
16.1 Explain why and how managers exert control.16.2 Describe the steps in the control process.16.2 Identify and describe common control systems and techniques.Chapter 16 Learning ObjectivesManagement 3e - Chapter 16
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ControllingThe process of measuring performance and taking action to ensure desired results.Has a positive and necessary role in the management process.Ensures that the right things happen, in the right way, at the right time.Organizational learning and after-action review.Why and How Managers ControlManagement 3e - Chapter 16
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Figure 16.1 The role of controlling in the management process.Management 3e - Chapter 16
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Feedforward controls Employed before a work activity begins.Ensures that:Objectives are clear.Proper directions are established.Right resources are available.Focuses on quality of resources.Management 3e - Chapter 16
6Why and How Managers ControlSlide7
Concurrent controls Focus on what happens during work process.Monitor ongoing operations to make sure they are being done according to plan.Can reduce waste in unacceptable finished products or services.Management 3e - Chapter 16
7Why and How Managers ControlSlide8
Feedback controls Take place after work is completed.Focus on quality of end results.Provide useful information for improving future operations.Management 3e - Chapter 16
8Why and How Managers ControlSlide9
Figure 16.2 The role of feedforward, concurrent, and feedback controls in organizations.Management 3e - Chapter 16
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Internal and external controlInternal control or Self-controlAllows motivated individuals and groups to exercise self-discipline in fulfilling job expectations.External controlOccurs through personal supervision and the use of formal administrative systems.Management 3e - Chapter 16
10Why and How Managers ControlSlide11
Bureaucratic controlinfluences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to-day supervisionClan controlinfluences behaviour through norms and expectations set by the organizational culture.Market controlinfluences behaviour through market competition.Management 3e - Chapter 16
11Why and How Managers ControlSlide12
Steps in the control process:Step 1 — establish objectives and standards.Step 2 — measure actual performance.Step 3 — compare results with objectives and standards.Step 4 — take corrective action as needed.Steps in the Control Process
Management 3e - Chapter 1612Slide13
Figure 16.3 Four steps in the control process.Management 3e - Chapter 16
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Step 1 — establishing objectives and standardsOutput standardsMeasure performance results in terms of quantity, quality, cost, or time.Input standardsMeasure effort in terms of amount of work expended in task performance.Management 3e - Chapter 16
14Steps in the Control ProcessSlide15
Step 2 — measuring actual performanceGoal is accurate measurement of actual performance results and/or performance efforts.Must identify significant differences between actual results and original plan.Effective control requires measurement.Management 3e - Chapter 16
15Steps in the Control ProcessSlide16
Step 3 — comparing results with objectives and standardsNeed for action reflects the difference between desired performance and actual performanceComparison methods:Historical comparisonRelative comparisonEngineering comparisonManagement 3e - Chapter 16
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Step 4 — taking corrective actionTaking action when a discrepancy exists between desired and actual performance.Management by exceptionGiving attention to situations showing the greatest need for action.Types of exceptionsProblem situationOpportunity situationManagement 3e - Chapter 16
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Employee discipline systemsDiscipline is the act of influencing behaviour through reprimand.Discipline that is applied fairly, consistently, and systematically provides useful control.Control Tools and TechniquesManagement 3e - Chapter 16
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Employee discipline systemsProgressive discipline ties reprimands to the severity and frequency of the employee’s infractions.Progressive discipline seeks to achieve compliance with the least extreme reprimand possible.Management 3e - Chapter 16
19Control Tools and TechniquesSlide20
To be effective, reprimands should Be immediate.Be directed toward actions, not personality.Be consistently applied.Be informative.Occur in a supportive setting.Support realistic rules.Management 3e - Chapter 16
20Control Tools and TechniquesSlide21
Project Management Overall planning, supervision, and control of projects.Projects – unique one-time events that occur within a defined time periodGantt chart – graphic display of scheduled tasks required to complete a projectCPM/PERT – combination of the critical path method and program evaluation and review techniqueManagement 3e - Chapter 16
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Figure 16.4 Simplified Gantt chart for a new cell phoneManagement 3e - Chapter 16
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Figure 16.5 Sample CPM/PERTManagement 3e - Chapter 16
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Economic Value Addeda performance measure of economic value created in respect to profits being higher than the cost of capitalMarket Value Addeda performance measure of stock market value relative to the cost of capitalManagement 3e - Chapter 16
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Control Tools and TechniquesSlide25
Basic Financial RatiosLiquidityThe ability to generate cash to pay bills.LeverageThe ability to earn more in returns than the cost of debt.Asset managementThe ability to use resources efficiently and operate at minimum cost.ProfitabilityThe ability to earn revenues greater than costs.Management 3e - Chapter 16
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Control Tools and TechniquesSlide26
Balanced Scorecard Factors used to develop scorecard goals and measures:Financial performanceCustomer SatisfactionInternal process improvementInnovation and learningManagement 3e - Chapter 16
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Control Tools and
TechniquesSlide27
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