control and managing information
TRANSCRIPT
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CHAPTER 5--ExercisingControl Over People and
Processes
Resty L. Picardo, RN, MAN,LLB
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LEARNING OBJECTIVES
Understand the dual naturejudgmental as well asproblem-solving and decision-making00of thesupervisors role in carrying out the control function.
Define and recognize a control standard and explain and
evaluate the sources of these standards. Discuss the four steps in the control process and explain
the three major types of controls.
Identify the six major areas of organizational control thatguide supervisory actions and explain the technique of
management by exception. Discuss employee resistance to controls, explain someof the ways to reduce it, and explain the relationshipof management by objectives to the controlprocess
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THE DUAL ROLE
What is the basic purpose of a
supervisors control function?
To keep thing in line and to make sureplans hit their targetsguide production
goals and quality standards.
How much will control rely on theinformation system and how much
on the supervisor?
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THE DUAL ROLE
JUDGMENTAL ROLE
Comparison between what is
happening or has happenedfrom what is the standard.
PROBLEM-SOLVING ANDDECISION-MAKING ROLE
Find out the reasons why results arebelow standards and correct andbring results up to expectations.
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PLANNING AND CONTROL
In what way are controls lined toplans?
Controls are actually goals that havebeen sharpened to male themmore detailed and specific.
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CONTROL STANDARDS
a.k.a. standard, is a specific
performance goal that a product, a
service, a machine, an individual, oran organization is expected to meet.
TOLERANCE
- a little leeway from standard, fallingwithin a specified boundary.
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CONTROL STANDARDS
Where do control standards come
from? Who sets them?
ORGANIZATIONAL DEPARTMENTS
-Staff specialists in large organziations
-Supervisors in small organizations
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CONTROL STANDARDS
SOURCES:
Past performances
Historical recordsHigh hopes
Used in the absence of any other basis
Systematic analysis
Entails analysis, careful observation andmeasurement, as with time studies,thus the best standards are set.
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THE CONTROL PROCESS
1. Set performance standards
2. Collect data to measureperformance
3. Compare results with
standards
4. Take corrective action
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THE CONTROL PROCESS
Where, in the process, are controls
applied?
Three Distinct Types of ControlOpportunities:
1. Preventive controls
2. Concurrent controls
3. Corrective controls
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THE CONTROL PROCESS
What extent is control automatic?
Computer-driven control
systems minimizing the
human element.
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CONTROL TARGETS
What specific kinds of organizational controlsare most likely to aid or restrict supervisoryactions?
1. Output controls
2. Quality controls
3. Time controls
4. Material controls
5. Cost controls6. Employee performance controls
7. Budgetary controls
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CONTROL TARGETS
Management by exception
Is a form of delegation in which thesupervisor lets things run as they are as
long as they fall within prescribed limits
of performance. When they get out ofline, the supervisor steps in and takes
corrective actions.
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HANDLING EMPLOYEE
RESISTANCE The human element in the control process:
How important is it?
The most critical element, and the followingare especially sensitive areas of performance
evaluation relating to:
Attendance
Speed and care in feeding or servicing automaticoperations
Relationships with other departments with
customers or client organizations.
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HANDLING EMPLOYEE
RESISTANCEHow can you soften employee resistance to controls?
Sample positive approaches:
1. Emphasize the value of controls to employees;
2. Avoid arbitrary or punitive standards;
3. Be specific: use numbers if possible;
4. Aim for improvement rather than punishment;
5. Make the penalty for nonconformance absolutelyclear;
6. Avoid threats that you cant or wont back up; and
7. Be consistent in the application of controls.
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HANDLING EMPLOYEE
RESISTANCE Encouraging self-control According to Douglas MacGregor, many
people need only to be given the targetsfor their workthe standards. After thatthey wish to be left alone and to be judgedon the basis of their results in meeting or
not meeting these targets. Manyemployees will provide their own controland do not need a supervisor to threatenthem into meeting standards.
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MANAGEMENT BY
OBJECTIVES (MBO) Is planning and control process that providesmanagers at each organizational control pointwith a set of goals, or standards, to be attained.
PRESUMPTIONS: If all supervisors reach their goals, the organization
will also reach its goals.
The supervisors have been given enough freedom ofaction to meet these goals with the allocatedresources.
The goals in MBO are jointly set by the boss andthe subordinates, with the subordinate taking theleading role.
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CHAPTER 6ManagingInformation and Solving
Problems
Resty L. Picardo, RN, MAN,LLB
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Learning Objectives
Recognize and define a problem or a potential problem.
List eight steps in problem solving and decision making that lead tothe removal of a problems cause.
Discuss the rational and intuitive approaches to decision makingand explain cost-benefit analysis, decision trees, and ABC analysis.
Describe a management information system and differentiatebetween data and information.
Understand how supervisors can create their own departmentalinformation system.
Discuss the impact of computerized information handling systemsupon employees and suggest
ways to alleviate the stress associated with systematization.
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PROBLEMS: CAUSE AND
EFFECT PROBLEM Is a puzzle looking for an answer. A
disturbance or unsettled matter that demands
a solution if the organization is to function
productively.
Solutions to a problem can only be derived:
After an extensive review of relevant information Application of considerable thought and skill
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PROBLEMS: CAUSE AND
EFFECT Classification of problems: Problems that have already occurred or are
occurring now
Identified problems that lie ahead
Problems that you want to detect and forestall
What causes a problem? CHANGE
How can you recognize a problem or a
potential problem? GAPS/VARIANCE
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SYSTEMATIC PROBLEM
SOLVING How to solve? Remove the cause, or
will cause, a gap between the
expected and the actual. What is the connection between
problem-solving and decision-
making?
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THE PROBLEM-SOLVING
PROCESS1. State the problem clearly2. Collect relevant information
3. List possible causes
4. Select the most likely cause5. Suggest alternative solutions
6. Evaluate alternatives
7. Choose one solution
8. Plan for implementation
Problem finding
Decision making
P
R
O
B
L
E
M
S
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V
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DECISION MAKING:
RATIONAL AND INTUITIVE The need for decision arises wheneverthere is more than one way of doingthings.
Hunches and intuition plays a role also indecision-making
Mathematical decision making
Refers to the use of certain mathematical,statistical, or quantitative techniques to aid thedecision maker.
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DECISION MAKING:
RATIONAL AND INTUITIVEDecision Tree
- Is essentially a graphic portrait of
steps 5 and 6 of the problem solvingprocess. It shows how each
alternative solution forks into various
possibilities.
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DECISION TREE SAMPLEA1 Enforces strict discipline; A2 uses constructive encouragement; A3 uses both.
A1
A2
A3
Responds only to discipline
Responds only to encouragement
Responds to both
Responds only to discipline
Responds only to encouragement
Responds to both
Responds only to discipline
Responds only to encouragement
Responds to both
Great improvement
Very little improvement
Moderate improvement
Very little improvement
Great improvement
Moderate improvement
Moderate improvement
Very little improvement
Great improvement
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DECISION MAKING:
RATIONAL AND INTUITIVECost-benefit analysis- A technique for weighing the pros and cons of alternative
courses of action especially in nonprofit organizations inwhich both the intangible benefits of the actions and its
costs are assigned dollar values.- Similar to input-output analysis, an attempt to make surethat the cost and effort expended in carrying out adecision will at least be balanced by its outputs orresults.
- Output > Inputs = Profits in business
- Output > Inputs = Surplus in nonprofit organizations
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DECISION MAKING:
RATIONAL AND INTUITIVEDecisions based on intuition- Intuition often adds a valuable dimension
by calling on some inner sense we dontclearly understand. Best decisions come
from a combinatin of intuition and hunch.
Programmed decision
- Decisions that are spelled out in advance
by a standard procedure or policy.
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DECISION MAKING:
RATIONAL AND INTUITIVEGuide to making an effective decision:1. Pick your spots.
- Try to make decisions only where the potential forpayoff is great. Use ABC Analysis.
- 20/80 SYNDROME 20% of your problems willaccount for 80% of your losses or profits. Then toturn the idea, 80% of your problems will account foronly 20% of your losses or profits.
2. Maintain your perspective.- Dont reach too high. Dont set your objectives at
the very top; allow some room for mistakes.
- Always prepare a fallback position, a way to alterplans and attain at least part of the objective.
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ABC ANALYSIS
A vital few problems of opportunities for action account for the greatestloss or greatest gain. A the vital few; C inconsequential many;and B all that fall somewhere in between A and C items.
C A
B B
A C
Relative
number of problems
Relative
importance of problems
FEW
MANY
VERY
IMPORTANT
SLIGHTLY
IMPORTANT
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INFORMATION AS A RAW
MATERIAL Information is the substance withwhich problems are solved and
decisions are made. RULE: The more critical and lasting
the effect of a decision, the more you
can afford to look for the last scrap ofvital information.
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INFORMATION AS A RAW
MATERIAL Management Information System (MIS) a plain oldaccounting, but with a much broader base and electronictwist and it provides an information basis for allmanagement decisions.
Its ultimate objective is to tie together all a companyspast and present data into a great big library (data bank)with instant electronic recall.
Data described as merely facts and figures that, untilprocessed, bear little relation to decision-making.
Information is data that has been processed forspecific use by managers and supervisors in decisionmaking related to planning, organizing, staffing,directing, and controlling.
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AN MIS OF YOUR OWN
Supervisors become involved in
computer operations in two basic
ways:End user of computer output
information.
Prime source of inputs.Note: Supervisors can design their own
management information systems.
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BASIC COMPONENTS OF A
MISInternal
InformationSystem
ExternalInformation
System
Primary
information
Secondary
information
Decision
making
Plans
GoalsActions
Control
Standards
Corrective
action
Results
Control
Comparisons
Information
needed for decision
Change
information
requirements
Primary data is new information that is collected and analyzed for specific purpose of
running a particular operation.
Secondary data is any useful information previously collected and published by
trade associations, business magazines, the government or any other source outside
the department.
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KEEPING THE SYSTEM
HUMAN Effects: Systematization reduces job tensions and conflicts by
making things more orderly.
Systematization creates job dissatisfaction because itrequires that individuals fit their work into a rigidlyprescribed format.
Systematization tends to make work monotonousbecause it reduces the opportunity to be creative.
Systematization depersonalizes work; people servethe machine more than the machine serves people.
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KEEPING THE SYSTEM
HUMAN What can be done to make employees moreadaptable to the MIS process, electronic dataprocessing, and computers in general?
Try to reduce tension by allowing employees to bringtheir irritations into the open.
Acknowledge that its only normal to be fearful of whatthe computer may do to jobs and job security.
Focus your attention on trying to make sure that
people are assigned to the work they do best and likebest.