lecture 8 - controlling

8/17/2019 Lecture 8 - Controlling

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ENGINEERING MANAGEMENTEMGT101

Dr. J. Berlin P. Juanzon CE, MBA,MSCM

Lecture

Controllin!


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Advanced Organizer

Decision Making

Planning

Organizing

Leading

Research

Design

Production

Quality

Marketing

Project Management

Time Managem

Ethics

areer

ontrolling

Management !unctions Managing Technology Personal Technolog

Managing Engineering and Technology


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11"#

T$ree T%&e' o( Control


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11")

T%&e' o( Control• Feedforward Controls

– *'e+ to antici&ate &role-' e(ore t$e% ari'e 't$at &role-' +o not occur later +urin! t$econer'ion &roce''

– Giin! 'trin!ent &ro+uct '&eci(ication' to'u&&lier' in a+ance

– IT can e u'e+ to /ee& in contact it$ 'u&&lieran+ to -onitor t$eir &ro!re''


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11"

T%&e' o( Control

• Concurrent Controls

– Gie -ana!er' i--e+iate (ee+ac/ on $o e((icientl% i

ein! tran'(or-e+ into out&ut'

• Allo' -ana!er' to correct &role-' a' t$e% ari'e


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11"2

T%&e' o( Control• Feedback Controls

– *'e+ to &roi+e in(or-ation at t$e out&ut 'ta!e

aout cu'to-er'3 reaction' to !oo+' an+ 'eric

'o t$at correctie action can e ta/en i(

nece''ar%


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11"4

Control Proce'' Ste&'

5i!ure 11.6


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11"

T$e Control Proce''

1. E'tali'$ 'tan+ar+' o( &er(or-ance, !oal'or tar!et' a!ain't $ic$ &er(or-ance i' to

e ealuate+. – Mana!er' at eac$ or!anizational leel nee+ t

'et t$eir on 'tan+ar+'.


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11"7

T$e Control Proce''

6. Mea'ure actual &er(or-ance

– Mana!er' can -ea'ure out&ut' re'ultin! (ro-

or/er e$aior or t$e% can -ea'ure t$e

e$aior t$e-'ele'.

• T$e -ore non"routine t$e ta'/, t$e $ar+er it i' to

-ea'ure e$aior or out&ut'


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11"10

T$e Control Proce''

#. Co-&are actual &er(or-ance a!ain't c$o''tan+ar+' o( &er(or-ance

– Mana!er' ealuate $et$er 8 an+ to $at e9 8 &er(or-ance +eiate' (ro- t$e 'tan+ar+' o &er(or-ancec$o'en in 'te& 1


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11"11

T$e Control Proce''

). Ealuate re'ult an+ initiate correctie action i( t$e'tan+ar+ i' not ein! ac$iee+

– I( -ana!er' +eci+e t$at t$e leel o( &er(or-ance i'

unacce&tale, t$e% -u't tr% to c$an!e t$e a% or/ ac

are &er(or-e+ to 'ole t$e &role-


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11"16

T$ree :r!anizational Control S%'te-'


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5inancial Control'

Traditional Controls

–Ratio analysis

–Li;ui+it%

–Leera!e

–Actiit%

–Pro(itailit%

–Budget Analysis

–


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5inancial Ratio'

Objective Ratio Calculation Meaning

17-14 o"yright # $%&& Pearson Education


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5inancial Ratio'

Objective Ratio Calculation Meaning



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Managing Earnings–=Timing> inco-e an+ e9&en'e' to enhance current(inancial re'ult', $ic$ !ie' an unrealistic &icture o

or!anization3' (inancial &er(or-ance.

– Ne la' an+ re!ulation' re;uire co-&anie' to clarit$eir (inancial in(or-ation.


5inancial Control'


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Balance+ Scorecar+

–I' a -ea'ure-ent tool t$at u'e' !oal' 'et % -ana!er' i

(our area' to -ea'ure a co-&an%3' &er(or-ance?–5inancial

–Cu'to-er

– Internal &roce''e'

–Peo&le@innoation@!rot$ a''et'

–I' inten+e+ to e-&$a'ize t$at all o( t$e'e area' arei-&ortant to an or!anization3' 'ucce'' an+ t$at t$ere

'$oul+ e a alance a-on! t$e-.



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11"1

:ut&ut Control• Organizational oals

– Eac$ +ii'ion it$in t$e (ir- i' !ien '&eci(ic

!oal' t$at -u't e -et in or+er to attain oeral

or!anizational !oal'.

• Goal' '$oul+ e 'et a&&ro&riatel% 'o t$at -ana!er'

are -otiate+ to acco-&li'$ t$e-


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11"17

:r!anization"i+e Goal Settin!


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11"60

:ut&ut Control

•O!erating Budgets – Blue&rint t$at 'tate' $o -ana!er' inten+ to u

or!anizational re'ource' to ac$iee or!anizatio

!oal' e((icientl%.


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11"61

E((ectie :ut&ut Control

1. :ectie (inancial -ea'ure'6. C$allen!in! !oal' an+ &er(or-ance 'tan+ar+'

#. A&&ro&riate o&eratin! u+!et'


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11"66

Prole-' it$ :ut&ut Control• Mana!er' -u't create out&ut 'tan+ar+' t$at

-otiate at all leel'

• S$oul+ not cau'e -ana!er' to e$ae in

ina&&ro&riate a%' to ac$iee or!anization

!oal'


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11"6#

Be$aior Control• "irect su!er#ision

– -ana!er' $o actiel% -onitor an+ o'ere t$

e$aior o( t$eir 'uor+inate'

– Teac$ 'uor+inate' a&&ro&riate e$aior'

– Interene to ta/e correctie action

–

Mo't i--e+iate an+ &otent (or- o( e$aioralcontrol

– Can e an e((ectie a% o( -otiatin! e-&lo%e


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11"6)

Prole-' it$ Direct Su&eri'ion

• er% e9&en'ie ecau'e a -ana!er can &er'onall% -onl% a relatiel% '-all nu-er o( 'uor+inate' e((ec

• Can +e-otiate 'uor+inate' i( t$e% (eel t$at t$e% a

'uc$ clo'e 'crutin% t$at t$e% are not (ree to -a/e t$

+eci'ion'


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11"6

Bureaucratic Control• Bureaucratic Control

– Control t$rou!$ a '%'te- o( rule' an+ 'tan+ar+

o&eratin! &roce+ure' S:P' t$at '$a&e' an+

re!ulate' t$e e$aior o( +ii'ion', (unction',

an+ in+ii+ual'.


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11"62

Bureaucratic Control• Prole-' it$ Bureaucratic Control

– Rule' ea'ier to -a/e t$an t$an +i'car+in! t$e-

lea+in! to ureaucratic =re+ ta&e> an+ 'loin!

or!anizational reaction ti-e' to &role-'.

– 5ir-' eco-e too 'tan+ar+ize+ an+ lo'e

(le9iilit% to learn, to create ne i+ea', an+ 'olto ne &role-'.


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11"64

Clan Control• Clan Control

– T$e control e9erte+ on in+ii+ual' an+ !rou&'

an or!anization % '$are+ alue', nor-',

'tan+ar+' o( e$aior, an+ e9&ectation'.


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11"6

:r!anization C$an!e

Moe-ent o( an or!anization aa% (ro- it'

&re'ent 'tate an+ toar+ 'o-e +e'ire+ (utur'tate to increa'e it' e((icienc% an+

e((ectiene''

: i ti l C$


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11"67

:r!anizational C$an!e

L i 3 5 5i l+ T$ ( C$


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Lein3' 5orce"5iel+ T$eor% o( C$a


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11"#1

Lein3' 5orce"5iel+ T$eor% o( C$an

• T$ere are a i+e ariet% o( (orce' ari'in! (ro- t$e or!anization o&erate', (ro- it' 'tructure, culture, an

control '%'te-' t$at -a/e or!anization' re'i'tant to


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11"#6

Lein3' 5orce"5iel+ T$eor% o( C$an

•To !et an or!anization to c$an!e, -ana!er' -u't (into increa'e t$e (orce' (or c$an!e, re+uce re'i'tance

c$an!e, or +o ot$ 'i-ultaneou'l%


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11"##

Eolutionar% an+ Reolutionar% C$a

•E#olutionary change – !ra+ual, incre-ental, an+ narrol% (ocu'e+

– con'tant atte-&t to i-&roe, a+a&t, an+ a+u't 'trate!% a

'tructure incre-entall% to acco--o+ate c$an!e' in t$e

eniron-ent


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Eolutionar% an+ Reolutionar% C$a

•Re#olutionary change – Ra&i+, +ra-atic, an+ roa+l% (ocu'e+

– Inole' a ol+ atte-&t to ;uic/l% (in+ a%' to e e((ect

– Li/el% to re'ult in a ra+ical '$i(t in a%' o( +oin! t$in!'

!oal', an+ a ne 'tructure (or t$e or!anization


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11"#

Ste&' in t$e :r!anizational C$an!e Proc


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I-&le-entin! t$e C$an!e

•To! "own Change – A (a't, reolutionar% a&&roac$ to c$an!e in $ic$ to& -

i+enti(% $at nee+' to e c$an!e+ an+ t$en -oe ;uic/l

i-&le-ent t$e c$an!e' t$rou!$out t$e or!anization.


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11"#4

I-&le-entin! t$e C$an!e

•Bottom$u! change – A !ra+ual or eolutionar% a&&roac$ to c$an!e in $ic$ -

at all leel' or/ to!et$er to +eelo& a +etaile+ &lan (or

E l ti t$ C$


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Ealuatin! t$e C$an!e

• Benchmarking

–

T$e &roce'' o( co-&arin! one co-&an%3' &er(or-ance '&eci(ic +i-en'ion' it$ t$e &er(or-ance o( ot$er, $i!$

&er(or-in! or!anization'.


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In(or-ation Control'

•%ur!oses of &nformation Controls–A' a tool to $el& -ana!er' control other organization

acti#ities.–Mana!er' nee+ t$e ri!$t information at t$e ri!$t time an+ in t$e ri!$t a

–A' an or!anizational area t$at -ana!er' nee+ to control–Mana!er' -u't $ae co-&re$en'ie an+ 'ecure control' in &lace to &rote

or!anization3' i-&ortant in(or-ation.



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•Management &nformation 'ystems (M&')

–A '%'te- u'e+ to &roi+e -ana!e-ent it$ nee+e+ in(or-are!ular a'i'.

–"ata? an unor!anize+ collection o( ra, unanal%ze+ (act' e.!.li't o( cu'to-er na-e'.

–&nformation? +ata t$at $a' een anal%ze+ an+ or!anize+ 'uc$ alue an+ releance to -ana!er'.


In(or-ation Control'


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or/&lace Concern'

*ork!lace !ri#acy #ersus work!lace monitoring

—E"-ail, tele&$one, co-&uter, an+ Internet u'a!e—Pro+uctiit%, $ara''-ent, 'ecurit%, con(i+entialit%, intellectual

&ro&ert% &rotection

Em!loyee theft

—T$e unaut$orize+ ta/in! o( co-&an% &ro&ert% % e-&lo%ee' (o

t$eir &er'onal u'e.*ork!lace #iolence

—An!er, ra!e, an+ iolence in t$e or/&lace i' a((ectin! e-&lo% &ro+uctiit%.


Controllin! E-&lo%ee T$e(t


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! & %

/ l i l


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or/&lace iolence

Witnessed yelling or other verbal abuse 42%

elled at !o-"or#ers the$selves 29%

ried over "or#-related issues 23%

&een so$eone 'ur'osely da$age$a!hines or (urniture 14%

&een 'hysi!al violen!e in the "or#'la!e 10%

&tru!# a !o-"or#er 2%


Controllin! or/&lace iolence


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Controllin! or/&lace iolence


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Cu'to-er Interaction'

'er#ice !rofit chain

–I' t$e 'erice 'e;uence (ro- e-&lo%ee' to cu'to-er

'er#ice ca!ability a((ect' 'erice alue $ic$ i-&act' on cu'to

'ati'(action t$at, in turn, lea+' to cu'to-er lo%alt% in t$e (or- o

u'ine'' &ro(it.



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Cor&orate Goernance

T$e '%'te- u'e+ to !oern a cor&oration 'o t$at t$e

intere't' o( t$e cor&orate oner' are &rotecte+. – C$an!e' in t$e role o( boards of directors

– &ncreased scrutiny o( (inancial re&ortin! Sarane'"

:9le% Act o( 6006

' More +i'clo'ure an+ tran'&arenc% o( cor&orate

(inancial in(or-ation

' Certi(ication o( (inancial re'ult' % 'enior

-ana!e-ent


lecture 8 - controlling

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