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1、Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/IrwinManagement A Practical IntroductionThird EditionAngelo Kinicki & Brian K. WilliamsKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2Chapter 16: Control Techniques for Enhancing Organi
2、zational EffectivenessvManaging for ProductivityvControlvThe Balanced Scorecard, Strategy Maps, & Measurement ManagementvLevels & Areas of ControlvSome Financial Tools for ControlvTotal Quality ManagementvManaging Control Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw
3、-Hill/Irwin316.1 Managing for Productivity WHAT IS PRODUCTIVITY?vProductivity is defined as outputs divided by inputswhere: outputs are the goods and services produced, and inputs are labor, capital, materials, and energyvProductivity is important because it determines whether a company will make a
4、profit and affects a countrys standard of livingvMaintaining productivity depends on controlKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin416.1 Managing for ProductivityFigure 16.1: Managing for Productivity and ResultsKinicki/Williams, Management: A Practical Intr
5、oduction 3e 2008, McGraw-Hill/Irwin516.2 Control: When Managers Monitor PerformanceWHY IS CONTROL IMPORTANT?vControl is making something happen the way it was planned to happen, while controlling is monitoring performance, comparing it with goals, and taking corrective action as needed vRecall that:
6、v-planning is setting goals and deciding how to achieve themv-organizing is arranging tasks, people, and other resources to accomplish the workv-leading is motivating people to work hard to achieve the organizations goalsv-controlling is making sure performance meets objectivesKinicki/Williams, Mana
7、gement: A Practical Introduction 3e 2008, McGraw-Hill/Irwin616.2 Control: When Managers Monitor PerformanceFigure 16.2: Controlling for ProductivityKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin7Chapter 16: ControlCLASSROOM PERFORMANCE SYSTEMThe four management fun
8、ctions include all of the following exceptA) implementingB) organizingC) planningD) controllingKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin816.2 Control: When Managers Monitor PerformancevThere are six reasons why control is needed:1. To adapt to change & unc
9、ertainty - organizations need to be able to deal with change and uncertainty in the environment2. To discover irregularities and errors - without checks and balances, companies might not survive3. To reduce costs, increase productivity, or add value - control systems can reduce costs, increase outpu
10、t, and add value to a productKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin916.2 Control: When Managers Monitor Performance4. To detect opportunities - controls can help firms identify opportunities that might otherwise go unnoticed5. To deal with complexity - cont
11、rols help firms deal with the complexities of multiple product lines, customer bases, and so on6. To decentralize decision making & facilitate teamwork - controls allow top managers to decentralize control to lower levels and encourage teamworkKinicki/Williams, Management: A Practical Introducti
12、on 3e 2008, McGraw-Hill/Irwin1016.2 Control: When Managers Monitor PerformancevThere are four steps in the control process:1. Establish Standards vThe desired performance level for a given goal is a control standard, or performance standardvStandards can be broad or narrow 2. Measure PerformancevPer
13、formance is measured using three sources: written reports, oral reports, and personal observationKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin1116.2 Control: When Managers Monitor Performance3. Compare Performance To StandardsvMeasured performance is compared to e
14、stablished standardsvThe amount of deviation acceptable depends on the predetermined range of variationvSome firms follow management by exception where managers are informed of a situation only if data show a significant deviation from standards 4. Take Corrective Action, If NecessaryvFirms can make
15、 no changes to the current situation, recognize and reinforce positive performance, or take action to correct negative performanceKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin1216.2 Control: When Managers Monitor PerformanceFigure 16.4: Steps in the Control Proces
16、sKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin1316.3 The Balanced Scorecard, Strategy Maps & Measurement ManagementHOW CAN MANAGERS ESTABLISH STANDARDS AND MEASURE PERFORMANCE?vThe balanced scorecard, strategy maps, and measurement management are all technique
17、s that managers use to establish standards and measure performance vThe balanced scorecard gives top management a fast but comprehensive view of the organization using four indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures Kinicki/Wi
18、lliams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin1416.3 The Balanced Scorecard, Strategy Maps & Measurement ManagementFigure 16.5: The Balanced Scorecard Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin15Chapter 16: ControlCLASSROOM PERFORMA
19、NCE SYSTEMThe balanced score card sets goals and performance measures from all of the following perspectives exceptA) innovation and learningB) financial C) customerD) productivity Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin1616.3 The Balanced Scorecard, Strateg
20、y Maps & Measurement ManagementvA strategy map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization vTh
21、ere are two types of organizations:v-measurement-managed companies are ones that have set measurable criteria that are linked to performance goalsv-non-measurement managed firms do not have measurable criteria linked to goalsKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill
22、/Irwin1716.3 The Balanced Scorecard, Strategy Maps & Measurement ManagementFigure 16.6: The Strategy MapKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin1816.4 Levels & Areas of Control HOW SHOULD CONTROL BE IMPLEMENTED?vThere are three levels of control:1. St
23、rategic control is monitoring performance to ensure that strategic plans are being implemented and taking corrective action as neededvStrategic control is performed by top managers with reports being issued quarterly, semi-annually, or annuallyKinicki/Williams, Management: A Practical Introduction 3
24、e 2008, McGraw-Hill/Irwin1916.4 Levels & Areas of Control2. Tactical control is monitoring performance to ensure that tactical plans those at the divisional or departmental level are being implemented and taking corrective action as neededvControl is done by middle managers with reports on a wee
25、kly or monthly basis 3. Operational control is monitoring performance to ensure that operational plans day-to-day goals are being implemented and taking corrective action as neededvControl is by first-line managers with reports on a daily basisKinicki/Williams, Management: A Practical Introduction 3
26、e 2008, McGraw-Hill/Irwin20Chapter 16: ControlCLASSROOM PERFORMANCE SYSTEMWhich type of control issues reports on a weekly or monthly basis?A) strategicB) operationalC) supervisoryD) tacticalKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2116.4 Levels & Areas of
27、 ControlvThere are six areas of organizational control:1. Physical area control includes things like equipment controls to monitor computer use, inventory management controls to keep track of inventory levels, and quality controls to ensure that products are being produced properly 2. Controls to mo
28、nitor human resources include personality tests, drug tests, and performance tests3. Controls of informational areas include production schedules, sales forecasts, and analyses of the competition Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2216.4 Levels & Are
29、as of Control4. Financial controls affect debt payments, payroll, budgets, and so on5. Structural control involves the organizational hierarchy vBureaucratic control is characterized by rules, regulations, and formal authorityvDecentralized control is characterized by informal and organic structural
30、 arrangements6. Cultural controls influence the norms and values of the organizations culture which then affect the work process and performance levels Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2316.3 Some Financial Tools For ControlWHAT ARE THE MAJOR FINANCIAL
31、 TOOLS FOR MANAGERS?vFinancial controls including budgets and financial statements are especially important to firms vA budget is a formal financial projectionvBudgets provide a yardstick against which performance can be measured and comparisons can be made to other time periods, departments, and so
32、 onKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2416.3 Some Financial Tools For ControlThere are two different ways to budget:vIncremental budgeting allocates increased or decreased funds to a department by using the last budget as a reference pointonly incrementa
33、l changes in the budget request are reviewedvZero-based budgeting forces each department to start from zero in projecting its funding needs for the budget period There two different types of budgets: vFixed budgets allocate resources on the basis of a single estimate of costsvVariable budgets allow
34、the allocation of resources to vary in proportion with various levels of activityKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2516.3 Some Financial Tools For ControlvA summary of some aspect of an organizations financial status is a financial statement vThere are
35、two basic types of financial statements:vA balance sheet summarizes an organizations overall financial worth (assets and liabilities) at a specific point in timewhere:v-assets are the resources the organization controls, current assets are cash and other assets that are readily convertible to cash f
36、ixed assets are property, buildings, and equipment that are harder to convert to cash, and liabilities are claims by suppliers, lenders, and othersKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2616.3 Some Financial Tools For ControlvThe income statement summarizes
37、an organizations financial results - revenues (the assets from the sale of goods) and expenses (the costs required to produce goods and services) - over a specified period of timevLiquidity ratios indicate how easily a companys assets can be converted to cashvDebt-management ratios indicate the degr
38、ee to which an organization can meet its long-term financial obligationsvAsset management ratios indicate how effectively an organization is managing resourcesvReturn ratios indicate how effective management is at generating a return on assets Kinicki/Williams, Management: A Practical Introduction 3
39、e 2008, McGraw-Hill/Irwin27Chapter 16: ControlCLASSROOM PERFORMANCE SYSTEMRatios that indicate how effectively an organization is managing resources are A) return ratios B) liquidity ratiosC) asset management ratiosD) debt management ratiosKinicki/Williams, Management: A Practical Introduction 3e 20
40、08, McGraw-Hill/Irwin2816.3 Some Financial Tools For ControlvFormal verifications of an organizations financial and operational systems are called auditsvThere are two types of audits:vAn external audit is a formal verification of an organizations financial accounts and statements by outside experts
41、vAn internal audit is a verification of an organizations financial accounts and statements by the organizations own professional staffKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin2916.6 Total Quality ManagementHOW CAN QUALITY BE IMPROVED? vTotal quality management
42、 (TQM) is a comprehensive approach, led by top manager and supported throughout the organization, dedicated to continuous quality improvement, training, and customer satisfaction vThe two core principles of TQM are people orientation (everyone involved in the organization should focus on delivering
43、value to customers), and improvement orientation (everyone should work on continuously improving work processes) vThere are several techniques for improving quality including employee involvement, benchmarking, outsourcing, reduced cycle time, and statistical process controlKinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin3016.7 Managing Control Effectively HOW CAN CONTROL BE MANAGED SUCCESSFULLY?vSuccessful control systems are:1. Strategic & results oriented they support strategic plans and focus on activities that will make a real differen
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