Implementing and Controlling CHAPTER 5 Implementing and Controlling 5.1 The Implementing Function 5.2 Motivation and Change Management 5.3 The Controlling Function 5.4 Gathering and Using Performance Information

5.1 The Implementing Function GOALS Recognize problems that can occur when plans are implemented. Identify important implementing activities performed by managers. CHAPTER 5

The Challenge of Implementing Implementing involves guiding employee work toward achieving the company’s goals. Manager might communicate important goals to a an employee team Provide leadership to help them determine how to complete the necessary work Make sure that rewards and recognition are provided to everyone involved when their work achieves the goals CHAPTER 5

Checkpoint Identify several types of changes that can occur in an organization that can create problems in accomplishing plans? CHAPTER 5

Checkpoint Identify several types of changes that can occur in an organization that can create problems in accomplishing plans? Changes can occur inside and outside of the company involving people, plans, equipment, and technology, among other things. CHAPTER 5

Implementing Activities Effective communications Managers must be able to communicate plans and directions, gather feedback from employees, and identify and resolve communication problems. Listen to employees and involve them in decisions Employee motivation A set of factors that influence an individual’s action toward accomplishing goals. Internal and External Motivation CHAPTER 5

Implementing Activities Work teams A group of individuals who cooperate to achieve a common goal Understand the activities to be completed Activities they must perform Knowledge and skills to complete them Operations management Involves effectively directing the major activities of a business to achieve its goals CHAPTER 5

Checkpoint What are the primary activities managers must perform as part of the implementing process? CHAPTER 5

Checkpoint What are the primary activities managers must perform as part of the implementing process? Effective communication Motivating employees Developing effective work teams Operations Management CHAPTER 5

5.2 Motivation and Change Management GOALS Describe the main points of three theories of motivation. Identify the steps managers should follow when implementing change. CHAPTER 5

Motivation Theories Maslow’s hierarchy of needs Physiological (Food and Shelter) Security (safe from harm) Social (Friends, interact, love) Esteem (Respect) Self Actualization (full potential) CHAPTER 5

Motivation Theories McClelland’s achievement motivation Achievement (Set personal goals) Affiliation (Fit in with group) Power (Influence others) Herzberg’s two-factor theory Hygiene (Dissatisfy when absent) Motivators (factors that increase job satisfaction) CHAPTER 5

Checkpoint Why should managers understand motivation theories? CHAPTER 5

Checkpoint Why should managers understand motivation theories? Managers can influence employees to behave in ways that help achieve company goals by addressing these motivational factors. CHAPTER 5

Managing Change Planning Communicating Involving Educating Supporting CHAPTER 5

Implementing Change STEP 1 Planning Carefully plan for the change. Communicating Communicate with people, so that change does not surprise them. STEP 3 Involving Involve people, so they feel a part of the change. STEP 4 Educating Educate people, so they understand the change. STEP 5 Supporting Support people in their efforts to change. CHAPTER 5

Checkpoint What steps should managers follow to help employees understand and adjust to a major change? Carefully plan for change Communicate with employees so they are not surprised Involve employees Educate employees Support employees in their efforts CHAPTER 5

5.3 The Controlling Function GOALS List the three basic steps in the controlling function. Identify and describe four types of standards. CHAPTER 5

Understanding Controlling Management as a continuous process 4 Management functions The steps in controlling Establish standards for each of the company’s goals Measure and compare performance against the established standards to see if performance met the goals Take corrective action when performance falls short of the standards CHAPTER 5

Checkpoint What are the three basic steps in controlling? CHAPTER 5

Checkpoint What are the three basic steps in controlling? Establishing standards for each of the company’s goals Measuring and comparing performance against standards to see if performance met the goals Taking corrective action when performance falls short of the standards CHAPTER 5

The Management Functions CHAPTER 5

Setting Standards Types of standards Quantity standards – Establishes the expected amount of work to be completed. Quality standards – expected consistency in production and performance Time standards – the established amount of time needed to complete an activity CHAPTER 5

Setting Standards Types of standards Cost standards – the predetermined cost of performing an operation or producing a good or service. Managers can increase profits by: Increasing sales or revenue Decreasing Costs Measuring and comparing performance Varience – difference between current performance and the standard. CHAPTER 5

Checkpoint Provide an example of each of the four types of standards? CHAPTER 5

5.4 Gathering and Using Performance Information GOALS Describe three corrective actions managers can take as part of controlling performance. Discuss several important areas of cost control in businesses. CHAPTER 5

Taking Corrective Action When managers discover performance is not meeting standards, they can take three possible actions: Take steps to improve performance. Change policies and procedures. Revise the standard. CHAPTER 5

Checkpoint Why should managers be reluctant to change standards even when performance does not meet those standards? CHAPTER 5

Checkpoint Why should managers be reluctant to change standards even when performance does not meet those standards? If standards were set carefully, quickly changing them doesn’t solve the problem. Careful study should be completed to determine why the standard was not met and to decide if improvements can be made CHAPTER 5

Controlling Costs Inventory Credit Theft Health and safety All the materials and products a business has on hand for use in production and available for sale. Just in time inventory control (JIT) Credit Is the provision of goods or services to a customer with an agreement for future payment. Theft Health and safety CHAPTER 5

Checkpoint What are the main areas in a business where managers can anticipate cost problems and develop ways to reduce costs? CHAPTER 5

Checkpoint What are the main areas in a business where managers can anticipate cost problems and develop ways to reduce costs? The areas are inventory, credit, theft, and employee health and safety. CHAPTER 5