Business Administration Unit 4 Management Responsibilities Chapter 14 Implementing & Controlling

Text Book  Page 353~ Out of Control  Controversial Issue 14-1 Even if a business is operating effectively & profitably, should the company’s managers be planning for & implementing changes? Reasons for YES?Reasons for NO?

Motivation  Set of factors that influence actions towards accomplishing goals –Rewards/punishment encourage employees to motivate selves  Values –Praise, money, respect, fun job assignment, day off

Motivation  Internal motivation –Person’s beliefs, feelings & attitudes  External motivation –Rewards & punishments

Movie Time!  SID –Employee motivation

Work Teams  Group of individuals who co- operate to achieve a common goal –Members understand & support purpose Knowledge & skills to perform –Committed to groups success –Communicate well with each other Resolve problems within group

Text Book  Page 357  Management Close-Up –?’s Check if done Review in class

Operations Management  Systematic direction & control of processes transforming labor, capital & materials into finished goods –Facilities, equipment, materials & supplies available –Employees have knowledge & skills –Work done on schedule

Motivation Theories  Maslow’s –Hierarchy of needs Born with needs Needs satisfied in order, lowest to highest

Maslow  Self-actualization  Esteem  Social  Security  Physiological -

Motivation  McClelland –Achievement Theory –Influenced strongly by one need: Need for achievement Need for affiliation Need for power

McClelland  Achievement –Personal responsibility for work, set goals & need feedback  Affiliation –Relationships –Work hard to get along & fit in  Power –Influence & control others –Responsible for group’s activities

Motivation  Herzberg –Two-Factor Theory Hygiene Factors Motivators

Herzberg  Hygiene Factor –Job factors that dissatisfy when missing, but don’t contribute to satisfaction when present Amount of pay, benefits, working conditions, rules, supervision type –Company sponsored healthcare doesn’t motivate to do better job, but lack of it causes dissatisfaction

Herzberg  Motivators –Increase job satisfaction Challenging work, recognition, achievement, accomplishment, increased responsibility & personal development –Redesign jobs – give more authority & responsibility

Internet  Groups of 3-4 – team.com/human_relations/hrels_05_he rzberg.html (1 group) – html (1 group) – team.com/human_relations/hrels_06_mc clelland.html (1 group)

Internet – team.com/human_relations/hrels_02_ maslow.html (1 group) – team.com/maslow_/maslow_nds_02.ht ml (2 groups) 1 st group – Physiological, Safety & Social 2 nd group – Esteem & Actualization  Present to class

Work Book  Page 121 –Controversial Issue~14-2 Do you agree with Herzberg’s theory of motivation that the absence of good pay, benefits, & working conditions can dissatisfy, but the presence of these factors cannot satisfy them? Reason for YES?Reasons for NO?

Managing Change  Follow link Follow link   Read article –Merck, Schering To Merge In $41 Billion Deal by Wendy Kaufman  Be prepared to discuss

Managing Change  Reengineering, downsizing, mergers, organizational change –Planning –Communicating –Involving –Educating –Supporting

Planning  Change needed? –Gather info, identify, study alternatives & determine consequences of change

Communicating  Keeping quiet causes: –Informal communication with limited info, rumors, misinformation  Surprised –Feel misled  Open, two-way communication is best

Involving  People support what they create  Employees are good source of solutions –Respect input All ideas can’t be implemented –Each idea is considered

Educating  Training programs & info meetings  Downsizing –Difficult to implement Companies offer job training or develop new skills

Supporting  Assure employees support is available  Allow time to adjust  Feedback on performance  Less critical of early mistakes  Layoffs –Provide personal & career counseling Job-seeking skills

Standards  Specific measure by which something is judged –Quantity standards –Quality standards –Time standards –Cost standards

Quantity Standards  Minimum # produced  # customers visited/called  # of pages typed in an hour

Quality Standards  Quality as important as quantity –Slow, but good or fast, but sloppy?  Sample a few products on an assembly line for quality  Some products/services must all be perfect –Accounting, car battery

Time Standards  Time it takes to complete  Strict time schedules –Miss – financial loss Construction, bakery, newspaper

Cost Standards  Increase profits by –Decreasing costs OR –Increasing sales revenue  Watch this most carefully –Accounting Dept. “Controller” –Budgets used to control Planning device

Variance  Difference between current performance & standard –Good = performance exceeds expectation  Involve employees if low –Motivate to help solve problem

Controlling Costs  Inventory –Too low, lose sales –Too high, storage & handling costs high Never sold, money in inventory lost  Just-in-time (JIT) inventory –Small inventories –Material arrives right before needed

Controlling Costs  Credit –Customers don’t pay – lose money –Interest payments can be high –Easy to buy too much on credit  1/10 th, n30

Controlling Costs  Theft –Employee or customer –Retail hardest hit Billions yearly Shoplifting = 6% of total sales

Fact  Employee theft = over $1 billion a week  Cause of 1/3 of bankruptcies  3 out of 10 employees steal  95% of companies are ripped off

Controlling Costs  Health & Safety –Absentee employees Others cover or work not done Pay coveree & absentee  Safety training  Wellness programs

Text Book  Group Work  Pages –Case ?’s 1-3 –Case ?’s 1 & 2 Check if done Review in class

Work Book  Pages –14-A, 14-B, 14-C (1-4 only), 14-D Check if done Review in class

Test Time  Thursday March 26, 2009 –Unit test 3 & 4 –Chapters 10, 12 & 14 –Discuss Ideas

End of Chapter 14