1. eleventh edition STEPHEN P. ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER Dec. 24, 2015 Weihua Gan

2. © 2007 Prentice Hall, Inc. All rights reserved.1–2

3. Contents Chapter1 Introduction to Management and Organization Chapter2 Management Yesterday and Today Chapter3 Management Decision Making Chapter4 The Planning Function Chapter5 The Organizing Function Chapter6 Managerial Communication Chapter7 The Leading Function: Motivation and Leadership Chapter8 The Controlling Function

4. eleventh edition STEPHEN P. ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER The Controlling Function Chapter 8

5. 1–5 Terms to Know ControlControl Preliminary controlPreliminary control Concurrent controlConcurrent control Feedback controlFeedback control Organizational performanceOrganizational performance BenchmarkingBenchmarking Balanced score cardBalanced score card

6.  Define the controlling function in terms of the three features of effective control.  Discuss the difference among preliminary, concurrent, and feedback control methods.  Define organizational performance.  Explain why measuring organizational performance is important. Learning objectives

7. Chapter 8 The controlling function The controlling function includes activities of managers to ensure that actual results conform to planned results.The controlling function includes activities of managers to ensure that actual results conform to planned results. In detail, the controlling function involves the implementation of methods that provide answers to three basic questions:In detail, the controlling function involves the implementation of methods that provide answers to three basic questions: 1.What are the planned and expected results? 2.By what means can the actual results be compared to planned results? 3.What corrective action is appropriate from which authorized person?

8. Chapter 8 The controlling function The three necessary requirements for effective control are predetermined standards, information, and corrective action.The three necessary requirements for effective control are predetermined standards, information, and corrective action.

9. Chapter 8 The controlling function Three types of control can be identified that are based on the focus of corrective action.Three types of control can be identified that are based on the focus of corrective action. They are: Preliminary control, Concurrent control, and Feedback control.They are: Preliminary control, Concurrent control, and Feedback control.

10. Chapter 8 The controlling function Control methods focus on specific elements of the system, either inputs, processes, or outputs.Control methods focus on specific elements of the system, either inputs, processes, or outputs. Human, material, capital, and financial resources acquired and combined in organization Within which planned activity occurs Leading to results achieved Preliminary control Concurrent control Feedback control

11. Chapter 8 The controlling function Three types of control as distinguished by focus of corrective action resources activity results Preliminary control methods Concurrent control methods Feedback control methods

12. Chapter 8 The controlling function Control types and techniquesControl types and techniques Types of control Control technique Preliminary Selection and placement, staffing, materials inspection, capital budgeting, and financial budgeting. ConcurrentDirection Feedback Financial statement analysis, standard cost analysis, quality control procedures, and employee performance evaluation

13. Chapter 8 The controlling function Preliminary control focuses on preventing deviations in the quality and quantity of resources used in the organization.Preliminary control focuses on preventing deviations in the quality and quantity of resources used in the organization. Preliminary control procedures include all managerial efforts to increase the probability that actual results compare favorably with planned results.Preliminary control procedures include all managerial efforts to increase the probability that actual results compare favorably with planned results.

14. Chapter 8 The controlling function Concurrent control focuses on ongoing operations to ensure that objectives are pursued.Concurrent control focuses on ongoing operations to ensure that objectives are pursued. Concurrent control consists primarily of supervisors who direct the work of their subordinates.Concurrent control consists primarily of supervisors who direct the work of their subordinates. Direction refers to the acts of managers when they instruct subordinates in proper methods and procedures and oversee subordinates’ work to ensure that it is done properly.Direction refers to the acts of managers when they instruct subordinates in proper methods and procedures and oversee subordinates’ work to ensure that it is done properly.

15. Chapter 8 The controlling function Feedback control focuses on end results. This type of control derives its name from the fact that historical results guide future actions.Feedback control focuses on end results. This type of control derives its name from the fact that historical results guide future actions. Feedback control methods require standards of acceptable quality and quantity of outputs. This information must reflect the desired characteristics of the output.Feedback control methods require standards of acceptable quality and quantity of outputs. This information must reflect the desired characteristics of the output.

16. Organizational Performance What is Organizational Performance?What is Organizational Performance?  performance - the end result of an activity  organizational performance - accumulated end results of all the organization’s work processes and activities

17. Organizational Performance Why is Measuring Organizational Performance Important?Why is Measuring Organizational Performance Important?  managers need to understand the factors that contribute to high organizational performance  Better Asset Management  asset management - process of acquiring, managing, renewing, and disposing of assets –design business models to take advantage of assets

18. Organizational Performance (cont.) Why is Measuring Organizational Performance Important? (cont.)Why is Measuring Organizational Performance Important? (cont.)  Increased Ability to Provide Customer Value - must monitor value obtained by customers  customers will seek other sources of supply if value is not obtained  Impact on Organizational Reputation - strong reputation leads to greater consumer trust and ability to command premium pricing  Improved Measures of Organizational Knowledge  organizational knowledge - knowledge created by collaborative information sharing and social interaction leading to appropriate action

19. Why Is Measuring Organizational Performance Important? Increased Ability To Provide Customer Value Better Asset Management Impact on Organizational Reputation Improved Measures of Organizational Knowledge Why Measure Organizational Performance?

20. Organizational Performance (cont.) Measures of Organizational PerformanceMeasures of Organizational Performance  Organizational Productivity  productivity - overall output of goods or services produced divided by the inputs needed to generate that output –output measured by sales revenue –input measured by the costs of acquiring and transforming the organizational resources into outputs  organizational productivity - a measure of how efficiently employees do their work

21. Organizational Performance (cont.) Measures of Organizational Performance (cont.)Measures of Organizational Performance (cont.)  Organizational Effectiveness - measure of how appropriate organizational goals are and how well an organization is achieving those goals  there are different models of effectiveness  Industry Rankings - numerous industry and company rankings  rankings determined by specific performance measures  examples include Fortune, Business Week, Forbes, and Industry Week

22. Types Of Performance Control Tools Information Controls Financial Controls Balanced Scorecard Approach Benchmarking Best Practices Approach Performance Control Tools

23. Tools For Monitoring Performance Financial ControlsFinancial Controls  Traditional Financial Control Measures  taken from organization’s main financial statements  a number of financial ratios used in organizations –liquidity ratios - organization’s ability to meet its current debt obligations –leverage ratios - use of debt to finance assets and ability to meet interest payments –activity ratios - efficiency of use of firm’s assets –profitability ratios - effectiveness with which assets used to generate profits

24. Popular Financial Ratios

25. Tools For Monitoring Performance (cont.) Financial Controls (cont.)Financial Controls (cont.)  Traditional Financial Controls Measures (cont.)  budgets provide quantitative standards against which to measure and compare resource consumption  Other Financial Control Measures - increasing popularity  Economic Value Added (EVA) - economic value created with the firm’s assets less any capital investments made by the firm in its assets  Market Value Added (MVA) - stock market’s estimate of the value of the firm’s past and expected capital investment projects

26. Q&A 1. Case study: 该处分谁？

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