1. 2000-1 王青 - 管理学院 - 上海交通大学 8-1 8 8 Organizational Control and Culture Organizational Control and Culture 1 concept of control concept of controlconcept of control 2 types of control types of controltypes of control 3 control process control processcontrol process 4 Org. key-point control Org. key-point controlOrg. key-point control 5 goal setting management goal setting managementgoal setting management

2. 2000-1 王青 - 管理学院 - 上海交通大学 8-2 Organizational Control Managers must monitor & evaluate: Are we efficiently converting inputs into outputs? Is product quality improving? Are employees responsive to customers? Are our managers innovative in outlook?

3. 2000-1 王青 - 管理学院 - 上海交通大学 8-3 Control Systems Formal, target-setting, monitoring, evaluation and feedback systems to provide managers with information to determine if strategy and structure are working effectively and efficiently. A good control system should: Accuracy, Timeliness, Economy, Flexibility, Understandability

4. 2000-1 王青 - 管理学院 - 上海交通大学 8-4 Three Types of Control InputsInputsOutputsOutputsConversionProcessConversionProcess Feed forward Feed forwardControl(anticipateproblems) Feed forward Feed forwardControl(anticipateproblems) Concurrent Control (manage problems as they occur) Concurrent Control (manage problems as they occur) Feedback Control (manage problems after they occur) Feedback Control (manage problems after they occur) Figure 9.1

5. 2000-1 王青 - 管理学院 - 上海交通大学 8-5 Feed-forward Control Feed-forward: use in the input stage of the process. Managers anticipate problems before they arise. Managers can give rigorous specifications to suppliers to avoid problems in quality.

6. 2000-1 王青 - 管理学院 - 上海交通大学 8-6 Concurrent Control Concurrent: gives immediate feedback on how inputs are converted into outputs.  Allows managers to correct problems as they arise.  Managers can see that a machine is becoming out of alignment and fix it.

7. 2000-1 王青 - 管理学院 - 上海交通大学 8-7 Feedback Control Feedback: provides after the fact information managers can use in the future. Customer reaction to products are used to take corrective action in the future.

8. 2000-1 王青 - 管理学院 - 上海交通大学 8-8 Control Process Steps Establish standards Establish standards. Establish standards Measure actual performance Measure actual performance Compare actual performance Compare actual performance Evaluate results and take corrective action Evaluate results and take corrective action 1. 2. 3. 4. Figure 9.2

9. 2000-1 王青 - 管理学院 - 上海交通大学 8-9 Establish standards Establish standards, goals, or targets against which performance is to be evaluated.  Standards must be consistent with strategy, for a low cost strategy, standards should focus closely on cost.

10. 2000-1 王青 - 管理学院 - 上海交通大学 8-10 Measure actual performance Measure actual performance: managers can measure outputs resulting from worker behavior or they can measure the behavior themselves.  The more non-routine the task, the harder to measure. ——primary school teacher,

11. 2000-1 王青 - 管理学院 - 上海交通大学 8-11 Compare actual performance against chosen standards.  Managers must decide if performance actually deviates.  Pay attention to the size and direction of variation----acceptable range of variation Compare actual performance

12. 2000-1 王青 - 管理学院 - 上海交通大学 8-12 Evaluate and Action Evaluate result and take corrective action. Perhaps the standards have been set too high. Workers may need additional training, or equipment.

13. 2000-1 王青 - 管理学院 - 上海交通大学 8-13 Control Process

14. 2000-1 王青 - 管理学院 - 上海交通大学 8-14 Organizational Key-point Control FinancialControl OperatingControl Human Resource Control Financial Report Financial Report Budgets Table of Org. Indirect Labor Ratio Performance Appraisal Material Control Material Control Production Control Production Control Quality Control Quality Control

15. 2000-1 王青 - 管理学院 - 上海交通大学 8-15 Financial Control Financial Statement Balance sheet Income statement Statement of cash flows Budget Variable Budget Overhead Budget

16. 2000-1 王青 - 管理学院 - 上海交通大学 8-16 Financial Indexes Financial Controls are objective and allow comparison to other firms. Profit ratios--measures how efficiently managers convert resources into profits. Liquidity ratios -- measure how well managers protect resources to meet short term debt. Leverage ratios -- show how much debt is used to finance operations. Activity ratios -- measures how managers create value from assets

17. 2000-1 王青 - 管理学院 - 上海交通大学 8-17 Materials Control Economic order quantity (EOQ) Perpetual inventory control Materials requirements planning (MRP) Just-in-Time Inventory Control (JIT) Japanese Kan ban

18. 2000-1 王青 - 管理学院 - 上海交通大学 8-18 Production scheduling  Sequential scheduling  Parallel scheduling  Sequential-parallel scheduling Network planning  CPM---Critical path methods  PERT—Program evaluation and review technique Production Control

19. 2000-1 王青 - 管理学院 - 上海交通大学 8-19 Total Quality Management(TQM) Quality Control （ QC ）

20. 2000-1 王青 - 管理学院 - 上海交通大学 8-20 *The Goal-Setting Process Corporate level managers set goals for individual decisions to allow organization to achieve corporate goals. Divisional managers set goals for each function to allow the division to achieve its goals. Functional managers set goals for each worker to allow the function to achieve its goals. Figure 9.4

21. 2000-1 王青 - 管理学院 - 上海交通大学 8-21 Management by Objectives Management by Objectives (MBO): evaluates workers by attainment of specific objectives. Goals are set at each level of the firm. Goal setting is participatory with manager AND worker. Reviews held looking at progress toward goals.  Pay raises and promotions are tied to goal attainment. Teams are also measured in this way with goals and performance measured for the team.

22. 2000-1 王青 - 管理学院 - 上海交通大学 8-22 Chart of mbo