Docstoc

Foundations of Controland Operational System

Document Sample
Foundations of Controland Operational System Powered By Docstoc
					     Foundations of Control
              and
      Operational System


Fundamentals of Management: 13-1   Gao Junshan, UST Beijing
                   Where We Are
     Part 1 Introduction

     Part 2 Planning

     Part 3 Organizing

     Part 4 Leading                Chapter 13
                                   Foundations of Control

     Part 5 Controlling            Chapter 14
                                   Technology and Operation

Fundamentals of Management: 13-2                 Gao Junshan, UST Beijing
                   Chapter Guide
 • Control Process and Control System
      – Control Process: three steps of control
      – Control system: three approaches to control, three types
        of control; effective control system, contingency factors
 • Other Issues on Control
      – National differences, Dysfunctional side of control , Ethical
        issues of control
 • Operational System and Technology
      – Transformation system and technology overview
      – Improvement of operational system


Fundamentals of Management: 13-3                  Gao Junshan, UST Beijing
Process and system: Definition



    Definition and Importance
   • Control is the process monitoring activities to
     ensure that they are being accomplished as
     planned and of correcting any significant
     deviations
   • Control is important because it monitors
     whether objectives are being accomplished as
     planned and delegated authority is being
     abused.


 Fundamentals of Management: 13-4      Gao Junshan, UST Beijing
Process and system: Process



   The Three Steps of Control
        Step I                        Step II        Step III



  Measuring                         Comparing       Taking
    actual                            against       actions
 performance                         standard      to correct



 Fundamentals of Management: 13-5               Gao Junshan, UST Beijing
Process and system: Process




     How Managers Measure
   Sources of
                                Advantages                         Disadvantages
   Information
                 • First hand and intimate knowledge        • Perceptual biases
  Personal
             • Intensive coverage                           • Time consuming
 observation • To read between the lines                    • Obtrusiveness
                 • Show relationships clearly and           • Reports on only a few key
  Statistical
                   accurately                                 areas
   reports       • Help visualize the relationships         • Lack of qualitative elements
                 • Fast
                                                            • Information may be filtered
      Oral       • Allow feedback
                                                            • Perceptual biases
    reports      • Read words as well as tones and facial
                                                            • Difficult to document
                   expressions
                                                            • Indirect information
    Written      • Formal, comprehensive and concise
                                                            • Perceptual biases of writers
    reports      • Easy to catalog and referenced
                                                            • Slower

 Fundamentals of Management: 13-6                               Gao Junshan, UST Beijing
Process and system: Process




   Information                      Operations



                       What Managers
                         Measure


       Finances                      People

 Fundamentals of Management: 13-7    Gao Junshan, UST Beijing
Process and system: Process


   Defining an Acceptable Range of Variation


 Acceptable
 Upper Limit

                                                                Acceptable
  Standard                                                      Range of
                                                                Variation

 Acceptable
 Lower Limit




                    t    t+1        t+2   t+3   t+4   t+5

 Fundamentals of Management: 13-8                      Gao Junshan, UST Beijing
Process and system: Process

     Mid-Western Distributors’ Sales for July
                            (in hundreds of cases)

    Brand             Standard         Actual        Over (Under)

   Heineken               1,075            913              (162)
   Molson                   630            634                  4
   Beck’s                   800            912                112
   Moosehead                620            622                  2
   Labatt’s                 540            672               132
   Corona                   160            140               (20)
   Amstel Light             225            220                 (5)
   Dos Equis                 80            65                (15)
   Tecate                   170            286                116
   Total Cases            4,300          4,464               164


 Fundamentals of Management: 13-9                    Gao Junshan, UST Beijing
Process and system: Process




                                     Do Nothing


    Taking
                                       Correct
   Managerial                        Performance
     Action
                                        Revise
                                     the Standard

 Fundamentals of Management: 13-10       Gao Junshan, UST Beijing
Process and system: Process


 Summary of the Control Process
                                      Standard     Yes
                 Compare                                  Do Nothing
                                      Attained?
                Performance
                to Standard           No

 Objectives                           Variance     Yes
                                                          Do Nothing
                                     Acceptable?

                    Measure           No
Standard
                   Performance        Standard     Yes     Identify
                                     Acceptable?           Causes
                                      No

                                        Revise             Correct
                                       Standard          Performance



 Fundamentals of Management: 13-11                   Gao Junshan, UST Beijing
Process and system: System




         Three Approaches
        to Control Systems


       Market                Bureaucratic    Clan
       Control                 Control      Control



 Fundamentals of Management: 13-12          Gao Junshan, UST Beijing
Process and system: System




         Three Types of Control

       Input                         Processes         Output



  Feedforward                        Concurrent       Feedback
    Control                           Control          Control

     Anticipates               Corrects Problems   Corrects Problems
      Problems                  as They Happen      after They Occur


 Fundamentals of Management: 13-13                 Gao Junshan, UST Beijing
Process and system: System


           Qualities of an Effective
              Control System
   • Accuracy

   • Timeliness

   • Economy

   • Flexibility

   • Understandability


 Fundamentals of Management: 13-14   Gao Junshan, UST Beijing
Process and system: System


           Qualities of an Effective
              Control System
  • Reasonable criteria

  • Emphasis on exceptions

  • Strategic placement

  • Multiple criteria

  • Corrective action


 Fundamentals of Management: 13-15   Gao Junshan, UST Beijing
Process and system: System

     Contingency Factors in Control Systems
   Contingency Variable                       Control Recommendations

                                     Small    Informal, personal management
         Organization Size
                                     Large    Formal, impersonal management
                                     High     Many complex criteria
        Position and Level
                                      Low     Few, easy-to-measure criteria

                                     High     Increased number of controls
 Degree of Decentralization
                                      Low     Reduced number of controls

                                     Open     Informal, self-control
    Organizational Culture
                                     Closed   Formal, external controls
                                     High     Elaborate, comprehensive controls
  Importance of an Activity
                                      Low     Loose, informal controls

 Fundamentals of Management: 13-16                          Gao Junshan, UST Beijing
Issues: National differences




       Adjusting Controls
    for National Differences

         Distance                     Technology
          and the                       and the
        Formality                    Comparability
        of Controls                     of Data

 Fundamentals of Management: 13-17        Gao Junshan, UST Beijing
Issues: Dysfunctional




 Dysfunctional Controls


          Inflexible                 Unreasonable
           Controls                   Standards



 Fundamentals of Management: 13-18        Gao Junshan, UST Beijing
Issues: Ethical issues



  Ethical Issues                         Inform
   and Control                          Employees


                                          Have a
                                       Written Policy


                                        Monitor for
  Questions of Privacy               Business Reasons

 Fundamentals of Management: 13-19          Gao Junshan, UST Beijing
Operational system: Overview (see chap 14 p439):



      Transformation Process
    and Operations Management


      People                   Transformation
      Capital                                               Goods
    Equipment                      system                  Services
     Materials                  (Technology)
                                      .




Fundamentals of Management: 13-20                  Gao Junshan, UST Beijing
Operational system: Overview (see chap 2 (p54):




         Define Technology

      Technology includes any
   equipment, tools and operating
   methods that make work more
             efficient.

Fundamentals of Management: 13-21                 Gao Junshan, UST Beijing
Operational system: Overview (see chap 14 p440):



    Technology and Productivity

   Productivity = Outputs/(Labor + Capital + Materials)




      The Individual                The Group      The Organization

Fundamentals of Management: 13-22                    Gao Junshan, UST Beijing
Operational system: Technology (see chap 2 (p55):


         How Technology Keep
        Organization Competitive
                                    • Enhance the
                                      Production process
                                    • Improve customer
                                      service
                                    • Reduce labor cost
                                    • Provide better
                                      information

Fundamentals of Management: 13-23                   Gao Junshan, UST Beijing
Operational system: Technology (see chap 2 (p56):



      How Technology Change
        the Manager’s Job

          Formulating                                Making
             Plans                                  Decisions



             Defining                               Monitoring
              Jobs                                  Activities

Fundamentals of Management: 13-24                      Gao Junshan, UST Beijing
Operational system: Technology (see chap 14 p440):



          Worker Obsolescence
                                    • Knowledge, skills, and
                                        abilities of workers

                                    • Repetitive tasks and
                                        automation

                                    • Reengineering of work
                                        processes

Fundamentals of Management: 13-25                    Gao Junshan, UST Beijing
Operational system: Technology (see chap 14 p442):




  Develop New
                                              Technology
   Knowledge                                   Transfer



      Improve
     Production
      Process                                 The Global Village
Fundamentals of Management: 13-26                    Gao Junshan, UST Beijing
Operational system: Technology (see chap 14 p442):



      Information Technology

     • Information management

     • Workflow automation

     • Internal communications

     • Decision making


Fundamentals of Management: 13-27                    Gao Junshan, UST Beijing
Operational system: Technology (see chap 14 p442):



    MIS Makes Data Usable

    Unorganized    are organized Information    then screened for Information
        Data …           Into …           …        relevance and Usable for
                                                  meaningfulness Managers
                                                    to become …




Fundamentals of Management: 13-28                         Gao Junshan, UST Beijing
Operational system: Improvement (see chap 14 p448):


              The Advancement of
            Steel Making Technology




Fundamentals of Management: 13-29                     Gao Junshan, UST Beijing
Operational system: Improvement (see chap 14 p448):




            Display                             Calculate


               Computer-Assisted
                   Design


          Evaluate                              Blueprint

Fundamentals of Management: 13-30                     Gao Junshan, UST Beijing
Operational system: Improvement (see chap 14 p448):




         Enhancing
    Production Processes

       Industrial                          Flexible
        Robotics                         Manufacturing


Fundamentals of Management: 13-31                     Gao Junshan, UST Beijing
Operational system: Improvement (see chap 2 p65):



        Work Process Engineering
           (Business Process Reengineering)

               Strive for radical, quantum changes

         Not constrained by the present process and
                      functional scope

         Use information technology to enable new
                          process

        Lead to major gains in cost, service, or time

Fundamentals of Management: 13-32                   Gao Junshan, UST Beijing
Operational system: Improvement (see chap 14 p453):




     Work                                        Distinctive
                                                Competencies
    Process
  Engineering
                                                        Core
                                                      Processes


          Maximizing                             Horizontal
 Distinctive Competencies                      Reorganization

Fundamentals of Management: 13-33                       Gao Junshan, UST Beijing
Operational system: Improvement (see chap 14 p454):



      Supply Chain
      Management

                                               Current
       Just-in-Time
        Inventory                             Operations
                                                Issues

    Quality Control

Fundamentals of Management: 13-34                     Gao Junshan, UST Beijing
             Chapter Summary
  • Meaning of control
  • Three approaches to control
  • Importance of control
  • Control process
  • Three types of control


Fundamentals of Management: 13-35   Gao Junshan, UST Beijing
             Chapter Summary
 • Qualities of effective control system
 • Contingency factors in the control process
 • Dysfunctional side of controls
 • Influence of national differences
 • Ethical dilemmas in employee monitoring



Fundamentals of Management: 13-36   Gao Junshan, UST Beijing

				
DOCUMENT INFO
Description: Foundations of Control and Operational System