Management meeting and exceeding customer expectation 8th ch18

Controlling: Purpose and Process Chapter 18 MANAGEMENT Meeting and Exceeding Customer Expectations EIGHTH EDITION Prepared by Deborah Baker Texas Christian University Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved learning objectives Describe the relationship between controlling and the other four functions of management List and describe the four steps in the control process Describe the nature and importance of feedforward, concurrent, and feedback controls Chapter 18 Describe the importance of a control system Explain the characteristics of effective controls Explain the steps managers can take to make controls more effective Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Controlling Six SixSigma Sigma A highly disciplined process that helps companies focus on developing and delivering near-perfect products and services  Process quality goal  Statistical goal: Chapter 18 only 3.4 defects per million transactions Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Chapter 18 Controlling Controlling Controlling The process through which standards for the performance of people and processes are set, communicated, and applied Standard Standard Any established rule or basis of comparison used to measure capacity, quantity, content, value, cost, quality, or performance Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Risk Managers  Monitor people and processes  Help transform functional managers into advisers and consultants  Teach others how to deal with the risks Chapter 18 that haunt their areas of expertise Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 Controlling The The role role of of controlling controlling in in other other management management functions functions Planning Planning and and controlling controlling Organizing Organizing and and controlling controlling Chapter 18 Staffing Staffing and and controlling controlling Leading Leading and and controlling controlling Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved The Control Process Chapter 18 22 Step Step 11 Establishing Establishing performance performance standards standards Step Step 22 Measuring Measuring performance performance Step Step 33 Comparing Comparing measured measured performance performance to to established established standards standards Step Step 44 Taking Taking corrective corrective action action Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Chapter 18 22 The Control Process Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Chapter 18 22 Establishing Performance Standards Who Who designs, designs, works works with, with, and and receives receives the the output output from from controls controls What What is is being being monitored monitored Where Where monitoring monitoring efforts efforts will will take take place place When When controls controls will will be be used used How How monitoring monitoring will will be be used used What What resources resources are are available available to to expend expend on on the the controls controls Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Productivity 22 Productivity Productivity The amount of output achieved from the use of a given amount of inputs Chapter 18  Measured: – Quantitatively – Qualitatively Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 10 Quality 22 Quality… Quality…  Is customer satisfaction  Begins with the standards and methods used to recruit, hire, train, evaluate, and reward employees  Must exist within every person and process  Must be a core value within an Chapter 18 organization’s culture Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 22 Quality Controlling ControllingQuality… Quality…  Companies create standards and quality assurance (QA) systems  A QA system focuses on constant Chapter 18 incremental quality improvement [kaizen] measurements and results Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 12 22 Performance Measuring MeasuringPerformance Performance  Measure actual performance to determine variation from standard  Mechanisms for this purpose can be extremely sensitive  Computers are increasingly important as Chapter 18 tools for measuring performance Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 13 22 Comparing Performance to Standards Comparing ComparingMeasured Measured Performance Performance to toEstablished EstablishedStandards Standards Compare actual performance to the standards set for that performance If deviations exist, the evaluator must decide if they are significant The evaluator must determine what is causing the variance The source of a deviation may be beyond the employee who first discovers it Chapter 18 The cause may require examining the standards being applied and the accuracy of measurement and comparison processes Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 14 22 Taking Corrective Action  Policies and procedures may prescribe the actions  May be automatic  May call for exceptions to prescribed Chapter 18 modes of behavior Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 15 33 Types of Controls Chapter 18 Feedforward Feedforward Control Control A control that prevents defects and deviations from standards Focuses on operations before they begin Concurrent Concurrent Control Control A control that applies to processes as they are happening Feedback Feedback Control Control A control that focuses on the outputs or results of operations Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 16 Chapter 18 33 Types of Controls Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 17 44 Control Systems Chapter 18 Control Control Systems Systems Feedforward, concurrent, and feedback controls operate in harmony to ensure that standards are enforced, goals are reached, and resources are used effectively and efficiently Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 18 55 Effective Controls What What Makes MakesControls ControlsEffective? Effective? Focus Focus on on Critical Critical Control Control Points Points Chapter 18 Acceptability Acceptability Accuracy Accuracy Integration Integration Timeliness Timeliness Economic Economic Feasibility Feasibility Comprehensibility Comprehensibility Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 19 66 Monitoring Organizational Impacts Techniques Techniques for for Monitoring Monitoring the the Impact Impact of of Controls Controls Before-and-after Before-and-after comparisons comparisons Surveys Surveys of of employees employees affected affected by by controls controls Chapter 18 Controlled Controlled experiments experiments Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 20 66 Updating Controls Changes Changes to to Mission Mission Structural Structural Changes Changes Changes Changes in in Decision Decision Making Making Chapter 18 Changes Changes in in Human Human Relations Relations Technological Technological Changes Changes Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 21 ... other management management functions functions Planning Planning and and controlling controlling Organizing Organizing and and controlling controlling Chapter 18 Staffing Staffing and and controlling... Controlling Controlling The process through which standards for the performance of people and processes are set, communicated, and applied Standard Standard Any established rule or basis of comparison... between controlling and the other four functions of management List and describe the four steps in the control process Describe the nature and importance of feedforward, concurrent, and feedback controls