MGMT 339

steps in the control process

"What are the steps in the control process? • The first step in the control process is to establish performance objectives and standards that create targets against which later performance can be evaluated. • The second step in the control process is to measure actual performance and specifically identify what results are being achieved. • The third step in the control process is to compare performance results with objectives to determine if things are going according to plans." " The fourth step in the control process is to take action to resolve problems or explore opportunities that are identified when results are compared with objectives."

Transfer price

- A business unit control - Price charged by one unit for a good or service provided to another A unit within the organization

types and characteristics of plans: Contingency Plans

- Actions to be taken when a company's initial plans have not worked or require sudden change: e.g., emergency plans, "what if" plans

three major types of control: Clan Control

- Control based on the cultural norms, values, shared goals, and trust among group members

• systems approach

- Emphasizes interrelationships among subsystems - Main theme is that the whole is greater than the sum of its parts - The output and objectives of the organization take precedence over those of anyone subsystem

types and characteristics of plans: Standing Plans

- Focus on ongoing activities designed to achieve an enduring set of goals: e.g., policies, rules, etc.

Types of Control: Market Controls

- Price becomes an indicator of the value of the good or service - Price competition has the effect of controlling productivity and performance Market controls exist at the corporate, business unit, and individual levels

three major types of control: Bureaucratic

- The use of rules, regulations, and authority to guide performance

Productivity measures are useful for

- Tracking an operating unit's performance over time - Judging the performance of an entire industry or country

Managers and employees must

1. Understand the plan 2. Have the resources to implement the plan 3. Be motivated to implement the plan

productivity

A measure of the effective use of resources, usually expressed as the ratio of output to input

Three levels of planning and their characteristics: tactical

A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization

core competencies

A unique skill and/or knowledge an organization possesses that gives it an edge over competitors

Achievable Smart Goals

Attainable and not impossible to achieve Realistic: Within reach, realistic, and relevant to your life purpose

types of control

Budgetary Controls, Financial Controls, Market Controls

three major types of control

Bureaucratic, Market Control, and Clan Control

three major types of control: Market Control

Control based on the use of pricing mechanisms and economic information to regulate activities within organizations

types and characteristics of plans: Single-Use Plans

Designed to achieve a set of goals that are not likely to be repeated in the future: e.g., project plans

Nature of major business functions within an organization

Finance: is responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations. Operations: is responsible for producing the goods or providing the services offered by the organization. Marketing: is responsible for assessing consumer wants and needs, and selling and promoting the organization's goods or services.

management myopia

Focusing on short-term profits at the expense of longer-term strategic obligations

Components of the current landscape in business

Globalization, Technological change, knowledge management, and collaboration across boundaries

Total productivity

Goods or services produced / all inputs used to produce them

Components of the current landscape in business: Technological Change

Impact of the internet Increase the speed of communication The internet as a marketplace Rapid changes Individuals must self educate to keep up Managing in the face of rapid change and new business models

Components of the current landscape in business: Globalization

Internet access across the globe Strong demand for products/services

cost competitiveness

Keeping costs low to achieve profits and offer prices attractive to customers

strategic goals

Major targets or end results relating to the organization's long-term survival, value, and growth.

Multi-factor

Output / Labor + machine Output / (Labor + capital + energy)

Productivity =

Output / input

Partial measures

Output/ labor Output/ Machine output/capital output/energy

outsourcing

Outsourcing is where a company contracts with a third party to do some of the company's work on its behalf.

Components of the current landscape in business: Collaboration across boundaries

People in different parts of the organization must collaborate with one another Collaboration also entails moving beyond the boundaries of the organization itself

Major functions of management

Planning Delivering strategic value Leading Mobilizing and Motivating people Organizing Building a dynamic organization Controlling Monitoring and changing

goods-services continuum

Products are typically neither purely service- or purely goods based. https://i.imgur.com/UGzTXHC.png

SMART goals are:

Specific: Well defined, clear, and unambiguous Measurable: With specific criteria that measure your progress toward the accomplishment of the goal Achievable: Attainable and not impossible to achieve Realistic: Within reach, realistic, and relevant to your life purpose Timely: With a clearly defined timeline, including a starting date and a target date. The purpose is to create urgency.

Three levels of planning and their characteristics: Strategic

Strategic plans have a strong external orientation and cover major portions of the organization A set of procedures for making decisions about the organization's long-term survival Strategic planning A set of procedures for making decisions about the organization's long-term survival Strategic goals Major targets or end results relating to the organization's long-term survival, value, or growth Strategy A pattern of actions and resource allocations designed to achieve the organization's goals

Three levels of planning and their characteristics:

Strategic, tactical, and operations

needs for successful implementation of goals and plans

The best plans are useless unless implemented Successful implementation requires that plans be linked to other systems, particularly budget and reward systems

Components of the current landscape in business: Knowledge management

The growing need for good, new ideas generate demand for the knowledge worker Managers must challenge employees to increase motivation Managers and employees need a broad array of info that transcends boundaries

knowledge management

The growing need for good, new ideas generates demand for knowledge workers - Managers must challenge employees to increase motivation - Managers and employees need a broad array of information that transcends firm boundaries

The Mission Statement

The mission is an organization's basic purpose and scope of operations

benchmarking

The process of assessing how well one company's basic functions and skills compare with those of another company or set of companies

Three levels of planning and their characteristics: operations

The process of identifying the specific procedures and processes required at lower levels of the organization

Types of Control: Budgetary Controls

The process of investigating what is being done and comparing the results with the corresponding budget data.

The strategic vision statement

The strategic vision statement describes the long-term direction and strategic intent of the company.

Types of Control: Financial Controls

The use of monetary-based statements to monitor the firm. Balance sheet - A report that shows the financial picture of a company at a given time - Assets = Liabilities + Stockholders' equity Profit and loss statement (income statement) - Itemized financial statement of the income and expenses of a company's operations

Pareto phenomenon

Time management is the most common use for the Pareto Principle, as most people tend to thinly spread out their time instead of focusing on the most important tasks. In terms of personal time management, 80% of your work-related output could come from only 20% of your time at work.

trends in business

Today's trends are toward less hierarchy and more teamwork

types and characteristics of plans

Types of Plans, Standing Plans, and Contingency Plans

Specific Smart Goals

Well defined, clear, and unambiguous

Timely Smart Goals

With a clearly defined timeline, including a starting date and a target date. The purpose is to create urgency.

Measurable Smart Goals

With specific criteria that measure your progress toward the accomplishment of the goal

Nature of major business functions within an organization: Marketing

is responsible for assessing consumer wants and needs, and selling and promoting the organization's goods or services.

Nature of major business functions within an organization: Operations

is responsible for producing the goods or providing the services offered by the organization.

Nature of major business functions within an organization: Finance

is responsible for securing financial resources at favorable prices and allocating those resources throughout the organization, as well as budgeting, analyzing investment proposals, and providing funds for operations.

steps in the formal planning process

step 1: situation analysis Gather, interpret, and summarize all information relevant to the issue being planned - past events, current conditions, and discernible future trends; what's going on in the business environment? in our industry? in our firm? step 2: alternative goals and plans should stress creativity and encourages managers and employees to think broadly step 3: goal and plan evaluation should stress creativity and encourages managers and employees to think broadly step 4: goal and plan selection step 5: implementation should stress creativity and encourages managers and employees to think broadly step 6: monitor and control Managers must continually monitor the actual performance of their work units against the unit's goals and plans Managers also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes