Introduction to management 13th schemerhorn bachrach chapter 09

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Introduction to management 13th schemerhorn bachrach chapter 09

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9 John R Schermerhorn, Jr Daniel G Bachrach Introduction to Management 13th edition Chapter Fundamentals of Control Planning Ahead — Key Takeaways  Identify the types of controls used by managers and the reasons for them  List and describe the steps in the control process  Explain the use of common control tools and techniques Copyright ©2015 John Wiley & Sons, Inc Chapter Outline Managerial Control    Importance of controlling Types of controls Internal and external control The Control Process     Establish objectives and standards Measure actual performance Compare results with objectives Take corrective action Copyright ©2015 John Wiley & Sons, Inc Chapter Outline Control Tools and Techniques      Project management and control Inventory control Breakeven analysis Financial controls Balanced scorecards Copyright ©2015 John Wiley & Sons, Inc Why and How Managers Control  Controlling     The process of measuring performance and taking action to ensure desired results Has a positive and necessary role in the management process Ensures that the right things happen, in the right way, at the right time Benefit: Organizational learning (Example: After-action review) Copyright ©2015 John Wiley & Sons, Inc Figure 9.1 The role of controlling in the management process Copyright ©2015 John Wiley & Sons, Inc Why and How Managers Control  Feedforward   controls Employed before a work activity begins Ensures that: Objectives are clear  Proper directions are established  Right resources are available   Goal is to solve problems before they occur Copyright ©2015 John Wiley & Sons, Inc Why and How Managers Control  Concurrent    controls Focus on what happens during work process Monitor ongoing operations to make sure they are being done according to plan Goal is to solve problems as they occur Copyright ©2015 John Wiley & Sons, Inc Why and How Managers Control  Feedback    controls Take place after work is completed Focus on quality of end results Goal is to solve problems after they occur and prevent future ones Copyright ©2015 John Wiley & Sons, Inc Figure 9.2 Feedforward, concurrent, and feedback controls Copyright ©2015 John Wiley & Sons, Inc Why and How Managers Control  Market  Control Influence of market competition on the behavior of organizations and their members Copyright ©2015 John Wiley & Sons, Inc Figure 9.3 Four steps in the control process Copyright ©2015 John Wiley & Sons, Inc The Control Process  Step — establishing objectives and standards  Output standards   Measure performance results in terms of quantity, quality, cost, or time Input standards  Measure effort in terms of amount of work expended in task performance Copyright ©2015 John Wiley & Sons, Inc The Control Process  Step    — measuring actual performance Goal is accurate measurement of actual performance results and/or performance efforts Must identify significant differences between actual results and original plan Effective control requires measurement Copyright ©2015 John Wiley & Sons, Inc The Control Process  Step — comparing results with objectives and standards Need for action = Desired Performance – Actual Performance   Comparison methods: Historical comparison  Relative comparison  Engineering comparison  Copyright ©2015 John Wiley & Sons, Inc The Control Process  Step   — taking corrective action Taking action when a discrepancy exists between desired and actual performance Management by exception Giving attention to situations showing the greatest need for action  Types of exceptions  Problem situation  Opportunity situation  Copyright ©2015 John Wiley & Sons, Inc Control Tools and Techniques  Project  Management Overall planning, supervision, and control of projects Projects – unique one-time events that occur within a defined time period  Gantt chart – graphic display of scheduled tasks required to complete a project  CPM/PERT – combination of the critical path method and program evaluation and review technique  Copyright ©2015 John Wiley & Sons, Inc Gantt Chart Copyright ©2015 John Wiley & Sons, Inc CPM/PERT CHART Copyright ©2015 John Wiley & Sons, Inc Control Tools and Techniques  Inventory   Ensures that inventory is only big enough to meet immediate needs Economic order quantity   control Places new orders when inventory levels fall to predetermined points Just-in-time scheduling  Routes materials to workstations just in time for use Copyright ©2015 John Wiley & Sons, Inc Control Tools and Techniques  Breakeven  Breakeven point   analysis Occurs where revenues just equal costs Breakeven analysis  Performs what-if calculations under different revenue and cost conditions Copyright ©2015 John Wiley & Sons, Inc Figure 9.4 Use of breakeven analysis to make informed “what-if” decisions Copyright ©2015 John Wiley & Sons, Inc Figure 9.5 Basic foundations of a balance sheet and income statement Copyright ©2015 John Wiley & Sons, Inc Control Tools and Techniques  Basic  Liquidity   The ability to earn more in returns than the cost of debt Asset management   The ability to generate cash to pay bills Leverage   Financial Ratios The ability to use resources efficiently and operate at minimum cost Profitability  The ability to earn revenues greater than costs Copyright ©2015 John Wiley & Sons, Inc Control Tools and Techniques  Balanced Scorecard  Factors used to develop scorecard goals and measures:     Financial performance Customer Satisfaction Internal process improvement Innovation and learning Copyright ©2015 John Wiley & Sons, Inc ... Control Tools and Techniques  Inventory   Ensures that inventory is only big enough to meet immediate needs Economic order quantity   control Places new orders when inventory levels fall to predetermined... Sons, Inc Control Tools and Techniques  Basic  Liquidity   The ability to earn more in returns than the cost of debt Asset management   The ability to generate cash to pay bills Leverage... corrective action Copyright ©2015 John Wiley & Sons, Inc Chapter Outline Control Tools and Techniques      Project management and control Inventory control Breakeven analysis Financial controls

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Mục lục

  • Slide 1

  • Planning Ahead — Key Takeaways

  • Chapter 9 Outline

  • Chapter 9 Outline

  • Why and How Managers Control

  • Figure 9.1 The role of controlling in the management process

  • Why and How Managers Control

  • Why and How Managers Control

  • Why and How Managers Control

  • Figure 9.2 Feedforward, concurrent, and feedback controls

  • Why and How Managers Control

  • Why and How Managers Control

  • Why and How Managers Control

  • Why and How Managers Control

  • Figure 9.3 Four steps in the control process

  • The Control Process

  • The Control Process

  • The Control Process

  • The Control Process

  • Control Tools and Techniques

  • Gantt Chart

  • CPM/PERT CHART

  • Control Tools and Techniques

  • Control Tools and Techniques

  • Slide 25

  • Slide 26

  • Control Tools and Techniques

  • Control Tools and Techniques

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