1、Fundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementChapter 9The System and Process of Controlling Fundamentals of ManagementEnglish Course forBrainstormingSaurashtra is a company involved in the export of indigenous food products like chutneys and pickles.It has
2、tied up with the small farmers in various states for sourcing of fruits and vegetables.In this way it helps the small farmers to sell their products at reasonable rates.The company follows a practice where only significant deviations from a budget or plan are brought to the attention of management.T
3、hinking and Discussion In context of the above case,can you identify the principle of management control adopted by the company?Please list any two values that the company wants to communicate to the society.Fundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementText
4、 AThe Control Function of ManagementFundamentals of ManagementEnglish Course forWhat is needed is a broader perspective on control as a management function:this article addresses such a perspective.The first part summarizes the general control problem by discussing the underlying reasons for impleme
5、nting controls and by describing what can realistically be achieved.In the second part,the various types of controls available are identified.The last part discusses why the appropriate choice of controls is and should be different in different settings.Fundamentals of ManagementEnglish Course forWh
6、y Are Controls Needed?One important class of problems against which control systems guard may be called personal limitations.Even if employees are properly equipped to perform a job well,some choose not to do so,because individual goals and organizational goals may not coincide perfectly.In other wo
7、rds,there is a lack of goal congruence.Fundamentals of ManagementEnglish Course forWhy Are Controls Needed?If nothing is done to protect the organization against the possible occurrence of undesirable behavior or the omission of desirable behavior caused by these personal limitations and motivationa
8、l problems,severe repercussions may result.Fundamentals of ManagementEnglish Course forWhat Is Good Control?Perfect control,meaning complete assurance that actual accomplishment will proceed according to plan,is never possible because of the likely occurrence of unforeseen events.Good control should
9、 mean that an informed person could be reasonably confident that no major unpleasant surprises will occur.Fundamentals of ManagementEnglish Course forWhat Is Good Control?Some important characteristics First,control is future-oriented:the goal is to have no unpleasant surprises in the future.Second,
10、control is multidimensional,and good control cannot be established over an activity with multiple objectives unless performance on all significant dimensions has been considered.Fundamentals of ManagementEnglish Course forWhat Is Good Control?Some important characteristics Third,the assessment of wh
11、ether good performance assurance has been achieved is difficult and subjective.Fourth,better control is not always economically desirable.Fundamentals of ManagementEnglish Course forHow Can Good Control Be Achieved?Control-Problem Avoidance One possibility is automation.Another avoidance possibility
12、 is centralization.A third avoidance possibility is risk-sharing with an outside body.Finally,some control problems can and should be avoided by elimination of a business or an operation entirely.Fundamentals of ManagementEnglish Course forHow Can Good Control Be Achieved?Control-Problem AvoidanceFu
13、ndamentals of ManagementEnglish Course forHow Can Good Control Be Achieved?Control of Specific Actions One type of control,specific-action control,attempts to ensure that individuals perform(or do not perform)certain actions that are known to be desirable(or undesirable).A second type of specific ac
14、tion control is action accountability a type of feedback control system by which employees are held accountable for their actions.A third type of specific-action control is preaction review.Fundamentals of ManagementEnglish Course forHow Can Good Control Be Achieved?Control of Results Use of results
15、-accountability control systems requires:(1)defining the dimensions along which results are desired,such as efficiency,quality,and service;(2)measuring performance on these dimensions;(3)providing rewards(punishments)to encourage(discourage)behavior that will lead(not lead)to those results.Fundament
16、als of ManagementEnglish Course forHow Can Good Control Be Achieved?Control of Personnel It emphasizes a reliance on the personnel involved to do what is best for the organization,and it provides assistance for them as necessary.Personnel controls can be very effective by themselves.Fundamentals of
17、ManagementEnglish Course forHow Can Good Control Be Achieved?Control of Personnel However,even when control problems are present,they can be reduced to some extent by:(1)upgrading the capabilities of personnel in key positions,such as tightening hiring policies,implementing training programs,or impr
18、oving job assignments;Fundamentals of ManagementEnglish Course forFeasibility Constraints on the Choice of Controls?For control over specific actions,management must have some knowledge of which actions are desirable.For control over results,the most serious constraint is the ability to measure the
19、desired results effectivelyFundamentals of ManagementEnglish Course forHow to Choose among the Feasible Options?Often managers cannot rely completely on the people involved in a given area and cannot employ one or more of the avoidance strategies mentioned earlier.Fundamentals of ManagementEnglish C
20、ourse forHow to Choose among the Feasible Options?Need for Controls The need for controls over any particular behavior or operation within an organization depends very simply on the impact of that area on overall organizational performance.More control should be exercised over a strategically import
21、ant behavior rather than over a minor one,regardless of how easy it is to control each.Fundamentals of ManagementEnglish Course forHow to Choose among the Feasible Options?Amount of Control Provided by Feasible Options The amount of control provided by each of the control tools depends both on their
22、 design and on how well they fit the situation in which they are used.Specific-action and results controls can provide widely varying amounts of control.Fundamentals of ManagementEnglish Course forHow to Choose among the Feasible Options?Costs:Outlay and Behavioral The cost of a control depends on t
23、wo factors:the incremental dollar cost of the tool and the cost of any unintended behavioral effects.A common problem with specific-action controls is that they cause operating delays.Another problem with specific-action controls is that they can cause rigid bureaucratic behavior.Fundamentals of Man
24、agementEnglish Course forWhere Does Feedback Fit In?Why feedback of past results is an important part of many control systems First,feedback is necessary as reinforcement for a results-accountability system.Second,in repetitive situations,measurement of results can provide indications of failure in
25、time to make useful interventions.Fundamentals of ManagementEnglish Course forWhere Does Feedback Fit In?Why feedback of past results is an important part of many control systems Third,analysis of how the results vary with different combinations of inputs might improve understanding of how the input
26、s relate to results.Fundamentals of ManagementEnglish Course forThe Design Process It seems logical to start the control-system design process by considering the personnel component of the organization by itself.Management determines that personnel controls should be supplemented.Fundamentals of Man
27、agementEnglish Course forAn Example:Control of a Sales Force Fundamentals of ManagementEnglish Course forConclusions 1.Management control is a behavioral problem.2.Good control can often be achieved in several different ways.3.Not all types of controls are feasible in all situations.4.The basic mana
28、gement control problems and alternatives are the same in all functional areas and at all levels in the organization,from the lowest supervisory levels to the very top levels of managementFundamentals of ManagementEnglish Course forNotes ControlThe Employee AccountabilityDistortionFundamentals of Man
29、agementEnglish Course forRelated Theories 4 Steps in Control Process in Business Management Establishing standards and methods for measuring performance.Measuring the performance.Determining whether performance matches the standard.Taking corrective action.Fundamentals of ManagementEnglish Course fo
30、rRelated Theories 4 Steps in Control Process in Business ManagementFundamentals of ManagementEnglish Course forExercises and DiscussionFundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementText BEffective OEC management control at China Haier GroupFundamentals of Ma
31、nagementEnglish Course forEffective OEC management control at China Haier Group In 1984,Zhang Ruimin took over a nearly bankrupt refrigerator factory in Qingdao,China.Business Strategy How Does OEC Management Work at Haier Target Setting Control,Checking,and Clearance:the OEC Daily Clearing Routine
32、Incentive Mechanism SustainabilityFundamentals of ManagementEnglish Course forReview and Discuss1.What does the acronym OEC stand for?How does it work at Haier?2.Can you list a brilliant marketing example applying famous-brand strategy?3.What are the characteristics of Haier Groups target setting?Wh
33、ats the advantage of it?4.How many layers of control system does Haier Group have?What are the functions of each layer?Fundamentals of ManagementEnglish Course forEnglish Course forFundamentals of ManagementText CBalanced Scorecard of Volkswagen GroupFundamentals of ManagementEnglish Course forReview and Discuss1.What is the SMART rule according to this article?2.What are the five components included in the balanced scorecard of Volkswagen?What are the final findings based on the card?
