The main contents of the chapter consist of the following: Organizational control and change, control process steps, the goal-setting process, management by objectives, functional strategies for competitive advantage total quality management functional activities and the value chain. | Management Practices Lecture-14 1 Recap Value Chain Management Functional Strategies for Competitive Advantage Total Quality Management Functional Activities and the Value Chain 2 Today’s Lecture Organizational Control and Change Control Process Steps The Goal-Setting Process Management by Objectives 3 Organizational Control Managers must monitor & evaluate: Are we efficiently converting inputs into outputs? Must accurately measure units of inputs and outputs. Is product quality improving? Are we competitive with other firms? Are employees responsive to customers? customer service is increasingly important. Are our managers innovative in outlook? Does the control system encourage risk-taking? 4 Control Systems Formal, target-setting, monitoring, evaluation and feedback systems to provide managers with information to determine if strategy and structure are working effectively and efficiently. A good control system should: be flexible so managers can respond as needed. provide accurate | Management Practices Lecture-14 1 Recap Value Chain Management Functional Strategies for Competitive Advantage Total Quality Management Functional Activities and the Value Chain 2 Today’s Lecture Organizational Control and Change Control Process Steps The Goal-Setting Process Management by Objectives 3 Organizational Control Managers must monitor & evaluate: Are we efficiently converting inputs into outputs? Must accurately measure units of inputs and outputs. Is product quality improving? Are we competitive with other firms? Are employees responsive to customers? customer service is increasingly important. Are our managers innovative in outlook? Does the control system encourage risk-taking? 4 Control Systems Formal, target-setting, monitoring, evaluation and feedback systems to provide managers with information to determine if strategy and structure are working effectively and efficiently. A good control system should: be flexible so managers can respond as needed. provide accurate information about the organization. provide information in a timely manner. 5 Three Types of Control Inputs Outputs Conversion Process Feedforward Control (anticipate problems) Concurrent Control (manage problems as they occur) Feedback Control (manage problems after they occur) 6 Control Types Feedforward: use in the input stage of the process. Managers anticipate problems before they arise. Managers can give rigorous specifications to suppliers to avoid quality Concurrent: gives immediate feedback on how inputs are converted into outputs. Allows managers to correct problems as they arise. Managers can see that a machine is becoming out of alignment and fix it. Feedback: provides after the fact information managers can use in the future. Customer reaction to products are used to take corrective action in the future. 7 Control Process Steps Establish standards of performance, goals, or targets against which performance is evaluated. Measure actual performance Compare actual performance
