Understanding Control in Management: Concepts and Applications

1. 控制 Controlling*測速槍，恆溫器，SOP, KPI*計畫，執行，考核。*Plan, Do, See. *PDCAB.

2. 1. 新進菜鳥：觀望計較 老鳥：朝九晚五奉公守法 核心幹部：關心大我長期發展 2. 內部培訓幹部： 買硬體器材，找講師，加班設計適用課程教材。 3. Grove 換車胎，遇紅綠燈，見傷者送醫。

3. 綱要 18.1 控制之程序 18.2 控制組織績效之工具 18.3 有關控制之實務

4. What Is Control? • Controlling • The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations. 討論：control 之中譯？

5. Designing Control Systems • Market Control （市場） Emphasizes the use of external market mechanisms to establish the standards. e.g. cost, market share. • Bureaucratic Control （科層） Emphasizes organizational authority and relies on rules, regulations, procedures, and policies. • Clan Control （文化） Regulates behavior by shared values, norms, traditions, rituals, and beliefs of the firm’s culture.

6. Why Is Control Important? • As the final link in management functions: • Planning • Controls let managers know whether their goals and plans are on target and what future actions to take. • Empowering employees • Control systems provide managers with information and feedback on employee performance. • Protecting the workplace • Controls enhance physical security and help minimize workplace disruptions.

7. The Planning-Controlling Link 7

8. 18.1 控制之程序 1.衡量實際績效, Measuring actual performance. 2. 和標準比較, Comparing actual performance against a standard. 3. 採取管理行動, Taking managerial action to correct deviations or inadequate standards.

9. The Control Process: MBE 9

10. Measuring: How and What • Sources of Information (How) • Personal observation 農夫腳步 • Statistical reports • Oral reports • Written reports • Control Criteria (What) • Customers/Employees • Satisfaction • Turnover • Absenteeism • Budgets • Costs • Output • Sales

11. Comparing: SQC chart: random? trend? Defining the Acceptable Range of Variation

12. 賣酒公司為例 Sales Performance Figures Standard 1,075 630 800 620 540 160 225 80 170 Actual 913 634 912 622 672 140 220 65 286 Over (under) (162)＊ 4 112＊ 2 132＊ (20)＊ (5) (15)＊ 116＊ Brand Heineken Molson Irish Amber Victoria Bitter Labatt’s Corona Amstel Light Dos Equis Tecate 12

13. Taking Managerial Action • “Doing nothing” • Corrective Actions: Change strategy, structure, compensation scheme, training programs; redesign jobs; fire employees • Immediate: correct the problem at once. 拉牛出溝 • Basic: correct the source of the deviation.防牛再陷 • Revising the standard Resetting goals that were initially set too low or too high.

14. Managerial Decisions in the Control Process 14

15. 18.2 Organizational Performance • What Is Performance? The end result of an activity

16. Performance Measures • Productivity the overall output of goods and/or services divided by the inputs needed to generate that output. • Organizational Effectiveness a measure of how appropriate organizational goals are and how well those goals are being met. • Systems resource model • The process model • The multiple constituencies model

17. Industry and Company Rankings

18. Industry and Company Rankings(cont.)

19. Industry and Company Rankings Sales, Profits, Revenue per employee: Fortune 1000, Forbes 500, 全球大學排行榜 製造1000大, 服務500大, 金融100大, Customer satisfaction surveys: ACSI, JD Power Others: Corporate culture audits, compensation and benefits surveys 19

20. Tools for Controlling OP • Feedforward Control A control that prevents anticipated problems before actual occurrences of the problem. eg. Building in quality through design. Requiring suppliers conform to ISO 9002. • Concurrent Control A control that takes place while the monitored activity is in progress. eg. Direct supervision: management by walking around (MBWA). • Feedback Control A control that takes place after an activity is done.

21. Types of Control Input Processes Output Feedforward Control Concurrent Control Feedback Control Anticipates problems Corrects problems as they happen Corrects problems after they occur 21

22. Financial Controls Traditional: 比自己過去，別人現在 Liquidity: current ratio Leverage: debt to assets Activity: inventory turnover Profitability: return on investment Balanced Scorecard Sustained BSC 22

23. Popular Financial Ratios

25. 平衡計分卡Balanced Scorecard (R. Kaplan) • BSC Is a measurement tool that uses goals set by managers in four areas to measure a company’s performance: • Financial • Customer • Internal processes • People/innovation/growth assets • 傳統財務會計模式只重短期財會指標 • 討論：杜教授改期中考卷，十五世紀威尼斯商人， Grove的早餐工廠，生命中同時拋接的五個球。

26. BSC 26

27. 18.3 Contemporary Issues in Control • Cross-Cultural Issues • The use of technology to increase direct corporate control of local operations • Legal constraints on corrective actions in foreign countries • Difficulty with the comparability of data collected from operations in different countries. 討論：外商公司360度考核

28. Workplace Concerns • Workplace privacy versus workplace monitoring: • E-mail, telephone, computer, and Internet usage • Productivity, harassment, security, confidentiality, intellectual property protection. e.g. 轉寄公司策略，上網，工研院 Top 5, 電子監控系統，凡走過必留痕！ • Employee theft • The unauthorized taking of company property by employees for their personal use. • Workplace violence • Anger, rage, and violence in the workplace is affecting employee productivity. e.g. Road rage.

29. Control Measures for Employee Theft or Fraud

30. Control for Deterring or Reducing Workplace Violence

31. Customer Interactions Service profit chain: Is the service sequence from employees to customers to profit.

32. *留住顧客 *再光顧 *介紹其他顧客 *服務顧客的 結果 *工作環境的設計 *工作設計 * 員工的評選與發展 *獎勵表揚員工 *顧客服務的工具 *設計及提供服務 以滿足目標顧客的 需求 服務利潤鏈 32

33. 重點回顧 1. market, bureaucratic, clan control 2. feedforward, concurrent,feedback control 3. The planning - controlling link

34. Terms to Know • market control • bureaucratic control • clan control • control process • feedforward control • concurrent control • feedback control • management by walking around (MBWA) • Balanced scorecard (BSC) • employee theft

35. Q & A E-mail：wljen@mail.nctu.edu.tw 個人網頁：http://140.113.119.160/