IMPLEMENTING AND CONTROLLING

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CHAPTER 14

• IMPLEMENTING AND CONTROLLING
• Checked the class website lately? Theres a
  bellringer on there.

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• IMPLEMENTINGcarrying out the plans and helping
  employees to work effectively.

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• CONTROLLINGevaluating results to determine if
  the companys objectives have been accomplished
  as planned.
• Most managers, especially supervisors and
  middle-level managers spend a great deal of their
  time on implementing and controlling activities.

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IMPLEMENTING ACTIVITIES

• Implementing is the function of guiding employee
  actions toward achievement of a company's goals.
  DIRECTING is a term frequently used to refer to
  those implementing activities that managers use
  to guide the work of the people they supervise.

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EFFECTIVE COMMUNICATION

• Managers need to be able to

• communicate plans and directions
• gather feedback from employees
• identify and resolve communications problems

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Motivation

• The WHY of human behavior
• Motivation is the set of factors that cause a
  person to act in a certain way.

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EMPLOYEE MOTIVATION

• Internal motivationactions taken as a result of
  a persons beliefs, feelings, and attitudes.
• External motivationthe influences of a persons
  actions resulting from the actions of others and
  the environment

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Motivation

• Why do some people work hard and other coast?
• Whey do some leaders have high-producing units
  and others, with employees of comparable
  background, have low-producing ones?
• Why are some organizations noted for a culture in
  which employees are highly motivated and enjoy
  work, whereas others are noted for high turnover
  rates?

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Motivation, Ability and Performance

• Motivation is necessary to increase output.
• Performance is to a large extent a function of
  both ability and motivation.
• Managers can create a climate of positive
  motivation, but in the end motivation comes from
  within the person.

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Motivation

• M
• O
• T
• I
• V
• A
• T
• I
• O
• N

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WORK TEAMS

• A group of individuals who cooperate to achieve
  a common goal.

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CHARACTERISTICS OF WORK TEAMS

• Understand and support the group purpose
• Activities to be completed are clear
• Members know which activities they need to
  perform
• Members have needed skills to complete the
  activities
• Members are committed to making the group work
  and meet the expectations of others in the group
• Member communicate well with each other
• Work to resolve problems within the group

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OPERATIONS MANAGEMENT

• Operations are the major activities of a
  business.

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• Facilities, equipment, materials, and supplies
  must be available and organized so that employees
  can perform work.

• Employees need to be assigned to the appropriate
  tasks and scheduled so that work is completed on
  time.

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• Activities are organized so that the greatest
  amount of work is accomplished on schedule.
• Operations management may be very simple in some
  departments but very complex in others.

• In production areas skill is required in
• purchasing
• production scheduling
• inventory management
• quality control

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Managers in production must understand the
concepts of

• economic order quantity (the lowest-cost volume
  of inventory to reorder
• just-in-time inventory control (keeping
  inventories at the lowest possible level to
  ensure continuous production
• statistical process control (careful measurement
  of the quality of production procedures)

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MOTIVATION THEORIES

• Maslows Hierarchy
• McClellands Achievement Motivation
• Herzbergs Factors

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MASLOWS HIERARCHY

• Self actualization
• Esteem
• Social
• Security
• Physiological

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MCCLELLANDS THEORY
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MCCLELLANDS ACHIEVEMENT

• Take personal responsibility for their own work
• set personal goals
• want immediate feedback on their work

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• Want to influence and control others
• be responsible for a groups activities

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• Concerned about relationships with others
• work to get along well and fit in with a group

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McClellands Achievement Theory
affiliation
power
achievement
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HERZBERGS TWO FACTOR THEORY
Both approaches must be done simultaneously.
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Hygiene Factors

• Do not lead to higher levels of motivation but
  without them there is dissatisfaction

• Examples
• pay and fringe benefits
• working conditions
• rules
• type of supervision
• Policies
• status

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Motivators

• Motivators involves what people actually do on
  the job
• Factors that result in satisfaction

• Examples
• challenging work
• recognition
• achievement
• accomplishment
• increased responsibility
• personal development

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MANAGING CHANGE

• When careful planning occurs, change can be
  accomplished successfully, and people affected
  will support the change.

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STEPS FOR EFFECTIVE CHANGE

• PLANNING
• COMMUNICATING
• INVOLVING
• EDUCATING
• SUPPORTING

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PLANNING

• make sure that change is needed
• make sure company will be better because of the
  change
• a procedure should be developed to gather
  information, identify and study alternatives, and
  determine the consequences of change

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COMMUNICATING

• Some managers believe early information will
  create confusion and misunderstanding
• Informal and limited communication causes rumors
  and misinformation.
• Result is more damaging to the organization than
  the result of early, direct communication from
  management

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• Managers who have established effective
  communications with employees are in a better
  position to communicate possible changes than
  those who have not been effective.
• Open two-way communication is a must for managers
  and employees.

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INVOLVING

• People support what they create
• Employees can be the source of ideas on effective
  solutions
• Most effective change processes involve the
  people who will be affected
• Employees will better support change if they feel
  their voice will be heard and that they have
  input into plans that result in change

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EDUCATING

• Prepare Employees for change
• Information meetings
• Training programs

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SUPPORTING

• People are more willing to accept change if they
  believe they will receive support from the
  organization.
• Managers need to assure employees that support is
  available

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Supporting Techniques

• Personal and career counseling
• Job-seeking skills
• Payment for employment services for employees who
  are terminated due to change.

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• CONTROLLING

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CONTROLLING

• Employee absences have increased by 3 percent
  this year.
• Maintenance Costs are down an average of 50 per
  vehicle.
• Salespeople in the southern district have
  increased new customer orders by 12.3 percent in
  a three-year period.

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• An average of three employees per month are
  enrolling in the companys wellness program.
• The adjustments to the robots computer program
  have reduced the variations in the seam to .0004
  mm.

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BASIC STEPS OF CONTROLLING

• Establish standards for each of the companys
  goals and activities
• Measuring and comparing performance with the
  established standards to see if goals are met.
• Taking corrective action when problems are
  identified.

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STANDARDS

• Managers are responsible for setting standards
  and for using those standards to judge
  performance. They must know when to revise
  outdated standards.
• Standards are determined through
• study of the job
• past experience
• industry information
• input from experienced workers

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• Standards used depend on
• type of business
• size of business
• activities being controlled

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MAJOR TYPES OF STANDARDS

• Quantity
• Quality
• Time
• Cost

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QUANTITY

• Production managersnumbers of units produced
• Sales managerssales quotadaily or weekly
• Office managersnumber of letters produced per
  day, amount of computer input per day

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QUALITY

• Perfectionhaving nor errorsmay be the only
  acceptable standard for products and services of
  a business
• Once set, quality standards should not be lowered

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TIME

• Amount of time it takes to complete an activity
• Has effect on costs, quantity of work completed,
  and often on the quality of work.
• Time standards more important to some businesses
  than others.
• Building contracts
• bankers
• newspaper publishers

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COST

• Financial profit or loss
• While trying to increase profits, managers are
  constantly aware of two specific objectives
• increase sales
• decrease costs

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• Wasting material or using more time than
  necessary adds to cost of doing business.
• More attention is given to cost control than to
  any other type of control
• Most widely used controlling device is the
  budget. Budgets, like schedules and standards
  are also planning devices.
• When budget is prepared it is a planning device,
  after that it is a controlling device.
• Actual cost figures are collected and compared
  with estimated or planned figures.

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MEASURING AND COMPARING PERFORMANCE

• Standards are the basis for determining effective
  performance
• managers gather information on all parts of
  business operations
• information is compared with standards to
  determine if the standards are being met.
• whenever a variance is identified, a manager
  needs to identify the reasons for the difference.
• it is possible for performance to exceed
  standardsif so find out why and how to repeat
  the action

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• greatest concern is when performance does not
  meet standards.
• performance must be monitored very frequently to
  identify as early as possible when
  lower-than-expected performance is occurring so
  corrective action can be taken
• monitoring all of the activities for which
  managers are responsible can take a great deal of
  time

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• managers can use information systems to reduce
  the amount of time spent on controlling
  activities
• computers can be used to identify below standard
  performance, and print a variance report for the
  manager

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TAKING CORRECTIVE ACTION

• When a manager discovers that performance is not
  meeting standards, three possible actions can be
  taken
• take steps to improve performance
• change policies and procedures
• revise the standard

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• If careful planning has been done, managers
  should be reluctant to change standards
• Instead of changing standards, managers need to
  improve performance by
• making sure that work is well organized
• that supplies and materials are available when
  needed
• that equipment is in good working order
• employees are well trained and motivated

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• Occasionally standards are not met because
  activities cannot be accomplished as planned, or
  policies and procedures are not appropriate
• When the manager has explored all possibilities
  to improve performance and it still does not meet
  the standards, the standards themselves need to
  be evaluated.

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• When new planning procedures are used or new
  activities are implemented, planning is less
  likely to be accurate
• standards developed in those situations should be
  studied more carefully than the standards of
  ongoing activities
• Standards should be revised when it is clear they
  will not accurately reflect performance and
  attempts to improve performance have not been
  successful

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CONTROLLING COSTS

• INVENTORY
• CREDIT
• THEFT
• HEALTH AND SAFETY

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INVENTORY

• Orders filled on time
• raw materials available for production
• keep accurate inventories to produce adequate
  products
• careful purchasing
• right time and right quantities

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INVENTORIES

• TOO HIGH
• costs of storage and handling will increase
• products may be left in inventory that are never
  used or sold
• company loses money

• TOO LOW
• production levels will decrease
• sales will decrease if products are not available
• company loses money

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JUST-IN-TIME INVENTORY

• Inventories kept at the lowest possible level to
  meet production and sales goals.
• Production time, sales activity, and purchasing
  requirements are reviewed carefully.
• Orders for materials are placed so they arrived
  JUST as they are needed
• production levels are set so only enough products
  to fill orders are received

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CREDIT

• Extend credit to customers

• Businesses use credit when buying

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• CUSTOMERS
• Develop credit policies
• check customers credit
• develop billing and collection procedures

• BUSINESS
• Control the amount of money a business owes to
  other businesses
• use credit when financially advisable
• typically used for large orders and expensive
  purchases

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THEFT

• Billions of lost to crime
• Shoplifting by customers and employees equlas 6
  percent or more of total sales each year.
• Often occurs during holiday shopping season

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CONTROLLING SHOPLIFTING

• Security guards
• store detectives
• cameras
• mirrors
• inventory tags
• station attendants at dressing rooms
• keep unused checkout aisles closed

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• Small, expensive items locked in cases
• post warning signs to customers about results of
  shoplifting
• train employees in procedures to follow in a
  shoplifting situation

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• STUDY
• MANAGEMENT