chapter 15: the essentials of control learning objectives
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Chapter 15: The Essentials of Control Learning Objectives. Understand what is meant by organizational control Differentiate among different levels, types, and forms of control Know the essentials of financial controls Know the essentials of non-financial controls - PowerPoint PPT PresentationTRANSCRIPT
Chapter 15: The Essentials of Control Learning Objectives
Understand what is meant by organizational control
Differentiate among different levels, types, and forms of control
Know the essentials of financial controls
Know the essentials of non-financial controls
Know the basics of lean control systems
Develop a personal balanced scorecard
Organizational Control in the P-O-L-C Organizational Control in the P-O-L-C FrameworkFramework
Strategy ImplementationStrategy Formulation
Planning
1. Vision & Mission
2. Strategizing
3. Goals & Objectives
Organizing
1. Organization Design
2. Culture
3. Social Networks
Leading
1. Leadership
2. Decision Making
3. Communications
4. Groups/Teams
5. Motivation
Controlling
1. Systems/Processes
2. Strategic Human Resources
What Is Organizational Control?What Is Organizational Control?
The Costs and Benefits of Organizational ControlsThe Costs and Benefits of Organizational Controls
Con
trol
Pro
activ
ity
Behavioral Control Outcome Control
Financial measures such as profitability, sales growth
Qualitative measures of customer satisfaction
The real-time speed of a production line
Hands-on management supervision during a project
Market demand or economic forecasts
Organizational culture
Financial measures such as profitability, sales growth
Qualitative measures of customer satisfaction
The real-time speed of a production line
Hands-on management supervision during a project
Market demand or economic forecasts
Organizational culture
Fe
ed
forw
ard
Co
ntr
ol
Co
nc
urr
en
tC
on
tro
lF
ee
db
ac
kC
on
tro
l
Costs & expenses and
Budgeting Includes assets, sales,
and/or profitability forecasts
Things expected to lead to positive performance
Includes customer loyalty, referrals, employee satisfaction, and other such performance measures
Current Assets are those assets that are cash or can be readily converted to cash in the short term
Examples include
accounts receivable or inventory
Fixed Assets are those assets that are not easily converted to cash in the short term - they are assets that only change over the long term
Examples include land, buildings, equipment, vehicles, furniture and fixtures
Recruiting &Selection
Qualified,Satisfied,
Staff
SatisfiedCustomers
Profitable Store
Non-Financial Controls
Measures
Financial Controls
The Strategy Map: A Causal Relationship Between Non-Financial and Financial Controls
The Strategy Map: A Causal Relationship Between Non-Financial and Financial Controls
