pp management objective 3.pptx

7/27/2019 PP Management objective 3.pptx

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1. 4 steps in control process

1 Setting Appropriate Performance

Standards

2 Measuring Actual Performance

3

Comparing Actual Performance to

standards

4 Taking Corrective Action


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2. Setting Appropriate Performance

Standards

Standard is a unit of measurement used to

evaluate results

Performance standards should be realistic and

acceptable to the people involved Standards can be:

+ Quantitative (time, cost, grades)

+ Qualitative (perception, judgement) An effective standard shares the same

characteristics as an effective objective


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- Quantitative: 500000 accounts added, most visited social network site, shares

continue sto rise at rate 30.

- Qualitative: positive comments from user

"We enter 2013 with good momentum and will continue to invest to achieve

our mission and become a stronger, more valuable company."


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3. Measuring actual performance:

Performance evaluations are on of the majorways of measuring performance

3 importants conditions for effectiveperformance:

- Agree on the specific aspects of performance tobe measured

- Agree on the accuracy of measurement

+ Quantitative+ Qualitative

- Agree on who will use the measurement


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Facebook appliance:

aspects of performance: number of views and

accounts

accuracy of measurement: reports twice a

week

who will use the measurement: managers at

higher level


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4. Comparing actual performance to

standards:

Key: Measuring the deviation andcommunicating information about it

a. Deviation: indicates the size of the discrepancy

between performance standards and actualresults

Based on:

+ Statistics number

+ Wisdom and experience

b. Results be communicated to the right people


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Step 3: Compare, based on reports

- Deviation: Compare % of results in reality to

standards

- Exceptional deviations exist or not?


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5. Taking corrective Action:

Depends on the results of the evaluation,

there are 3 courses of action:

Action When/ How

Do nothing Events are proceeding according to plan

Solve the problem - Deviation is significant=> Discuss nature of problem

Drastic solution or without overhauling

Revise the standard - Unrealistic performance standard=> Standards be revised due to external environment changing

- Judge standard: difficult/easy


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Step 4: Corrective

- Do nothing: everything

keeps track with the plan


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Solve the problem: when the

situationis accounts decrease inMarch, shares stay the same,

negativecomments about thetimeline


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Revise standard: when the statistics

increase but not outstanding, which

indicates thedifficulties to reach target.

Reason: Others social network such as

Twitter or Tumblr

pp management objective 3.pptx

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