Management

TYPES OF CONTROL

Feed forward control

1) Anticipatory and attempt to identify and prevent deviations before they occur
2) Focuses on human, material and financial resources
3) Ensure input quality is sufficiently high to prevent problems
4) Another type of feed-forward control is forecasting trends in environment and managing risk

Concurrent control

1) Monitors ongoing employee activities to ensure that they are consistent with the performance standards
2) Assesses current work activities
3) Relies on performance standards, rules and regulations for guiding employee task.
4) Includes self-control imposed on behavior because of values

Feedback control

1) Focuses on organization's output.
2) Budgeting is a form of feedback control because managers monitor whether they have operated within their budget targets and make adjustment accordingly.




DIFFERENTIAE BETWEEN MANAGER AND LEADER

Manager promotes stability, order and problem solving within existing organization structure and systems

Leader promote vision, creativity and change, questioning the status quo so that outdated, unproductive and socially irresponsible norms can be replaced

A leader cannot replace a manager. A good manager helps organization meet current commitments. A good leader move the organization into the future

A manager takes care of where your are while a leader takes you to the future




Bureaucratic control

1) Involves monitoring and influencing employee behavior through rules, policies, hierarchy of authority, written documentation and reward system.
2) Bureaucratic methods define explicit rules, polices and procedures for employee behavior
3) Control relies on centralized authority, formal hierarchy and close personal supervision
4) E.g. Responsibility for quality control lies with quality control officers or supervisors rather employee.
5) It can enhance organization effectiveness and efficiency

Decentralized control

1) Relies on shared values and goals to control employee's behavior
2) Manager operate on the assumption that employees are trustworthy and willing to perform efficiently without extensive rules and close supervision
3) The organization places great emphasis on selection and socialization of employee to ensure that workers have the needed values to influence behavior which meets goals.
4) Culture is adaptive and important in uniting individual, teams and organizational goals for greater overall control




TQM and QC

1) TQM is based on the decentralize theory,
2) It infuses quality into every activity through continuous improvement.
3) Organization implement TQM by encouraging managers employees to collaborate across functions and departments as well as with customer and suppliers to identify areas for improvement no matter how small.
4) TQM philosophy focuses on teamwork, increasing customer satisfaction and lowering cost

Quality Circle

1) a group of 6-12 volunteer employees who meets up regularly to discuss and solve problems affecing the quality of their work
2) they meet regularly during work hours to identify problem and find solutions.
3) the reason for using quality circle is to push decision making to a level at which recommendations can be made by those who do the job.

Bench Marking

1) is the continuous process of measuring products, services, and practices against the toughest competitors or industry leaders
2) a company must honestly analyse its current procedures and determine areas for improvement
3) a company carefully selects competitors worthy of copying and emulates their internal process and procedures.

Factors affecting success of TQM

1) Quality circles are most beneficial when job is challenging
2) when it enriches jobs and improves employee's motivation
3) when participation improves employ problem solving skill, productivity us likely to increase
4) when corporate culture, valuea quality and stress on continuous improvement as a way of life

Balaenced score card is a management control system that balances traditional finance measure and operational measure that is relating to the company's critical success. It includes the 4 major perspective

1) Financial performance perspective reflects a concern that organization activities contribute to short and long term financial performance

2) Customer service indicators measure such things as how customer view the organization, customer retention and satisfaction

3) Business process indicators focus on production and operating statistics

4) Potential for learning and growth focus on how well resources and human capital are being manage for the company's future

Managers focus on the various element of the scorecard to set targets, evaluate performance, and guide discussion about what further actions to take.

A key to successful implementation of the balanced scorecard approach is a performance management orientation rathan a performance measurement orientation.




Transformational leader and their behaviour

1) Similar to charismatic leaders
2) Distinguished by their special ability to bring about innovation and change by:
---Recognizing followers' needs and concerns
---Have the ability to change organization mission, structure and human resource
---Helping them look at old problems in new ways
---Encouraging them to question status quo
---Focus on the intangibles such as vision, values, ideas to build relationship, give larger meaning to activities and enlist follower in change
---recent studies show that transformational leaders has a positive impact on follower development and performance
---transformational leadership skill can be learnt and not ingrain in personal characteristics




Hershey and blanchard's theory

Relationship behaviour = supportive behavior
Task behavior = guidance

LRB + LTB = Delegating, turn over responsibility for decision and implementation
Suitable for very high follower readiness, where they are experience and skillful and has readiness to accept responsibility

HRB + LTB = Participating, share ideas and facilitate decision making
Suitable for high follower readiness, where they are experience and skillful enough, the leader would need to provide a general goal, delegates sufficient authority to do the task, and the followers will complete the task as they see fit

HRB + HTB = Selling, explain decisions and give opportunities to clarify
Suitable for moderate follower readiness, where they are might lack some skill and experience for the job, selling gives direction but include seeking input and from others and clarifying task

LRB + HTB = Telling, provide specific instruction and close monitoring
Suitable for low follower readiness, where followers have poor skill and no experience for the job, the leaders tells followers how to do it, what to do and when to do it.

Easier to understand but incorporates the follwer characteristic not those of the situation.




4 types of problem

1) Certainty
- All the information the decision maker needs is fully available

2) Risk
- Decision has clear-cut goals
- Good information is available
- Future outcomes asscociated with each alternative are subject to chance
- however enough information is available to allow the probablity of successful outcome for each alternative to be estimated

3) Uncertainty
- Managers know which goals they wish to achieve
- Information about alternatives and future events is incomplete. E.g. price, production cost and interest rates
- Manager may have to come up with creative approaches to alternatives and use personal judgement to determine which alternatives is best.

4) Ambiguity
- by far the most difficult decision situation
- goals to be acheive or problems to be solve is unclear
- alternatives are difficult to define
- information about outcomes is unavailable

Decision can be programmed or non-programmed

Programmed decision
1) situation has occurs often enough to enable decision rules to be developed and applied in future
2) oce managers formulate decision rules, surbodinates and others can make decisions freeing manager for other tasks

Non programmed decision
1) are response to situations that are unique, poorly defined, largely unstructured and likely to have important consequences for the organization.
2) non programmed decision often involve strategic planning because uncertainty is great and decision are complex


The 6 steps in the managerial decision making process

1. Recognition of decision requirement
2. Diagnosis and analysis of Causes
3. Development of alternatives
4. Selection of desired alternatives
5. Implementation of chosen alternatives
6. Evaluation and feedback


Matrix structure



5 Advantage

1) More efficient use of resource than single hierarchy
2) adaptable to changing environment
3) development of specialist and general management skill
4) expertise available across division
5) enlarge task for employee

5 Disadvantage

1) Dual chain of command
2) high conflict between e 2 side of matrix
3) many meeting to coordinate activities
4) need for human relations training
5) power domination by one side of matrix




Virtual network structure

the idea behind virual network structure is a company can concentrate on what it do best and contract or outsource the other activities to other company. e.g the organization can outsource its distribution, design, transportation, accounting and manufacturing activities to other company. This way the company can do more with less

The 3 advantage is

1) can draw on world wide expertise
2) workforce flexibility, can adjust accordingly to market, demand and also product or marketing plan
3) reduced administrative overhead, most of the activities are being outsource thus the core of organization employs lesser people thus lesser administrative overhead

the 3 disadvantage is

1) lack of control, weakened boundaries, because most activities are being outsource, lesser control and those company tends to act on their own interest
2) increase demand on managers, becos of the weak linkage, greater demand on manager to coordinate activities, manage relationship and define share values.
3) employee loyalty weakened, employee might feel that they can be replaced by a contract serice.