Chapter 14 Control Control Systems Systems Financial Financial and and Human Human PowerPoint Presentation by Charlie Cook Copyright 2003 South Western Thomson Learning All rights reserved Learning Learning Outcomes Outcomes Copyright 2003 by South Western Thomson Learning All rights reserved 14 2 Learning Learning Outcomes Outcomes cont d cont d Copyright 2003 by South Western Thomson Learning All rights reserved 14 3 Organizational Organizational Systems Systems Controls Controls Controlling The process of establishing and implementing mechanisms to ensure that objectives are achieved Preliminary Controls Feedforward Controls Controls designed to anticipate and prevent possible problems Planning and organizing are important control functions Standing plans Contingency plans Copyright 2003 by South Western Thomson Learning All rights reserved 14 4 Organizational Organizational Systems Systems Controls Controls Concurrent Controls Action taken as inputs are transformed into outputs to ensure that standards are met Rework Controls Action taken to fix an output Damage Controls Action taken to minimize negative impacts on customers stakeholders due to faulty outputs Feedback Information about outputs from customers and stakeholders Copyright 2003 by South Western Thomson Learning All rights reserved 14 5 Copyright 2003 by South Western Thomson Learning All rights reserved 14 6 The The Systems Systems Process Process with with Types Types of of Controls Controls Exhibit 14 1 Copyright 2003 by South Western Thomson Learning All rights reserved 14 7 Systems Systems Processes Processes for for Functional Functional Controls Controls Exhibit 14 2a Copyright 2003 by South Western Thomson Learning All rights reserved 14 8 Systems Systems Processes Processes for for Functional Functional Controls Controls Exhibit 14 2b Copyright 2003 by South Western Thomson Learning All rights reserved 14 9 The The Feedback Feedback Process ProcessAmong Among Functional FunctionalAreas Departments Areas Departments Exhibit 14 3 Copyright 2003 by South Western Thomson Learning All rights reserved 14 10 The The Control Control Systems Systems Process Process Model 14 1 Copyright 2003 by South Western Thomson Learning All rights reserved 14 11 Operations Operations Performance Performance Report Report Exhibit 14 4 Copyright 2003 by South Western Thomson Learning All rights reserved 14 12 Copyright 2003 by South Western Thomson Learning All rights reserved 14 13 Types Types and and Frequency Frequency and and Methods Methods of of Control Control Exhibit14 5 Copyright 2003 by South Western Thomson Learning All rights reserved 14 14 Copyright 2003 by South Western Thomson Learning All rights reserved 14 15 The TheMaster Master Budgeting BudgetingProcess Process Exhibit 14 6 Copyright 2003 by South Western Thomson Learning All rights reserved 14 16 Budgeting Budgeting Budget A planned quantitative allocation of resources for specific activities Operating Budget Revenue budget Forecast of total income for the year Expense budget Forecast of total operating spending for the year Capital Expenditure Budget All planned expenditures for major asset investments Copyright 2003 by South Western Thomson Learning All rights reserved 14 17 Financial Financial Statements Statements Income Statement Presents revenues and expenses and the profit or loss for the stated period of time The Balance Sheet Presents the assets and liabilities and owners equity for the stated period of time Cash Flow Statement Presents the cash receipts and payments for the stated time period Copyright 2003 by South Western Thomson Learning All rights reserved 14 18 Financial Financial Statement Statement Exhibit 14 7 Copyright 2003 by South Western Thomson Learning All rights reserved 14 19 Human Human Controls Controls Coaching The process of giving motivational feedback to maintain and improve performance Management by Walking Around MBWA Listening rather than talking Teaching rather than telling Facilitating rather than ordering Copyright 2003 by South Western Thomson Learning All rights reserved 14 20 Human Human Controls Controls cont d cont d Counseling Dealing with problem employees by attempting to help solve the problem Management Counseling Giving employees feedback so they realize that a problem is affecting their job performance Referring employees with problems to employee assistance programs Employee Assistance Program EAP A staff of people who help employees get professional assistance solving their problems Copyright 2003 by South Western Thomson Learning All rights reserved 14 21 Coaching Coaching Model Model 1 1 Describe Describecurrent currentperformance performance 2 2 Describe Describedesired desiredperformance performance 3 3 Get Getaacommitment commitmentto tochange change 4 4 Follow Followup up Model 14 2 Copyright 2003 by South Western Thomson Learning All rights reserved 14 22 Disciplining Disciplining Discipline Corrective action to get employees to meet standards and standing plans To change ineffective employee behavior To let employees know that action will be taken when standing plans or performance requirements are not met To maintain authority when challenged Progressive discipline steps Oral warning written warning suspension and dismissal Documentation must be maintained Copyright 2003 by South Western Thomson Learning All rights reserved 14 23 Problem Problem Employees Employees Exhibit 14 8 Copyright 2003 by South Western Thomson Learning All rights reserved 14 24 The The Discipline Discipline Model Model 1 1 Refer Referto topast pastfeedback feedback 2 2 Ask Askwhy whythe theundesired undesiredbehavior behavior was wasused used 3 3 Give Givethe thediscipline discipline 4 4 Get Getcommitment commitmentto tochange changeand and develop a plan develop a plan 5 5 Summarize Summarizeand andstate statethe thefollow follow up up Model 14 3 Copyright 2003 by South Western Thomson Learning All rights reserved 14 25 Guidelines Guidelines for for Effective Effective Discipline Discipline Exhibit 14 9 Copyright 2003 by South Western Thomson Learning All rights reserved 14 26 Copyright 2003 by South Western Thomson Learning All rights reserved 14 27 Productivity Productivity Productivity A performance measure relating outputs to inputs Units produced labor hours per unit workers per total output cost of labor cost of material machine hours Calculating Productivity Select a base time period Determine output for time period