Control and Managing Information

8/6/2019 Control and Managing Information

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CHAPTER 5--ExercisingControl Over People and

Processes

Resty L. Picardo, RN, MAN,LLB


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LEARNING OBJECTIVES

Understand the dual naturejudgmental as well asproblem-solving and decision-making00of thesupervisors role in carrying out the control function.

Define and recognize a control standard and explain and

evaluate the sources of these standards. Discuss the four steps in the control process and explain

the three major types of controls.

Identify the six major areas of organizational control thatguide supervisory actions and explain the technique of

management by exception. Discuss employee resistance to controls, explain someof the ways to reduce it, and explain the relationshipof management by objectives to the controlprocess


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THE DUAL ROLE

What is the basic purpose of a

supervisors control function?

To keep thing in line and to make sureplans hit their targetsguide production

goals and quality standards.

How much will control rely on theinformation system and how much

on the supervisor?


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THE DUAL ROLE

JUDGMENTAL ROLE

Comparison between what is

happening or has happenedfrom what is the standard.

PROBLEM-SOLVING ANDDECISION-MAKING ROLE

Find out the reasons why results arebelow standards and correct andbring results up to expectations.


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PLANNING AND CONTROL

In what way are controls lined toplans?

Controls are actually goals that havebeen sharpened to male themmore detailed and specific.


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CONTROL STANDARDS

a.k.a. standard, is a specific

performance goal that a product, a

service, a machine, an individual, oran organization is expected to meet.

TOLERANCE

- a little leeway from standard, fallingwithin a specified boundary.


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CONTROL STANDARDS

Where do control standards come

from? Who sets them?

ORGANIZATIONAL DEPARTMENTS

-Staff specialists in large organziations

-Supervisors in small organizations


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CONTROL STANDARDS

SOURCES:

Past performances

Historical recordsHigh hopes

Used in the absence of any other basis

Systematic analysis

Entails analysis, careful observation andmeasurement, as with time studies,thus the best standards are set.


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THE CONTROL PROCESS

1. Set performance standards

2. Collect data to measureperformance

3. Compare results with

standards

4. Take corrective action


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THE CONTROL PROCESS

Where, in the process, are controls

applied?

Three Distinct Types of ControlOpportunities:

1. Preventive controls

2. Concurrent controls

3. Corrective controls


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THE CONTROL PROCESS

What extent is control automatic?

Computer-driven control

systems minimizing the

human element.


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CONTROL TARGETS

What specific kinds of organizational controlsare most likely to aid or restrict supervisoryactions?

1. Output controls

2. Quality controls

3. Time controls

4. Material controls

5. Cost controls6. Employee performance controls

7. Budgetary controls


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CONTROL TARGETS

Management by exception

Is a form of delegation in which thesupervisor lets things run as they are as

long as they fall within prescribed limits

of performance. When they get out ofline, the supervisor steps in and takes

corrective actions.


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HANDLING EMPLOYEE

RESISTANCE The human element in the control process:

How important is it?

The most critical element, and the followingare especially sensitive areas of performance

evaluation relating to:

Attendance

Speed and care in feeding or servicing automaticoperations

Relationships with other departments with

customers or client organizations.


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HANDLING EMPLOYEE

RESISTANCEHow can you soften employee resistance to controls?

Sample positive approaches:

1. Emphasize the value of controls to employees;

2. Avoid arbitrary or punitive standards;

3. Be specific: use numbers if possible;

4. Aim for improvement rather than punishment;

5. Make the penalty for nonconformance absolutelyclear;

6. Avoid threats that you cant or wont back up; and

7. Be consistent in the application of controls.


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HANDLING EMPLOYEE

RESISTANCE Encouraging self-control According to Douglas MacGregor, many

people need only to be given the targetsfor their workthe standards. After thatthey wish to be left alone and to be judgedon the basis of their results in meeting or

not meeting these targets. Manyemployees will provide their own controland do not need a supervisor to threatenthem into meeting standards.


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MANAGEMENT BY

OBJECTIVES (MBO) Is planning and control process that providesmanagers at each organizational control pointwith a set of goals, or standards, to be attained.

PRESUMPTIONS: If all supervisors reach their goals, the organization

will also reach its goals.

The supervisors have been given enough freedom ofaction to meet these goals with the allocatedresources.

The goals in MBO are jointly set by the boss andthe subordinates, with the subordinate taking theleading role.


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CHAPTER 6ManagingInformation and Solving

Problems

Resty L. Picardo, RN, MAN,LLB


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Learning Objectives

Recognize and define a problem or a potential problem.

List eight steps in problem solving and decision making that lead tothe removal of a problems cause.

Discuss the rational and intuitive approaches to decision makingand explain cost-benefit analysis, decision trees, and ABC analysis.

Describe a management information system and differentiatebetween data and information.

Understand how supervisors can create their own departmentalinformation system.

Discuss the impact of computerized information handling systemsupon employees and suggest

ways to alleviate the stress associated with systematization.


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PROBLEMS: CAUSE AND

EFFECT PROBLEM Is a puzzle looking for an answer. A

disturbance or unsettled matter that demands

a solution if the organization is to function

productively.

Solutions to a problem can only be derived:

After an extensive review of relevant information Application of considerable thought and skill


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PROBLEMS: CAUSE AND

EFFECT Classification of problems: Problems that have already occurred or are

occurring now

Identified problems that lie ahead

Problems that you want to detect and forestall

What causes a problem? CHANGE

How can you recognize a problem or a

potential problem? GAPS/VARIANCE


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SYSTEMATIC PROBLEM

SOLVING How to solve? Remove the cause, or

will cause, a gap between the

expected and the actual. What is the connection between

problem-solving and decision-

making?


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THE PROBLEM-SOLVING

PROCESS1. State the problem clearly2. Collect relevant information

3. List possible causes

4. Select the most likely cause5. Suggest alternative solutions

6. Evaluate alternatives

7. Choose one solution

8. Plan for implementation

Problem finding

Decision making

P

R

O

B

L

E

M

S

O

L

V

I

N

G


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DECISION MAKING:

RATIONAL AND INTUITIVE The need for decision arises wheneverthere is more than one way of doingthings.

Hunches and intuition plays a role also indecision-making

Mathematical decision making

Refers to the use of certain mathematical,statistical, or quantitative techniques to aid thedecision maker.


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DECISION MAKING:

RATIONAL AND INTUITIVEDecision Tree

- Is essentially a graphic portrait of

steps 5 and 6 of the problem solvingprocess. It shows how each

alternative solution forks into various

possibilities.


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DECISION TREE SAMPLEA1 Enforces strict discipline; A2 uses constructive encouragement; A3 uses both.

A1

A2

A3

Responds only to discipline

Responds only to encouragement

Responds to both



Responds to both



Responds to both

Great improvement

Very little improvement

Moderate improvement


Great improvement




Great improvement


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DECISION MAKING:

RATIONAL AND INTUITIVECost-benefit analysis- A technique for weighing the pros and cons of alternative

courses of action especially in nonprofit organizations inwhich both the intangible benefits of the actions and its

costs are assigned dollar values.- Similar to input-output analysis, an attempt to make surethat the cost and effort expended in carrying out adecision will at least be balanced by its outputs orresults.

- Output > Inputs = Profits in business

- Output > Inputs = Surplus in nonprofit organizations


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DECISION MAKING:

RATIONAL AND INTUITIVEDecisions based on intuition- Intuition often adds a valuable dimension

by calling on some inner sense we dontclearly understand. Best decisions come

from a combinatin of intuition and hunch.

Programmed decision

- Decisions that are spelled out in advance

by a standard procedure or policy.


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DECISION MAKING:

RATIONAL AND INTUITIVEGuide to making an effective decision:1. Pick your spots.

- Try to make decisions only where the potential forpayoff is great. Use ABC Analysis.

- 20/80 SYNDROME 20% of your problems willaccount for 80% of your losses or profits. Then toturn the idea, 80% of your problems will account foronly 20% of your losses or profits.

2. Maintain your perspective.- Dont reach too high. Dont set your objectives at

the very top; allow some room for mistakes.

- Always prepare a fallback position, a way to alterplans and attain at least part of the objective.


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ABC ANALYSIS

A vital few problems of opportunities for action account for the greatestloss or greatest gain. A the vital few; C inconsequential many;and B all that fall somewhere in between A and C items.

C A

B B

A C

Relative

number of problems

Relative

importance of problems

FEW

MANY

VERY

IMPORTANT

SLIGHTLY

IMPORTANT


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INFORMATION AS A RAW

MATERIAL Information is the substance withwhich problems are solved and

decisions are made. RULE: The more critical and lasting

the effect of a decision, the more you

can afford to look for the last scrap ofvital information.


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INFORMATION AS A RAW

MATERIAL Management Information System (MIS) a plain oldaccounting, but with a much broader base and electronictwist and it provides an information basis for allmanagement decisions.

Its ultimate objective is to tie together all a companyspast and present data into a great big library (data bank)with instant electronic recall.

Data described as merely facts and figures that, untilprocessed, bear little relation to decision-making.

Information is data that has been processed forspecific use by managers and supervisors in decisionmaking related to planning, organizing, staffing,directing, and controlling.


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AN MIS OF YOUR OWN

Supervisors become involved in

computer operations in two basic

ways:End user of computer output

information.

Prime source of inputs.Note: Supervisors can design their own

management information systems.


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BASIC COMPONENTS OF A

MISInternal

InformationSystem

ExternalInformation

System

Primary

information

Secondary

information

Decision

making

Plans

GoalsActions

Control

Standards

Corrective

action

Results

Control

Comparisons

Information

needed for decision

Change

information

requirements

Primary data is new information that is collected and analyzed for specific purpose of

running a particular operation.

Secondary data is any useful information previously collected and published by

trade associations, business magazines, the government or any other source outside

the department.


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KEEPING THE SYSTEM

HUMAN Effects: Systematization reduces job tensions and conflicts by

making things more orderly.

Systematization creates job dissatisfaction because itrequires that individuals fit their work into a rigidlyprescribed format.

Systematization tends to make work monotonousbecause it reduces the opportunity to be creative.

Systematization depersonalizes work; people servethe machine more than the machine serves people.


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KEEPING THE SYSTEM

HUMAN What can be done to make employees moreadaptable to the MIS process, electronic dataprocessing, and computers in general?

Try to reduce tension by allowing employees to bringtheir irritations into the open.

Acknowledge that its only normal to be fearful of whatthe computer may do to jobs and job security.

Focus your attention on trying to make sure that

people are assigned to the work they do best and likebest.

Control and Managing Information

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