Chapter 11 team b
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This document provides an overview of management decision making and control. It defines the decision making process and discusses factors that affect it such as culture. It also examines total quality management and different types of control including direct, indirect, internal and external controls. Finally, it discusses performance as a control mechanism and provides examples of financial, quality and personnel performance measures.
Chapter 11 team b
- 1. Chapter 11: Management Decision and Control Sarah Stanley, Marco Pasquinelli, Taylor Minter
- 2. Objectives Define and explore the decision making process Examine factors that affect the DM process Explore total quality management Discuss aspects of control and performance
- 3. Agenda Define the decision making process Review factors the affect DM Discuss total quality management Learn about the different types of control Examine the case study Look at different kinds of performance
- 4. Decision Making (DM) What is decision making? The process of choosing a course of action among other alternatives Quiz
- 5. Nine Stages of Decision Making Video
- 6. Factors Affecting Decision Making? How would centralized decision making differ decentralized decision making? For centralized major decisions put up to higher staff so CEO or managers would have to approve or think of the alternative choices, slower response to problem, slower realization of problem Decentralized the whole staff helps make decisions- more alternatives, quicker response time, identify problem faster
- 7. Cultural Aspects Affecting DM Different perceptions of situations and problems Long-term view vs. short-term view Power distance between managers and workers- codetermination in Germany Consensus decision making Tatemae vs. honne and “playing out the game” Time as a cultural factor- quick response vs. thorough response
- 8. Total Quality Management (TQM) An organizational strategy and the accompanying techniques that result in the delivery of high-quality products or services to customers What is an example of an MNC that would use TQM? Automakers IBM
- 9. Total Quality Management (TQM) Characteristics of TQM Employee empowerment- giving individuals or teams the resources, information, and authority they need to develop ideas and effectively implement them Rewards and recognition- what has to be kept in mind here? Kaizen- continuous improvement and training
- 10. DM and Competition How are DM and competition interlinked? Examples: GM BMW Intel
- 11. Controlling What is controlling in a business setting? Process of evaluating results in relation to plans or objectives and deciding what action if any to take
- 12. Types of Control Internal and external Internal- focus on what you do best Focus on self, function, one’s own group or organization Don’t like a changeable environment Dominate and aggressive attitude External- what the customers want Flexible, willing to compromise Harmony, responsiveness, sensibility Comfortable with change Which cultures would be more likely to focus on external controls?
- 13. Types of Control Direct control The use of face-to-face or personal meetings for the purpose of monitoring operations Visits by top executives to subsidiaries Way staff is chosen for overseas management Organizational structure highly responsive to home office requests
- 14. Types of Control Indirect control The use of reports and other written forms of communication to control operations Monthly operating reports Financial statements Which cultures consider direct controls to more important than indirect controls?
- 15. Case Study What are the risks Microsoft took in operating in China, and are these risks also in other developing areas? What approaches did Microsoft take to manage its political risks in China? Which techniques were favored and which worked best? What should they do going forward? Microsoft had to deal with lower levels of government. What types of challenges and opportunities did this present? Do other firms have the same risk management options as Microsoft? Why or why not?
- 16. Performance: A Control Mechanism Three common performance measures are: Financial Quality Personnel
- 17. Financial Performance Based on profit and return on investment Profit is amount remaining after expenses deducted from revenue Return on investment is measured by profit/assets Taxes and currency value need to be considered as well
- 18. Quality Performance Quality control circles-group of workers who meet on a regular basis to discuss ways of improving the quality of work Activity Time!!!
- 19. Personnel Performance Appraisal of work performance Reward system Assessment center- an evaluation tool used to identify individuals with the potential to be selected or promoted to higher level positions Video