lecture 8 sme
TRANSCRIPT
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Lecture 8: Planning,Organizing & ControlChapter 10 & 12
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Circular Nature of
Organizational Planning
Setting Goals
Defining SkillNeeds
Filtering SkillNeeds
EvaluatingPerformance
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Line and Staff Line authority the right to lead. Do it and do it
now.
Staff authority the right to solve problems. Youought to do it in this way because its the bestway.
The Line Organization every job holder reports
to a single boss; no one has staff function.
The Functional Organization a job holder mayreport to two or more bosses.
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Delegate the authority To get the work done
To allow key employees to take initiative
To keep things going in the entrepreneursabsence
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TQM The pursuit of excellence
Quality what does it mean?
Quality is excellence that is better than a minimum standard.It is conformance to standards and fitness of purpose
ISO 9000:2000 definition of quality- It is the degree to which a set ofinherent characteristics fulfills requirements.
Quality is fitness for useof the product Joseph Juran.
Quality is also defined as excellence in the product or service thatfulfills or exceeds the expectations of the customer.
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Quality is the qualifier
Doing it right first time and all the time. Thisboosts Customer satisfaction immensely and
increases efficiency of the Business operations.
Clearing the bar (ie. Specification or Standardstipulated) Excellence that is better than aminimum standard.
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TQM six basic Concepts
Management commitment to TQM principles and methods& long term Quality plans for the Organisation
Focus on customers
internal & external
Quality at all levels of the work force.
Continuous improvement of the production/business
process. Treating suppliers as partners
Establish performance measures for the processes.
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TQM Myths TQM is only for large businesses
TQM is used by only manufacturers
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4 Stages of Growth Pre birth
Acceptance
Break through
Maturity
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A blueprint of the actionsnecessary to reach the desired
goal.
Goal A desired future state that the
organization wants to achieve.
Plan What do we want?
How do we get there?
Goals and Plans
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The shift from informal planning
to formal planning
Random Planning
Reactive decision making
Isolated decision making
Subjective decision making
Guessing results
Systematic Planning
Proactive decision making
Team decision making
Objective decision making
Analyzing possibleoutcomes
From: To:
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MBO
Management by Objectives (MBO)
A structured process of regular communication.
Supervisor/team leader and workers jointly set
performance objectives.
Supervisor/team leader and workers jointly review
results.
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How does management by objectives
operate?
MBO involves a formal agreement
specifying
Workers performance objectives for a
specific time period.
Plans through which performance objectives
will be accomplished.
Standards for measuring accomplishment of
performance objectives .
Procedures for reviewing performance
results.
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The MBO process:
Supervisor and workers jointly set objectives, establishstandards, and choose actions.
Workers act individually to perform tasks; supervisorsact individually to provide necessary support.
Supervisor and workers jointly review results, discussimplications, and renew the MBO cycle.
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MBO Benefits and Problems
Benefits of MBO Problems with MBO
1. Manager and employee efforts
are focused on activities that
will lead to goal attainment.
2. Performance can be improved
at all company levels.
3. Employees are motivated
4. Departmental and individual
goals are aligned with company
goals.
1. Constant change prevents MBO
from taking hold.
2. An environment of poor employer-employee relations reduces MBO
effectiveness.
3. Strategic goals may be displaced by
operational goals.
4. Mechanistic organizations and
values that discourage participation
can harm the MBO process.
5. Too much paperwork saps MBO
energy.
Pl i
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PlanningPlan
Plans communicate goals to employees to coordinate functions such as salesand production. Financial plans are often expressed in the form of budgets (i.e.,
profit, cash, production budgets)
Action taken toImplement plan
C t l
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ControlPlan
Performance reports compare actual with planned (budgeted) performance.Management by exception is used meaning that only significant deviations are
investigated
Action taken to
Implement plan
Results
Comparison ofplanned and actual
results
Evaluation