Business

Administration

Unit 4

Management ResponsibilitiesChapter 14

Implementing & Controlling

Text BookPage 353~Out of ControlControversial Issue 14-1Even if a business is operating effectively

& profitably, should the company’s managers be planning for &

implementing changes?Reasons for YES? Reasons for NO?

MotivationSet of factors that influence

actions towards accomplishing goals–Rewards/punishment encourage

employees to motivate selvesValues

–Praise, money, respect, fun job assignment, day off

MotivationInternal motivation

–Person’s beliefs, feelings & attitudes

External motivation–Rewards & punishments

Movie Time!SID

–Employee motivation

Work TeamsGroup of individuals who co-

operate to achieve a common goal–Members understand & support

purpose• Knowledge & skills to perform

–Committed to groups success

–Communicate well with each other• Resolve problems within group

Text BookPage 357Management Close-Up

–?’s 1-2-3• Check if done

• Review in class

Operations ManagementSystematic direction & control of

processes transforming labor, capital & materials into finished goods–Facilities, equipment, materials &

supplies available–Employees have knowledge & skills–Work done on schedule

Motivation TheoriesMaslow’s

–Hierarchy of needs• Born with needs

• Needs satisfied in order, lowest to highest

MaslowSelf-actualization - - - -Esteem - - - - - - - - - -Social - - - - - - - - -Security - - - - - -Physiological -

MotivationMcClelland

–Achievement Theory

–Influenced strongly by one need:• Need for achievement

• Need for affiliation

• Need for power

McClellandAchievement

– Personal responsibility for work, set goals & need feedback

Affiliation– Relationships– Work hard to get along & fit in

Power– Influence & control others– Responsible for group’s activities

MotivationHerzberg

–Two-Factor Theory• Hygiene Factors

• Motivators

HerzbergHygiene Factor

–Job factors that dissatisfy when missing, but don’t contribute to satisfaction when present• Amount of pay, benefits, working conditions, rules, supervision type

–Company sponsored healthcare doesn’t motivate to do better job, but lack of it causes dissatisfaction

HerzbergMotivators

–Increase job satisfaction• Challenging work, recognition, achievement, accomplishment, increased responsibility & personal development

–Redesign jobs – give more authority & responsibility

InternetGroups of 3-4

– http://www.accel-team.com/human_relations/hrels_05_herzberg.html (1 group)

– http://www.mcclellandmedia.com/psych.html (1 group)

– http://www.accel-team.com/human_relations/hrels_06_mcclelland.html (1 group)

Internet– http://www.accel-team.com/

human_relations/hrels_02_maslow.html (1 group)

– http://www.accel-team.com/maslow_/maslow_nds_02.html (2 groups)• 1st group – Physiological, Safety & Social

• 2nd group – Esteem & Actualization

Present to class

Work BookPage 121

–Controversial Issue~14-2Do you agree with Herzberg’s theory of motivation that the absence of good pay,

benefits, & working conditions can dissatisfy, but the presence of these

factors cannot satisfy them?

Reason for YES? Reasons for NO?

Managing Change

Follow link http://www.npr.org/templates/story/story.ph

p?storyId=101642052

Read article – Merck, Schering To Merge In $41 Billion

Deal• by Wendy Kaufman

Be prepared to discuss

Managing ChangeReengineering, downsizing,

mergers, organizational change–Planning

–Communicating

–Involving

–Educating

–Supporting

PlanningChange needed?

–Gather info, identify, study alternatives & determine consequences of change

CommunicatingKeeping quiet causes:

–Informal communication with limited info, rumors, misinformation

Surprised–Feel misled

Open, two-way communication is best

InvolvingPeople support what they createEmployees are good source of

solutions–Respect input

• All ideas can’t be implemented–Each idea is considered

EducatingTraining programs & info

meetingsDownsizing

–Difficult to implement• Companies offer job training or develop new skills

SupportingAssure employees support is

availableAllow time to adjustFeedback on performanceLess critical of early mistakesLayoffs

– Provide personal & career counseling• Job-seeking skills

StandardsSpecific measure by which

something is judged–Quantity standards

–Quality standards

–Time standards

–Cost standards

Quantity StandardsMinimum # produced# customers visited/called# of pages typed in an hour

Quality StandardsQuality as important as quantity

–Slow, but good or fast, but sloppy?Sample a few products on an

assembly line for qualitySome products/services must all

be perfect–Accounting, car battery

Time StandardsTime it takes to completeStrict time schedules

–Miss – financial loss• Construction, bakery, newspaper

Cost StandardsIncrease profits by

–Decreasing costs OR

–Increasing sales revenueWatch this most carefully

–Accounting Dept. “Controller”

–Budgets used to control• Planning device

VarianceDifference between current

performance & standard–Good = performance exceeds

expectationInvolve employees if low

–Motivate to help solve problem

Controlling CostsInventory

– Too low, lose sales

– Too high, storage & handling costs high• Never sold, money in inventory lost

Just-in-time (JIT) inventory– Small inventories

– Material arrives right before needed

Controlling CostsCredit

–Customers don’t pay – lose money

–Interest payments can be high

–Easy to buy too much on credit1/10th, n30

Controlling CostsTheft

–Employee or customer

–Retail hardest hit• Billions yearly

• Shoplifting = 6% of total sales

FactEmployee theft = over $1 billion a

weekCause of 1/3 of bankruptcies3 out of 10 employees steal95% of companies are ripped off

Controlling CostsHealth & Safety

–Absentee employees• Others cover or work not done

• Pay coveree & absentee

Safety trainingWellness programs

Text BookGroup WorkPages 377-379

–Case 14-1 - ?’s 1-3

–Case 14-2 - ?’s 1 & 2• Check if done

• Review in class

Work BookPages 123-124

–14-A, 14-B, 14-C (1-4 only), 14-D• Check if done

• Review in class

Test TimeThursday March 26, 2009

–Unit test 3 & 4

–Chapters 10, 12 & 14

–Discuss Ideas

End of Chapter 14