Session-43

 Session-43

27 Jan 2022

The session focussed on the Balanced Scorecard—a set of measures that provide top executives with a quick yet comprehensive perspective of the firm. Financial measurements are used in the balanced scorecard to show the outcomes of previous activities. It also includes operational indicators of customer satisfaction, internal procedures, and the organization's innovation and improvement initiatives and operational measures on which future financial performance is based. It leads to strategic focus and organizational alignment. 

Purpose of the balanced scorecard-

• Originally a performance measurement tool
• Now a strategic communication and performance measurement framework.

Advantages of the balanced scorecard-

• Helps to achieve strategic progress
• Helps in providing quality with fewer resources
• Helps in tracking progress
• Helps to process changes and bring improvements.

Session 42

 Session 42

25 Jan 2022

Budgetary controls are essential at all levels of management. The purpose of budgets is as follows-

• Help managers coordinate resources and projects.
• Help define the established standards for control.​
• Provide guidelines about resources and expectations.​
• Enable evaluation of the performance of managers and organizational units.​

We understood the purpose of budgetary controls by looking at various types of budgetary controls. These can be broadly divided into 3 groups- financial, operating and non-monetary budget which is further subdivided into various categories.

Next, we moved to structural control. This includes the following-

• Bureaucratic (Centralized) Control​- A form of organizational control characterized by formal and mechanistic structural arrangements.​
• Decentralized control​- An approach to organizational ​control based on informal and ​organic structural arrangements.​
• The Control Choice​- Centralization creates more control and ​coordination, whereas decentralization fosters adaptability and innovation.

Next, we discussed strategic control. Finding multiple methods to implement the strategic plan is what strategic control is characterised as. It is primarily concerned with finding and assisting you in adapting to different factors, including internal or external factors. The primary objective of strategic control is to ensure that organization has an effective balance and alignment with its internal and external environment. This is very important when it comes to moving forward towards achieving strategic goals.

The various types of strategic control are explained with help of the examples below.

Session-40

 Session-40

21 Jan 2022

The session started with a discussion about Zomato, the goal they have set to deliver the food within a given time and how they'll achieve it with help of controlling. 

We discussed a case study about Chipotle Mexican grill and how it began to lose quality as the opening in the branches grew larger and what might the reasons for it be. Chipotle needs to update its standards in order to prevent customers from becoming ill from their products because if they failed to satisfy the criteria, the company's image will be at risk. In order to improve the operations, proper training must be provided to the employees and evaluation of performance should be done regularly. Also, a reward-recognition system might be adopted, to promote employee participation.

Next, we discussed types of operations control. The three types are as follows:

1. Preliminary Control- The resources that the organisation draws in from the environment are the focus of preliminary control, also known as steering control or feedforward control. It tries to keep an eye on the quality and amount of these resources before they join the company.
2. Screening Control- During the transformation process, screening control, also known as yes/no control or concurrent control, focuses on achieving requirements for product or service quality or quantity. Feedback techniques are used to control screening. When quality checks are used to provide feedback to workers who are producing a product, for example, the workers know what, if any, remedial measures they should do.
3. Post-Action Control-After the transformation process is complete, post-action control, also known as feedback control, focuses on the organization's outputs. Although post-action control may not be as successful as preliminary or screening control, it can provide information to management for future planning. Employees may be rewarded on the basis of post-action control.

Moving on to financial control, it refers to the control over financial resources (revenues, shareholder investments) as they move in and out of the organization and are held as working capital and retained earnings by the option. Financial control also includes budgetary include. Budgets are generally used

on a one-year basis and assist managers with resource and project coordination, the establishment of control standards and provide a basis for evaluation.

Session-39

 Session-39

20 Jan 2022

The discussion was about areas of control and levels of control and the controlling process.

There are 4 main areas of control which are as follows

1. Physical Resources-Control includes inventory management, production control, quality control and equipment control.
2. Human Resources- Control includes selection and placement, training and development, performance appraisal and compensation.
3. Information Resources-Control includes sales/marketing forecasting, environmental analysis, public relations, production scheduling and economic forecasting. 
4. Financial Resources-Control involves managing the organization's debt, cash flow and receivables/payables. Control of financial resources may be the most important control of all.

Levels of control include -Strategic control, Structural control, Operations control, Financial control. The procedure that a company utilises to transform resources into products or services is called Operations control. Controlling intermediate-term operations and processes, but not company strategies is what operational control entails. Operational control systems guarantee that actions follow predetermined procedures.​ for example- quality control. Financial control relates to the financial resources of the organisation.  Financial control can be seen in the monitoring of receivables to ensure that consumers pay their invoices on time. ​ Structural control is concerned with how the various components of the organization's structure are performing their functions. Structural control can be seen in the monitoring of the administrative ratio to ensure that personnel spending does not become exorbitant. ​ Strategic control examines how well the organization's corporate, business, and functional strategies are assisting the organisation in achieving its objectives. Strategic control may involve the reassessment of a strategy due to an immediate, unforeseen event. 

Next we understood the steps involved in the controlling process by examining the operations that take place in Taco Bell. The basic steps of a controlling function are described below. 

Session-38

 Session-38

18 Jan 2022

The discussion started with how the control function acts as a feedback system in management. The conventional perception of management control is that it is a feedback system comparable to a home thermostat. Managers can utilise feedback control to assess how effectively their teams met the specified goals at the end of a manufacturing process. The team's progress is assessed via feedback control, which compares the output the team planned to generate with what was actually achieved. We also discussed the product life cycle. A product's life cycle is divided into four stages: introduction, growth, maturity, and decline. Management and marketing professionals utilise this notion to determine when it is appropriate to enhance advertising, lower prices, expand into new areas, or alter the packaging. Product life cycle management is the practice of planning ways to constantly support and sustain a product. Product innovation, improving a firm's longevity, competitiveness, promotion, entering new markets, complimentary items, product branding, advertising, product innovation, and brand extension can all help a company perform better during its mature stage (eg-Maggi, Maggi masala, Maggi sauce etc)

In the controlling process, the manager compares the performance to the standards set. The need to revise standards or take corrective action arises when the standards are not attained or when the level of variance is not within acceptable limits. Hence the manager has to take various decisions in order to achieve specified goals. 

Session-37

 Session-37

17 Jan 2022

The session was about Controlling. Controlling can be defined as that function of management that helps to seek planned results from the subordinates, managers and at all levels of an organization. We understood the concept with the help of an example of FedEx. We discussed how FedEx is able to achieve the most accurate deliveries overnight and how the deviations in performance help in formulating better planning strategies to overcome those problems. The controlling functions provide basic incentives to the organisation such as

• Adapting to environmental change
• Minimising Costs
• Limiting the accumulation of error
• Coping with organisational complexity

We further discussed how controlling becomes the base for planning. Planning and controlling are inter-linked. Planning establishes the organization's objectives, while managing ensures that they are met. The planning process determines the control process, and the controlling process offers a solid foundation for planning.

We also saw some videos on how a merger works and can cause problems between 2 companies due to differences in culture, values, technology, the difference in rules to be followed etc. We saw this with an example of the merger of United Airlines and Continental Airlines as the pilots were struggling to learn new cockpit rules thus affecting the safety in the sky.

Session-35

Session-35

13 Jan 2022

The session was about various theories like Maslow's need hierarchy theory, Alderfer's ERG theory, Expectancy Theory, Herzberg's Motivator- Hygiene Theory, Edwin Locke's Goal-Setting Theory, Equity Theory, Reinforcement Theory of Motivation,

Maslow believed that people are motivated by 5 basic needs-physiological, safety, love, esteem, and self-actualization. A person can't move to a higher level of need without fulfilling the lower one, and only a higher level need can motivate a person to perform better.

According to the ERG theory, there are 3 groups of core needs- Existence (E), Relatedness (R) and Growth (G). According to Alderfer if one category of needs is not fulfilled, people will increase their efforts to fulfil that need.

Herzberg's hygiene-motivation theory is derived from the outcomes of several investigations into job satisfaction and job dissatisfaction. He divided organizational factors into hygiene factors and motivation factors.  The theory proposes that the factors contributing to job satisfaction are motivators and the factors contributing to job dissatisfaction are hygiene elements. Hygiene factors do not themselves increase job satisfaction but it prevents job dissatisfaction. These include- company policy and administration, supervision, working relationships, and status and security. Motivators include achievement, recognition, the satisfaction of the work itself, responsibility and opportunities for advancement and growth.

Expectancy theory was given by Victor Vroom in 1964. It stressed on productivity or outcome rather than needs. It means that an employee’s motivation is an outcome of how much an individual wants a reward (valence), the assessment that the likelihood that the effort will lead to expected performance (expectancy) and the belief that the performance will lead to reward (Instrumentality)

The essence of the Goal-Setting Theory of Motivation is that setting goals would lead to higher performance. Giving challenging goals along with proper feedback helps in improving task performance.

Equity Theory was proposed by John Stacey Adams in 1963. It indicates that people will judge both the rewards and the outputs to determine whether not they are being treated fairly within the workplace or not.