Chapter 11 team b

Chapter 11: Management Chapter 11: Management Decision and ControlDecision and ControlSarah Stanley, Marco Pasquinelli, Taylor Minter

ObjectivesObjectivesDefine and explore the decision

making processExamine factors that affect the

DM processExplore total quality

managementDiscuss aspects of control and

performance

AgendaAgendaDefine the decision making processReview factors the affect DMDiscuss total quality managementLearn about the different types of

controlExamine the case studyLook at different kinds of

performance

Decision Making (DM)Decision Making (DM)What is decision making?

The process of choosing a course of action among other alternatives

Quiz

Nine Stages of Decision Nine Stages of Decision MakingMaking

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Factors Affecting Decision Factors Affecting Decision Making?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

Cultural Aspects Affecting Cultural Aspects Affecting DMDMDifferent perceptions of situations

and problemsLong-term view vs. short-term viewPower 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

Total Quality Management Total Quality Management (TQM)(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

Total Quality Management Total Quality Management (TQM)(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

DM and CompetitionDM and CompetitionHow are DM and competition

interlinked?

Examples:◦GM◦BMW◦Intel

ControllingControllingWhat is controlling in a business

setting? ◦Process of evaluating results in

relation to plans or objectives and deciding what action if any to take

Types of ControlTypes of ControlInternal 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?

Types of ControlTypes of ControlDirect 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

Types of ControlTypes of ControlIndirect 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?

Case StudyCase StudyWhat 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?

Performance: A Control Performance: A Control MechanismMechanismThree common performance

measures are: ◦Financial◦Quality◦Personnel

Financial PerformanceFinancial PerformanceBased 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

Quality PerformanceQuality PerformanceQuality control circles-group of

workers who meet on a regular basis to discuss ways of improving the quality of work

Activity Time!!!

Personnel PerformancePersonnel PerformanceAppraisal of work performance Reward systemAssessment center- an

evaluation tool used to identify individuals with the potential to be selected or promoted to higher level positions

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