24
Introduction to Controlling By Ahmed M. Adel Ahmed ElMasry Haytham Nadim Hazem Saied

Introduction to controlling

Embed Size (px)

DESCRIPTION

A process of monitoring performance and taking action to ensure desired results.

Citation preview

Page 1: Introduction to controlling

Introduction to Controlling

By Ahmed M. Adel

Ahmed ElMasryHaytham Nadim

Hazem Saied

Page 2: Introduction to controlling

“Do not let circumstances control you. You change your circumstances”

Jackie Chan

Page 3: Introduction to controlling

IS A LEADING TELECOMMUNICATION SOLUTION PROVIDER THAT OFFERS A WIDE-SET OF TURNKEY SOLUTIONS TO MEET THE ONGOING DEMANDS OF FIXED AND WIRELESS OPERATORS IN THE MIDDLE EAST AND AFRICA. WITH REGIONAL PRESENCE IN MOST OF MEA COUNTRIES, ALKAN CIT HAS ALWAYS BEEN ABLE TO SUPPORT ITS CLIENTS’ BUSINESSES NEEDS, HAND-TO-HAND STARTING FROM PLANNING AND RIGHT THROUGH DELIVERY AND OPERATIONS. OUR PORTFOLIO COMPRISES SATELLITE BROADBAND

SERVICES, OSS A process of monitoring performance and taking action to ensure desired results./BSS SOLUTIONS, NETWORK INFRASTRUCTURE & SECURITY, FIBER OPTICS NETWORKING, GIS SOLUTIONS AND GSM/CDMA SPECIALIZED SERVICES INCLUDING NETWORK PLANNING & ROLLOUT, TOWER PRODUCTION, INSTALLATION & COMMISSIONING AS WELL AS OPERATION & MAINTENANCE. IN OUR EFFORTS TO SUPPORT THE RAPID REGIONAL EXPANSION IN GSM/ CDMA SECTOR ALKAN TOWER FACTORY (ATF) WAS ESTABLISHED TO PROVIDE A COMPREHENSIVE RANGE OF PREMIUM-QUALITY SELF SUPPORTING AND GUYED TOWERS THAT ENSURES OPTIMAL COVERAGE OVER THE MOST DEMANDING ENVIRONMENTS AND TOUGHEST TERRAINS. TOWER PRODUCTION SERVICES ARE COMPLEMENTED WITH NETWORK ROLLOUT IN ADDITION TO OPERATION & MAINTENANCE SERVICES IN ORDER TO

GUARANTEE SUSTAINABILITY AND ONGOING SUCCESS.

Question 1: WHAT!

Controlling

It helps ensure that objectives and accomplishments are consistent with one another throughout an organization

It helps maintain compliance with essential organizational rules and policies.

The value of control can be seen in three specific areas:

Question 2: WHY!

Page 4: Introduction to controlling

“One bad move nullifies forty good ones.”

I.A. Horowitz

WHY Controlling: The simple answer; Because:

Page 5: Introduction to controlling

PLANNING

Stating the goals or employees accept that goals doesn’t guarantee that the necessary actions to accomplish the goal has been taken.

Controlling is very important since it ensures that the work flow is going according to the plan set before.

“A PLAN IS MADE FOR A FEW MOVES ONLY, NOT FOR THE WHOLE GAME.”

RUEBEN Fine

Page 6: Introduction to controlling

EMPLOYEE EMPOWERMENT

Many managers are reluctant to empower their employees because they fear something will go wrong for which they will be held responsible.

But an effective control system can provide information and feedback on employee performance and minimize the chance of potential problem.

“TACTICS FLOW FROM A SUPERIOR POSITION.”

Bobby Fischer

Page 7: Introduction to controlling

PROTECTING THE WORKPLACE

Today's environment brings heightened threats from natural disaster, financial scandals, workplace violence, supply chain disruptions, security breaches and even possible terrorist attack.

Managers must protect organizational assets in the event that any of these happen.

“TO PROTECT THE SHEEP YOU GOTTA CATCH THE WOLF, AND IT TAKES A WOLF TO CATCH A WOLF.” Alonzo Harris

Page 8: Introduction to controlling

HOW TO CONTROL!?

Page 9: Introduction to controlling

IS A LEADING TELECOMMUNICATION SOLUTION PROVIDER THAT OFFERS A WIDE-SET OF TURNKEY SOLUTIONS TO MEET THE ONGOING DEMANDS OF FIXED AND WIRELESS OPERATORS IN THE MIDDLE EAST AND AFRICA. WITH REGIONAL PRESENCE IN MOST OF MEA COUNTRIES, ALKAN CIT HAS ALWAYS BEEN ABLE TO SUPPORT ITS CLIENTS’ BUSINESSES NEEDS, HAND-TO-HAND STARTING FROM PLANNING AND RIGHT THROUGH DELIVERY AND OPERATIONS. OUR PORTFOLIO COMPRISES SATELLITE BROADBAND

SERVICES, OSS To determine what actual performance is, a manager must get information about it.Without measurement, effective control is not possible.Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.(ATF) WAS ESTABLISHED TO PROVIDE A COMPREHENSIVE RANGE OF PREMIUM-QUALITY SELF SUPPORTING AND GUYED TOWERS THAT ENSURES OPTIMAL COVERAGE OVER THE MOST DEMANDING ENVIRONMENTS AND TOUGHEST TERRAINS. TOWER PRODUCTION SERVICES ARE COMPLEMENTED WITH NETWORK ROLLOUT IN ADDITION TO OPERATION & MAINTENANCE SERVICES IN ORDER TO GUARANTEE SUSTAINABILITY AND ONGOING SUCCESS

First to do: MEASURING!

The Process

This is even more important than how it is measured because selecting the wrong criteria can create serious problems.

Question 1: WHAT we Measure!

Using personal observations, statistical reports, oral reports, and written reports

Question 2: HOW we Measure!

"MEASUREMENT IS THE FIRST STEP THAT LEADS TO CONTROL AND EVENTUALLY TO IMPROVEMENT. IF YOU CAN'T MEASURE SOMETHING, YOU CAN'T UNDERSTAND IT. IF YOU CAN'T UNDERSTAND IT, YOU CAN'T CONTROL IT. IF YOU CAN'T CONTROL IT, YOU CAN'T IMPROVE IT." H. James Harrington

Page 10: Introduction to controlling

MEASURING

GOALS & OBJECTIVES

1- Measuring Actual

Performance

Comparing Actual

Performance against

standard

3- Taking Managerial

Action

Page 11: Introduction to controlling

IS A LEADING TELECOMMUNICATION SOLUTION PROVIDER THAT OFFERS A WIDE-SET OF TURNKEY SOLUTIONS TO MEET THE ONGOING DEMANDS OF FIXED AND WIRELESS OPERATORS IN THE MIDDLE EAST AND AFRICA. WITH REGIONAL PRESENCE IN MOST OF MEA COUNTRIES, ALKAN CIT HAS ALWAYS BEEN ABLE TO SUPPORT ITS CLIENTS’ BUSINESSES NEEDS, HAND-TO-HAND STARTING FROM PLANNING AND RIGHT THROUGH DELIVERY AND OPERATIONS. OUR PORTFOLIO COMPRISES SATELLITE BROADBAND

SERVICES, OSS This step determines the variation between actual performance and a standard(ATF) WAS ESTABLISHED TO PROVIDE A COMPREHENSIVE RANGE OF PREMIUM-QUALITY SELF SUPPORTING AND GUYED TOWERS THAT ENSURES OPTIMAL COVERAGE OVER THE MOST DEMANDING ENVIRONMENTS AND TOUGHEST TERRAINS. TOWER PRODUCTION SERVICES ARE COMPLEMENTED WITH NETWORK ROLLOUT IN ADDITION TO OPERATION & MAINTENANCE SERVICES IN ORDER TO GUARANTEE SUSTAINABILITY AND ONGOING SUCCESS

Second: Comparing

The Process

It's critical to determine an acceptable Range of variance, deviations outside the range need attention

Example: Benchmarking, using historical data

“WINNERS COMPARE THEIR ACHIEVEMENTS WITH THEIR GOALS, WHILE LOSERS COMPARE THEIR ACHIEVEMENTS WITH THOSE OF OTHER PEOPLE.” Nido Qubien

Page 12: Introduction to controlling

Third: Taking Managerial ACTIONS!

The Process

Depending on what the problem is a manager could take different corrective actions

One decision that a manager must take is whether to take immediate corrective action which corrects problems at once to get performance back on track, or to use Basic corrective action which looks at how and why performance deviated before correcting the source of deviation

Effective managers analyze deviations and if the benefits justify it, they take the time to pinpoint and correct the causes of variance.

Correct Actual Performance

In some cases, variance may be a result of an unrealistic standard.

If performance consistently exceeds the goal, the manager should look at whether the goal is too easy and needs to be raised

If you as a manager believe the standards is realistic, fair and achievable , tell employees that you expect future work to improve and then take the necessary corrective action to help make that happen (don’t just blame the goal or the team)

Revise the STANDARD

“THERE ARE TWO TYPES OF SACRIFICES: CORRECT ONES, AND MINE.”

Mikhail Tal

Page 13: Introduction to controlling

CONTROLLING FOR ORGANIZATIONAL PERFORMANCE

Organization performance: is the accumulated result of all the work activities in the organization

Now what we need to know is how to measure organizational performance?

"DON'T LOWER YOUR EXPECTATIONS TO MEET YOUR PERFORMANCE. RAISE YOUR LEVEL OF PERFORMANCE TO MEET YOUR EXPECTATIONS. EXPECT THE BEST OF YOURSELF, AND THEN DO WHAT IS NECESSARY TO MAKE IT A REALITY.”

RALPH MARTSON

Page 14: Introduction to controlling

ORGANIZATIONAL PRODUCTIVITY

Is the amount of goods or services produced by the inputs needed to generate that output

Input is measured by the costs of acquiring and transforming resources for inputs

Output is measured by the sales revenue an organization receives when goods are sold

The easiest way to do this is to raise prices of outputs but the market now a days is very competitive so this option is not valid any more.

Then the only other option is being more efficient in performing work and thus decreases expenses.

Page 15: Introduction to controlling

ORGANIZATIONAL EFFECTIVENESS

Is a measure of the appropriateness of organizational goals and .how well those goals are being met.

Industry and company ranking: For instance Fortune magazine chooses which companies to on

its "best companies to work for“

"ORGANIZATIONAL EFFECTIVENESS DOES NOT LIE IN THAT NARROW MINDED CONCEPT CALLED RATIONALITY. IT LIES IN THE BLEND OF CLEARHEADED LOGIC AND POWERFUL INTUITION.”

HENRY MITZBERG

Page 16: Introduction to controlling

Tools for measuring organizational performance

ORG. Performance I

This way prevents problems before it takes place before the actual activity

Example: the scheduled e preventive maintenance programs on aircraft

This tool requires timely and accurate information that isn’t always easy to get.

Feedforward control

Focus on what happens during the work process. Sometimes called steering controls, they monitor ongoing operations and activities to make sure that things are being done correctly

Concurrent control:

The control takes place after the activity is done The major problem with this type of control that by the time the manager has the Information, the problems have already occurred which lead to waste of time and

money

Feedback control

Page 17: Introduction to controlling

Tools for measuring organizational performance

ORG. Performance II

The main concept is that every business wants to earn profit and to achieve this goal some financial controls need to done quarterly or annually according to the management agreement

Such as: liquidity, leverage, activity, profitability, budgets

Financial control:

It is used to evaluate organizational performance from more than just a financial perspective.

It typically looks at four areas that contribute to a company's performance : finances , customers , internal processes , and people/innovation/growth assets.

Balanced scorecard

Managers need the right information at the right information at the right time and in the right amount to monitor and measure organizational activities and performance

Information controls

Page 18: Introduction to controlling

A MANAGEMENT INFORMATION SYSTEM (MIS)

Is a system used to provide managers with needed information on a regular basis.

This can be done manually or computerized

Page 19: Introduction to controlling

A MANAGEMENT INFORMATION SYSTEM (MIS)

Is a system used to provide managers with needed information on a regular basis.

This can be done manually or computerized

Page 20: Introduction to controlling

Contemporary methods in Controlling!

Page 21: Introduction to controlling

Adjusting control from cultural difference

Contemporary Methods

• The differences are primarily in the measurement and the corrective action steps of the control process.

• Technology impact on control must be taken into consideration when comparing advanced nations with less technologically advanced countries

• Managers in foreign countries must be aware of constraints on corrective actions they make.

• Some countries law prohibits closing facilities, laying off employees, taking money out of the country…etc.

Page 22: Introduction to controlling

The work place concerns

Work Place Concerns

Why do managers need to monitor what employees are doing (computer & phones usage)?

The fact that employees are hired to work not to surf the web, check stock prices, chat, see videos...Etc. which lead to massive cost due to the lost productivity.

Managers don’t want to risk being sued for creating a hostile workplace environment because of offensive messages or inappropriate images on a coworker screen.

Managers want to be sure that employees are not passing information on to others who could use it to harm the company.

Work place privacy

Employee theft is defined as any unauthorized taking if company property by employees for their personal use

85 % of all organizational theft and fraud is committed by employees not outsiders

The concept of feedforward, concurrent and feedback control is useful for identifying measures to reduce employee theft

Work Place Theft

Page 23: Introduction to controlling

The work place concerns

Work Place Concerns

This occurs because employees feel stress due to job uncertainties, declining values of retirement accounts, long hours, information overloaded, unrealistic deadlines and uncaring managers.

Other experts described dangerously dysfunctional work environments are characterized by the following:

Employee work driven by numbers , time and crises Rapid and unpredictable change Destructive communication style Defensive attitude Double standards in terms of policies , procedures and training opportunities Low attempt from managers to encourage emotionally troubled employees Repetitive and boring work with no chance with doing something else Bad environment in terms of temperature, air quality, overcrowded spaces, noise levels and

excessive over time.

Work place Violence

Page 24: Introduction to controlling

Why controlling is important for customer interactions?

Controlling & Customers

The level of employee service productivity and service quality influences customer perception of service values.

When service quality is high, it has a positive impact on customer satisfaction, which leads to customer loyalty. And customer loyalty improves organizational revenue growth and profitability