Negotiation and Fundamentals of Control

8/10/2019 Negotiation and Fundamentals of Control

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NEGOTIATION &

FUNDAMENTALS OF CONTROL



NEGOTIATION

• The process of making joint decisions when

the parties involved have different

preferences.



“INS” & “OUTS” OF NEGOTIATING

SALARIES

• Prepare, prepare, prepare.

• Document and communicate.

•

Identify critical skills and attributes.• Advocate and ask.

• Stay focused on the goal.

• View things from the other side.• Don’t overreact to bad news – don’t “quit on

the spot”



NEGOTIATION GOALS & APPROACHES

• Substance Goals – negotiations that are

concerned with outcomes.



NEGOTITATION GOALS &

APPROACHES

• Relationship Goals – negotiations that are

concerned about process and ways people

work together.



EFFECTIVE NEGOTIATION

• Effective Negotiation – resolves issues of

substance while maintaining a positive

process.

1. Quality – negotiating that is satisfactory to

both sides.

2. Cost – efficient, using minimum resources

and time.

3. Harmony – fosters interpersonal

relationships.




APPROACHES

• Distributive Negotiation – focus on win-lose

claims maid by each party for certain

preferred outcomes.




APPROACHES

• Principled Negotiation and Integrative

Negotiation – uses a win-win orientation to

reach solutions acceptable to each party.



BARGAINING ZONES

• The space between one party’s minimumreservation point and the other party’s maximum reservation point.



NEGOTIATION PITFALLS

• Myth of Fixed Pie

• Involves win-lose assumption where one party

has to give something else.

• Escalation of Conflict

• The negotiator is committed to previously

stated “demands” and allows “ego” and

“saving face” to increase the perceived

importance of satisfying them.



NEGOTIATION PITFALLS

• Overconfidence and ignoring the other’s

needs.

• Too much “telling” and too little “hearing”

• Cultural miscues – the person is quick to

assume they understood the intentions,

positions and meaning being communicated

by a negotiator from a different culture.

• Unethical Behavior



FUNDAMENTALS OF CONTROL

• Keeping in touch…staying informed…being in

control.

• These are important responsibilities for every

manager.

• But “control” is like “power”.

• If you are not careful when and how the world

is used.

• It leaves a negative perception.



CONTROLLING

• The process of measuring performance and

taking action to ensure desired result.

ORGANIZING

To create structures

LEADING

To inspire efforts

PLANNING

To set direction

CONTROLLINGTo ensure results

• Measure Performance

• Take corrective action



TYPES OF CONTROLS

• Feedforward Controls – ensuring that

directions and resources are right before the

work began.

• Concurrent Controls – focuses on what

happens during the work process.

• Feedback Controls – takes place after an

action is completed.



FEEDFORWARD

CONTROL

Ensure the right

directions are set and the

right resource inputs areavailable.

CONCURRENT

CONTROL

Ensure the right things

are being done as part ofthe workflow operations.

FEEDBACK

CONTROL

Ensure the final results

are up to desired

standards.

Solve problems

before they

occur

Solve problems

while they occur

Solve problems

after they occur



INTERNAL & EXTERNAL CONTROL

• Self-Control

• Is internal control that occurs through self

discipline in fulfilling work and personaL

responsibilities.




• Bureaucratic Control

• Influence behavior through authority, policies,procedures, job descriptions, budgets, andday-to-day supervision.




• Clan Control

• Influence behavior through norms and

expectations set by the organizational culture.




• Market Control

• Essentially the influence of market

competition on the behavior of organizations

and their members.



THE CONTROL PROCESS

THE

CONTROL

PROCESS

STEP 1:

Establish Objectives and

Standards

STEP 3:

Compare Results with

Objectives and

Standards

STEP 2:

Measure

Performance

Results

STEP 4:

Take

Corrective

Action



STEP 1: Establish Objectives and

Standards

•

OUTPUT STANDARDS• Measures performance results in terms of

quantity, quality, cost or time.

•INPUT STANDARDS

• Measures work efforts that go into a

performance task.



STEP 2: Measure Performance Results

• This is the point where output standards and

input standards are used to carefully

document results.

• Measurements tools that are used to measure

varies by company, market, organization and

product.

• Measurements must be accurate enough to

spot significant difference between what is

taking place vs. what is planned.



STEP 3: Compare Results with

Objectives and Standards

• Control Equations• Need for action = Desired Performance –

Actual Performance.

• Engineering Comparisons

• Historical Comparisons

• Relative Comparisons



STEP 4: Take Corrective Action

• Management by Exception

• Focuses attention on substantial difference

between actual and desired performance.



CONTROL TOOLS & TECHNIQUES



EMPLOYEE DISCIPLINE SYSTEMS

• Discipline – the act of influencing behavior

through reprimand.

• Progressive Discipline – ties reprimands to the

severity and frequency of misbehavior.



“HOT STOVE RULES” OF EMPLOYEE

DISCIPLINE

• A reprimand should be immediate.

• A reprimand should be directed towards

someone’s actions.

• A reprimand should be consistent.

• A reprimand should be informative.

•

A reprimand should occur in a supportivesetting.

• A reprimand should support realistic rules



PROJECT MANAGEMENT AND

CONTROL

• Project – one time activities with many

component tasks that must be completed in

proper order and according to budget.

• Project Management – makes sure that

activities required to complete a project are

planned well and accomplished on time.





CRM/PERT TECHNIQUES

• A combination of the critical path method and

the program evaluation and review technique.



FINANCIAL CONTROL

• Balance Sheet (Assets = Liabilities + Equity)

• Income Statements (Revenue – Expenses)

•

Financial Ratios – Liquidity – measures short term obligations

– Leverage – measures use of debt

– Asset Management – measures asset and

inventory efficiency

– Profitability – measures ability to earn revenue

greater than cost.



BALANCE SCORE CARD

• Tallies organization performance in financial,

customer service, internal process and

innovation and learning areas.

• Financial Performance

• Customer Satisfaction

• Internal Process Improvement

• Innovative and Learning



OPERATIONS MANAGEMENT AND

CONTROL

• Operations Management – the process of

managing productive systems that transform

resources into finished products.

• Manufacturing Organization – produce

physical goods.

• Service Organization – produce nonphysical

outputs in the form of services.



PRODUCTIVITY

• The efficiency with which

inputs are transformed intooutputs.

• Productivity = Output/Input



COMPETITIVE ADVANTAGE

• The ability to outperform one’s competitor’s

due to a core competency that is difficult to

copy or imitate.



TECHNOLOGY

• The combination of knowledge, skills,

equipment, and work methods used to

transform inputs into outputs.



MANUFACTURING TECHNOLOGY

• Mass Production

• Manufactures a large number of uniform

products with an assemble-line system.




• Small Batch Production

• Manufactures a variety of products crafted to

fit customer specifications.




• Continuous Process Production

• Raw materials are continuously transformed

by an automated system.



TRENDS IN MANUFACTURING

TECHNOLOGY

• Robotics

•

Mass Customization• Cellular Layouts

• Computer Integrated Manufacturing (CIM)

• Lean Production

• Design for disassembly

• Remanufacturing



SERVICE TECHNOLOGY

• Service Profit Chain

• Consists of all activities involved in the directlink between an organization's service

providers and customers or clients.

• Intensive Technology• Focuses the efforts and talents of many

people to serve clients.



SERVICE TECHNOLOGY

• Mediating Technology• Links people together in a beneficial exchange

of values.

• Long-linked Technology• Client moves from point to point during

service delivery.



VALUE CHAIN MANAGEMENT

• Value Creation

• Occurs when the result of a work task or

activity makes a product or service worth

more in terms of potential customer appeal

than at the start.



VALUE CHAIN MANAGEMENT

• Value Chain

• Specific sequence of activities that creates

products and services with value forcustomers.



SUPPLY CHAIN MANAGEMENT

• Strategically links operations dealing with

resource supplies.



INVENTORY MANAGEMENT

• Inventory – an amount of materials or

products kept in storage.




• Economic Order Quantity – orders

replacements whenever inventory level falls to

a predetermined point.




• Just-in-Time Systems – minimize inventory by

sending out materials to workstations “just in

time” to be used.



BREAK EVEN ANALYSIS

• Calculates the point at which revenues covercosts under different “what if” conditions.

• Breakeven Point is Revenues = Costs.

CUSTOMER RELATIONSHIP



CUSTOMER RELATIONSHIP

MANAGEMENT

• Strategically tries to build lasting relationships

with and to add value to customers.



INTERNAL & EXTERNAL CUSTOMERS



QUALITY MANAGEMENT

• ISO CERTIFICATION

• Indicates conformance with a rigorous set of

international quality standards.



QUALITY MANAGEMENT

• TOTAL QUALITY MANAGEMENT

• Managing with an organization-wide

commitment to continuous improvement,

product quality, and customer needs.



QUALITY MANAGEMENT

• CONTINOUS IMPROVEMENT

• Involves always searching for new ways to

improve work quality and performance.



STATISTICAL QUALITY CONTROL

• SIX SIGMA PROGRAM

• Quality standard of 3.4 defects or less per

million products or service deliveries.




• STATISTICAL QUALITY CONTROL

• Measures work samples for compliance with

quality standards.




• CONTROL CHARDS

• Graphically plot trends against control limits.



PROCESS REENGINEERING

• Systematically analyzes work processes to

design new and better ones.



WORK PROCESS

• Related to a group of tasks that together create avalue for the customer.

• Workflow – the movement of work from onepoint to another in a system.



PROCESS VALUE ANALYSIS

• Identifies and evaluates core processes for

their performance contributions.



STEPS IN PROCESS VALUE ANALYSIS

1. Identify the core processes.

2. Map the core processes with respect toworkflows.

3. Evaluate all core process tasks.4. Search for ways to eliminate unnecessary tasks

or work.

5. Search for ways to eliminate delays, errors, andmisunderstandings.

6. Search for efficiencies in how work is shared andtransferred among people and departments.



FIN LS EX MIN TION POINTERS

• Matching Type 20 items

•

Identification 20 items

• True False 20 items

•Multiple Choice 20 items

• Total: 80 items



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Negotiation and Fundamentals of Control