EMG WEEK 11 Controlling Function (Part II)

Standard Measurement of Performance

how organizations set benchmarks and determine what “good performance” looks like.

Correcting Deviations

how managers act when results differ from expected standards.

standards

Without ___________ control has no foundation

correction

Without _________, standards become meaningless.

Levels of Standards

1 of 4 Standard Measurement of Performance

Categories of Standards

2 of 4 Standard Measurement of Performance

Criteria of Good Standards

3 of 4 Standard Measurement of Performance

Tools & Techniques for Measurement

4 of 4 Standard Measurement of Performance

Strategic Standards

1 of 3 levels of standards

company-wide goals (e.g., market share growth, net profit margin)

Tactical Standards

2 of 3 levels of standards

departmental objectives (e.g., marketing targets, HR turnover rate).

Operational Standards

3 of 3 levels of standards

day-to-day benchmarks (e.g., call resolution time, defect rate).

Physical Standards

1 of 6 Categories of Standards

quantity, units produced, time per unit. Ex: 100 calls handled per agent per day

Cost Standards

2 of 6 Categories of Standards

budget per unit, overhead ratio. Ex: ₱50 maximum packaging cost per product.

Revenue/Profit Standards

3 of 6 Categories of Standards

sales growth, net margin. Ex: 15% annual revenue growth target.

Time Standards

4 of 6 Categories of Standards

cycle time, lead time, service duration. Ex: Postpaid applications processed within 2 working days.

Quality StandardsBehavioral Standards

5 of 6 Categories of Standards

error rate, compliance, satisfaction level. Ex: 98% network uptime

Behavioral Standards

6 of 6 Categories of Standards

work ethic, safety compliance, teamwork. Ex: 0 tolerance for workplace safety violations

Specific and Measurable

1 of 6 Criteria of Good Standards

avoids ambiguity

Aligned with Objectives

2 of 6 Criteria of Good Standards

connects to organizational mission

Challenging but Attainable

3 of 6 Criteria of Good Standards

motivates performance.

Dynamic

4 of 6 Criteria of Good Standards

adjusts to internal and external changes.

Comprehensive

5 of 6 Criteria of Good Standards

covers cost, quality, speed, innovation, and people.

Visible and Communicated

6 of 6 Criteria of Good Standards

employees must know them clearly.

Key Performance Indicators (KPIs)

1 of 5 Tools & Techniques for Measurement

measurable metrics (e.g., churn rate, Net Promoter Score)

Balanced Scorecard

2 of 5 Tools & Techniques for Measurement

measuring financial, customer, process, and learning perspectives.

Benchmarking

3 of 5 Tools & Techniques for Measurement

comparing with best practices or competitors.

Dashboards & Reports

4 of 5 Tools & Techniques for Measurement

real-time tracking of metrics

Six Sigma Metrics

5 of 5 Tools & Techniques for Measurement

defects per million opportunities, process sigma level.

correct deviations

Once standards are set and actual performance measured, managers must _______

Negative Deviations

1 of 4 Types of Deviations

underperformance (e.g., sales below quota).

Positive Deviations

2 of 4 Types of Deviations

exceeding standards (opportunity to adopt best practices).

Recurring Deviations

3 of 4 Types of Deviations

persistent issues needing systemic solutions

Unexpected Deviations

4 of 4 Types of Deviations

caused by uncontrollable factors (pandemic, disasters).

People-Related

1 of 4 causes of deviations

lack of skills, absenteeism, low motivation

Process-Related

2 of 4 causes of deviations

bottlenecks, outdated methods.

3 of 4 causes of deviations

4 of 4 causes of deviations