3.5-7 Control

Midterm 2

Control Process

set standard, measure actual performance, compare with standard, identify deviations, analyze deviations, take corrective action

Characteristics of service provision

1. Customers participate

2. Services are consumed immediately.

3. Services are provided where and when the customer desires.

4. Services tend to be labor intensive

5. Services are intangible

Quality in service provision

Reliability (most important)

Assurance

Tangibles

Empathy

Responsiveness

Planning/Control tools

PERT Networks- network diagram that allows project managers to create project schedules. theres a formula too

Gantt Chart- series of horizontal lines that illustrates the work completed a period of time in relation to the time planned for the work.

Types of control

1) feedforward control(inputs): monitoring inputs, anticipating and preventing problems

2) concurrent control(Productive processes & activities): monitoring processes, adjusting ongoing activities.

3) feedback control(outputs): monitoring products, learning from past mistakes

Methods of control

1) Bureaucratic (rules)

2) objective(measures)

3) normative (values & believes)

4) concertive (shaped by groups)

5) self- control/self management (managers and workers control their own behavior)

Budgets, perf. reports, variance analysis

budget- most widely used control device

baker budget

Balanced scorecard

encourages manager to look beyond such traditional financial measures to four different perspective on company performance.

1. How do customers see us? (customer perspective)

2. At what must we excel (internal perspective)

3. Can we continue to improve and create value (innovation and learning perspective)

4. How do we look to shareholders? ( financial perspective)

Components of Economic Value Added

the amount by which company profits (revenues - expenses -taxes) exceed the cost of capital in a given year; not the same thing as profits