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Successful Organizations and Measures of Achievement.pptx

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DR. AASHISH MEHRA
DR. AASHISH MEHRA

Successful Organizations and Measures of Achievement

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Successful Organizations and Measures of Achievement CUSTOMER SATISFACTION BUSINESSS PROCESS IMPROVEMENTS ORGANIZATIONAL LEARNING FINANCIAL STRENGTH
Balanced Scorecard Performance reporting approach which links organizational strategy to actions of managers and employees Combines financial and operating measures Links performance to rewards Recognizes diversity in organizational goals Financial Strength Customer Satisfaction Business Process Improvement Organizational Learning
Management Control Systems in Service, Government and Nonprofit Organizations Control systems are more difficult to implement and maintain: Outputs are more difficult to measure Quality ratings are less clear Important to properly train and motivate employees to achieve organization's goals and consistent monitoring of objectives in accordance with critical subgoals
Management Control Systems in Service, Government and Nonprofit Organizations Government and nonprofit organizations face further problems: Goals and objectives are less clear Professionals less receptive to control systems Lack of profit measure makes measurements more difficult Less pressure to improve from "owners" Budgeting is more of a bargaining game to acquire additional funding and less of a planning tool Motivations and incentives of organizational employees are often drastically different from for- profit organizations
The Future of Management Control Systems A changing environment requires changes in the management control system Four key factors must be monitored at all times Important factors to keep in mind: Individuals will generally behave in their own self-interest Design systems so that individuals pursuing their own self-interest will also achieve the organization's objectives Best benchmark for evaluating current performance is expected or budgeted performance Nonfinancial performance is just as important as financial performance Periodically review the success of the management control system Learn from your and your competitors' mistakes Responsibility Centres Organizational Goals Organizational Structure Performance Measurement
Operational Financial Controls Budgets Income statements Zero-based budgeting
Qualities of an Effective Control System Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on exceptions Multiple criteria Corrective action
Contingency Factors in Control Size of the organization Operational complexity Degree of decentralization Importance of the activity
Adjusting Controls for Cultural Differences Foreign operators tend to: Be less controlled directly by the home office Have a tendency to formalize controls Generate extensive formal reports Rely on the power of Information Technology

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Successful Organizations and Measures of Achievement.pptx

  • 1. Successful Organizations and Measures of Achievement CUSTOMER SATISFACTION BUSINESSS PROCESS IMPROVEMENTS ORGANIZATIONAL LEARNING FINANCIAL STRENGTH
  • 2. Balanced Scorecard Performance reporting approach which links organizational strategy to actions of managers and employees Combines financial and operating measures Links performance to rewards Recognizes diversity in organizational goals Financial Strength Customer Satisfaction Business Process Improvement Organizational Learning
  • 3. Management Control Systems in Service, Government and Nonprofit Organizations Control systems are more difficult to implement and maintain: Outputs are more difficult to measure Quality ratings are less clear Important to properly train and motivate employees to achieve organization's goals and consistent monitoring of objectives in accordance with critical subgoals
  • 4. Management Control Systems in Service, Government and Nonprofit Organizations Government and nonprofit organizations face further problems: Goals and objectives are less clear Professionals less receptive to control systems Lack of profit measure makes measurements more difficult Less pressure to improve from "owners" Budgeting is more of a bargaining game to acquire additional funding and less of a planning tool Motivations and incentives of organizational employees are often drastically different from for- profit organizations
  • 5. The Future of Management Control Systems A changing environment requires changes in the management control system Four key factors must be monitored at all times Important factors to keep in mind: Individuals will generally behave in their own self-interest Design systems so that individuals pursuing their own self-interest will also achieve the organization's objectives Best benchmark for evaluating current performance is expected or budgeted performance Nonfinancial performance is just as important as financial performance Periodically review the success of the management control system Learn from your and your competitors' mistakes Responsibility Centres Organizational Goals Organizational Structure Performance Measurement
  • 6. Operational Financial Controls Budgets Income statements Zero-based budgeting
  • 7. Qualities of an Effective Control System Accuracy Timeliness Economy Flexibility Understandability Reasonable criteria Strategic placement Emphasis on exceptions Multiple criteria Corrective action
  • 8. Contingency Factors in Control Size of the organization Operational complexity Degree of decentralization Importance of the activity
  • 9. Adjusting Controls for Cultural Differences Foreign operators tend to: Be less controlled directly by the home office Have a tendency to formalize controls Generate extensive formal reports Rely on the power of Information Technology