1. Managementin (kontrolli) systeemit Flashcards

1
Q

WHAT IS LEADERSHIP AND / OR MANAGEMENT?

A
  • Number of definitions by various authors, no consensus
  • Voidaan keskittyä eri asioihin: Firm vs. individual performance management

Jorma Eloranta, CEO, Metso:
”Leadership / management means that those things you want to get done gets done with the aid of the others”

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2
Q

WHAT ARE THE CORE QUESTIONS OF PERFROMANCE MANAGEMENT?

A

How do we get others to do what we want them to do?

How do we get others to perform well?

How do we get employees to do their best for the organization?

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3
Q

Erilainen definition perfromance managementille:

A

Performance management is the supervision and oversight of employees, departments, and organizations with the objective of seeing that milestones and objectives are reached in an efficient and effective manner. This niche aspect of overall management involves defining what effective performance looks like, as well as developing the tools and procedures necessary to measure performance.

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4
Q

To manage performance, a manager 2 thing:

A
  1. Information to make good decisions
  2. A system of controls to ensure managers and employees at all levels do their best for the company
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5
Q

Management control vs. strategic control?

A

– Strategic control = Is our strategy (still) valid?

– Management control = Are our employees likely to behave appropriately?

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6
Q

Mitä MANAGEMENT CONTROL tarkoittaa Merchant & Van der Stedelle?

A

Management control for them means same as execution and strategy implementation.

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7
Q

CONTROL: PROBLEM AVOIDANCE

A
  • Activity elimination (by subcontracting, licensing, divesting)
  • Automation
  • Centralization
  • Risk sharing (insurance, joint ventures)
  • Those problems that can not be avoided, or are decided not to be avoided, needs to be controlled.
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8
Q

What are the MANAGEMENT CONTROL ALTERNATIVES?

A
  • Cultural controls
  • Action controls
  • Personnel controls
  • Results controls

CAPRi

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9
Q

Kysymykset liittyen RESULTS CONTROLS?

A
  • Would you think management of large multi-business corporations would be possible without results controls?
  • What are the key elements of results controls?
  • What are the associated challenges in applying those?
  • What are the conditions determining the effectiveness of results controls?
  • Which control problems results controls are capable of dealing with?
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10
Q

What are the ACTION CONTROLS?

A

Actions of employees as the focus of control.

Four basic forms:
– Behavioral constraints
– Pre-action reviews
– Action accountability
– Redundancy

BAaaaRP

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11
Q

Questions related to ACTION CONTROLS?

A
  • What control problems these forms can tackle?
  • Which ones are preventive and which ones are detective?
  • What are the conditions determining the effectiveness of action controls?
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12
Q

What are PERSONNEL CONTROLS?

A

Its purpose is to effectively exploit the potential of all employees to achieve the maximum benefit within the organization.

  • Personnel controls build on employees’ natural tendencies to control or motivate themselves
  • These controls serve three purposes:
    – To ensure employees understand what organization wants
    – To ensure employees are able to do a good job
    – Increase the likelihood that employees engage in self-monitoring
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13
Q

Explain CULTURAL CONTROLS?

A
  • Are designed to encourage mutual monitoring, but also to shape organizational culture
  • Note: “Culture” is different from cultural controls
  • “Culture eats strategy for breakfast”
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14
Q

Give 5 examples of CULTURAL CONTROLS?

A

Cultural controls:
– Codes of conduct
– Group rewards
– Employee rotation
– Physical and / or social arrangements
– Tone of the top

CP-vamu GET

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15
Q

Mitä HYÖTYJÄ on monista eri types of controls?

A

1 Helps in achieving organisational goals
2 Judging accuracy of standards
3 Making efficient use of Resources
4 Improving employee motivation
5 Ensures order and discipline
6 Facilitate coordination in action
7 Controlling helps in improving the performance of the employees

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16
Q

Mitä HAITTOJA on monista eri types of controls?

A
  1. Difficulty in setting quantitative standards:
  2. No control on external factors:
  3. Resistance from employees:
  4. Costly affair
17
Q

Mitkä on askeleet, when linking strategy to operations?

A
  1. Develop strategy: missio, arvot
  2. Plan the strategy: strategy map, measures, targets
  3. Align the organization: business unit, employees
  4. Plan operations
    -> EXECTION
  5. Monitor and learn
  6. Test and adapt

-> Ja kierros alkaa tarvittaessa alusta!

18
Q

BASIC LEVERS OF CONTROL - Mitä 5 systeemiä taustalla?

A

Kaiken keskellä on: BUSINESS STRATEGY

  1. BELIEF SYSTEMS: CORE VALUES
  2. BOUNDARY SYSTEMS: RISKS TO BE AVOIDED
  3. INTERARVICE SYSTEMS: STRATEGIC UNCERTAINTIES
  4. DIAGNOSTIC SYSTEMS: CRITICAL PERFORMANCE VARIABLES

+ D E C I S I O N S U P P O R T S Y S T E M S

19
Q

SUMMARY 1. deckistä

A
  • Performance management is about how do we get the best out of our employees
  • Understand the difference between systems that are used to support decision-making and systems that are used to guide peoples behavior = > you will always need both and accounting and finance can support both of these needs
  • Remember the control problems –lack of direction, lack of motivation and lack of capability / personal limitations
  • Paradox – systems create problems!