Directing and Controlling-New
Directing and Controlling-New
Directing and Controlling-New
Dr S Natarajan
Professor, Department of ISE
PESIT,Bangalore
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Directing and Controlling
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Directing
Meaning
1. Directing means issuance of orders, leading
and motivating
subordinates to execute orders.
2. According to Haimann
Directing consists of the process and
technique utilised in issuing instructions and
making certain that operations are carried
out as originally planned.
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Directing
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Nature of Directing
1. Harmony
2. Unity of Command
3. Direct Supervision
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Nature of Directing (Contd..)
4. Efficient Communication
5. Follow Through
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Nature of Directing
It is an initiating function
It is a continuous process
Directing function is performed by all managers at
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Nature of Directing
controlling process.
It involves giving an order
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Need and importance of directing
It is means of motivation
employees
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Principles of Directing
Harmony of objectives
Unity of direction
Direct supervision
Effective communication
Follow through
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Leadership
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OUR NATIONAL LEADERS 15
Characteristics of Managers Versus Leader
Manager Leader
Administers Innovates
A copy An original
Maintains Develops
Focuses on systems & structure Focuses on people
Relies on control Inspires trust
Short-range view Long-range perspective
Asks how & when Asks what & why
Eye on the bottom line Eye on the horizon
Imitates Originates
Accepts the status quo Challenges the status quo
Classic good soldier Own person
Does things right Does the right thing 16
12 QUALITIES OF A GOOD LEADER
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12 QUALITIES OF A GOOD LEADER
Setting
Sensitive:
Learner:
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Leadership and leadership styles
Leadership is a process by which a
person influences others to accomplish
an objective and directs the
organization in a way that makes it
more cohesive and coherent.
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Leadership and leadership styles
Functions of the leader
Taking initiative
Guide
Representation
Encouraging others
Arbitrator and mediator
Planner
Administrator of rewards and punishments
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Leadership Qualities Needed for Technical
Domains
1. BUSINESS LITERACY
Software operations leaders who are now technology-oriented must
increasingly see themselves as business leaders i.e., To be business
literate
2. TECHNOLOGY VISION
To help their companies compete, leaders of software operations must
establish a compelling, long-range vision for technology investments.
Visionary leaders .
3. CROSS-FUNCTIONAL ORIENTATION
The world of rigid, functional "silos" in most organizations is gone forever.
Software operations leaders must become adept at working with people
performing various functions across the enterprise, including those in
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marketing, customer support sales, and so on.
Leadership Qualities Needed for Technical
Domains
4. STRATEGIC PARTNERSHIP MANAGEMENT
The need for organizations to establish partnerships and alliances for
sharing technologies and developing new products will continue to
increase. Managers of software operations will be required to develop
partnership strategies and manage them for success.
5. CUSTOMER RELATIONS
With the move to a competitive, profit-oriented business model in
software, leaders must increasingly interact directly and at higher
executive levels with both prospective and existing customers.
6. TOTAL QUALITY DISCIPLINE
Two factors have increased the urgency of quality improvement at all
levels in the software industry: rapidly growing financial investment in
software systems and products, and the institution of international
software quality standards.
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Leadership Qualities Needed for Technical
Domains
7. MARKET DECISIVENESS
Although time-to-market has always been a critical success factor for any
high-technology business, it has become a matter of survival for software
enterprises. In an increasingly competitive market, this "need for speed"
is placing increasing pressure on leaders to accelerate the development
and delivery of new products and services.
8. TECHNICAL TEAMWORK
Most high-technology organizations are moving toward flatter, team-
based work structures. This makes team communication, problem solving,
and decisiveness critical; software leaders must both model and reinforce
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these behaviors.
Leadership Qualities Needed for Technical
Domains
9. KNOWLEDGE DEVELOPMENT
Because software is almost exclusively a "knowledge business," software
operations are competitive to the extent that they can attract, retain,
and develop the best technical and marketing talent. Thus, leaders must
provide development opportunities that will ensure the continued
professional and career growth of individuals and add to the
organization's overall knowledge store. I
work settings. 24
Leadership…
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Types of Skills used by Leaders
Be gentle and you can be bold; be frugal and you can be liberal; avoid
putting yourself before others and you can become a leader among
men.
- Lao Tzu
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1) Positive and Negative Leaders:
Positive leadership.
performance.
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2) Autocratic, Participative and Free-rein
Leaders:
AUTOCRATIC LEADERS
Centralize power and decision making in themselves.
Leaders take full authority and assume full responsibility.
It is negative based on threat and punishments.
Advantages:
It is satisfying for leaders.
permits quick decisions .
allows the use of less competent subordinates and provide security and structure for
employees.
Disadvantages:
Employees dislike it as it may create fear and frustration.
Generate strong organizational commitment among employees that leads to low turnover
and absenteeism rates.
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Participative/Democratic Leaders
Decentralize authority.
They arise from consultation with followers and participation by them.
Leader and group act as a social unit.
Wider use of participative practices because they are consistent with
the supportive and collegial models of organisational behavior.
Free-rein Leaders
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Leadership and leadership styles
Democratic:
May help motivation and involvement
Workers feel ownership of the firm
and its ideas
Improves the sharing of ideas
and experiences within the business
Can delay decision making
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Leadership and leadership styles
Free rein
Leader exercises no control
Provides only information, material and
facilities
Employee centered
Disastrous if the leader if the leader does
not know the competence and integrity of
the subordinates and their ability to
handle the freedom
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THE FLOW OF INFLUENCE WITH THREE
LEADERSHIP STYLES
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Style is related to one’s model of organizational behavior.
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Behavioral theories of Leadership
3.Managerial Grid.
4.Scandivian.
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1.OHIO State Studies
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Ohio State University Model
Initiating Structure: Leader structuring job
Consideration: Leader showing trust and friendship
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2. University of Michigan Studies
relations.
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3. Managerial Grid
are related.
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Managerial Grid
C 1,9 9,9
O
N
C
E
R
N
F 5,5
O
R
P
E
O 1,1 9,1
P
L
E
CONCERN FOR TASK 41
Refer Previous Slide
9 1,9
Team Management9,9
Country Club Management Work accomplishment is
8 Thoughtful attention to the from committed people;
interdependence through
Managerial
needs of people for satisfying
Concern for people
Grid
organization atmosphere leads to relationships
and work tempo. of trust and respect.
6
Middle of the Road
5 Management 5,5
The Leadership Grid® is
Adequate organization performance is
possible through balancing the necessity
a method of evaluating
4 leadership styles. The
to get out work with maintaining morale
of people at a satisfactory level.
Authority-Compliance Grid® is used to train
3 Efficiency in operations managers so that they
results from arranging are simultaneously more
2 Impoverished Management conditions of work in concerned for people
Exertion of minimum effort such a way that
to get required work done human elements
and for production (9,9
1 1,1 is appropriate to sustain interfere to a 9,1 style on the Grid®).
organization membership. minimum degree.
0
Low 1 2 3 4 5 6 7 8 9
Low Concern for production High
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Source: The managerial grid was developed by Blake & Mouton; illustration adapted from Griffin, 2002
4. Scandinavian
DEVELOPMENT-ORIENTED LEADER
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Use of Consideration and Structure by Leaders
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CONTINGENCY APPROACHES TO
LEADERSHP STYLE
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1. Fielder Model
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Leader’s Effectiveness
Leader-member relations:
The degree of confidence,trust,and respect subordinates have in their
leader.
Task structure:
The degree to which job assignments are procedurized.
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2. Hersey and Blanchard’s Situational Theory
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3. Leader Member Exchange Theory
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Leader Member Exchange Theory
Personal Compatibility
Subordinate LEADER
Competence, and/or
Extroverted personality
FORMAL
TRUST RELATIONS
HIGH
INTERACTIONS
IN-GROUPS OUT-GROUPS
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4. Path Goal Theory
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Path goal theory
Environmental contingency
factors
• Task structure
• Formal authority system
• Work group
Leader behaviour
• Directive Outcomes
• Achievement oriented • Performance
• Participative • Satisfaction
• supportive
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5. Leader Participation Model
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Neocharismatic Theories
1. CHARISMATIC LEADERSHIP.
2. TRANSFORMATIONAL LEADERSHIP.
3. VISIONARY LEADERSHIP.
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1. Charismatic Leadership
Followers make attributions of heroic or extraordinary
abilities when they observe certain behaviors.
2. Transformational Leadership
Leaders who provide individualized consideration and
intellectual stimulation and who possess charisma.
3. Visionary Leadership
The ability to create and articulate a realistic, credible,
attractive vision of the future for an organization or
organizational unit that grows out of and improves upon the
present. 57
Contemporary Issues in Leadership
EMOTIONAL LEADERSHIP.
TEAM LEADERSHIP.
MORAL LEADERSHIP.
CROSS CULTURAL LEADERSHIP.
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1. Emotional Intelligence and Leadership
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2. Team Leadership
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3. Moral Leadership
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4. Cross-cultural Leadership
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EMERGING APPROACHES
TO LEADERSHIP
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Self-leadership and Super leadership
naturally rewarding.
Super leadership begins with a set of positive beliefs about
workers.It requires practicing self leadership oneself and
modeling it for others to see.
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Coaching
Coaching means that the leader prepares, guides, and directs the
These leaders recognise that they are on the side lines not on the
plane field.
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HOW TO BE A GOOD
LEADER ?
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Human Behavior
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Motivation
Motivation
The processes that account for an
individual’s intensity, direction, and
persistence of effort toward attaining
a goal
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Needs Theories of Motivation
Basic idea:
Individuals have needs that, when
unsatisfied, will result in motivation
Maslow’s hierarchy of needs
Herzberg’s two factor theory (motivation-
hygiene theory)
McClelland’s theory of needs
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Maslow’s Hierarchy of Needs
Physiological
Safety
Social
Esteem
Self-actualization
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Maslow’s Hierarchy of Needs
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Maslow's Hierarchy of Needs
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Characteristics of self-actualizing people
Have better perceptions of reality and are comfortable with it.
Accept themselves and their own natures.
Their lack artificiality.
They focus on problems outside themselves and are concerned with
basic issues and eternal questions.
They like privacy and tend to be detached.
Rely on their own development and continued growth.
Appreciate the basic pleasures of life (do not take blessings for
granted).
Have a deep feeling of kinship with others.
Are deeply democratic and are not really aware of differences.
Have strong ethical and moral standards.
Are original and inventive, less constricted and fresher than others
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Herzberg’s Two factor Theory
Those that provided motivation when
they were present (Motivators)
Those Factors that lead to job
dissatisfaction when they did not meet
expectation (Hygiene)
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Motivators that are intrinsic to the
job
Achievement, Recognition, Responsibility,
Work, Advancement
Hygiene factors that are extrinsic
to the job
Company policy, Administration,
Supervision, interpersonal relationships,
working conditions, salary, status, security
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Motivators are the primary cause
of satisfaction
Hygiene factors are the primary
cause of unhappiness in the job
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Hygiene Factors:
Physiological, safety, affiliation
Motivators:
Esteem, Self fulfillment
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McClelland’s Theory of Needs
Need for Achievement
Desire to excel, accomplishment (self-actualization)
Need for Power
Desire to control resources and people (esteem)
Need for Affiliation
Human companionship and acceptance (social)
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Vroom’s Expectancy Theory
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Vroom’s Expectancy Theory
Instrumentality – an individual subjective
estimates that doing or not not doing an
act could result in a particular outcome.
Expectancy – an individual subjective
estimate of whether he could undertake a
particular act and do it successfully
Valence – the importance an individual
attaches to a particular outcome.
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Adams’s Equity Theory
People have a need for, and therefore value and
seek, fairness in employer–employee
relationships.
If a person perceives an inequity, a tension or
drive will develop in the person’s mind, and the
person will be motivated to reduce or eliminate
the tension and the perceived inequity.
Employees can do this by reducing what they put into
the job, or by boosting the magnitude of the rewards
they take out (or both).
It matters less what the reality is than how the person
perceives his or her inputs and outputs as compared
with the other (referent) person’s.
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Skinner’s Behaviour
Modification Theory
Also known as Operant conditioning theory
As people generally prefer pleasant outcomes to their action,
they would repeat those actions/behaviors that they have
learnt will have pleasant consequences/outcomes
Behavior modification is possible through reinforcement or
punishment.
Reinforcement – those outcomes that increase the frequency of
a behavior (in work situation, can be positive like praise or
monetary reward or negative like avoidance of a aversive
situation)
Punishment – Those outcomes that decrease the frequency of a
behavior (Fine, reprimand)
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Japanese Model of Motivation
Theory Z Proposed by William Ouchi
1. Lifetime employment 7. Holistic concern and
2. Collective decision commitment
making 8. Equality
3. Collective 9. Participative
responsibility leadership
4. Non specialized 10. Care of worker’s
career path family
5. Slow evaluation & 11. Concern for young
promotion workers
6. Implicit control 12. Company wide unions
mechanisms with harmonious
relations
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Key Traits of Successful Leaders
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Key Traits of Successful Leaders
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THE LEADERS
OF ALL TIMES
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ALEXANDER THE GREAT
Why Alexander should deserve to be called "the Great"?
Leadership
Alexander was surely not the first person in history who got this title.
The Persian King Cyrus the Great and the Egyptian Pharaoh Ramses the
Great went before him. But it is recorded that even in Antiquity the Roman
emperors already knew Alexander as "the Great".
The first clue is Alexander's leadership. Military experts still consider him
one of the most outstanding commanders ever. Arguably, there is no one
else in history who could inspire and motivate his men like Alexander did.
Many explanations have been suggested: he suffered the same wounds as
his soldiers, he payed attention to every single man in the army and he
always led the attack in person. (Actually, he was the last great commander
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But apart from all that there must have been a deciding factor that we can
only marvel about: charisma. Alexander was the only individual whose
personal authority could hold his huge empire together. After his death it
almost immediately fell apart into competing kingdoms. In 332 BC, in Egypt,
the famous oracle of Siwa allegedly confirmed that Alexander had divine
origins and that the god Zeus (Ammon) was his true father. We do not
know how Alexander himself thought about his divinity, but it surely helped
him to boost the myth around his person.
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THE MAHATMA
Oct 2, 1869 to Jan 30, 1948
A Brief History of Mohandas K. Gandhi by Richard Attenborough
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Communication
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Communication
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Objectives of Communication
Information
• External
• Internal
Advice (flows horizontally)
Suggestion (flows upwardly)
Order
• Written orders
• Oral orders
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Objectives of Communication
Motivation
Persuasion
Warning
Education
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Communication Process
Sender Receiver
Receive
Encode Message Channel Decode
Meaning
Decode as Encode as
Channel Message
Receiver sender
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Importance of Communication
Efficient working of the business
Communication failures are costly
Basis of managerial functions
Building human relations
Total Quality management
Zero-defect marketing and quality services
Job satisfaction and enrichment
Maintaining relations with external parties
Strategic management
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Forms of Communication
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Barriers of Communication
Graphic aids
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Controlling
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Controlling
Control Process
Closed Loop
Automatic or cybernetic
Monitors or manages process by internal, self-
regulating system
Essential feature is strong feedback system
Example: Home thermostat system
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Control Process - Closed Loop vs. Open Loop
Open Loop
Requires external monitoring or agent to activate
control
Example: Cruise control on an automobile
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Timing of Control
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Timing of Control
Feed Forward Control (Steering or Preliminary)
Attempts to predict the impact of current
actions/events
Current decisions are refined to facilitate goal
attainment
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Characteristics of Effective Control Systems
Effective
Efficient
Timely
Flexible
Understandable
Tailored
Highlight deviations
Lead to corrective actions
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Three Types of Control
Financial
Human Resource
Social
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Financial Control - Three Major Statements
Income Statement
Shows financial performance of a firm over a
period of time
Cash Flow
Shows where cash comes from and what it is used
for
Balance Sheet
Shows the firm’s financial position at a particular
instant in time
Assets and liabilities
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Ratio Analysis
Ratios of two financial numbers taken from financial
statements and compared to industry averages
Four Types
Liquidity: Measures ability to meet short term
obligations
Leverage: Measures the level of debt in a firm’s
financial structure
Activity: Measures how effectively a firm uses its
resources
Profitability: Measures profit producing
performance of firm
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Budgets
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Responsibility Centers
Cost Centers
Manager’s primary concern is control of costs
Revenue Center
Manager’s primary concern is attaining revenue
target
Profit Center
Manager has more freedom to manipulate costs to
increase profit
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Budget Preparation
Top Management
Estimates of future sales and production
Priorities used to meet new objectives
Middle Management
Prepares proposed revenue and expense budgets
designed to attain estimated sales/production
levels
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Audits of Financial Data
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Non-financial Controls
Management Audits
Evaluate efficiency
Human Resources Accounting
Quantifies the value of human resources
investment
Costs of recruiting
Costs of training
Costs of process improvement
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Non-financial Controls
Social Controls
Standards
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Non-financial Controls
Inventory control
Quality control
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Summary
organization
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PERT Diagram
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MS Project can work out the critical path for you!
The length of the critical path is the sum of the lengths of
all critical tasks (the red tasks 1,2,3,4,5,7) which is
2+3+1+1.5+2+1 = 10.5 days.
In other words, the minimum amount of time required to
get all tasks completed is 10.5 days
The other tasks (6,8) can each run over-time before
affecting the end date of the project
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