Business Management, 13e
CHAPTER
5
Implementing and
Controlling
5.1
5.2
5.3
5.4
The Implementing Function
Motivation and Change Management
The Controlling Function
Gathering and Using Performance Information
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5.1 The Implementing Function
GOALS
● Recognize problems that can occur when
plans are implemented.
● Identify important implementing activities
performed by managers.
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The Challenge of Implementing
● Implementing involves guiding employee work
toward achieving the company’s goals.
● Manager might communicate important goals to a
an employee team
● Provide leadership to help them determine how to
complete the necessary work
● Make sure that rewards and recognition are
provided to everyone involved when their work
achieves the goals
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Checkpoint
● Identify several types of changes that can
occur in an organization that can create
problems in accomplishing plans?
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Checkpoint
● Identify several types of changes that can
occur in an organization that can create
problems in accomplishing plans?
● Changes can occur inside and outside of the
company involving people, plans, equipment, and
technology, among other things.
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Implementing Activities
● Effective communications
● Managers must be able to communicate plans and
directions, gather feedback from employees, and
identify and resolve communication problems.
● Listen to employees and involve them in decisions
● Employee motivation
● A set of factors that influence an individual’s
action toward accomplishing goals.
● Internal and External Motivation
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Implementing Activities
● Work teams
● A group of individuals who cooperate to achieve a
common goal
● Understand the activities to be completed
● Activities they must perform
● Knowledge and skills to complete them
● Operations management
● Involves effectively directing the major activities
of a business to achieve its goals
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Checkpoint
● What are the primary activities managers
must perform as part of the implementing
process?
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Checkpoint
● What are the primary activities managers
must perform as part of the implementing
process?
● Effective communication
● Motivating employees
● Developing effective work teams
● Operations Management
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5.2 Motivation and Change
Management
GOALS
● Describe the main points of three theories of
motivation.
● Identify the steps managers should follow
when implementing change.
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Motivation Theories
● Maslow’s hierarchy of needs
● Physiological (Food and Shelter)
● Security (safe from harm)
● Social (Friends, interact, love)
● Esteem (Respect)
● Self Actualization (full potential)
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Motivation Theories
● McClelland’s achievement motivation
● Achievement (Set personal goals)
● Affiliation (Fit in with group)
● Power (Influence others)
● Herzberg’s two-factor theory
● Hygiene (Dissatisfy when absent)
● Motivators (factors that increase job satisfaction)
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Checkpoint
● Why should managers understand motivation
theories?
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Checkpoint
● Why should managers understand motivation
theories?
● Managers can influence employees to behave in
ways that help achieve company goals by
addressing these motivational factors.
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Managing Change
● Planning
● Communicating
● Involving
● Educating
● Supporting
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Implementing Change
STEP 1
Planning
Carefully plan for the change.
STEP 2
Communicating
Communicate with people, so that
change does not surprise them.
STEP 3
Involving
Involve people, so they feel a part of
the change.
STEP 4
Educating
Educate people, so they understand
the change.
STEP 5
Supporting
Support people in their efforts to
change.
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Checkpoint
● What steps should managers follow to help
employees understand and adjust to a major
change?
1. Carefully plan for change
2. Communicate with employees so they are not
surprised
3. Involve employees
4. Educate employees
5. Support employees in their efforts
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5.3 The Controlling Function
GOALS
● List the three basic steps in the controlling
function.
● Identify and describe four types of standards.
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Understanding Controlling
● Management as a continuous process
● 4 Management functions
● The steps in controlling
● Establish standards for each of the company’s goals
● Measure and compare performance against the
established standards to see if performance met the
goals
● Take corrective action when performance falls short of
the standards
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Checkpoint
● What are the three basic steps in controlling?
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21
Checkpoint
● What are the three basic steps in controlling?
● Establishing standards for each of the company’s
goals
● Measuring and comparing performance against
standards to see if performance met the goals
● Taking corrective action when performance falls
short of the standards
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The Management Functions
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Setting Standards
● Types of standards
● Quantity standards – Establishes the expected
amount of work to be completed.
● Quality standards – expected consistency in
production and performance
● Time standards – the established amount of time
needed to complete an activity
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Setting Standards
● Types of standards
● Cost standards – the predetermined cost of
performing an operation or producing a good or
service.
● Managers can increase profits by:
1. Increasing sales or revenue
2. Decreasing Costs
● Measuring and comparing performance
● Varience – difference between current
performance and the standard.
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Checkpoint
● Provide an example of each of the four types
of standards?
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5.4 Gathering and Using Performance
Information
GOALS
● Describe three corrective actions managers
can take as part of controlling performance.
● Discuss several important areas of cost control
in businesses.
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Taking Corrective Action
● When managers discover performance is not
meeting standards, they can take three
possible actions:
● Take steps to improve performance.
● Change policies and procedures.
● Revise the standard.
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Checkpoint
● Why should managers be reluctant to change
standards even when performance does not
meet those standards?
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Checkpoint
● Why should managers be reluctant to change
standards even when performance does not
meet those standards?
● If standards were set carefully, quickly changing
them doesn’t solve the problem.
● Careful study should be completed to determine
why the standard was not met and to decide if
improvements can be made
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Controlling Costs
● Inventory
● All the materials and products a business has on
hand for use in production and available for sale.
● Just in time inventory control (JIT)
● Credit
● Is the provision of goods or services to a customer
with an agreement for future payment.
● Theft
● Health and safety
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Checkpoint
● What are the main areas in a business where
managers can anticipate cost problems and
develop ways to reduce costs?
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Checkpoint
● What are the main areas in a business where
managers can anticipate cost problems and
develop ways to reduce costs?
● The areas are inventory, credit, theft, and
employee health and safety.
CHAPTER 5
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