Quality and Performance in Management

Summary

This video discusses organizational control, outlining the systematic process managers use to regulate activities and meet performance standards. It explains the feedback control model's four key steps: setting standards, measuring performance, comparing results, and making corrections. It introduces the balanced scorecard for measuring performance across financial, customer, internal process, and growth perspectives. The video also covers modern approaches to quality management, like Total Quality Management (TQM), benchmarking, Six Sigma, and budgeting techniques, emphasizing continuous improvement and employee involvement in maintaining high organizational standards.

Takeaways

• 📊 Organizational control involves regulating activities to meet established plans and performance standards.
• 📈 The control process consists of four steps: establishing standards, measuring performance, comparing performance to standards, and making corrections.
• 📋 A feedback control model helps managers monitor and regulate organizational activities to meet strategic goals.
• 📉 The balanced scorecard is a management tool that integrates financial measures with customer service, internal processes, and learning/growth indicators.
• 💼 Total Quality Management (TQM) focuses on continuous improvement, customer satisfaction, and reducing costs through teamwork across departments.
• 🛠️ Six Sigma is a quality control approach aiming for 99.9997% defect-free performance using a disciplined, structured methodology.
• 👥 Quality circles empower employees to meet regularly and solve problems related to work quality, pushing decision-making to those who know the processes best.
• 🔄 Benchmarking involves comparing an organization's practices against industry leaders to identify areas for improvement and best practices.
• 💰 Budgetary control is a common managerial tool that tracks expenditures and adjusts operations based on variances between actual and budgeted amounts.
• 📉 Zero-based budgeting starts from zero dollars, requiring justification for every budget item, helping to eliminate unnecessary costs.

Q & A

What is organizational control?

Organizational control refers to the systematic process of regulating organizational activities to ensure they are consistent with the expectations established in plans, targets, and performance standards.

What are the four key steps in the control process?

The four key steps in the control process are: 1) establishing standards, 2) measuring performance, 3) comparing performance to standards, and 4) making corrections.

How does the feedback control model help managers?

The feedback control model helps managers by monitoring and regulating organizational activities and using feedback to determine whether performance meets established standards, allowing managers to make necessary adjustments.

What is the balanced scorecard and what are its four perspectives?

The balanced scorecard is a management control system that integrates financial and operational measures related to an organization's critical success factors. Its four perspectives are: financial, customer service, internal business processes, and organizational capacity for learning and growth.

What is the purpose of Total Quality Management (TQM)?

The purpose of Total Quality Management (TQM) is to infuse quality into every activity within a company through continuous improvement, with a focus on teamwork, increasing customer satisfaction, and lowering costs.

What are quality circles and how do they function?

Quality circles are groups of employees who meet regularly to discuss and solve problems that affect the quality of their work. They collect data, identify problems, and propose solutions, allowing decision-making at the level where employees know the work best.

What is benchmarking, and what are the steps involved in the benchmarking process?

Benchmarking is the process of measuring products, services, and practices against industry leaders to identify areas for improvement. The five steps in the benchmarking process are: 1) plan, 2) find, 3) collect, 4) analyze, and 5) improve.

What is Six Sigma and what does its methodology aim to achieve?

Six Sigma is a quality standard that aims for no more than 3.4 defects per million parts, representing near-perfect performance. Its five-step methodology, DMAIC (Define, Measure, Analyze, Improve, Control), provides a structured approach to solving problems and improving processes.

What is zero-based budgeting and how does it differ from traditional budgeting?

Zero-based budgeting is an approach where every line item in the budget must be justified starting from zero dollars. Unlike traditional budgeting, which adjusts previous budgets, zero-based budgeting forces managers to evaluate the costs and benefits of each expenditure.

What are the key advantages of using bottom-up budgeting?

Bottom-up budgeting involves lower-level managers in the budgeting process, which allows for better resource anticipation at the departmental level and increases employee involvement, empowerment, and ownership of the budgeting outcomes.