The function of management should focus on getting people to work towards and achieve organizational goals and objectives. in short, management's primary purpose should be to increase

1. The function of management should focus on getting people to work towards and achieve organizational goals and
objectives. In short, management's primary purpose should be to increase shareholder value through the efficient and
effective use of organizational resources. One environmental change that has drastically impacted management,
particularly management in organizations involved in production in the United States, has been globalization.
However, globalization brings with it several opportunities that we might not think of at first glance.
Management is often the driver of success or failure for many organizations. One key area that may be drastically
impacted by management is productivity—defined by the formula of outputs divided by inputs for a specified period
of time. Managers must ensure that performance levels are in line with goals, which is achieved through control.
There are four steps to the control process, which includes establishing standards, measuring performance,
comparing performance to some standard, and taking corrective action when necessary. This case will illustrate the
extreme influence a well-designed control system can have on performance.
Read the case below and answer the questions that follow.
Globalization and acquisition of U.S. production facilities might be viewed by some people as being a negative
thing. However, for one steel production plant in Burns Harbor, Indiana, it has been a lifesaver.
Just 10 years ago, a 50-year-old Burns Harbor steel production facility was basically left for dead until a
Luxembourg based producer, ArcelorMittal, purchased it. In 2008, Burns Harbor was "twinned" with ArcelorMittal's
hypermodern facility in Gent, Belgium. The idea was to have the Burns Harbor facility mimic the processes,
procedures, and controls being used in the Gent plant.
As a result, Burns Harbor now enjoys record output and productivity, not only based on its own previous production
levels, but it is producing at levels that are among the best in the world. According to Peter Marcus, president of
World Steel Dynamics, an Englewood Cliffs, N.J.-based consultancy, a good measure of productivity is worker-hours
per ton. The Gent plant is presently producing at 1.25 and Burns Harbor is just behind at 1.32. "Those are both
currently among the better numbers in the world," he says. The average in the United States is 2.0.
The Burns Harbor furnaces, where steel is made out of iron ore, coal, and limestone, are run with software developed
in Belgium. Its engineers utilize robots instead of pencils, and workers are learning to make the same amount of steel
with nearly half the people it employed three decades ago. These changes have resulted in productivity increases that
have saved the mill from oblivion.
Globalization often is blamed for the travails of American manufacturing—from the relentless pressure of imports
from lower-wage countries to outsourcing and overseas production by U.S.-based manufacturers. But globalization
has its upsides as well. Not only does it often mean cheaper goods for American manufacturers, but it puts pressure
on U.S. factories to become more efficient to keep up with global competition, making it possible for them to
survive.
Lakshmi Mittal, the billionaire Indian who assembled ArcelorMittal, which is now the world's first successful
international steel conglomerate of its size and the largest by production, perfected a simple business model. Buy
rundown, often state-owned mills, cut costs, lay off workers, improve productivity, and turn a profit. It worked from
Slovakia to South Africa, and from Ukraine to Trinidad.
Twinning, which involves benchmarking two mills against each other—represents the next evolution. "The process
doesn't change: melt iron, cast, roll. But there are always incremental improvements you can make," Mr. Mittal said
in an interview. The weaker mill is ordered to copy the practices of the better mill, while the stronger is told to keep
its edge. Managers are summoned to regular meetings and ordered to divulge and compare their performances.
Although there is no explicit policy on the consequences of poor performance, ArcelorMittal has been quick to idle
or shut down unprofitable mills, as it did in Liège, Belgium, last year.

2. One example of improved processes involved the Burns Harbor plant changing hose nozzles and moving the nozzle
on 2,500 horsepower hoses used to scrub flakes off the steel closer. This reduced the amount of power needed to
propel the water. Those two changes saved the plant $1.4 million in energy costs, the company said. Another
example involves workers being directed to trim less rough steel off the sides of coil, saving the equivalent of 725
coils a year. "That's 17,000 cars," says Mr. Fabina, the mill's manager for continuous improvement.
But that's not all. Last year, Burns Harbor implemented Coordi—a computer model used to collect and monitor data.
Since then, the mill has increased the average number of 298-ton caldrons of molten steel it produces daily, known as
"heats," to 50 from 42.
1. ArcelorMittal is using the Gent production facility as a(n) ___________ to compare it to the Burns Harbor facility.
A. standard
B. target
C. example
D. measure
E. shining star
2. Which of the following steps of the control process would "worker-hours per ton" most likely NOT be used in?
A. Recognition of success
B. Comparing performance to standards
C. Establishing standards
D. Taking corrective action
E. Measuring performance
3. Which of the following areas of control were NOT discussed in the case?
A. Structural area
B. Human resources area
C. Financial area
D. Informational area
E. Physical area
4. Deciding to have the Burns Harbor facility mimic the processes, procedures, and controls being used in the Gent
plant to achieve the goal of increased efficiency is an example of the _________ process for effective performance.
A. Organizing
B. Controlling
C. Planning
D. Necessity
E. Leading

3. 5. Changing hose nozzles and moving the nozzle on 2,500 horsepower hoses used to scrub flakes off the steel closer
to reduce the amount of power needed to propel water saved the plant $1.4 million in energy costs. These savings
would most directly change which of the following budgets?
A. Nonmonetary budget
B. Financial budget
C. Expense budget
D. Operating budget
E. Sales or revenue budget
Answer: - According to the case above and after analysing it
1) Option"A" --- Standard
Explanation: - As per the case after Arcelor mittal taken the plant from burns harbor which is leftover for several
years is standardized by implementing new standards of production facility that enhance the production capacity of
the plant. That increased productivity helps in creates a standard of comparing it to the burns harbor.
2) Option"D" --- Take correctiive action
Explanation: - According to the control process stated above involves in implementing four steps in order to increase
productivity of an organization or company. There are applying standards, measuring performance, comparing
performance and taking corrective action. Where take corrective action is treated as a is not related to the workers
productivity such as workers-hours per ton.
3) Option"C" --- Financial area
Explanation: - As we see, complete case talks about how to increase productivity by different standardized methods
and implementing new technologies in production facility and related examples of different companies but no
question of discussing the financial matters of such comapys or plants.
4) Option"C" --- Planning
Explanation: - In order to be a company sucessful in achieving their goals they should be a proper planning because
it helps in managing, controling and other function that are prepared before entering or starting a plant. Based on the
planning process each and every department execution is done inorder to increase its productivity and efficiency.
where gent plant is one of the example of planning.
5) Option"C" --- Expense budget
Explanation: - Production of a product or a thing invloves with some cost that need to produce a product that cost is
nothing but expense. As we see saving the $1.4 million in saving the consumption energy, saves a cost amount that
decrease the cost to produce a product that involves in production facility which is treated as a expense budget.