This document discusses corporate governance and control in organizations. It defines corporate governance as internal systems that establish relationships between a corporation and its stakeholders. It also defines control as verifying that plans and instructions are followed to ensure goals are met. The document discusses open control systems using feed forward, concurrent, and feedback controls. Feed forward controls address problems before they occur, concurrent controls ensure the right things are being done, and feedback controls ensure results meet standards. Examples of each type of control are provided.

1. CORPORATE GOVERNANCE IN ASIA
GMGG 5314
CONTROL IN
ORGANIZATION
Prepared for : Dr. Rozita Arshad
Prepared by : SHAHRIL BUDIMAN | 810089
shahril2204@gmail.com
LOGO

2. Contents
1 Definition
2 Open Control System in Organization
3 Feed Forward Controls
4 Feedback Controls
5 Conclusion
Corporate Governance in Asia Control In Organizations

3. CORPORATE GOVERNANCE
 Corporate governance concerns all
the steps taken by the owners of a
company to ensure that it produces
for them the best possible benefit
(OECD) Organisation for Economic Co-operation and Development
 The corporate governance structure
specifies the distribution of rights and
responsibilities among different
participants in the corporation
(Pellervo:2000)
Corporate Governance in Asia Control In Organizations

4. Corporate Governance Defined
 Internal systems that establish the relationships
between the corporation and its stakeholders
 Shareholders
 Management
 Board of Directors
 Employees
 Creditors
 Vendors
 Government/Regulators
 Policies, statutes, rules, practices
 Values and ethics
Corporate Governance in Asia Control In Organizations

5. Corporate Governance - Sample
Corporate governance at Microsoft serves
several purposes:
 To establish . . management accountability . . .
 To provide structure…to monitor performance…
 To strengthen ..our culture of business integrity…
 To encourage the efficient use of resources, and
 To require accountability for the stewardship of those
resources.
» www.microsoft.com
Corporate Governance in Asia Control In Organizations

6. Definition of Control
Control consists of verifying whether everything occurs
in conformity with the plan adopted, the instructions issued,
and principles established. It‘s object is to point out
weaknesses and errors in order to rectify them and
prevent recurrence (Fayol :1949)
 Controlling is the process of measuring performance and taking
action to ensure desired results (Schermerhorn:2011)
 According to Harold Koontz,
Controlling is the measurement and correction of
performance in order to make sure that enterprise objectives
and the plans devised to attain them are accomplished.
Corporate Governance in Asia Control In Organizations

7. Definition of Control
Schermerhorn : 2007
 Control begins with objectives and standards.
 Control measures actual performance.
 Control compares results with objectives and
standards.
 Control takes corrective action as needed.
 Control focuses on work inputs, throughputs, and
outputs.
Corporate Governance in Asia Control In Organizations

8. Organization Control in
Open System Perspective
WORK WORK WORK
THROUGHPUTS
Schermerhorn : 2011
INPUTS OUTPUTS
Feed Forward
Feed Forward Concurrent
Concurrent
Controls
Controls Feedback
Feedback
Controls
Controls Controls
Controls
Ensure the right
Ensure the right Ensure the right
Ensure the right
directions
directions are
are Ensure that
Ensure that
things are being
things are being
set and the right
set and the right final results are
final results are
done as part or
done as part or
resource
resource input
input up to desired
up to desired
workflow
workflow
are available
are available standards
standards
operations
operations
Solve problem Solve Problem Solve Problem
before occur while are occurring after they occur
Corporate Governance In Asia Control in organization

9. Feed Forward Control - Example
The Company (Mc’Donald’s) require that hamburger bread suppliers
produce to exact specifications
John F. love : Mc’Donald’s Behind the Arches , Ray Kroc & Robert Anderson, Grinding It Out : The Making of Mc’Donald’s
Corporate Governance in Asia Control In Organizations

10. Concurrent Controls - Example
Managers Allow to Quickly spot and
Correct any problems in the manufacturing cycle
(Direct Supervision)
Gregg Segal’ “Hyundai Smokes the Competition,” Financial Times (January, 2010)
Corporate Governance in Asia Control In Organizations

11. Feed Back Controls - Example
Selling Must Go on
at the same time,
studied and
solutions also
implemented
(Toyota Executives)
Helping Ensure the safety
of our customers and
restoring confidence in
Toyota are very important
to our company
Corporate Governance in Asia Control In Organizations

12. Managers Control
Respect
Control System
Internal Control External control
(Self Control)
Alternative Control Mix
with Bureaucratic
Occurs through self-
Control, Clan and
discipline in fulfilling
Market Regulatory
work and personal
Control
responsibilities
Corporate Governance in Asia Control In Organizations

13. ORGANISATION AND CORPORATE
GOVERNANCE CHART
GIB Shareholders

14. The foundation
of control is
Information
(Henry Schacht, Former CEO of
Cummins Engine Company)
Corporate Governance in Asia

15. Thank You
CONTROL IN
ORGANIZATION
www.themegallery.com
Prepared by : SHAHRIL BUDIMAN |
810089
shahril2204@gmail.com
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