Control in Organization (Corporate Governance)


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Control in Organization (Corporate Governance)

  1. 1. CORPORATE GOVERNANCE IN ASIA GMGG 5314 CONTROL IN ORGANIZATION Prepared for : Dr. Rozita Arshad Prepared by : SHAHRIL BUDIMAN | 810089 LOGO
  2. 2. Contents 1 Definition 2 Open Control System in Organization 3 Feed Forward Controls 4 Feedback Controls 5 ConclusionCorporate Governance in Asia Control In Organizations
  3. 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. 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 ethicsCorporate Governance in Asia Control In Organizations
  5. 5. Corporate Governance - SampleCorporate 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. » Governance in Asia Control In Organizations
  6. 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. 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. 8. Organization Control in Open System Perspective WORK WORK WORK THROUGHPUTSSchermerhorn : 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. 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’sCorporate Governance in Asia Control In Organizations
  10. 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. 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 companyCorporate Governance in Asia Control In Organizations
  12. 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 responsibilitiesCorporate Governance in Asia Control In Organizations
  14. 14. The foundation of control is Information (Henry Schacht, Former CEO of Cummins Engine Company)Corporate Governance in Asia
  15. 15. Thank You CONTROL IN ORGANIZATION Prepared by : SHAHRIL BUDIMAN | 810089 LOGO