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    Criteria For Strategic Control: Presented by

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    Prakash Vidya
    Strategic control integrates both quantitative and qualitative measures from financial and non-financial sources with a customer focus. It rewards relative contributions to organizational success and encourages desired behavior. Traditional control was based on financial performance and efficiency, rewarding dysfunctional behavior, while strategic control motivates people towards organizational goals using measures like customer satisfaction, new products, and outcomes. Strategic control evaluates teams and cross-functional groups, rewarding overall company performance, quality, and innovation rather than just efficiency and profits. It focuses on the macro environment and industry rather than just internal factors. Capacity management aims to spread fixed costs over the largest volume by maintaining the right capacity level to meet demands.

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    Criteria For Strategic Control: Presented by

    Uploaded by

    Prakash Vidya
    26 views10 pages
    Strategic control integrates both quantitative and qualitative measures from financial and non-financial sources with a customer focus. It rewards relative contributions to organizational success and encourages desired behavior. Traditional control was based on financial performance and efficiency, rewarding dysfunctional behavior, while strategic control motivates people towards organizational goals using measures like customer satisfaction, new products, and outcomes. Strategic control evaluates teams and cross-functional groups, rewarding overall company performance, quality, and innovation rather than just efficiency and profits. It focuses on the macro environment and industry rather than just internal factors. Capacity management aims to spread fixed costs over the largest volume by maintaining the right capacity level to meet demands.

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    Strategic Control

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    Strategic control integrates both quantitative and qualitative measures from financial and non-financial sources with a customer focus. It rewards relative contributions to organizational success and encourages desired behavior. Traditional control was based on financial performance and efficiency, rewarding dysfunctional behavior, while strategic control motivates people towards organizational goals using measures like customer satisfaction, new products, and outcomes. Strategic control evaluates teams and cross-functional groups, rewarding overall company performance, quality, and innovation rather than just efficiency and profits. It focuses on the macro environment and industry rather than just internal factors. Capacity management aims to spread fixed costs over the largest volume by maintaining the right capacity level to meet demands.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    26 views10 pages

    Criteria For Strategic Control: Presented by

    Uploaded by

    Prakash Vidya
    Strategic control integrates both quantitative and qualitative measures from financial and non-financial sources with a customer focus. It rewards relative contributions to organizational success and encourages desired behavior. Traditional control was based on financial performance and efficiency, rewarding dysfunctional behavior, while strategic control motivates people towards organizational goals using measures like customer satisfaction, new products, and outcomes. Strategic control evaluates teams and cross-functional groups, rewarding overall company performance, quality, and innovation rather than just efficiency and profits. It focuses on the macro environment and industry rather than just internal factors. Capacity management aims to spread fixed costs over the largest volume by maintaining the right capacity level to meet demands.

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    CRITERIA FOR STRATEGIC CONTROL

    PRESENTED BY
    DEEPTI

    Strategic Control
    Control is taking measures that synchronize

    outcomes as closely as possible with plans Traditionally, has been almost completely based on financial performance Hence, top internal accounting officer became the In Charge official for organization control policies and procedures What do we call the chief accounting officer of an organization? Answer: The Controller
    Financial Information was primary source Rewarded Efficiency Encouraged Dysfunctional Behavior

    Strategic Control
    Strategic Control Methods

    Integrates Quantitative & Qualitative Measures Uses Financial and Non-financial information Customer (External) focus Rewards based upon relative contributions to organization success Encourages desired organizational behavior
    Implementing Control Cycle Adjusting Measuring

    Planning

    Strategic Control and Control Systems


    Should motivate people toward desired organizational behavior rather than promote dysfunctional behavior Traditional 1990s thru 21st Century
    Customer Satisfaction New Product Development Rates Outcomes Quantitative & Qualitative Performance

    What is Measured?

    Meeting Budget Production Efficiency Inputs

    Quantitative Performance(Mostly Financial)

    Who is evaluated?
    Traditional

    1990s thru 21st Century

    Individuals
    Functions Responsibility Centers Individuals Teams (Groups) Cross-Functional People

    Basis of Rewards control Systems


    Traditional

    1990s thru 21st Century


    Quality
    Innovation Creativity

    Efficiency
    Profits ROI

    Overall Company Performance

    Focus of Contemporary Control Systems


    Traditional 1990s thru 21st Century

    Internal

    Macro Environment Industry Environment

    Internal

    Capacity Management
    Capacity is the potential or capability, of a set of resources to do

    work of

    some type to create value for the customer.

    Importance of capacity management (control) of organizations Huge initial outlays Sunk costs Inflexible

    Long-run costs
    Mostly Fixed Costs Goal of capacity management is to manage fixed costs (plant assets) in a manner that spreads costs over the largest possible volume A very difficult area of management because it involves long-range planning

    Strategic Control of Capacity


    Must have right amount of

    capacity to produce to customer demands


    *If there is excess capacity fixed costs must be spread over fewer units thereby making the units cost more *If there is insufficient capacity the company must incur additional costs to generate more capacity

    Cost-Volume-Profit Analysis
    Revenue Line

    Break Even Point

    Contribution Margin

    Fixed Costs & Total Costs Line

    Variable Cost Line

    Activity Level

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