HARARE POLYTECHNIC

SCIENCE TECH DEPPT

ND CHEMICAL ENGINEERING

INDUSTRIAL MANAGEMENT ASSIGNMENT 2

FOR PORTIA NDHLOVU

1(a) Describe the steps in the control process

CONTROLLING :- (Monitoring, Evaluating, Checking, Making sure). This process is the ultimate
management function and it evaluates the efficiency and effectiveness of the other management
functions. The control function is concerned with ensuring that the actions of the organization’s
members do move the organization towards its stated goals.

It is sometimes referred to as the process of monitoring progress towards achievement of goals. The
controlling function entails:-

 Establishing standards of performance and how it will be measured

 Measuring current performance

 Comparing actual with standard performance, and

 Taking corrective action where deviations from stated goals are detected.

Through the control function, the manager keeps the organization on its chosen track through
timorously investigating and correcting and deviations from set standards

a) Establishment of Standards of Performance.

Standards have to be established, in terms of profits, costs, turnover etc. In addition, this step also
entails establishing how such performance will be measured. Emphasis here is on quantitative
measures, albeit without disregard for qualitative considerations.

Standards are, by definition, simply the criteria of performance.

They are the selected points in an entire planning program at which performance is measured so
that managers can receive signals about how things are going and thus do not have to watch every
step in the execution of plans.

Standard elements form precisely worded, measurable objectives and are especially important for
control.

In an industrial enterprise, standards could include sales and production targets, work attendance
goals, safety records, etc.

In service industries, on the other hand, standards might include several time customers have to
wait in the queue at a bank or the number of new clients attracted by a revamped advertising
campaign

b) Measuring Actual Performance

The reporting should be reliable and reasonably accurate. The Management by Exception Principle
(MBE) should be applied i.e. reporting should emphasis exceptional factors

The measurement of performance against standards should be done on a forward-looking basis so

that deviations may be detected in advance of their occurrence and avoided by appropriate actions.

Several methods are used for measuring the performance of the organization.

If standards are appropriately drawn and if means are available for determining exactly what
subordinates are doing, appraisal of actual or expected performance is fairly easy.

But there are many activities for which it is difficult to develop accurate standards, and there are
many activities that are hard to measure. It may be quite simple, for example, to establish labor-
hour standards for the production of a mass-produced item and it may be equally simple to measure
performance against these standards, but in the less technical kinds of work.

For example, controlling the work of the industrial relations manager is not easy because definite
standards cannot be easily developed.

The superior of this type of manager often rely on vague standards, such as the attitude of labor
unions, the enthusiasm, and loyalty of subordinates, the index of labor turnover and/or industrial
disputes, etc. In such cases, the superior’s measurements are often equally vague.

c) Comparing Actual and Standard Performance

Determine variances, both favorable and unfavorable. For instance, if set standards have been
surpassed, it should be established why and how that standard has been exceeded.

Determining whether performance matches the standard is an easy but important step in the
control process. It involves comparing the measured results with the standards already set.

If performance matches the standard, managers may assume that “everything is under control”. In
such a case the managers do not have to intervene in the organization’s operations.

d) Taking corrective action>

Differences in the actual performance may be either due to unsatisfactory performance or

unrealistic standards. Therefore, taking corrective action entails correcting the performance (if
unsatisfactory) or adjusting the plans if they are unrealistic

This step becomes essential if performance falls short of standards and the analysis indicates that
corrective action is required. The corrective action could involve a change in one or more activities of
the organization’s operations.

For example, the branch manager of a bank might discover that more counter clerks are needed to
meet the five-minute customer-waiting standard set earlier.

Control can also reveal inappropriate standards and in that case, the corrective action could involve
a change in the original standards rather than a change in performance

It needs to be mentioned that, unless managers see the control process through to its conclusion,
they are merely monitoring performance rather than exercising control.

The emphasis should always be on devising constructive ways to bring performance up to a standard
than merely identifying a past failure.
1b) with the aid of an example describe how feedback from customers can be used as a control

System.

Feedback control is a process that the manager uses to help her carry out those functions. This
process gives the manager the necessary information to better execute her control function,
allowing the team to meet the standards set by the manager’s plans.

Any manager, regardless of the business or position, has four responsibilities she must carry out if
she is to fulfill her role. She must determine what her group needs to achieve and come up with an
appropriate plan on how to achieve those goals. She must organize her subordinates so that they
can execute her plan by putting them in the best position to succeed. The manager must lead her
team by counseling each individual on how to execute her plan and then motivate team members to
work efficiently. She must evaluate the team’s progress in achieving its goals. If the results are found
to be lacking, the manager must make the appropriate changes in either process or staffing. This last
objective is known as controlling.

Feedback Control Defined

Feedback control is a process that managers can use to evaluate how effectively their teams meet
the stated goals at the end of a production process. Feedback control evaluates the team’s progress
by comparing the output the team was planning on producing to what was actually produced. If
what is produced is less than the planned amount, the expectation is that the manager can adjust
the work process to increase productivity. Feedback control also allows the manager to better lead
her team. The manager can use the data to inform team members of their individual performance.
By isolating individual performance, the manager can better instruct team members and motivate
them to improve.

Drawbacks of Feedback Control

The downside of this process is that the changes can be made only after a portion of production
already has been completed. Depending on when feedback occurs, the entire process can be
completed before the manager is notified of any inefficiency. Therefore, feedback control may not
be useful for one-time, unique projects. Feedback control would be especially effective in measuring
processes that are often repe

2) Describe the role of financial incentives, including profit sharing and awarding shares in worker
motivation

Individuals will do an action because of the encouragement from both inside and outside themselves
to fulfil their needs. The role of employees who have high motivation and supported skills and
knowledge in doing the work is needed. This can mean that one of the determinants of an increase
in company performance is the motivation of its employees. This is supported by Weiner's (2014)
assertion in his book which states that work motivation is the driving force that creates the
excitement of one's work so that they will cooperate, work effectively and integrate with all their
efforts to achieve satisfaction. “Several factors can affect employees’ motivation.

Incentives in the form of finance are expected to increase employee motivation because the
incentives in the form of financial employees can be allocated to the needs he wants. Dessler added,
giving this incentive requires a fair and decent employee perspective. Fair has the meaning of
financial incentives given the company in accordance with or commensurate with the work and
achievements achieved by employees. While feasible means financial incentives given to employees
can meet the needs of these employees, the feasibility can also be seen by comparing the provision
of incentives made by other companies (Dessler, 2014). Distributor Company in Bandung which is
divided into 3 parts, namely field employees (sales associates), administrative employees, and
employees have 43 employees in one working day, and employees can work at least 10 hours of
work with the possibility of additional work. In connection with the above problems, then the impact
that will appear on the employee is a labor turn-over.

Several factors are related to the problems that have been stated before, and the research was
conducted on distributor companies in Bandung, this is because only a number of distributor
companies have decreased sales targets of companies such as consumers, production and other
things due to the low motivation of employees so that the impact on incentives. This research was
conducted because of the ineffectiveness of company incentives to employees, the low and work
motivation of employees.

In relation to the work environment, Robbins (2006) explains that work motivation is as follows:
“Motivation is the process that accounts for individuals' intensity, direction, a persistence of effort
toward attaining a goal”. From Robbins’s explanation of this motivation, it can be seen that
motivation is defined as a process that participates in determining the intensity, direction and
perseverance of individuals in their efforts to achieve a goal. Although general motivation is related
to efforts in many directions, Robbins narrows the focus on organizational goals to show that In
addition, Robbins (2006) adds an explanation related to work motivation that supports the previous
In relation to the work environment, Robbins (2006) explains that work motivation is as follows:
“Motivation is the process that accounts for individuals' intensity, direction, a persistence of effort
toward attaining a goal”. From Robbins’s explanation of this motivation, it can be seen that
motivation is defined as a process that participates in determining the intensity, direction and
perseverance of individuals in their efforts to achieve a goal. Although general motivation is related
to efforts in many directions, Robbins narrows the focus on organizational goals to show that In
addition, Robbins (2006) adds an explanation related to work motivation that supports the previous
definition, as follows: “The willingness to exert high level of effort toward organizational goal,
conditioned by the ability to satisfy some individuals need.” Whereas, Winardi (2007) explained,
“Motivation is a potential force that exists within a person that can be developed by themselves or
with the help of others who can influence the results of their performance through monetary and
non-monetary rewards which depend on the situation and conditions faced by the related person”.

From the definition of work, motivation can be seen that employees who are motivated will make
efforts in the work that can produce optimal performance. The process of motivation is focused on
the views of employees in meeting their needs simultaneously with the achievement of corporate
goals. Needs are the main trigger of the employee's performance against the implications of the
firm's impetus through a reward.

The Impact of Financial Incentive Variable on Employee Motivation Variable

The results of research conducted Waist (2014) explains the influence of material incentives on
motivation has a significant influence, where the higher the incentive given the company, the higher
the motivation of his work. Material incentives are one of the company's financial compensations
beyond the basic salary that employees receive on their performance. The Company believes that
the system of compensation in general and the material incentive system, in particular, affects the
motivation of employees in doing their work.

Profit Sharing Plan as a Motivational Tool

If your small business decides to set up a profit sharing plan as a way to motivate and reward your
employees, it’s helpful to know that there are two primary forms of profit sharing programs you can
implement: a program that rewards employees with bonus compensation — whether on a monthly,
quarterly, or annual vesting schedule — or a program that is in the form of employee retirement
savings.

1. Bonus Compensation

Let’s say you own a consulting firm and you have five employees working for you, including three
consultants, one finance manager, and one administrative assistant. . Last year, your small business
made $500,000 in net profit and is expected to make a similar amount of profit this year.

You wonder what would happen if you created a profit sharing pool for your employees. In this case,
the pool could be 10% of the profit. Thus, if you made $500,000 in profit, your five employees would
split $50,000 as bonus compensation.

Whether they will split these profits evenly, or whether you award performance-based bonuses
among them, is up to you. Alternatively, the profit sharing percentage could be tied to the
employee’s base salary, reflecting their different levels of responsibility in your business. For
example, you could split your $50,000 bonus pool evenly, giving $10,000 to each employee. Or, you
could generate a plan that more accurately reflects skill levels: You could split the $50,000 by giving
$2,000 to your office manager, $3,000 to your finance manager, and then distributing $25,000,
$12,000, and $8,000 to each of your consultants based on their job performance. Imagine that your
employees are now more motivated than before to come to work every day. They will take greater
initiative in sourcing new business and doing spectacular work and, as a result, your existing clients
retain your services for a longer time. Now, it looks like your small business may make $800,000 in
annual profit. Thus, your five employees will split a larger bonus pool of $80,000, and you will take
home $720,000, a substantial increase from the $500,000 you took home last year before you
implemented the profit sharing initiative.

The thinking behind this kind of profit sharing is that an individual employee who has more skin in
the game will likely be more willing to put in the extra work to make a good project great or to go
above and beyond to impress a client.

Awarding shares for employees is one of our leading specialist areas. We look at implementation,
operation and providing an incentive for the employee when the shares are sold. We can work with
employers or personally with directors and employees who ask us to review..

Awarding shares to employees is a big step which does require some thought. The type of questions
to consider include:

1. Extent of participation

The directors of the employer awarding shares need to decide who do they want to provide the
benefit to? Many HMRC approved plans, e.g. EMI, can be granted on a selective basis.

2. How much equity to give away under the employee share incentives?
The choice on how much to give away rests with shareholders. We prepare share capital tables to
show the shareholders the dilution under the share scheme. If employees leave usually they will lose
entitlement. The shares surrendered by former employees can, if that is desired, return to the pool
to provide for new awards.

If you are considering gifting over 50% of the business an employee ownership trust has many
attractions for both employees and the sellers.

3. What performance conditions, if any, will apply to the employee share incentives?

There is plenty of discretion on this point and no legislative requirements.

4. When will the options convert into shares?

You need to decide what happens on:

Reaching milestones: for example, years of service, financial targets; etc.

Sale of the business; Demerger or reconstruction of a business stream;

Voluntary arrangement/administration order.

5. What happens if an employee ceases to be employed?

Should special provision be made for death, injury, disability or redundancy – usually these decisions
are left to the directors.

2b)Suppose that you as a manager figure out that Jennifer, one of your employees has strong
intrinsic motivation .What would you do with this information to motivate Jennifer to higher levels
of performance

Employees who are challenged in a positive way become intrinsically motivated to push themselves
to be their best. Providing challenging assignments and giving employees leeway to make decisions
about how they approach projects creates a sense of control. This control leads a sense of
ownership in the project, and employees are motivated to succeed by a desire to step up to the
challenge.

Ability to Choose

Employees have different core skills, different values and individualized approaches to completing
tasks. Giving employees the opportunity to choose assignments best matched with their personal
preferences and areas of strength is an internal motivator. Employees feel their skills are being used
in the most effective way and the ability to select projects of personal interest increases the chances
the final project will be successful.

Opportunity for Advancement

Employees who feel they have a bright professional future ahead of them are more intrinsically
motivated than employees who feel they are stuck in a job that will never change or inspire them.
Employees who see a clear path to career advancement have a vested interest in the company and
are motivated to contribute to its success, and therefore, to their own success.

Mentoring and Education

Employees who are mentored and given the opportunity to expand their knowledge through
participation in professional development seminars and training sessions feel an increased sense of
worth. This internal motivator makes employees feel they are valued by the company, which makes
them value the quality of their work.

Regular Feedback

Employees who know where they stand with regard to performance measurements feel more
control over the stability of their jobs and the quality of their work. Taking time to give employees
regular feedback and constructive criticism creates a system where employees feel they are able to
constantly improve their performance.

Participation in Decision Making

Employees who are engaged in the corporate decision-making process are intrinsically motivated
because they have a sense of camaraderie as well as a stake in the success of the company.
Employees view themselves as being valued members of the collective team and that their intellect
and input is noticed.

Motivating your employees requires more than a bigger paycheck and a hearty pat on the bar
Employee motivation strategies have to be designed to meet the specific needs of each worker.
Below are seven ways that a manage get the most out of employees.

Find out Who They Are and What They Want

It’s not always easy to get a clear, definitive answer when you’re asking employees about goals. For
example, an employee might expert

Desire to work on a particular project, only to once they are a part of the project that it just what
they were expecting.

Instead of asking broad questions, try to be specific. For instance, ask an employee to talk about a
prior project that he or she felt went and that they enjoyed. Then try to determine features of that
job they particularly liked and that might be applied in the future to other w

Evaluate the Employee’s Work/Life Stage

While it’s important not to overgeneralize, m workers approaching the end of their working career
are usually focused less on the possible promotion than are younger workers. New w are just
beginning to climb the career ladder, thus are still planning ahead for their future company. These
new workers may also have patience than older, more experienced worked

Tailor the Motivation to the Company or Department

What will motivate employees will vary depending on where they are in the company. For instant
engineers tend to be greatly motivated when working on cutting-edge technology. By continued
sales staff often view money – and how much pay them – as a measurement of how effective
they’ve been.

Focus on Personalities

Focus on the personality of each employee. Some people are more than happy to receive public
praise, others are actually uncomfortable with this and would rather get a face-to-face, private thank
you. This should be taken into account before setting up any ceremony to h out awards, bonuses or
other public forms of recognition.

Use Flexibility as Motivation

Design a workflow and a schedule that will possible for your employees to telecommute least some
of the time and to establish office hours that better work with their personal ne This has the benefit
of making it clear that you trust your employees, and it allows them to easily balance their work/life
needs.

At the same time, keep in mind that there is cookie-cutter approach to employee motivate
Moreover, there are certain jobs that just can done away from the office. Also, many of your
workers might actually like getting away from home and all of its distractions so they can f on their
work. In fact, if they don’t have a diff commute, many people would rather just go office.

Provide Career Help and Advice

At the same time you’re asking your employee about the type of work they enjoy now, it can helpful
to find out what they’re hoping for in future. Employers should give their workers opportunities to
expand on their present skill and create the experience and connections necessary in their future
career.

Help Your Employees Learn

It’s vital for your employees to keep learning on the job. In-house seminars and classes are a great
way to motivate them to do this. Some companies have programs that reimburse employees for
tuition at colleges. You can al find out what your employees want or need t learn and assign them to
a project that will h them acquire such skills.

Motivating employees is largely about getting know them, their goals and their needs and creating
incentives to satisfy them. Keep in that employees often feel better about how they feel their
manager is actually interested them and their goals.

3 (a) Explain the in making a rational non programmed decision.

Non programmed decisions are novel, steps involved unstructured decisions that are generally
based on criteria that are not well-defined. With non-programmed decisions, information is more
likely to be ambiguous or incomplete, and the decision maker may need to exercise some thoughtful
judgment and creative thinking to reach a good solution. These are also sometimes referred to as
non-routine decisions or as high-involvement decisions because they require greater involvement
and thought on the part of the decision maker. For example, consider a manager trying to decide
whether or not to adopt a new technology. There will always be unknowns in situations of this
nature. Will the new technology really be better than the existing technology? Will it become widely
accepted over time, or will some other technology become the standard? The best the manager can
do in this situation is to gather as much relevant information as possible and make an educated
guess as to whether the new technology will be worthwhile. Clearly, non-programmed decisions
present the greater challenge.

The Decision-Making Process

While decisions makers can use mental shortcuts with programmed decisions, they should use a
systematic process with non-programmed decisions. The decision-making process is illustrated in
(Figure) and can be broken down into a series of six steps, as follows:

1. Recognize that a decision needs to be made.

2. Generate multiple alternatives.

3. Analyze the alternatives.

4. Select an alternative.

5. Implement the selected alternative.

6. Evaluate its effectiveness.

While these steps may seem straightforward, individuals often skip steps or spend too little time on
some steps. In fact, sometimes people will refuse to acknowledge a problem (Step 1) because they
aren’t sure how to address it. We’ll discuss the steps more lately in the chapter, when we review
ways to improve the quality of decision making.

Decision making is about solving problems, and some theorists maintain that problem solving is not
haphazard but entails that there are certain organized and systematic steps.

This model is based on the following assumptions:-

I. That all alternative ways of solving a given problem can be identified and that consequences of
each course of action can be readily ascertained.

ii. That there is a clearly defined criterion for determining the best course of action from among the
various alternatives.

iii. And that managers act rationally – e.g. they are willing and capable of identifying more than one
way of solving a given problem

STEP 1: INVESTIGATE THE SITUATION

A thorough investigation has three aspects.

a) Define the problem. Care should be taken in identifying and defining the problem. This problem
should be defined in terms of organizational goals and objectives that are being hindered and this
could also be an effective way of avoiding addressing symptoms than the actual problem.

b) Identification of decision objectives. What would constitute an effective solution? What would be
the objective of the decision, in the light of the problem? If a solution enables the manager to
achieve organizational objectives, it is a successful one.

c) Diagnose the causes. A solid understanding of all the sources of the problem is necessary as it
develops a set of appropriate actions. Managers may ask a number of questions e.g. (1) what
changes inside and outside the organization may have contributed to the problem? (2) What or
which people are most involved with the problem situation? (3) Do they have insights or perceptive
that may clarify the problem? (4) Does their actions contribute to the problem?

STEP 2: DEVELOP ALTERNATIVES

This is a simple stage with programmed decisions but not so with non-programmed especially if they
are time consuming. Use may be made of idea-generating techniques, most notably brainstorming.

No evaluation of alternatives is necessary as yet at this point, as emphasis is on developing

alternative ways of solving the problem only.

STEP 3: EVALUATE THE ALTERNATIVES AND SELECT THE BEST ONE

Managers should, for each alternative, look at

o Its feasibility

o Whether it is satisfactory and also its consequences.

o Some cost-benefit analysis (CBA) may also help make best decision.

o The best decision is based on available resources of time and information and imperfect judgment.

STEP 4: IMPLEMENTATION AND MONITORING (FOLLOW-UP)

This is the final stage and entails implementation of the chosen course of action (best alternative)
monitoring and where necessary making corrective actions.

One may also view this as the control mechanism for decision making and problem solving

Has the solution (alternative) chosen solved the problem?

THE END.