MANAGEMENT CONCEPTS, THEORIES AND PRINCIPLES

ENABLING ASSESSMENT
Questions:
1. Describe the four steps of the control process. Compare and contrast the managerial actions
and assumptions that are evident in the FBL, TBL, and SET approaches for each of the four
steps in the process.
→ The four steps of the control process consist of different performance ideas to maximize
the work in an organization. (1) The first step is to establish key performance standards; it
is where managers/leaders use value chains to identify components where control is
important. In this step, FBL focuses on these performance standards; factory productivity,
liquidity ratios, leverage ratios, and profitability ratios. FBL mainly focuses on the
performance of the organization. Meanwhile, SET focuses on these performance
standards: participation/inclusion, ecological/financial, ecological well-being, social well-
being, and social justice. SET focuses on the socioecological performances of the
organization. TBL performance standards are a mixed of both FBL and SET performance.
It mostly approaches FBL practices unless there is a business case that supports the
approach of SET practices. (2) The second step is to monitor performance where the
organization develops information systems that identify important data. The FBL strategy
employs top-down information systems to maximize productivity, efficiency, and
financial outcomes, whereas the SET approach employs bottom-up information systems
to improve metrics linked with socio-ecological well-being processes and outcomes. TBL
mostly uses the FBL approach in monitoring performance and only some of the SET
approaches. (3) The third step is to evaluate performance whereas FBL approaches use a
top-down process, focused on a rational approach, and often focus on individuals. While
the SET approach evaluates multiple stakeholders, focused on relational and often focus
on groups. TBL mostly uses FBL’s ideas and only some of the SET’s ideas. (4) The last
step is to respond accordingly. In FBL, managers take action while in SET managers
expect help from others. TBL uses both approaches but mostly FBL.

2. Which of the functional areas of business (HRM, Finance, Accounting, Supply chain,
operations, and marketing) do you think is the most important part of the control process for
FBL management? For TBL management? For SET management? Explain your reasoning.
→ (1) Finance and accounting both have an important part in the control process for FBL
management because these functional areas are responsible for checking multiple plans
like checking the time value of money, and the challenges of markets and agencies. They
are also responsible for the risk-return trade-off of investors of the organization. This take
a big part in knowing if the company is profitable or not. (2) For TBL management, supply
chain and operation play a big part in the control process. In supply chain management,
strategic purchasing is at best if the organization will follow the approaches in FBL along
with the approaches of SET. The same to managing inter-organizational relationships
where it is better to practice both approaches to maximize the trust and stability of
suppliers. While in operation management, it will ensure that the features and reliability
of the products are appropriate for the customer market also beyond what is being served.
Dependability of delivery not only provides timely and reliable delivery but also
appropriate delivery of products. Flexibility and cost ensure that products can be easily
customized and affordable. (3) Lastly for SET management, human resource management
offers importance in the control process. It provides job-based and beyond job-based
training and development and designs employee performance appraisals to stimulate
members’ growth and development.