SGMT 3000 Chapter Notes - Chapter 10: Activist Shareholder, Organizational Culture, Reward System
4 Apr 2016
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Document Summary
Organizaions must employ efecive strategic controls if they are to successfully develop and implement their strategies. A list of controls that are supposed to be in place for the funcioning of each individual corporaion: Efecive corporate governance aligning managerial and shareholder interests. Tradiional control mechanisms rely on measuring outcomes (targets, metrics) Accouning metric targets: roi, roa, roe, budgets, gaap. Market-based outcomes: sales quotas, market share, customer saisfacion scores, brand coverage. Operaing targets: producion schedules, tolerance levels, waste rates, uilizaion, producivity. Feedback control systems are placed at the end of a sequenial process: strategy formaion, goal seing, strategy implementaion and acion, performance measurement, evaluaion and feedback and if needed steering and correcive acion. Lengthy ime lags, oten ied to irm"s annual planning circle. Formulate strategies implement strategies strategic control. Most appropriate when the environment is stable and relaively simple, goals and objecives can be measured with a high level of certainty, and there is litle need for complex measures of performance.
