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CORPORATE GOVERNANCE IN ASIA
        GMGG 5314
           CONTROL IN
          ORGANIZATION
       Prepared for : Dr. Rozita Arshad
   Prepared by : SHAHRIL BUDIMAN | 810089
               shahril2204@gmail.com
                                            LOGO
Contents


                       1                Definition


                       2       Open Control System in Organization


                       3         Feed Forward Controls


                       4           Feedback Controls


                       5               Conclusion




Corporate Governance in Asia                                         Control In Organizations
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
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 ethics




Corporate Governance in Asia             Control In Organizations
Corporate Governance - Sample
Corporate 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.
                    » www.microsoft.com




Corporate Governance in Asia                         Control In Organizations
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
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
Organization Control in
                                 Open System Perspective


                         WORK                   WORK                WORK
                                               THROUGHPUTS
Schermerhorn : 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
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’s




Corporate Governance in Asia                                                                               Control In Organizations
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
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 company




Corporate Governance in Asia          Control In Organizations
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
             responsibilities




Corporate Governance in Asia                                      Control In Organizations
ORGANISATION AND CORPORATE
    GOVERNANCE CHART
                             GIB Shareholders
The foundation
                                of control is
                                  Information
                               (Henry Schacht, Former CEO of
                                 Cummins Engine Company)




Corporate Governance in Asia
Thank You
                  CONTROL IN
                   ORGANIZATION
   www.themegallery.com
          Prepared by : SHAHRIL BUDIMAN |
                                    810089
                      shahril2204@gmail.com


                                     LOGO

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Control in Organization (Corporate Governance)

  • 1. CORPORATE GOVERNANCE IN ASIA GMGG 5314 CONTROL IN ORGANIZATION Prepared for : Dr. Rozita Arshad Prepared by : SHAHRIL BUDIMAN | 810089 shahril2204@gmail.com LOGO
  • 2. Contents 1 Definition 2 Open Control System in Organization 3 Feed Forward Controls 4 Feedback Controls 5 Conclusion Corporate Governance in Asia Control In Organizations
  • 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. 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 ethics Corporate Governance in Asia Control In Organizations
  • 5. Corporate Governance - Sample Corporate 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. » www.microsoft.com Corporate Governance in Asia Control In Organizations
  • 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. 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. Organization Control in Open System Perspective WORK WORK WORK THROUGHPUTS Schermerhorn : 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. 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’s Corporate Governance in Asia Control In Organizations
  • 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. 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 company Corporate Governance in Asia Control In Organizations
  • 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 responsibilities Corporate Governance in Asia Control In Organizations
  • 13. ORGANISATION AND CORPORATE GOVERNANCE CHART GIB Shareholders
  • 14. The foundation of control is Information (Henry Schacht, Former CEO of Cummins Engine Company) Corporate Governance in Asia
  • 15. Thank You CONTROL IN ORGANIZATION www.themegallery.com Prepared by : SHAHRIL BUDIMAN | 810089 shahril2204@gmail.com LOGO