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How To Control For Effective Management – Part 2

The Manager's Role in Maintaining Quality

When quality standards are not being met, the manager's first step is to analyze the facts and take the necessary steps to get the desired quality. Scattered shotgun attempts at correcting quality deficiencies are not so effective as specific efforts to correct the exact cause. In his analysis of cause of low quality, the manager may find: (1) lack of knowledge either of the standards or of methods in performing the work; (2) lack of ability (when employee lacks capacity for the work, he should be transferred to a work for which he is better suited); (3) not exercising proper care (every manager has met the careless employee who must either be corrected, transferred, or discharged); and (4) defective equipment or materials (which are the manager's responsibilities once employee has informed the supervisor concerning them).

Producing the desired quality is a positive requirement in leadership. When standards are not being met to maintain quality, the manager must find out what is causing the defects and teach the men how to avoid them. The right man on the job is important and the manager must carry out his responsibilities in properly inducting, instructing, and when necessary, transferring men to maintain quality in his department. Proper specifications as to the desired quality are necessary since no employee can be expected to work on tolerances unless he knows what they are. It is helpful when men know and understand the reasons for close tolerances. Show them how their work ties into that of other departments and have other men assist them in producing and measuring quality. Persistent follow up by the manager is required, supervision must be especially close, and instruction thorough where high quality tolerances are required.

Quality maintenance is a term assignment of the manager. The manager should use his assistants, his group leaders, his set-up men, and adjusters to attain quality. It is particularly important that these men be kept informed of quality requirements and standards. Successful managers develop their men's pride in quality achievement. In an age of specialization when a man frequently performs only a single operation on a product, developing pride in craftsmanship is difficult, but showing him where his part goes in the finished product will create interest on his part and assist in attaining quality production. The manager can use inspection, scrap, and rejection reports effectively in creating quality consciousness. He can develop competition between men and sections of his department as an aid in producing quality. The manager must create the conditions conducive to quality maintenance by paying special attention to materials, machines, and working conditions. Finally, the manager should take immediate action when standards are not met - action to inform the men, to instruct the men, to repair machines, to provide satisfactory materials and tools, and to eliminate men who, through carelessness or lack of ability, lower his department's capacity to produce and measure quality.

The use of quality control charts at the machine where the worker can see the results of his efforts provides a strong incentive• for increased efforts at meeting standards. The manager can promote quality control through the men themselves. He can let them know the standards and why these standards are necessary. He should provide instruction for both new and old men. He should use praise wherever possible since praise for good work is far more effective than censure for poor work. He should provide adequate supervision for the men through delegation of responsibilities to well-trained assistants. It is poor policy to pass work below standard one day and reject it the following day. The manager should see that his men have proper equipment, correct tools, satisfactory materials, and an even flow of work with as few changes as possible.

The tabulation that follows shows the analysis of a group of managers in a conference. They were striving to identify the cause of low quality and to suggest a remedy for it.

Causes & Remedies

1. Cause: Unskilled workmen; Remedy: Instruct

2. Cause: Poor equipment; Remedy: Proper supervision and maintenance;

3. Cause: Carelessness of worker; Remedy: Proper training and supervision

4. Cause: Lack of knowledge on the part of the worker; Remedy: Teach quality requirements and reasons for same;

5. Cause: Defective materials; Remedy: Reject materials, report to authorities, and add extra work;

6. Speed of production in:

a. Cause: Relation to machine capacity; Remedy: Adjust or get the new machine;

b. Cause: Relation to worker capacity; Remedy: Adjust, slow down, or teach new speed;

7. Cause: Design of machine; Remedy: Correct;

8. Cause: Design of tool; Remedy: Correct;

9. Cause: Quality of supervision; Remedy: Instruct.

The Manager's Responsibility for Promoting Cooperation with Inspection Department

As stated earlier, a clear definition of the function of the inspection department and the acceptance of the responsibility for quality creation should promote a mutuality of interest between the producing and inspecting group. It is the manager's responsibility to create quality and to make use of the information provided him by the inspection department in meeting his responsibility. The manager should recognize that the function of inspection is to measure quality and should not feel that there is something personal in actions taken by inspectors. He should cooperate in and encourage preventive inspection and not merely acquiesce in remedial inspection. He should develop respect for the inspection department among his men and see that they cooperate with the inspectors. The manager may not always agree with the inspection department but he should never show this attitude before his men.

The manager must realize that quality maintenance is a cooperative program that challenges the best efforts of the manager as an executive. Success in producing and measuring quality comes only to the foreman who recognizes and applies the doctrine of individual differences in handling his men. To achieve quality maintenance requires careful organization, deputization of responsibilities and authority to others (since no manager can do it alone), and supervision of the highest quality (which is inherent in leadership).

How To Develop Performance Standards For Effective Management

Developing performance standards is the work a manager performs to establish criteria by which work and results can be measured and evaluated. It is defining an adequate and acceptable level of individual group performance.

Types of Standards

There are different types of standards. They are the following: 1) Mandates or decreed standards, 2) Specifications or engineered standards, 3) Past performance or historical standards, 4) Market requirements, and 5) Action plans.

Barriers to Developing Performance Standards

Often, standards are not seen because the manager hasn't thought through what criteria of excellence to set or he fears revelation of a deficiency if a standard isn't met. Often the manager substitutes subjective criteria for objective, measurable, tangible, and finite ones because they are “easier to set.”

The following are the barriers to developing performance standards:

1. The uncertainty of the manager as to what constitutes excellence - in management work for example.

2. The inability of recognizing standards as part of the job.

3. The fear of managers that deficiencies will be revealed.

4. The reluctance of the manager to make a commitment to measurable standards.

Guidelines in Developing Performance Standards

There are several guidelines for the manager in developing performance standards. They are the following:

1. Based on plan and job description, define measurable work performance standards for each of your people in terms of quantity and quality of performance.

2. Establish limits of tolerance.

3. Keep standards realistic and make sure each measurable standard is meaningful enough to stimulate control action

4. Determine who will do what and when to measure performance effectively and economically.

5. Secure understanding and acceptance.

6. Review standard periodically.

Objective for Improved Planning

A. Example of a specific objective:

To develop and use an annual operating plan, revised monthly, then quarterly.

Standards:

1. Key critical and specific objectives are reviewed and authorized by my superior, followed by necessary programs and schedules and budgets.

2. My plan is coordinated with my subordinates, staff groups and others involved, and submitted to my superior as completed work.

3. I initiate and follow through with monthly reports, frankly evaluating deficiencies as well as accomplishments and discussing with my superior in a constructive manner.

ACCT: Myself

TIME: Initial plan completed and discussed within 20 working days.

B. My specific objective:

To produce daily the targeted number of goods within the quality specifications with the proper utilization of resources allocated.

How To Develop Positive Values And Attitudes For Effective Management

The Filipino manager should learn and appreciate more his own country, the Philippines, by knowing its values, history as well as its culture. Ours is one of the richest countries in the world. God has given our archipelago all the things needed to support a free nation: 1) fertile soil capable of producing large crops of rice, corn, coconut, hemp, tobacco, and other agricultural products; 2) a good tropical climate which is healthful to all men; and 3) rich natural resources

The wealth of the Philippines consists of agricultural wealth - plant and animal life, forest wealth, fish and marine wealth, mineral wealth, and above all, human wealth. This last one is our focus of attention for effective management. From the day we became the slowest growing nation in Asia, we should have studied what ails the Filipinos as a people. Why do Filipinos not possess that elan and that hubris necessary to make a progressive nation?

Sociologists have pinpointed that Filipinos are a defeatist people, choosing to celebrate defeats and downfalls (The Fall of Corregidor, The Fall of Bataan, The Fall of Tirad Pass, The Death March of Capas, The Death of Rizal, The Death of Aquino, The Death or Massacre at Mendiola). Florentino Diaz wrote that Lapu-Lapu, our ancient hero, fought with valor and amputated the incursive Magellan and yet it was not our hero which merited a monument but it was the intruder who was immortalized in prose as well as bronze. He further wrote that Rizal was a convenient hero foisted upon us by the Americans so that we would learn what Rizal hated and which, in turn, was hated by the Americans. Thus we are the only nation in the world which has a national hero who did not lift a pin against the enemy. It was Andres Bonifacio who started a revolution without asking any condition for his action. Bonifacio was a St. Joan of Arc of France, a Simon Bolivar, a Jose Marti, but was not chosen as a national hero because the Americans feared the consequences of behavior modeling after him.

If we want to make our Filipino manpower achieve objectives, we must bring out the best and positive values in us. This is a century of bigness. Efficiency is the key word. We should transform ourselves from a country of mystified, incoherent, and deluded lawyers and politicians who salt dollars, cheat on income taxes, and bribe legislators to a nation of industrious and effective entrepreneurs. From naive university graduates who are perpetually unemployed and without imagination, we must transform the youth to effective creators.

The destruction of positive values in the Filipinos begins with television and ends up into brainless imitations of foreign models and standards. Filipinos come out from this school of the idiot box more confused than when they began at the onset. They acquire that philosophy which says: “Honesty maketh a good student, dishonesty maketh a good business.” They start to believe that values, dignity, and honor are products of crash programs.

For us Filipinos, the first truth we ought to know is ourselves, our humanity. We must know our subjectivity, our sociability, our availability, our responsibility, and our meaning. Subjectivity is our kalooban. Sociability is our comradeship with others, our pakikisama. Availability is our pagbibigay. Responsibility is our kakayahang tumugon. Meaning is our relatedness or pakikihalubilo. Below is the illustration of the importance of meaning or pakikihalubilo conceptually by the example of numbers in Arithmetic:

A B C
5 5 =
5 5 =
5 5 =
5 5 =

Notice that no answers can be indicated under column C. The reason is the numbers under Columns A and B have no relation indicators, which in arithmetic are the signs of operation. When the signs of operation are properly indicated as below, then the answers (meaning) can be drawn, thus:

A B C
5 + 5 = 10
5 - 5 = 0
5 / 5 = 1
5 x 5 = 25

You will notice also that the signs of relationship do not only make answers (meanings) possible. Their nature or kind determines the quantity/quality of their results as you see them under column C. Some Filipinos have relationship with others which are plus (+) the way 5 + 5 are 10. Some have even better effect. They have a multiplier effect. In this way, 5 x 5 are 25. But unfortunately, there are Filipinos who have negative human relations, such as 5 - 5 = 0, or as nearly fruitless as 5 / 5 = 1.

To develop lakas ng loob among Filipino workers, do the following:

1. Greet each employee every day. Vary the greeting from day-to-day.

2. Find out his values, hobbies, and special interests.

3. Show interest in and sincere, and genuine concern for employees.

4. Encourage them to come to you with their problems.

5. Help them with their problems, even if these may seem trifling. Promote employees' special interests.

To develop kusang-loob in the Filipino worker, do the following:

1. Give several orders with some obvious steps omitted. Check if worker caught the omission.

2. Give several orders with some less evident points omitted. Check.

3. Make an assignment in which only the general idea is set up. Check the details.

4. Assign responsibility which includes chance to work out details. Check.

5. Watch for suggestions which come spontaneously from an employee.

How To Measure Performance And Results For Effective Management

Measuring performance and results is the work a manager performs to record and report work being done and results obtained. It is determining through formal and informal reports the degree to which progress toward objectives is being made. It is checking performance regularly to determine cumulative progress toward planned results.

The stewardship concept of reporting enunciates that a manager is accountable for the cost of the people, materials, tools, and facilities entrusted to his care. He is accountable for the reports he receives. He needs to specify their content and format; that is, he is accountable for his control data.

The key points of reporting are identification of accountability, accurate measurement of performance, and requirement of understandable, concise, accurate, and timely reports. The following are some guidelines in measuring performance and results:

1. Get progress reports in time to take desirable control action.

2. Record key performance figures in five to ten simple charts.

3. Plot trends in relation to objectives.

4. Make sure each of your key people gets his performance reports as soon as you do.

5. Make periodic personal visits to “measure” other factors not covered in formal reports.

Measurement Methods

There are two kinds of measurement methods. They are the following:

1. Accounting Information System (AIS) - based on specific business transaction.

2. Management Information System (MIS) - based on standards of performance.

A control system is an equipment whose objective is to maintain a desired condition or state. It has the four elements:

1. A device for measurement which detects what is occurring in the area being controlled.

2. A assessment device for the importance of what is occurring, usually by comparing data on what is really happening with some expectation/standard of what should be occurring, that is, a selector.

3. An equipment for altering behavior if the requirement for doing so is determined, that is, an effector.

4. A device for communicating data among these equipments.

Phases of Management Control

There are four phases of management control. They are the following:

1. Programming is the process of deciding on the programs that the company will undertake and the approximate account of resources that are to be allocated for each program.

2. Budgeting is a plan expressed in quantitative monetary terms that covers a specified period of time.

3. Operating and Counting the resources actually consumed (costs) and revenues actually earned. These cost and revenue data are classified both by programs and by responsibility centers.

4. Reporting and Analysis. The management control system serves as a communication device.

How To Evaluate Performance And Results For Effective Management

Evaluating performance and results is the work a manager performs to analyze, interpret, and determine the worth or quality of the work done and results secured.

There are several guidelines and techniques in evaluating performance. They are the following:

1. Look for relationships between results. Compare completed work and work-in-progress with standards.

2. Identify deviations from standards.

3. Determine causes of deviations. Consider whether sufficient time has elapsed for results to be meaningful.

4. Meet with one or more of your key people to confirm reported data and to try to define any problems involved.

5. Consider having one or more studies made to get detailed facts and opinions.

6. Consider getting the ideas of associates, superiors, and/or outsiders.

7. Transmit information or evaluation results to point of control.

8. Spend only an economical amount of time and effort before deciding upon appropriate action.

STAR Concept

Performance evaluation is a very delicate management function. The manager must be aware of common appraisal problems, such as form bias, halo effect, recent performance bias, early performance bias, compatibility, blind spots, special assets, and performance vs. potential. He must also be careful to avoid performance evaluation pitfalls, such as snap judgment, projection, prejudice, predisposition, preoccupation, and lack of appreciation for other people's dreams and ideas.

A very good method of evaluating performance is the STAR method:

S - situation or setting of the “story”;

T - task assigned to the person;

A - activity or behavior exhibited by the person;

R - results or consequences of a person's activity or behavior, results may be positive or negative.

The benefits derived from using the STAR method are the following:

1. Provides performance evaluation with concrete data.

2. Facilitates performance review.

3. Translates unclear performance appraisal factors, such as. profit objectives and assigned work, into clear behavior that the appraisal demonstrated.

4. Determines behavior problem.

5. Facilitates promotion decisions.

Continue to Part 3

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