College of Education

School of Continuing and Distance Education 2017/2018 – 2018/2019 ACADEMIC YEAR

LECTURER: (Dr. Obi Berko Damoah) DEPARTMENT: (OHRM, UGBS)

(Contact Information:obodamoah@ug.edu.gh)

Course Information

Provide the following information:

Course Code: UGBS 402

Course Title: Business Policy

Course Credit 3 CREDIT HOURS

Session Number & Session Title:

Session 11 – Policy Control

Semester/Year: Second Semester / 2017 / 18

Slide 2

Course Information (contd.)

Slide 3

Provide the following information:

Lecture Period(s)

3 Hours per week

Prerequisites Insert Course Prerequisites: (if applicable)

Teaching Assistant

Insert Teaching Assistant’s Information: (where applicable, provide name and contact information)

Course Instructor’s Contact

Provide the following information:

Course Instructor(s) Name

Dr. Obi Berko Damoah

Office Location GBS 13, Graduate Block, 3rd Floor, Main Campus

Office Hours

Wednesdays 12: 00pm – 2: 00pm Fridays 12:00pm – 2: 00pm

Phone 0303963756

E-mail obodamoah@ug.edu.gh

Slide 4

Introduction/Subject or Session Overview

Policy control is defined as management efforts to track a policy as it is being implemented, detect problems or changes in its underlying premises, and make necessary adjustments.

This session presents the tools for monitoring a policy plan from a practical viewpoint. It presents and clarifies the following tools, example surveys, reports, time sheets, observation etc. It however presents some types of policy control.

Slide 5

Session Outline

The key topic to be covered in the session is as follows:

• Policy control

• Premise control

• Implementation control

• The balanced scorecard methodology

• Dashboard

Slide 6

Session Learning Objectives

At the end of the session, the student will:

• Through reading the required chapters of the required text and watching the videos, be able to describe and illustrate the four types of policy control;

• Based on 1) above, understand, explain and be able to summarize the balanced scorecard approach and how it integrates policy and operational control;

• Through the guest lecture and the case analysis, be able to illustrate the use of controls to guide and monitor policy implementation

Slide 7

Session Learning Outcomes

Upon completion of this course, the student will have had the demonstrated the ability to:

• Through reading the required chapters of the required text and watching the videos, be able to describe and illustrate the four types of policy control;

• Based on 1) above, understand, explain and be able to summarize the balanced scorecard approach and how it integrates policy and operational control;

• Through the guest lecture and the case analysis, be able to illustrate the use of controls to guide and monitor policy implementation

Slide 8

Session Activities and Assignments

• This week, complete the following tasks: • Log onto the UG Sakai LMS course site: http://sakai.ug.edu.gh • Watch the Videos for Session 11 • Review Lecture Slides: Session 11 • Read Chapter 11, Case #30 of the Recommended Text -

Pearce, J. A. and Robinson, R. B. (2014). Policy management: managing for global and domestic competition; (14th edition), McGraw-Hill/Irwin Inc., New York.;

• Visit the Chat Room and discuss with your group the aspects of the term paper that session 11 explains; monitored by the instructor;

• Complete the individual self-assignment questions for Session 11

Slide 9

POLICY CONTROL Topic One

Slide 10

The Policy Control

Policy Control

Management efforts to track a policy as it is being implemented, detect problems or changes in its underlying premises, and make necessary adjustments

Slide 11

The Policy Control Cont.;

Questions That Drive Policy Control

1. Are we moving in the proper direction?

2. How are we performing?

Slide 12

The Policy Control Cont.;

Types of policy Control

• Premise control

• Policy surveillance

• Special alert control

• Implementation control

Slide 13

The Policy Control Cont.;

Four types of Policy Control

Slide 14

The Policy Control Cont.;

Characteristics of the Four Types of Policy Control

Slide 15

PREMISE CONTROL Topic Two

Slide 16

The Premises Control

• Premise control is designed to check systematically and continuously whether the premises on which the policy is based are still valid

• Primarily concerned with

– Environmental factors

– Industry factors

Slide 17

The Premises Control Cont.;

Policy surveillance:

• Is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its policy

• Policy surveillance must be kept as unfocused as possible

• Despite its looseness, policy surveillance provides an ongoing, broad-based vigilance in all daily operations

Slide 18

The Premises Control Cont.;

Special Alert Control

• A special alert control is the thorough, and often rapid, reconsideration of the firm’s policy because of a sudden, unexpected event

• A drastic event should trigger an immediate and intense reassessment of the firm’s policy and its current policy situation

• Crisis teams

• Contingency plans

Slide 19

IMPLEMENTATION CONTROL Topic Three

Slide 20

The Implementation Control

Implementation control is designed to assess whether the overall policy should be changed in light of the results associated with the incremental actions that implement the overall policy

• The two basic types of implementation control are:

• Monitoring strategic thrusts

• Milestone reviews

Slide 21

The Implementation Control Cont.;

Policy Thrusts or Projects

Special efforts that are early steps in executing a broader policy, usually involving significant resource commitments yet where predetermined feedback will help management determine whether continuing to pursue the policy is appropriate or whether it needs adjustment or major change.

Slide 22

The Implementation Control Cont.;

Milestone Reviews

Points in time, or at the completion of major parts of a bigger policy, where managers have predetermined they will undertake a go-no go type of review regarding the underlying policy associated with the bigger policy.

Slide 23

The Implementation Control Cont.;

• To be effective, operational control systems must take four steps common to all postaction controls:

– Set standards of performance

–Measure actual performance

– Identify deviations from standards set

– Initiate corrective action

Slide 24

THE BALANCED SCORECARD METHODOLOGY

Topic Four

Slide 25

The Balanced Scorecard Methodology

The Balanced Scorecard Methodology

An alternative approach linking operational and policy control, developed by Harvard Business School professors Robert Kaplan and David Norton, is a system they named the balanced scorecard

Slide 26

The Balanced Scorecard Methodology Cont.;

Balanced Scorecard

A management control system that enables companies to clarify their policies, translate them into action, and provide quantitative feedback as to whether the policy is creating value, leveraging core competencies, satisfying the company’s customers, and generating a financial reward to its shareholders.

Slide 27

The Balanced Scorecard Methodology Cont.;

Kaplan and Norton on the Balanced Scorecard

The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation.”

Slide 28

The Balanced Scorecard Methodology Cont.;

Integrating Shareholder Value and Organizational Activities across Organizational Levels

Slide 29

The Balanced Scorecard Methodology Cont.;

Balanced Scorecard

Four perspectives:

1. The learning and growth perspective: How well are we continuously improving and creating value?

2. The business process perspective: What are our core competencies and areas of operational excellence?

3. The customer perspective: How satisfied are our customers?

4. The financial perspective: How are we doing for our shareholders?

Slide 30

The Balanced Scorecard Methodology Cont.;

Exxon’s NAM&R Division’s Balanced Scorecard

Slide 31

The Balanced Scorecard Methodology Cont.;

Exxon’s NAM&R Division’s Balanced Scorecard Cont.;

Slide 32

The Balanced Scorecard Methodology Cont.;

Exxon’s NAM&R Division’s Balanced Scorecard Cont.;

Slide 33

The Balanced Scorecard Methodology Cont.;

Exxon’s NAM&R Division’s Balanced Scorecard Cont.;

Slide 34

DASHBOARD Topic Five

Slide 35

The Dashboard

Dashboard

A user interface that organizes and presents information from multiple digital sources simultaneously in a user-designed format on the computer screen

Slide 36

The Dashboard Cont.;

Dashboard Uses

• Key management tool for timely policy and operational control

• Users can decide the key indicators that tell them about the unfolding success of their policies

Slide 37

The Dashboard Cont.;

Summing Up Policy Control

• Policy control and comprehensive control programs like the balanced scorecard bring the entire management task into focus.

• Organizational leaders can adjust or radically change their firm’s policy based on feedback from a balanced scorecard approach as well as other policy controls.

Slide 38

References

Required and indicative reading • Pearce, J. A. and Robinson, R. B. (2014). Strategic management: managing for global and

domestic competition; (14th edition), McGraw-Hill/Irwin Inc., New York. • Supplementary Reading • Dess, G. G. & Lumpkin, G. T. (2003), Strategic Management: Creating competitive advantages,

McGraw-Hill/Irwin Inc., New York. • Johnson, G., Scholes K. & Whittington R (2008), Exploring Corporate Strategy: Text and Cases,

Pearson Education Limited, England • In addition: • Any good introductory text in Strategic Management/Business Policy • Business section of any newspaper • Strategic Management publications (consult the library).

Slide 39

References Cont.;

Journals

• Management decision

• Strategic management journal

Youtube

• https://www.youtube.com/watch?v=9zhfaPzVpEg

• https://www.youtube.com/watch?v=2Y434-JXfd8

Slide 40