What do you mean by ratio analysis


Task: Controlling

Operations management is a key to enhancing productivity and quality. Control processes and control systems are strategies to implement and improve these factors. Almost all control systems relate to some part of the Shrewhart cycle - Plan, Do, Check, Act. This famous quality cycle requires that managers monitor the results of activities, comparing them to the expectations embodied in the plans, and then acting to reduce variances. Thus, the heart of control systems is information.

This module covers the principles of controlling and the control of production.

Objectives:

After completing this module, you should be able to do the following:

•    Recognize the control options available to managers.
•    Select types of control and an approach for implementation.
•    Assess the effectiveness of controls.
•    Identify the use of controls to reach organizational goals.
•    Identify issues to be addressed in developing and implementing operating systems.
•    Consider the importance of productivity and quality.
•    Relate data, information, and knowledge to decision-making.
•    Assess strategies for Management Information Systems (MIS).

Readings:

Certo, S. (2009), “Modern Management”, (11/ed); Prentice Hall, ISBN 978-0136010166 - Chapters 21 and 22 Lecture Slides:Please refer to links in this module

Essay Questions:

Problem 1. What is ratio analysis. What ratios do you think are most valuable to managers in your company or an organization you know about?

Problem 2. Some theorists believe that people are basically trustworthy and that controls are unnecessary and counterproductive. Others believe that people are untrustworthy and we need to look over their shoulder. These are Douglas MacGregor's Theory X and Theory Y. What is your opinion on this complex issue?

Problem 3. What are the positive and negative issues of automation impacting our society today? Support your response with practical examples and situations.

Problem 4. What different kinds of organizational controls are functioning within an organization with which you are familiar?

Problem 5. Describe the six steps involved with information system performance. Use a practical example to illustrate the significance of these steps.

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