Kreitner has listed some of the common symptoms as follows: 1. An unexplained decline in revenues and profits. 2. A degradation of service (customer complaints). 3. Employee dissatisfaction (complaints, grievances, turnover). 4. Cash shortages caused by bloated inventories or delinquent accounts receivable.
5. Idle facilities or personnel. 6. Disorganized operations (work flow bottlenecks, excessive paperwork). 7. Excessive costs. 8. Evidence of waste and inefficiency (scrap, rework). It must be noted that behind every symptom is a problem waiting to be solved. Unless this problem is clearly identified, no effective solution may be derived. Nevertheless, problems are easily recognized if adequate control measures are in place. QUESTIONS FOR REVIEW AND DISCUSSION 1. Why is controlling a very important management function? 2. What is controlling? Is it applicable to the day- to-day activities of the engineer manager? 3. Why is the establishment of performance object- ives and standards an important step in the control process? 4. Compare and contrast the three distinct types of control. 5. How do strategic plans provide a basis for control? 6. What are policies? In what ways do they facilitate control? 7. When the engineer manager reviews the finan- cial statements of the company under his super- vision, what benefits does he derive? 8. What are financial ratios? How may they be categorized? 9. What is measured in the debt to total assets ratio? How may it be computed? 10. Do you consider "idle facilities or personnel" as a symptom of inadequate control? Why or why not? Case 9. GOOD MUSIC BROADCASTING CORPORATION: Ebb Tide Engineer Frederick Panganiban was reading the advertising sales report handed to him by his assistant. The report contains information consolidated from the ten radio stations owned and operated by Good Music Broadcasting Corporation (GMBC). These stations are located in the various parts of the country. GMBC headquarters and sales office are located in Makati. GMBC derives income from advertisements lodged by companies like San Miguel Corporation, Ayala Life, and others. The sales office receives the cassette tapes and written text containing the advertising messages of the client companies. The tapes are meant to be played at regular intervals in all of the ten radio stations operated by GMBC. The written text is an alternate advertising form read by the radio
announcers at regular intervals. An advertising message does not exceed one minute. The advertisers are billed depending on the frequency of exposure of their messages. Each station is managed by a station manager who reports directly to Engineer Panganiban, the general manager. The stations are allowed to accept local advertisements subject to availability of slots after accommodating the national advertisers.
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