TECHNIQUESANDPROCESSESOFADMINISTRATIVECONTROL

TECHNIQUES AND CONTROL PROCESSES

THE BLAKE AND MOUTON MODEL OR OF THE

Business Excellence
The Blake and Mouton excellence model constitutes another valuable tool for
evaluate the results of the functional areas of the company. Blake and Mouton define
to the business excellence model grid as 'a planned design of concepts'
and strategies, of tactics and techniques to transform a company of
the current situation towards excellence.

Just as the authors open a perspective towards many aspects of

behavior, performance, and results that are important for the
organizations. It is necessary to clarify that this model was designed to be applied
in large companies, so not all functions will be able to be evaluated in
the medium or small businesses. However, the study and evaluation of the
functions of this scheme allow to detect those areas of greatest
issues where corrective actions are necessary to achieve
better levels of efficiency.
To evaluate business excellence, the authors propose conducting an analysis and
issue a rating based on a scale of duly tested standards
through three levels of performance: excellent, average, and poor, in which
the following key outcome areas are evaluated:

1. Business strategy. Strategies that lead to the organization.

2.Planning.Company plans.
3. Leadership. Leadership and management styles.
4. Human resources. Management of the human element.
5. Financial management. Planning and allocation of monetary funds.
6.Operations.Transformation processes and acquisition of raw materials in
finished product.
7.Marketing.Activities aimed at delivering the product or service to
consumer to satisfy their needs.
8. Research and development. Set of functions to innovate and improve the
product.

Obviously, not all the mentioned areas will be evaluated in the medians.
and small businesses; however, this model provides important guidance
Regarding this. Below are the functions that are being evaluated.
 Business Strategy
Understand the analysis of:
a) Earnings per share. Percentage increase or decrease in earnings per
action over a specified period.
b) Dividend policy. Policy followed for the payment of dividends.
considering the company's needs for financing through the
retained earnings and the needs, expectations, and requirements of the
shareholders, in order to generate attractive returns on their investments.
c) Growth of assets. Increase in the company's assets in relation to
its liabilities; it is measured at the level of competitiveness.
d) Capital structure. Policy maintained regarding the sources and
Amounts of funds used for financing operations.
e) Financial planning. Planning that is carried out in order to achieve the maximum
solvency in operations.

Planning the strategy

An analysis is conducted on how the company is managed, and it is compared with the
alternatives to direct it. Its indicators are:

a) Planning of the business strategy. Level of definition and analysis of the

mission, financial objectives, penetration strategies in various
markets and the resources available to achieve it.
b) Market growth rate. It is obtained by making comparisons with
other broad economic indicators and with the competition.
c) Technologies. Degree of utilization of cutting-edge technologies and development of a
technological base in the production area of the company.
d) New markets. Analysis and evaluation of the possible market diversification.
e) Synergy. Implications that lead to creating divisions with different products in
a common market.
f) Disaster plans. Degree of effectiveness of plans that consider conditions
adverse, due to sudden changes in the market or in the global economy.
g) Expansion. The expansion method through diversification and merger is evaluated.
or acquisition of companies.
 Business Leadership
The evaluation of the leadership style that prevails within the organization and the degree
of reliability and closeness that exists between managers and subordinates, there
carry out through the study of the various activities that a leader performs and the
way in which it solves the problems that arise.
The way in which the members of a company organize their efforts in the
achieving the objectives, designing the structure, determining the policies
existing, as well as the succession that occurs among executives, are some of the
most important aspects that can guide us about leadership style
prevailing in the institution. These guidelines must be fully
focused on philosophy and general objectives. A company made up of
true leaders offer a systematic foundation in business logic and in the
decisions that are made.
Business leadership is an essential factor in the evaluation of excellence, since
that the style of leadership will largely define the communication of efforts
among the staff for the achievement of objectives. The indicators of efficiency
of leadership are:
a) Business structure. Coordination and integration of efforts between divisions,
departments, etcetera.
b) Paradox of centralization and decentralization. Degree of delegation that
It exists in various areas for joint decision-making.
c) Policy. Evaluation of the policies that are practiced in all areas of the
companies such as prices and customer service, product quality,
linking of personnel, promotions, salaries, settlements, retirements, etcetera.
d) Executive development. Periodic review of a development plan that
recognizes candidates who can fill vacancies at any time.
e) Effort of the highest level. Analysis of the managerial profile to determine the
organizational competitive feasibility, since it emanates from the executives
transcendental decisions.
 HUMAN RESOURCES
This variable refers to the management of the human element, which contributes to
limit or increase their capabilities and skills. Its indicators are:
a) Planning and incorporation of personnel. It is basically responsible for evaluating the
planning, recruitment, selection, and induction of personnel.
b) Performance evaluation. Review of performance and productivity of
personal to plan improvements in their performance.
c) Promotions in the administration. Analysis of the promotion system in the
organization.
d) Administration of union contracts. Degree of cooperation company-
union in the solution of contractual problems.
Basically, the intention of evaluating these subfunctions is to understand the degree of
concern that management levels show towards their staff. This interest
it is reflected in the benefits, the hiring policies, the structure of
salaries and promotions, as well as in the relationship that the company maintains with the
union.
Knowing these aspects serves as a guideline to understand how close they are
they find employees with managerial level and how much participation of these
exists towards the decisions that are made.
 FINANCIAL MANAGEMENT
The evaluation of the cash flow within the company, as well as the management that is
destined for the same, are some guidelines that allow evaluating the degree of
excellence of the organization. A waste of money will show a concern
zero in the correct management of the funds. The allocation of the budget for
investment projects, expansion and growth reflect an organization that
moves forward to achieve greater competitiveness.
The indicators that are used are:

a) Relationship between current assets and current liabilities. Evaluate the capacity
business to meet daily with its financial capital obligations
of work.
b) Collection period. One way to measure efficiency in management of
financial resources, is based on the duration of the collection period and on the
debt collection.
c) Cash flow. Evaluate the inflow of funds in relation to the outflow.
the same, to determine if the funds are used correctly.
d) Tax planning. It consists of analyzing the tax or tax plan in order to
evaluate whether to reduce the amount of taxes to the legal minimum, to increase the
potential of earnings.
e) Budget. Review of the budgeting system to determine its level of
effectiveness.
 OPERATIONS
This function aims to evaluate the entire process that is followed in the
manufacturing and production of the goods that the company produces. The existence of
quality in their products, the warranty, and the attention given to the public with
some of the points that are evaluated in said function.
The activities that serve as indicators to assess the effectiveness of the
operations management are:
a) Planning and scheduling of production. Review of plans and programs
production, using mathematical models as a basis for evaluation, with
the goal of establishing the efficient use of resources.
b) Quality. Evaluate the quality control system, which encompasses the procedure of
inspection and sampling, as well as other methods to ensure that the quality is
adjust to the specifications.
c) Inventory of materials. Review of inventory levels for continuity.
of the production.
d) Maintenance of the plant and equipment. Review of programs
preventive maintenance of the plant and equipment.
e) Automation. Degree of automation of processes that allows for a constant
productivity.
f) Cost reduction. Review of process improvement, scheduling of
the same and the efficient use of plant and equipment, as well as raw materials and
cost reduction.
g) Purchases. Evaluation of the timely and adequate provision of materials,
supplies and equipment used in manufacturing and production operations,
determining that they meet the quality specifications.
h) Analysis of methods. Analysis of alternatives, in order to determine the method of
more efficient production.
The purpose of operations analysis is to find the degree of automation with
that the production and manufacturing functions of the products are carried out
elaborated, as well as the quality standards followed for their manufacturing. The
analysis of methods followed, the purchases made, the maintenance of the
plant and equipment, the inventory of materials and others, are measures that we
they allow us to know the degree of excellence of the company.
 MARKETING
This function highlights the skill of management levels to position their product.
in the customer's taste and to meet their needs. The indicators
that provide information on marketing efficiency are:
a) Number of core customers. Measures the quantity of loyal customers.
that favor a constant volume of sales and that maintain for a long time
the continuity of the operability of the organization.
b) Advertising. Evaluate the efficiency of advertising programs.
c) Promotion and sale. Evaluate the quantity and operability of marketing systems.
used, such as direct sales, warehouses, purchase orders by
email, sales through dealerships, agents, etcetera.
d) Logistics. Evaluation of the distribution system used to determine if this
it is the best alternative to reduce expenses.
e) Price determination. Market analysis to verify acceptance of
the prices on the part of the client.
 RESEARCH AND DEVELOPMENT
This function helps the company control its market environment and not
simply react to its pressures. Their activities can
can be very varied, depending on the size and ambitions of the organization. Its
evaluation includes the study of the research conducted within
the company towards the launch of new products or to improve them. It turns out
of great importance since knowing the level of interest of the executives in the
research and development demonstrates its concern for maintaining the
company as a leader in popularity and public taste.
The subfunctions that are evaluated within this function are the following.
Concepts and ideas of the new product.
Product management.
Projection and programming of research and development.
Mix of research and development.
Funding allocation for research and development.
By studying the listed functions and subfunctions, one obtains a
general idea of the level of excellence achieved by the organization and they can
detect those areas where it is necessary to achieve excellence. In order to
Determining whether a company is excellent or not requires evaluating all its areas.
integrally clave and determine its strengths and weaknesses to undertake the
necessary actions in order to achieve excellence.
 ADMINISTRATIVE AUDIT
In every organization, it is essential to verify the correct execution of its various
functions, to check if the program is indeed being fulfilled
anticipated and the principles on which the organization is based, correct errors, failures,
irregularities or inefficiencies.
Through the administrative audit, control methods are established that allow
evaluate the compliance with the regulations and standards adopted in order to
achieve greater efficiency in the areas and, therefore, in the achievement of their
objectives.
There are various methodologies for administrative auditing; the most common are:
Method of the American Institute of Management
Administration). Through this method, the following factors are evaluated:
Economic function.
2. Formal structure.
3. Utilities.
4. Attention to shareholders.
5. Research and development.
6. Board of Directors.
7. Fiscal policies.
8. Efficiency in production.
9. Distribution.
10. Evaluation of executives.

W. P. Leonard's method. Very similar to that of the AMA, it covers the following
stages:
1. Exam. It consists of the analysis and collection of information from the areas of
study that also includes specific functions, departments, and divisions
or areas of the company where plans, objectives, policies are studied,
structures, systems and procedures, control methods, standards and resources.
2.Evaluation. It involves the application of various indices in order to
determine the effectiveness of the process in terms of the following variables:
structure, certainty and adequacy of controls, protection methods, methods of
work, financial repercussions, equipment usage, etc.

3. Analysis and interpretation. Once the examination and evaluation have been carried out.
From the previous variables, the information is analyzed and interpreted. In this phase, it
includes a detailed diagnosis of deficiencies, income statements,
statistics, efficiency tests and solutions and alternatives are proposed to the
identified problem.
Stages of the administrative audit
In general, any administrative audit methodology includes the
next steps:
- Information gathering
Of these stages, perhaps the most important consists of the collection of
information, as an adequate information will depend on a proposal
correct.
 Data collection can be carried out through observation, surveys,
questionnaire, the interview, and the analysis of documentation. Some of the
Essential documents for conducting an audit are: organizational charts,
manuals, process diagrams, time diagrams, diagrams of
layout of machinery, equipment and building, comparative diagrams, graphs
linear, bar charts and maps, flowcharts, time studies, financial statements,
statistics of all functional areas, sampling and measurement of work, plans
and objectives, work programs, budgets, and structure.
- Analysis
Once the above information has been obtained, it is organized and analyzed in order to
to detect the problem.
- Diagnosis
Through the application of one of the mentioned methodologies (Leonard, AMA,
factorial analysis, Greiner scheme, planning techniques, techniques of
address, quality tools, etc.) the main failures of the
organization.
- Report
A report is prepared with the diagnosis, justification, and proposal of
solution alternatives, as well as their cost-benefit. The report
must contain

Cover. Title of the study.

Index. Includes the content of the different parts of the report, the illustrations and
the annexes.
Introduction. Objectives and scope of the report.
Justification and background. Concise explanation of the methodology and
problem that originated the study.
Main body of the report. It details the diagnosis and the improvement proposal with
the subsequent cost-benefit study.
Executive summary. Includes the essential points and the results of the study, so
as the most important conclusions, so that the executive is informed
quickly from the content of the report.
Appendices and annexes.

FACTOR ANALYSIS METHOD

DEVELOPED BY RESEARCHERS
FROM THE BANK OF MEXICO, S. A.
This method evaluates the following factors:
1. Environment. Set of external influences that act upon the operation of the
company.
2. Policy and direction (general administration). Guidance and management of the
company through the direction and monitoring of its activities.
3. Products and process. Selection and design of the goods to be produced and
of the methods used in their manufacturing.
4. Financing. Management of monetary and credit aspects.
5. Means of production. Real estate, equipment, machinery, tools and
service facilities.
6. Workforce. Personnel employed by the company.
7. Supplies. Raw materials, auxiliary materials, and services.
8. Productive activity. Transformation of materials into products that can
to be marketed.
9.Marketing. Orientation and management of the sales and distribution of the products.

Stages and methodology

The stages proposed by this method are:
Plan the research.
Define the final purpose.
Determine the available time.
Plan the phases and the volume of work.
Determine the research and information resources and the ease of obtaining them.
Obtain the necessary authorization for the guidance and the program to which it pertains.
will subject the investigation.

2. Analyze the topic.

Object of the research and its operation.
Determine the relevant factors related to the topic and its operation.
Find out the functions of each factor.
Determine the minimum necessary information.
Gather the information.
Verify the information.

3. Examine each factor as follows:

To what extent does the operation of the factors agree with the functions?
assigned to these?
What trend is recorded in the field of each factor?
What evolution occurs in the fields of each factor?
Which elements of the factor are stimulating the operation?
What objectives should be achieved in the field of each factor?
What resources are available to achieve these objectives?

4. Combine the findings to provide a diagnosis on the total of the

operations.
What seems to be the optimal capacity according to the objectives of the
operation?
What is the actual total execution?
What are the limiting factors?
What factors should be studied in more detail?
What objectives can be achieved with the use of the available resources?
 Examine the total findings discovered in cooperation with others
specialists.

5. Present the diagnosis.

Prepare documents for discussion and presentation.
Clearly indicate which problems and diagnoses are subject to judgment of the
people who carry out the operations being investigated.
Expose the development of the problem.
Obtain agreement on the different opinions regarding each of the previous steps
to move on to the next one.
Stimulate decision-making.
Do not lose sight of the fact that the decision is the prerogative of the individuals.
responsible for execution or direction.

One of the advantages of this method is that it uses ratios or indicators.

quantitative for each of the previously mentioned factors. Some
Examples of these indicators are:
a) Formulas to measure the execution of policies and management.
b) Financial indicators.
c) Formulas for measuring labor force performance.