Controlling Performance - Ding Sing Oriental Supermarket - Case Study Example

Controlling Performance By Name: Tutor: Institution: Date: Controlling Performance Introduction Performance in an organization is an important aspect. Every organization−either profitable or non- profitable, are keen on tracking their performance. Top managers of the company make difficult decisions to improve their performance. The organization success is usually analyzed to see if it meets the company's goal or objectives. In improving the organization performance, the controlling measures should be implemented. Performance objectives The standard performance objectives are speed, quality, dependability, cost, and flexibility. Quality is believed by many authorities to be the most important performance objective (Thomas et al., 2006). Additionally, it is the most discussed performance goal as compared to the others. The quality of a product or service is defined as having the expected specification. The company is producing products of good quality means that consumers who use the product get fully satisfied. Therefore, the customer can use the product or services again. Consequentially, the company would receive more revenue. Operation quality has different effects internally. If there are high-quality practices in operation activities and processes, then there would be fewer mistakes. As a result, acquiring less cost, an increase in speed, and dependability is realized. It is because during an operation a company focuses more on correcting its mistakes it becomes hard to responding according to the customer requests quickly. Speed refers to the time when a customer internally or externally makes a request for a service or products and waits to get them. Speed used externally is crucial as it assist in responding quickly to customer requests. It can result in a client coming back to demand more businesses. Hence, possible to charge higher prices due to the faster services rendered. For instance, most transportation services, delivery, and postal services in different countries charge higher prices because of faster deliveries (Thomas et al., 2006). Internal speed enables cost reduction. It reduces the cost of inventories and risks on manufacturing and service operation companies (Thomas et al., 2006). Cost can reduce if there are faster customer services rendered. In case there is slow speed on internal operation then there opt to be damages or loss of materials, customers, or information. Dependability refers to meeting the expected deadline or time. Reliability becomes involved regarding measuring. It has both internal and external effects. Customer as receiving goods or services on time defines dependability. Customers find it irritating when products or services supposed to be delivered on time only to be delayed (Thomas et al., 2006). Business customers are concerned a lot on dependability thus, know if they can form a long-term relationship with their suppliers or not. Additionally, dependability increases the chances that the customer would return to more business. Dependability on internally affects costs. Price is affected when saving time, saving money, and increases the organization efficiency. In the case of the stable system, there is an increase in speed performance. Flexibility is commonly referred as the compound objective because it is used to mean different things. It refers to being able to adapt to changes in an operation. Hence, it is categorized into different types like mix flexibility, delivery flexibility, volume flexibility, product or service flexibility. Flexibility has an effect on the operation. Combine flexibility in a transaction provides its customer with a variety of products to select from (Thomas et al., 2006). Product or services flexibility encourages the creation of product and services that can satisfy the customers’ needs. Volume flexibility highly depends on the demand and can adjust to more output if the demand increases (Thomas et al., 2006). Delivery flexibility allows the operation to cope with the unexpected number of the product that the customer might need. Flexibility affects internal regarding saving money, dependability and speeding up the response. Most of organization structures do vary. Good management, high speed, flexibility, quality, and dependability minimize the operation cost. The entire performance objectives have an effect of reducing the operation cost. In the case of Ding Sing has employed both quality and flexibility type of performance objectives. They focus on quality and flexibility to get a reliable and loyal customer. Regarding flexibility, they open as early as 11 am and late as 8 pm to allow clients do their purchase. To achieving quality, the oriental supermarket stores many orders to get better results and use before they import. Ding Sing Oriental supermarket its primary customers includes international students who are located in Asia especially ones from China and Hong Kong. It was situated in a strategic position thus, able to get new customers easily. It maintains its customers by providing excellent quality and forming customer relations management. Customer relations management (CRM) helps in building loyalty. Additionally, its understanding your clients’ needs by adapting to changes, and improving methods of delivering to meet consumer needs (Thomas et al., 2006). CRM is beneficial in organizations since it not only helps in growth of the firm but also helps in meeting consumer expectations thus, curbing completion. Organizations that are successful are seen to have spent quite a high budget on CRM and believe it is essential to help them achieve their objective. The principal objective of CRM is to ensure that consumers are satisfied and retained. Therefore, to achieve this is by identifying customer needs through communication, which implies using different channels to get feedback on their needs and impose them.Hence, leads to attaining customer satisfaction (Thomas et al., 2006). Once CRM is initiated, consumers have a sense of belonging. Therefore, an organization can be able to create market segmentation. Its primary objective is on consumer behavior, their choices, and previous encounters (Zairi, 2012). An organization must be strategic when employing CRM methods to take full advantage of them. The approaches involve Differentiation, interaction, and personalization. In the case of differentiation, each consumer has his or her preference. Organizations should understand different consumer lifestyles. Ability to differentiate users who are more profitable and ones expected to be more profitable in future. Differentiation enables the organization to concentrate more on customers who are more beneficial to the organization thus, increasing their profits (Zairi, 2012). Interaction ensures that the consumer behaviors are keenly observed. It involves employing channels of communication, which enhances satisfaction because of getting feedback. Hence, helps in understanding and meeting customers’ needs. It is by listening to your consumers and responding accordingly. Establishing a good rapport with their clients and keeping records to ensure that the company maintains them. Personalization consists of handling each user differently and carefully. Hence, assists in increasing customer loyalty because each one of them feels unique in their way. Personalization method not only acquires consumers but also maintains them. Lastly, Identification consists of employing marketing and communication channels to meet consumer needs, obtain new customers and offering the required services (Kahn, 2007). Understanding customers are helping majoring in certain areas that are highly satisfactory to users; thus, increasing chances of selling that in return increases profitability. Methodology To achieving better performance level, different controlling performance methods are used (Oliver, 2014). Controlling performance involves both the traditional and modern approaches to be employed. It requires budgetary control; conducted by particular people who are empowered by the organization to manage their expenditures. It helps in financial management where planning and managing implemented. Budgeting is an organizational tool where production, income, cost; expenses, and revenue is managed in a certain way to enhance stability and to run the business (Thomas et al., 2006). Direct observation and supervision where there is a first-hand observation by the supervisor. He or she acquires first-hand information able to solve arising matters immediately. Additionally, builds a good rapport with the employees since they are closer to them. The method helps in growth of affirming especially in small firms because relationships are developing and production increased (Oliver 2014). A financial statement contains loss and profit ledgers, which help an organization to compare the figures between the current and the previous year’s income and expenditures. The organization also can compare themselves with other agencies that are probably in the same field (Oliver 2014). It also comprises of a balance sheet that shows where the company stands financially at the end of a specified duration. The main purpose of financial statements is to manage and control the organization. Break-even analysis acts as a tool for helping the organization to analyze its performance. Hence, implement actions that can improve on future expectation performance. In breakeven point, no profit or loss is made. On the other hand, an organization managed by objectives ensures that the goals are satisfied, which bring returns to individuals. Individual performance is rated on periodic evaluation and constant feedback (Kahn, 2007). Management information system results in proper control of the organization, which are initiated by accurate information from the external and internal environment. It can also be through continuous data collection where information is gathered; therefore, being in a position to come up with a solution. The process can be either digitalized or manual. The managers are in a position to assign duties to their juniors and at the same time maintain control (Oliver 2014). Self-control involves an individual is given the power to do self-assessment where they set their goals, access their performance and take necessary measures when required. Top managers mostly practice it because they do not participate in the external assessment. In the case of Return of investment, the higher the ROI, the better chance your business stands regarding performance. It is mainly used for comparison, performance wise where an organization can compare its previous and current performance and highlights areas where the company needs to improve (Kahn, 2007). Ding Sing in improving its performance has employed both modern and traditional control methods of controlling performance. The current controlling performance process that it has employed is training. Many organizations do not prefer to train its employees as it adds additional costs to the organization. The use of training has enabled Ding Sing to improve its performance. Ding Sing check on its employee’s performance weekly. They also encourage hardworkingly and train them before they start working to acquire more skills. Ding Sing because of having skilled personnel has not implemented any process to assist during slippage performance (Kahn, 2007). However, in spite using both the modern and traditional controlling performance approaches still Ding Sing encounters losses. The company sometimes order more product compared to the demand; therefore meet losses, as there is food waste. Additionally, they face stiff competition from another Chinese supermarket that is located in Bristol. The company to reduce losses sells products produced below quality before they expire. Hence, the company would not enquire much loss (Kahn, 2007). Recommendation Different ways can be used in achieving a good control performance. In case, there exist problems, which cannot be avoided. Then certain types of controls can be applied. One or more types of control can be employed so as to result in better performance. Sometimes performance control is not used because it can lead to additional cost; undesirable side effects like reduction of staffs, employees become demotivated and displaced. It is important to understand the various controlling performance method as can be used when carrying out management decision. For instance, Ding Sing highly depends on personal control like in financial areas, which is risky. Therefore, the firm should invest more to get returns and compensate when they encounter a risk. Bibliography Kahn, C. E. (2007). U.S. Patent No. 7,185,192. Washington, DC: U.S. Patent and Trademark Office. Oliver, R. L. (2014). Satisfaction: A behavioral perspective on the consumer. Routledge. Thomas, R. W., Friend, D. H., DaSilva, L., & Mackenzie, A. B. (2006). Cognitive networks: adaptation and learning to achieve end-to-end performance objectives. Communications Magazine, IEEE, 44(12), 51-57. Zairi, M. (2012). Measuring performance for business results. Springer Science & Business Media. Read More