Controlling in Management Principles

Sam, the manager of TQM Auto Repair Shop, sets various goals for his business, including financial, customer service, and production targets. He establishes standards to measure performance and involves employees in the process. Sam creates systems to track progress, such as a pricing guide, customer satisfaction survey, and sales quota system. He emphasizes the importance of employee involvement in goal setting and conducts regular appraisals. Sam monitors the progress towards goals and takes corrective actions when necessary, ensuring the business stays on track to meet its objectives.

What is the first step Sam must take to achieve his business goals?

• Hire more employees

• Establish standards to measure performance

• Increase customer satisfaction

• Reduce repair costs

Why does Sam want to make $100,000 more this year?

• To replace older equipment

• To hire more mechanics

• To open a new branch

• To expand the business

What is Sam's customer service related goal for this year?

• Increase customer satisfaction from 84% to 90%

• Reduce repair times by 10%

• Increase the number of customers by 20%

• Lower repair costs by 5%

What system does Sam introduce to ensure mechanics meet their repair quotas?

• A new scheduling system

• A customer referral program

• A bonus incentive program

• A repair quota system

How does Sam involve employees in the goal-setting process?

• By giving them bonuses

• By explaining the reasons for the goals

• By offering them promotions

• By reducing their workload

What tool does Sam use to measure customer satisfaction?

• Customer feedback forms

• Customer satisfaction surveys

• Online reviews

• Customer interviews

What criteria does Sam include in the employee appraisal system?

• Customer feedback, repair times, and sales

• Training hours, certifications, and customer referrals

• Sales quota, dependability, reliability, motivation, and absenteeism

• Employee satisfaction, teamwork, and punctuality

How often does Sam review the customer satisfaction surveys?

• Annually

• Weekly

• Daily

• Monthly

What action might Sam take if the price increases cause customer satisfaction to drop?

• Increase prices further

• Restructure pricing or change the level of service

• Hire more employees

• Reduce the number of services offered

What might Sam do if employees cannot keep up with the repair quotas?

• Reduce employee benefits

• Increase working hours

• Revisit and adjust the quotas

• Hire more employees