Ups Control and Innovation

United Parcel Service Financial Analysis

Christine Doxey

Davenport University

Tamara W. VandenBerg, CMA

Finance 211/Finance 510

Winter 2013

Executive Summary

The four functions of management are planning, organizing, leading, and controlling. Controlling is a strategic plan to direct and verify conformity to goals, policies, and rules. Its purpose is to ensure efficient use of an organization’s resources. A control establishes standards by which performance and activity is evaluated. The plan is adjusted, if needed, to achieve organizational goals.

Table of Contents

Executive Summary 2

Organizational Control and Innovation 4

Types of Control 4

Winning Team 5

Intrinsic and Extrinsic Rewards 6

Conclusion 6

References 7

Table 1 1

Table 2 2

Table 2 8

Table 3 9

Figures 10

Figure 10

Figure 2 10

Figure 3 11

Appendices 12

UPS Organizational Control and Innovations

To successfully accomplish the organization’s goals, management needs an effective control system to monitor performance, direct activity, and establish how information is distributed to employees. All managers at every level are responsible for implementing specific controls and directing employees to meet organizational goals and objectives (see figure 1). Top management makes a commitment through its actions in major areas needing strategic control by establishing standards. A standard is the expected performance based on data collected. Analysis of the data enables managers to measure and evaluate past, current, and future activities and goals (Managerial Controls, 2011). Goals are then translated into performance expectations and controls are strategically designed to measure how the organization performs. Cylindrical in nature the planning process triggers new strategies and controls in a continuous “feedback loop” (see figure 2). Each of three stages in the planning process is defined by one of the following approaches: 1) Feedforward, 2)...