Ch. 10 Managerial Control
________ is an approach to designing control systems in which employee behaviors are regulated by the shared values, norms, traditions, rituals, beliefs, and other aspects of the organization's culture.
Clan control
________ is usually used by companies with constantly changing technology and by companies who prefer team work.
Clan control
Feedback control
Control that takes place after a work activity is done
Feedforward control
Control that takes place before a work activity is done
Concurrent control
Control that takes place while a work activity is in progress
You're a manager who's discovered that one of your employees is not attaining the standard of performance you expect. According to the control process, you should ________________.
Correct performance
Immediate corrective action
Corrective action that corrects problems at once to get performance back on track
Basic corrective action
Corrective action that looks at how and why performance deviated before correcting the source of deviation
Range of Variation
The acceptable parameters of variance between actual performance and the standard
Organizational performance
The accumulated results of all the organization's work activities
Productivity
The amount of goods or services produced divided by the inputs needed to generate that output
Market control is used by companies that face a lot of ________ in the market and whose products are ________.
competition, distinct
A control that occurs while an activity is in progress is the ________.
concurrent control
Measure of organizational performance
- ORGANIZATIONAL PRODUCTIVITY - ORGANIZATIONAL EFFECTIVENESS - INDUSTRY AND COMPANY RANKINGS
Why is controlling important:
1) If managers didn't control, they'd have no way of knowing whether their goals and plans were being achieved and what future actions to take. 2) The second reason controlling is important is because of employee empowerment. 3) The final reason that managers control is to protect the organization and its assets
Workplace Concerns:
1) WORKPLACE PRIVACY 2) EMPLOYEE THEFT
________ provide(s) managers with quantitative standards against which to measure and compare resource allocation.
A budget
Organizational effectiveness
A measure of how appropriate organizational goals are and how well those goals are being met
Balanced scorecard
A performance measurement tool that looks at more than just the financial perspective
Management Information System (MIS)
A system used to provide management with needed information on a regular basis
Management by walking around
A term used to describe when a manager is out in the work area interacting directly with employees
Control process
A three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards Step 1. Measuring Actual Performance Step 2. Comparing Actual Performance Against the Standard Step 3. Taking Managerial Action
Employee theft
Any unauthorized taking of company property by employees for their personal use
________ is an approach that emphasizes organizational authority.
Bureaucratic control
________ is the accumulated results of all the work activities in the organization.
Organizational performance
Performance
The end result of an activity
Controlling
The process of monitoring, comparing, and correcting work performance
Benchmarking
The search for the best practices among competitors or noncompetitors that lead to their superior performance
Service profit chain
The service sequence from employees to customers to profit
Benchmark
The standard of excellence against which to measure and compare
Corporate governance
The system used to govern a corporation so that the interests of corporate owners are protected
A control that prevents anticipated problems is called the ________.
feedforward control
When should the manager's course of action be to revise the standard?
if the standard is not acceptable
When should a manager's course of action be to do nothing?
if the variance is acceptable
In order to increase the ratio of outputs to inputs, a manager would have to ________.
increase productivity
Which of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt?
leverage ratios
Jan was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president. Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape. Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions. Donna was also interested in understanding the company's ability to meet short-term obligations, which meant that Jan had to calculate a(n) ________ ratio.
liquidity
A(n) _____ is defined as a system used to provide management with needed information on a regular basis.
management information system
Which of the following financial control measures adds a market dimension because it measures the stock market's estimate of the value of a firm's past and expected capital investment projects?
market value added
The balanced scorecard is an approach that looks at four areas—financial, customer, internal processes, and ________ that contribute to a company's performance.
people/innovation/growth assets
The value of the control function can be seen in three specific areas:
planning, empowering employees, and protecting the workplace
Market control is an approach that emphasizes the use of external market mechanisms to establish the ________ used in the control system.
standards
In some cases, ________ may be a result of an unrealistic standard. If the goal is too low or too high, the standard, not the performance, needs corrective action.
variance
If managers do not control, they have no way of knowing ________.
whether their goals and plans are being achieved and what future actions to take.