2- Management Lesson 11 - Chapter 20

Front 1

The systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance.

Back 1

organizational control

Front 2

Control that focuses on human, material, and financial resources flowing into the organization

Back 2

feedforward control

; also called preliminary or preventive control.

Front 3

Control that consists of monitoring ongoing activities to ensure they are consistent with standards.

Back 3

concurrent control

Front 4

Control that focuses on the organization's outputs

Back 4

feedback control

AKA:
- Post-action control
- Output control

Front 5

An organizational unit under the supervision of a single person who is responsible for its activity.

Back 5

responsibility center

Front 6

A budget that estimates and reports cash flows on a daily or weekly basis to ensure that the company has sufficient cash to meet its obligations.

Back 6

cash budget

Front 7

A budget that plans and reports investments in major assets to be depreciated over several years.

Back 7

capital budget

Front 8

A budgeting process in which middle- and lower-level managers set departmental budget targets in accordance with overall company revenues and expenditures specified by top management.

Back 8

top-down budgeting

Front 9

A budgeting process in which lower-level managers budget their departments' resource needs and pass them up to top management for approval.

Back 9

bottom-up budgeting

Front 10

A financial statement that shows the firm's financial position with respect to assets and liabilities at a specific point in time.

Back 10

balance sheet

Front 11

A financial statement that summarizes the firm's financial performance for a given time interval; sometimes called a profit-and-loss statement.

Back 11

income statement

Front 12

A financial ratio that indicates the organization's ability to meet its current debt obligations.

Back 12

liquidity ratio

Front 13

A financial ratio that measures the organization's internal performance with respect to key activities defined by management.

Back 13

activity ratio

Front 14

A financial ratio that describes the firm's profits in terms of a source of profits (for example, sales or total assets).

Back 14

profitability ratio

Front 15

The use of rules, policies, hierarchy of authority, reward systems, and other formal devices to influence employee behavior and assess performance.

Back 15

bureaucratic control

Front 16

The use of organizational culture, group norms, and a focus on goals, rather than rules and procedures, to foster compliance with organizational goals.

Back 16

decentralized control

Front 17

An organizationwide commitment to infusing quality into every activity through continuous improvement.

Back 17

total quality management (TQM)

Front 18

A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work.

Back 18

quality circle

Front 19

The continuous process of measuring products, services, and practices against major competitors or industry leaders.

Back 19

benchmarking

Front 20

A quality control approach that emphasizes a relentless pursuit of higher quality and lower costs.

Back 20

six sigma

Front 21

The steps taken to complete a company process.

Back 21

cycle time

Front 22

The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.

Back 22

continuous improvement

Front 23

A set of international standards for quality management, setting uniform guidelines for processes to ensure that products conform to customer requirements.

Back 23

ISO 9000

Front 24

A control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets.

Back 24

economic value-added (EVA) system

Front 25

A control system that measures the stock market's estimate of the value of a company's past and expected capital investment projects.

Back 25

market value-added (MVA) system

Front 26

A control system that identifies the various activities needed to provide a product and allocates costs accordingly.

Back 26

activity-based costing (ABC)

Front 27

Sharing financial information and results with all employees in the organization.

Back 27

open-book management

Front 28

A comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization's capacity for learning and growth.

Back 28

balanced scorecard

Front 29

Three types of Organizational Control Focus:

Back 29

1) Feedforward Control
2) Concurrent Control
3) Feedback Control

Front 30

Steps of Feedback Control:

Back 30

1) Establish standards of performance
2) Measure actual performance
3) Compare performance to standards
4) Take corrective action

Front 31

Types of budgets:

Back 31

1) Expense Budget
2) Revenue Budget
3) Cash Budget
4) Capital Budget

Front 32

Ratios:

Back 32

1) Liquidity
2) Activity
3) Profitability
4) Leverage

Front 33

TQM Techniques:

Back 33

1) Quality Circles
2) Benchmarking
3) Six Sigma
4) Reduce cycle time
5) Continuous improvement

Front 34

Trends in Quality and Financial Control:

Back 34

1) International Quality Standards (ISO 9000)
2) New Financial Control Systems

Front 35

List New Financial Control Systems:

Back 35

1) Economic value added

2) Market value added

3) Activity Based costing

Front 36

Two significant aspects of Control in the New Workplace:

Back 36

1) Open-Book Management

2) The Balanced Scorecard

Front 37

Major Perspectives of Balanced Scorecard:

Back 37

1) Financial
2) Customers
3) Business Processes
4) Learning and Growth