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23 Cards in this Set
- Front
- Back
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Control Systems
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Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working.
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Feedforward Control
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Control that allows managers to anticipate problems before they arise.
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Concurrent Control
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Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise.
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Feedback Control
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Control that gives managers information about customers' reactions to goods and services so that corrective action can be taken if necessary.
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Describe the 4 steps in the control process
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Step 1: Establish the standards of performance, goals, or targets against which performance is to be evaluated.
Step 2: Measure actual performance Step 3: Compare actual performance against chosen standards of performance. Step 4: Evaluate the result and initiate corrective actions (that is, make changes) if the standard is not being achieved. |
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3 main output controls
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1) Financial measures of performance
2) Organizational controls 3) Operating budgets q |
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Profit ratios
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Measure how efficiently managers are using the organization's resources to generate profits.
Return on Investment (ROI) (net income before taxes divided by total assets) - the most commonly used financial performance measure. |
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Liquidity ratios
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Measure how well managers have protected organizational resources to be able to meet short-term obligations
Current ratio Quick ratio |
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Leverage ratios
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Measure the degree to which managers use debt or equity to finance ongoing operations.
Debt-to-asset ratio Times-covered ratio |
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Activity ratios
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Measure how well managers are creating value from organizational assets.
Inventory turnover Days sales outstanding |
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Operating Budget
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A budget that states how managers intend to use organizational resources to achieve organizational goals.
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3 mechanisms of behavior control
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1) Direct supervision
2) Management by objectives 3) Bureaucratic control |
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Management by objectives (MBO)
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A goal setting process in which a manager and each of his or her subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate the extent to which the subordinate is achieving those goals.
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Bureaucratic Control
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Control of behavior by means of a comprehensive system of rules and standard operating procedure.
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Clan Control
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The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.
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Organizational Change
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The movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness.
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Force-field Theory
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A wide variety of forces arise from the way an organization operates, from its structure, culture, and control systems, that make organizations resistant to change.
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Evolutionary Change
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Change that is gradual, incremental, and narrowly focused.
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Revolutionary Change
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Change that is rapid, dramatic, and broadly focused.
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4 Steps in the Organizational Change Process
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1) Assess the need for change
2) Decide on the change to make 3) Implement the change 4) Evaluate the change |
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Top-down change
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A fast, revolutionary approach to change in which top managers identify what needs to be changed and then move quickly to implement the changes throughout the organization.
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Bottom-up change
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A gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change.
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Benchmarking
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The process of comparing one company's performance on specific dimensions with the performance of other, high-performing organizations.
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