Man3025 Test 4

Front 1

control

Back 1

making something happen the way that is was planned to be
--lets you know early if somethings wrong, like if your sales are off

Front 2

the right number of control systems to have in place

Back 2

just enough

Front 3

too many control systems

Back 3

-takes too much time
-costs too much money
-bothers the employees
-takes the focus away from the important thing

Front 4

not enough control systems

Back 4

--your not measuring the right things closely enough to stay on track

Front 5

productivity

Back 5

output/input

Front 6

outputs

Back 6

good and services produced

Front 7

inputs

Back 7

labor, capital, materials and energy

Front 8

Why is productivity important?

Back 8

because it determines whether a company will make a profit and affects a country's standard of living

Front 9

What does maintaining productivity depend on?

Back 9

control

Front 10

controlling

Back 10

monotoring performance, comparing it with goals and making the corrections needed

Front 11

4 aspects of controlling

Back 11

planning, oragnizing, leading, controlling

Front 12

planning

Back 12

setting goals and deciding how to achieve them

Front 13

organizing

Back 13

arranging tasks, people and other resources to accomplish work

Front 14

leading

Back 14

motivating people to work hard to achieve the organizations goals

Front 15

controlling

Back 15

making sure performance meets objectives

Front 16

6 reasons why control is needed

Back 16

1.) to adapt to change and uncertianty in the enviornment
2.) to discover irregularities and errors-without checks and balances companies might not survive
3.) to reduce costs, increase productivity or add value
4.) to detect opportunities-control systems detect opportunities that might otherwise go unnoticed
5.) to deal with complexity-break down complexity into smaller more understandable parts
6.) to decentralize decision making and facilitate teamwork-controls allow top managers to decentralize decision making to lower management and encourage teamwork

Front 17

4 steps in the control process

Back 17

establish standards, measure performance, compare performance to standards, take corrective action if necessary

Front 18

establish standards--step in the control process

Back 18

setting specific goals by making milestones
-the desired performance level for a given goal is called either control standard or performance standard
--standards can be broad or narrow

Front 19

measure performance-step in the control process

Back 19

written reports, oral reports, personal observation

Front 20

compare performance to standards-step in the control system

Back 20

measured performance is compared to established standards
--whats the gap? is the deviation accptable? depends on the predetermined range of variation
-

Front 21

management by exception

Back 21

managers are informed of a situation only if data show a signifiant deviation from standards
--part of compare performance to standards

Front 22

take corrective action if necessary-step in the control process

Back 22

firms cannot change negative performance

Front 23

balanced score card

Back 23

gathers key information and puts it into very easily understand format for top management to understand
--can look at it for 5 minutes and know which areas of the business are doing well and which ones need work
--gives a fast comprehensive view of the organization

Front 24

balanced score card indicators

Back 24

--customer satisfaction--now
--internal processes--how am i doing from an internal standpoint? now
--innovation and improvement--how is my future looking?
-financial measure

Front 25

2 types of organizations

Back 25

measured managed
non measured managed

Front 26

measure managed organization

Back 26

companies are the ones that have set measurable criteria that are linked to performance goals
--do better than ones that dont measure

Front 27

non measured managed organization

Back 27

firms do not have measurable criteria linked to performance goals

Front 28

Why measure management firms succeed

Back 28

-top executives agree on strategy
-communication is clear
-better focus on alignments
-culture emphasizes teamwork and allows risk taking

Front 29

Barriers to effective measurement

Back 29

-objecitves are fuzzy, too "hard to measure"
-too much trust in informal feedback
-employees may resist measurement systems
-too much focus on measuring activites vs. results

Front 30

levels of control

Back 30

strategic, tactical, operational

Front 31

strategic control

Back 31

monotoring performance to make sure that strategic plans are implemented and taking corrective action as needed
--done by top managers with reports quarterly, annually or semi annually

Front 32

tactical control

Back 32

done by middle managers who want to make sure their department is meeting the objectives set by top managers
--reports done on a weekly or monthly basis

Front 33

operational

Back 33

done by first line managers to make sure operational--day to day-- goals are being implemented and taking corrective action as needed

Front 34

areas of control

Back 34

physical
human resources
informational
financial
structural
cultural

Front 35

physical area of control

Back 35

monitors the physical use of things--number of laptops, computer systems

Front 36

human resources area of control

Back 36

personality tests, drug tests, performance evaluation and employee surveys
--all about the people

Front 37

informational area of control

Back 37

production schedules, sales forecasts, and analysis of competition

Front 38

financail area of control

Back 38

affect payments, payroll, budgets and financial statements
--incremental budgeting, zero based budgeting, balance sheets, income statements, audits

Front 39

incremental budgeting

Back 39

budgeting compared to last year
last year you had x amount of money, how much more do you need this year to get the job done

Front 40

zero based budgeting

Back 40

starting from zero and making your budget from there

Front 41

balance sheet

Back 41

snapshot in time that measures assets and liablities

Front 42

income statement

Back 42

measures profit and loss

Front 43

liquid

Back 43

cash

Front 44

internal audit

Back 44

records and books looked at by someone inside the company and done on a more regular basis

Front 45

external audit

Back 45

records and books looked at by someone outside the company to see if the companys records accurately reflect the financial position of the company

Front 46

structural control

Back 46

-orgazational hierarchy
--bureaucractic control-characterized by rules, regulations and authority
---decentralized control-characterized by informal and organic structural enviornments

Front 47

cultural control

Back 47

influence the norms and values of an organizations culture which then affect the work process and performance levels, collaberation, new product creation etc

Front 48

2 vital components of TQM

Back 48

people orientation-people are involved
improvement orientation-must be continuous

Front 49

managing control effectively

Back 49

1. Strategic & results oriented – they support strategic plans and focus on activities that will make a real difference to the firm
2. Timely, accurate, & objective – provide data only when needed
3. Realistic & positive - understandable and encourage self-control
4. Flexible - so that they can be modified as needed