Management: Chapter 14

Front 1

Bureaucratic Control

Back 1

The use of rules, regulations, and authority to guide performance

Front 2

Market control

Back 2

Control based on the use of prices, competition, and exchange relationships to regulate activities in organizations as if they were economic transactions

Front 3

Clan control

Back 3

Control based on the norms, values, shared goals, and trust among group members

Front 4

Standard

Back 4

Expected performance for a given goal; a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed

Front 5

Principle of exception

Back 5

A managerial principle stating that control is enhanced by concentrating on exceptions to or significant deviations from the expected result or standard

Front 6

Feedforward control

Back 6

Control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carries out properly

Front 7

Concurrent control

Back 7

Control process used while plans are being carried out, including directing, monitoring, and fine tuning activities as they are performed

Front 8

Feedback control

Back 8

Control that focuses on the use of information about previous results to correct deviations from the acceptable standard

Front 9

Management audit

Back 9

An evaluation of the effectiveness and efficiency of various systems within an organization

Front 10

External audit

Back 10

An evaluation conducted by one organization on another

Front 11

Internal audit

Back 11

A periodic assessment of a company's own planning, organizing, leading, and controlling processes

Front 12

Budgeting

Back 12

The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; budgetary controlling

Front 13

Accounting audits

Back 13

Procedures used to verify accounting reports and statements

Front 14

Activity based costing (ABC)

Back 14

A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities

Front 15

Balance sheet

Back 15

A report t h at shows the financial picture of a company at a given time and itemized assets, liabilities, and stockholders equity

Front 16

Assets

Back 16

The values of the various items the corporation owns

Front 17

Liabilities

Back 17

The amounts a corporation's owes to various creditors

Front 18

Stockholders equity

Back 18

The amount accruing to the corporation's owners

Front 19

Current ratio

Back 19

A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short term liabilities

Front 20

Debt-equity ratio

Back 20

A leverage ratio that indicates the company's ability to meet its long-term financial obligations

Front 21

Return on investment (ROI)

Back 21

A ratio profit to capital used, or rate of return from capital

Front 22

Management myopia

Back 22

Focusing on short term earnings and profits at the expense of longer term strategic obligations

Front 23

Balanced scoreboard

Back 23

Control system combining four sets of performance measures: financial, customer, business process, and learning and growth