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36 terms

Ch.13 Managerial Control

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Control
any process that directs the activities of individuals toward the achievement of organizational goals.
Bureaucratic control
the use of rules, regulations, and authority to guide performance.
Market control
control based on the use of pricing mechanisms and economic information to regulate activities within organizations.
Clan control
control based on the norms, values, shared goals, and trust among group members.
Standard
expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark aganist which actual performance is assessed.
Setting, measuring, comparing and taking action
What are the four major steps to a typical control system?
Quality, quantity, time used and cost
What are four measures of success for performance standards?
Written, oral, and personal observation
What are three sources performance data are obtained from?
Principle exception
a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard.
Specialist and operator control
What are the two feasible basic types of control in computer controlled production technology?
Specialist control
operaters of computer numerical control (CNC) machines must notify engineering specialists of malfunctions.
Operator control
multiskilled opeators can rectify their own problems as they occur.
Feedforward control
the control process used brfore operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly. (preliminary control)
Concurrent control
the control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.
Feedback control
control that focuses on the use of information about previous results to correct deviations from the acceptable standard.
Management audit
an evaluation of the effectiveness and efficiency of various systems within an organization.
External audit
an evluation conducted by one organization, such as as a CPA firm, on another.
Internal audit
a periodic assessmnet of a companys own planning, organizing, leading, and controlling processes.
Budgeting
the process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called udgetary controlling.
Establishing expectancies, budgetary operations and responding appropriately
What three stages are budgetary control proceeds through?
Sales, production, cost, cash, capital, and master
What are the six frequently used types of budget?
Accounting audits
procedures used to verify accounting reports and statements.
Activity based costing
(ABC) a method of cost accounting designed to identify streams of activity and then to allocate costs across particular business proesses according to the amount of time employees devote to particular activities.
Balance sheet
a report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders equity.
Assets
the values of the various items the corporation owns
Liabilities
the amounts a corporation owes to various creditors.
Stockholders equity
the amount accruing to corporations owners.
Profit and loss statement
an itemized financial statement of the income and expenses of a companys operations.
Current ratio
a liquidity ratio that indicates the extent to which short-trm assets can decline and still be adequate to pay short-term liabilities.
Debt equity ratio
a leverage ratio that indicates the companys ability to meet its long-term financial odligations
Return on investment
(ROI) a ratio of profit to capitol used, or a rate of return from capitol.
Management myopia
focusing on short-term earnings and profits at the expense of longer-term strategic obligations.
Rigid bureaucratic, tactical behavior and resistance
What are three negative responses to bureaucratic control?
Vanity, provincialism, narcissism, laziness, pettiness, inanity and frivolity
Waht are seven deadly sins of performance measurement to avoid?
Balanced scoreboard
control system combining four sets of performance measures: financial, customer, business process, and learning and growth.
Transfer price
price charged by one unit for a good or service provided to another unit within the organization.