any process that directs the activities of individuals toward the achievement of organizational goals.
control based on the use of pricing mechanisms and economic information to regulate activities within organizations.
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?
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?
operaters of computer numerical control (CNC) machines must notify engineering specialists of malfunctions.
the control process used brfore operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly. (preliminary control)
the control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.
control that focuses on the use of information about previous results to correct deviations from the acceptable standard.
an evaluation of the effectiveness and efficiency of various systems within an organization.
a periodic assessmnet of a companys own planning, organizing, leading, and controlling processes.
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?
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.
a report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders equity.
Profit and loss statement
an itemized financial statement of the income and expenses of a companys operations.
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
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?
control system combining four sets of performance measures: financial, customer, business process, and learning and growth.