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POM > Chapter 10: Controlling > Flashcards

Chapter 10: Controlling Flashcards

(113 cards)

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0
Q

What are the activities of controlling?

A

Monitoring performance
Compare with goals
Taking corrective actions

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1
Q

What is control?

A

Making something happen the way it is planned

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2
Q

What is organisational control?

A

Systematic process
Regulating organisational activities
Make them consistent with expectations
Established in plans, targets and standards of performance

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3
Q

What are the reasons why control is needed?

A

Adapting to change and uncertainty
Detecting irregularities and errors
Reducing costs, increasing productivity or adding value
Identifying opportunities
Dealing with complexities
Decentralizing decision-making and facilitating teamwork

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4
Q

Why is there uncertainty?

A

Organisational goals are future-ordinated

Set on basis of present knowledge

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5
Q

What are the factors in environment that can change?

A

Consumer demand
Technology
Availability of raw materials

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6
Q

How do managers use control to adapt to change and uncertainty using control systems?

A

Monitor specific activities

React quickly to significant changes in environment

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7
Q

What are examples of undesirable irregularities?

A

Product defects
Cost overrun
Staff turnover
Customer complaints

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8
Q

How do controls help in irregularities?

A

Defect early

Save large amt. of resources later on

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9
Q

How do control systems reduce cost?

A

Labour costs

Eliminate waste

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10
Q

How do control systems increase productivity?

A

Increase output

Increase delivery cycles

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11
Q

Control adds value to a

A

Product

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12
Q

How do controls help managers identify opportunities?

A

By highlighting situations

Alert of opportunities that would’ve gone unnoticed

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13
Q

What situations of opportunities are there?

A

Competitive prices on materials
Changing population trends
New overseas markets

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14
Q

When will an organisation face complexity?

A

Grows larger

engage in more operations and projects

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15
Q

What does control help in when there are complexities?

A

Coordination of major elements

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16
Q

When a complex situation is well coordinated, the organisation can

A

Run smoothly

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17
Q

Control helps decentralize decision making from what to what?

A

Top management

Lower levels

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18
Q

When decision making is decentralized, what is encouraged?

A

Employees to work together in teams

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19
Q

What are the 3 levels of planning?

A

Strategic
Tactical
Operational

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20
Q

Strategic control corresponds to which managerial level?

A

Top managers

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21
Q

Tactical control corresponds to which managerial level?

A

Middle

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22
Q

Operational control corresponds to which managerial level?

A

First line (supervisory)

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23
Q

What is the responsibility for mangers when dealing with controls at each level?

A

Establish

Evaluate

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24
How are plans and controls related at the different levels?
Controls monitor effectiveness of a plan
25
What is monitored at strategic controls?
Criticism environment factors. affecting strategic plans Assess effects of organisational strategic actions Proper implementation of strategic plans
26
What are the environmental factors monitored in strategic control?
``` Competitor actions Political changes Volatility in customer needs Economic shifts Technological change ```
27
The environmental factors can pose as both a
Threat | Opportunity
28
Why is strategic control done by the top management?
They have an organisation-wide perspective
29
What is the time frame for strategic controls?
Long-term | Quarterly, annually, one decade
30
The exact time frame of the strategic control is reliant on?
The nature of the business
31
What does tactical control involve?
Assess implementation of tactical plans at departmental level objective Monitor periodic results Taking corrective action Monitor specific internal and external factors that affect tactical plans
32
What are internal forces that affect tactical plans of RandD department?
Excessive spending | Slipping project schedules
33
What are external environmental forces that affect the tactical plans of a marketing department?
Competitors prices | Evaluating market share
34
Why are middle managers involved in tactical control?
Know departmental level objectives Programmes Budgets
35
What are the time frames for tactical controls?
Periodic | Middle term
36
What is done at the end of the time frame of tactical control?
Reporting
37
What are exams of tactical control reports?
Managerial reports Financial reports Performance reports Customer survey
38
What is involved in operational control?
Over implementation of operating and Monitor day to day results Taking corrective actions
39
What is the time frame for operational control?
Short term
40
What do first line supervisors do at the end of the time frame of a operational control?
Give feedback
41
What is operational control concerned about
``` Budgets Standards Schedules Rules Specific outputs associated with particular individuals ```
42
What is the scope of control also known as?
Area of control
43
What are the areas of control?
Physical resources Human resources Information resources Financial resources
44
The different scopes make up different parts of an
Organsation
45
What is controlled in physical resources control?
Buildings Equipment Tangible products
46
What are examples of physical resources control?
Inventory control | Quality control
47
What is inventory control?
Ensure stocking not too few or many units
48
What does quality control ensure?
Products are built to acceptable standards
49
What does human resources controls regulate?
Employee performance and behaviour
50
What is the intention of human resources control?
Improving capabilities of employees
51
What are examples of human resources controls?
Stricter hiring policies Training programmed Implementing rewards, bonuses
52
What does information resources control involve?
Generation of production schedules Sales and marketing forecasting Analysis of competition, environment
53
What is controlled in financial resources control?
Money | Budget
54
What is monitored in financial resources control?
Cost Expenses Profit and loss accounts receivable/ payable
55
When can controls be established?
Before During After Workflow
56
What is precontrol also known as ?
Feed forward controls
57
When do feed forward controls take place?
Before work is performed
58
What do feed forward controls intend to do?
Prevent anticipated problems, future oriented | Eliminating behaviour that cause undesirable work results
59
What is done in feed forward control?
Establish Rules Procedures Policies
60
What doe feed forward controls control in financial, physical, human and information resources?
Quality and quantity
61
when do feed forward controls control financial, physical, human and information resources?
Before they become part of the system
62
When is concurrent control done?
While work is being performed
63
What do concurrent controls intend to do?
Minimize problems as they occur, present oriented | All aspects of performance are consistent with established standards
64
Why do human, equipment etc... Have to be checked if they are consistent with established standards?
Problems and errors can be corrected | Become too difficult or expensive
65
What do concurrent controls monitor?
Ongoing activities
66
When is feedback control done?
After work is completed
67
What does feedback control intend to do?
Correct problems that have already occurred, past oriented | Take corrective action in order to bring performance back to planned level
68
What is an example of feedback control?
Performance appraisal review
69
What are the styles of implementing controls?
Bureaucratic | Decentralized
70
Bureaucratic approach is also known as
Traditional
71
The styles of implementing controls is known as
Managerial approaches
72
The managerial approaches represent a company's
Corporate culture
73
What does bureaucratic control involve?
Administrative and system elements | Formal mechanisms
74
What are examples of bureaucratic control?
Rules and procedures Hierarchy of authority Management control systems Technology
75
What does Hierarchy of authority rely on for control?
Central authority | Personal supervision
76
Because of hierarchy of authority, who are not expected to participate in control process?
Lower level employees
77
Management control systems have what nature?
Quantitative | Measure performance
78
In management control systems, what are the examples of formal mechanisms?
Budgeting | Financial reporting
79
What is technology used for?
To define the speed and standards at which workers must perform
80
The speed at which workers perform is known as?
Flow and pace of work
81
Standards that workers must attain is also known as
Employee performance
82
What is decentralized control based on?
``` Values Beliefs Traditions Corporate culture Shared norms Informal relationships Trust ```
83
Decentralized control generates compliance
To attain organisational goals
84
When employees are trusted, the managers do not require
Extensive rules | Supervision
85
Employees are trusted to
Perform correctly | Willingly
86
What is the emphasis for decentralized control? Not?
Motivation Not authority
87
What are the elements associated with decentralized control?
Corporate culture Peer group control Self control Technology
88
How can corporate culture be a strong control device?
If it is strong | Established values are consistent with goals and culture
89
When there peer control is established, what is not required
Top down bureaucratic control
90
What is self control also known as?
Self discipline
91
What does self control keep employees doing?
Performing their tasks up to standard
92
Greater self control also means managers need to
Empower
93
Empowering gives employees a greater sense of
Responsibility | Pride
94
How is technology used in decentralized control?
To empower employees | Give them information to make effective decisions
95
What is the controlling process?
Establish performance standards Measure performance Compare performance against standards Take corrective actions
96
Major controls are based on
Organisational goal and objective
97
Establishment of performance standards is done after?
Development of strategic plan
98
What is evaluated in standards of performance?
Activities
99
Why is there a need for performance standards?
Help employee understand expectation Enable detection of deficiencies Helps reduce negative effects of incompatibility of goals of organisational members To ensure achievement of organisational objectives
100
What does a manager consider in measuring performance ?
How to measure actual performance | How often
101
The means of measuring performance depends on the
Standard set
102
Examples data of standards include
Units produced Number of defects Quality of output Amount of materials
103
What are the two performance measures?
Qualitative | Quantitative
104
What do you compare in step 3 of the controlling process?
Actual performance to performance standards | Actual versus planned
105
The comparison are based on information provided in
Reports
106
What does corrective action aim to do?
Bring organisational performance to the level of performance standard
107
What does management need to ensure before taking drastic corrective action?
Standards are relevant, valid, and reliable
108
Why corrective actions can be taken to bring the level of performance up?
Performance indicators are symptoms, not the cause
109
How does the management identify the problem to correct?
Use their judgement
110
When is corrective action not required?
Performance meets or exceeds standards
111
When standards are met or exceeded, what is to be done?
Positive reinforcement | Recognition
112
What are examples of corrective actions?
Making employees work harder | Redesign the production process

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