Flashcards in Chapter 16 Notes Deck (66)
1
making something happen the way it was planned to happen
Control
2
defined as monitoring performance, comparing it with goals, and taking corrective action as needed
Controlling
3
setting goals and deciding how to achieve them
Planning
4
arranging tasks, people, and other resources to accomplish the work
Organizing
5
motivating people to work hard to achieve the organization's goals
Leading
6
Control Process Steps:
Establish Standards
Measure Performance
Compare Performance to standards
Take Corrective action if necessary
7
the desired performance level for a given goal.
Control Standard
8
number of products sold, units produced, or cost per item sold.
Measure Performance
9
mpare measured performance against the standards established
Compare performance to standards
10
a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards
Management by exception
11
monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed
Strategic Control
12
monitoring performance to ensure that tactical plans—those at the divisional or departmental level—are being implemented and taking corrective action as needed
Tactical Control
13
monitoring performance to ensure that operational plans—day-to-day goals—are being implemented and taking corrective action as needed
Operational Control
14
Six Areas of Control
physical, human, informational, financial, structural, and cultural.
15
the sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers
Supply Chain
16
an approach to organizational control that is characterized by use of rules, regulations, and formal authority to guide performance
Bureaucratic Control
17
an approach to organizational control that is characterized by informal and organic structural arrangements
Decentralized Control
18
gives top managers a fast but comprehensive view of the organization via four indicators: (1) customer satisfaction, (2) internal processes, (3) innovation and improvement activities, and (4) financial measures.
balanced scorecard
19
a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization
strategy map
20
a formal financial projection
Budget
21
forces each department to start from zero in projecting funding needs
zero-based budgeting (ZBB)
22
allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed
Incremental Budgeting
23
Forecasts all sources of cash income and cash expenditures for daily, weekly, or monthly period
Cash or cashflow budget
24
Anticipates investments in major assets such as land, buildings, and major equipment
Capital expenditures budget
25
Projects future sales, often by month, sales area, or product
Sales or revenue budget
26
Projects expenses (costs) for given activity for given period
Expense budget
27
Projects organization's source of cash and how it plans to spend it in the forthcoming period
Financial budget
28
Projects what an organization will create in goods or services, what financial resources are needed, and what income is expected
Operating budget
29
Deals with units other than dollars, such as hours of labor or office square footage
Nonmonetary budget
30
where resources are allocated on a single estimate of costs
Fixed or Static Budget
31
allows the allocation of resources to vary in proportion with various levels of activity.
variable budget
32
summary of some aspect of an organization's financial status
Financial Statement
33
two basic types of financial statements:
balance sheet and the income statement
34
summarizes an organization's overall financial worth—that is, assets and liabilities—at a specific point in time.
Balance Sheet
35
the resources that an organization controls
Assets
36
cash and other assets that are readily convertible to cash within one year's time
Current Assets
37
property, buildings, equipment, and the like that have a useful life that exceeds one year but that are usually harder to convert to cash
Fixed Assets
38
claims, or debts, by suppliers, lenders, and other nonowners of the organization against a company's assets.
Liabilities
39
summarizes an organization's financial results—revenues and expenses—over a specified period of time
Income Statement
40
assets resulting from the sale of goods and services
Revenues
41
the costs required to produce those goods and services
Expenses
42
represents the profits or losses incurred over the specified period of time
Bottom Line
43
the practice of evaluating financial ratios—to determine an organization's financial health.
Ratio Analysis
44
indicate how easily an organization's assets can be converted into cash (made liquid).
Liquidity Ratios
45
indicate the degree to which an organization can meet its long-term financial obligations.
Debt Management
46
indicate how effectively an organization is managing its assets, such as whether it has obsolete or excess inventory on hand
Asset Management Ratio
47
indicate how effective management is in generating a return, or profits, on its assets.
Return Ratio or Return on Investments (ROI)
48
formal verification's of an organization's financial and operational systems.
Audits
49
2 Types of Audits
External and Internal
50
a formal verification of an organization's financial accounts and statements by outside experts
External Audit
51
a verification of an organization's financial accounts and statements by the organization's own professional staff.
Internal Audit
52
proposed ideas for making organizations more responsive, more democratic, and less wasteful.
Deming Management
53
defined as a comprehensive approach—led by top management and supported throughout the organization—dedicated to continuous quality improvement, training, and customer satisfaction.
Total Quality Management
54
everyone involved with the organization should focus on delivering value to customers
People Orientation
55
everyone should work on continuously improving the work processes
Improvement Orientation
56
to meet to solve a special or onetime problem
Special-purpose team
57
defined as ongoing small, incremental improvements in all parts of an organization
Continues Improvement
58
enables customers to rate the quality of a service along five dimensions—reliability, assurance, tangibles, empathy, and responsiveness
RATER Scale
59
reduction in steps in a work process
Reduced Cycle time
60
consists of quality-control procedures companies must install—from purchasing to manufacturing to inventory to shipping—that can be audited by independent quality-control experts, or “registrars.”
ISO 9000 Series
61
xtends the concept, identifying standards for environmental performance
ISO 14000 Series
62
a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability
Statistical Process Control
63
a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes
Six sigma
64
focuses on problem solving and performance improvement—speed with excellence—of a well-defined project
Lean six sigma
65
What is Productivity?
Outputs/Inputs
or
Goods + Services/Labor+ + Capital + Material + Energy
66