Chapter 16 Notes Flashcards Preview

UNLV MGT301 - Victor Isbell > Chapter 16 Notes > Flashcards

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

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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

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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

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monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed

Strategic Control

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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

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monitoring performance to ensure that operational plans—day-to-day goals—are being implemented and taking corrective action as needed

Operational Control

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Six Areas of Control

physical, human, informational, financial, structural, and cultural.

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the sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers

Supply Chain

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an approach to organizational control that is characterized by use of rules, regulations, and formal authority to guide performance

Bureaucratic Control

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an approach to organizational control that is characterized by informal and organic structural arrangements

Decentralized Control

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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

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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

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a formal financial projection

Budget

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forces each department to start from zero in projecting funding needs

zero-based budgeting (ZBB)

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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

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Forecasts all sources of cash income and cash expenditures for daily, weekly, or monthly period

Cash or cashflow budget

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Anticipates investments in major assets such as land, buildings, and major equipment

Capital expenditures budget

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Projects future sales, often by month, sales area, or product

Sales or revenue budget

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Projects expenses (costs) for given activity for given period

Expense budget

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Projects organization's source of cash and how it plans to spend it in the forthcoming period

Financial budget

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Projects what an organization will create in goods or services, what financial resources are needed, and what income is expected

Operating budget

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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

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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

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two basic types of financial statements:

balance sheet and the income statement

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summarizes an organization's overall financial worth—that is, assets and liabilities—at a specific point in time.

Balance Sheet

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the resources that an organization controls

Assets

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cash and other assets that are readily convertible to cash within one year's time

Current Assets

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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

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claims, or debts, by suppliers, lenders, and other nonowners of the organization against a company's assets.

Liabilities

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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

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the costs required to produce those goods and services

Expenses

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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

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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

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indicate how effectively an organization is managing its assets, such as whether it has obsolete or excess inventory on hand

Asset Management Ratio

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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

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a verification of an organization's financial accounts and statements by the organization's own professional staff.

Internal Audit

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proposed ideas for making organizations more responsive, more democratic, and less wasteful.

Deming Management

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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

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everyone involved with the organization should focus on delivering value to customers

People Orientation

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everyone should work on continuously improving the work processes

Improvement Orientation

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to meet to solve a special or onetime problem

Special-purpose team

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defined as ongoing small, incremental improvements in all parts of an organization

Continues Improvement

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enables customers to rate the quality of a service along five dimensions—reliability, assurance, tangibles, empathy, and responsiveness

RATER Scale

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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

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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

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a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes

Six sigma

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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

software systems, information systems for integrating virtually all aspects of a business

enterprise resource planning (ERP)