Flashcards in Chapter 16 Notes Deck (66)
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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
