Chapter 17: Managerial Control

Question 1

The controlling process

Answer 1

1. measuring performance
2. comparing performance against standard
3. taking managerial action

Question 2

measuring performance

Answer 2

personal observations, stat, oral, written reports

Question 3

comparing performance against standard

Answer 3

range of variation: acceptable degree of variation between actual performance and the standard

• correct perf
• revise standard

Question 4

taking managerial action

Answer 4

process used to make better decisions

Question 5

organizational performance (op)

Answer 5

accumulated results of all the organization’s work activities

Question 6

productivity (op)

Answer 6

overall output of goods and/or services divided by the inputs needed to generate that output

Question 7

organizational effectiveness (op)

Answer 7

measure of how appropriate organizational goals are and how well those goals are being met

Question 8

employee performance

Answer 8

• delivering effective perf feedback

* using disciplinary actions

Question 9

types of discipline problems

Answer 9

• attendance
• on-the-job-behaviours
• dishonesty

Question 10

feed-forward-control

Answer 10

anticipates problems

Question 11

concurrent control

Answer 11

corrects problems as they happen

Question 12

feedback control

Answer 12

corrects problems after they happen

Question 13

financial controls

Answer 13

important bc it makes sure og is performing as it should

• current ratio
• roi ratio

Question 14

information control

Answer 14

managers deal:

1. tool to help them control other organizational activities
2. organizational asset they need to protect

Question 15

management information system (MIS)

Answer 15

system used to provide management with needed information on a regular basis

Question 16

dashboard (MIS)

Answer 16

interface that presents managers and other decision makers with an easy-to-read, real-time user interface, to enable decision makers to make informed decisions quickly

Question 17

balanced scorecard

Answer 17

performance measurement tool that looks at financial and non-financial aspects

• relevant for all stakeholders

Question 18

4 balanced scorecard aspects

Answer 18

• financial
• customer
• internal processes
• people/innovation/growth assets

Question 19

benchmarking

Answer 19

comparing competitors and non-competitors to find ways on how to improve

Question 20

suggestions for internal benchmarking

Answer 20

• connect best practices to strategies and goals
• identify best practices throughout the organization
• nurture best practices on an ongoing basis

Question 21

6 control issues today

Answer 21

1. employee theft
2. workplace violence
3. customer interactions
4. organizational governance
5. workplace privacy
6. cross-cultural differences

Question 22

employee theft

Answer 22

unauthorized taking of company property by employees for their personal use

Question 23

controlling employee theft

Answer 23

• feed-forward: creating policies, discipline procedures
• concurrent: openly communicate costs of stealing
• feedback: use pro investigators

Question 24

workplace violence

Answer 24

anger, rage, and violence in workplace is affecting employee productivity

Question 25

*causes of workplace violence*

Answer 25

``` stressed bc: • difficult manager • overworked • info overload • unrealistic deadlines ```

Question 26

controlling workplace violence

Answer 26

* feed-forward: clearly comm policies * concurrent: use quick and decisive intervention * feedback: openly comm about incidents

Question 27

controlling customer interactions (cci)

Answer 27

level of customer service affects customers' perception on service value high service value = customer loyalty = profitability

Question 28

service profit chain (cci)

Answer 28

service sequence from employees to customers to profit

Question 29

organizational governance (og)

Answer 29

system used to govern organization so that the interests of stakeholders are protected

Question 30

the role of boards of directors (og)

Answer 30

1. independent from managers looking out for the interests of shareholders 2. independent monitors of policies and practices

Question 31

4 governance principles

Answer 31

1. interaction 2. independence 3. disclosure 4. internal audit