CHAPTER 9 Flashcards
1
Q
refers to the “process of ascertaining whether organizational objectives have been achieved ; if not why not determining what activities should then be taken to achieve objectives better in the future”
A
CONTROLLING
2
Q
completes the cycle of management functions
A
CONTROLLING
3
Q
are set at the planning stage are verified as to achievement or completion at any given point in in the organizing and implementing stages
A
OBJECTIVES AND GOALS
4
Q
usually undertaken when expectations are not met at scheduled dates
A
CORRECTIVE MEASURES
5
Q
they contribute to unnecessary expenditures which increase the cost of pricing goods and services
A
DEVIATION
MISTAKES
SHORTCOMINGS
6
Q
measures minimize the ill effects of such negative occurrences
A
PROPER CONTROLLING
7
Q
minimizes, if not totally eliminates losses in inventory
A
EFFECTIVE INVENTORY CONTROL SYSTEM
8
Q
may be illustrated as it is applied in a typical factory
A
IMPORTANCE OF CONTROLLING
9
Q
if no such ________ is made, the company will be face with escalating production costs, which will place the viability of the firm to jeopardy
A
CONTROL
10
Q
STEPS IN THE CONTROLLING PROCESS
A
- establishing performance objectives and standards
- measuring actual performance
- comparing actual performance to the objectives and standards
- taking necessary action based on the results of the comparison
11
Q
ESTABLISHING PERFORMANCE OBJECTIVE AND PERFORMANCE
A
- sales targets
- production targets
- worker attendance
- safety record
- supplies used
12
Q
which are expressed in quantity or monetary terms
A
SALES TARGETS
13
Q
which are expressed in quantity or quality
A
PRODUCTION TARGETS
14
Q
which are expressed in terms of rate of absences
A
WORKER ATENDANCE
15
Q
which are expressed in number of accidents for given periods
A
SAFETY RECORDS
16
Q
which are expressed in quantity or monetary terms for given periods
A
SUPPLIES USED
17
Q
differ among various organizations
A
STANDARDS
17
Q
useful standards in construction firms
A
PROJECT COMPLETION DATES
18
Q
measures form the basis for standard requirements in chemical manufacturing firms
A
POLLUTION
18
Q
will depend on the actual findings
A
ADJUSTMENTS
19
Q
every _______ established must be provided with its own method for measurement
A
STANDARD
20
Q
could be made when shortcomings occur
A
ADJUSTMENTS
20
Q
will differ from organization to organization, as each have their own unique objectives
A
MEASURING TOOL
21
Q
EXAMPLES OF MEASURING TOOLS
A
- annual growth rate as standard basis
- market share approach
- position in industry
22
there is need to measure actual performance so that when shortcomings occur, adjustments could be made
MEASURING ACTUAL PERFORMANCE
23
once actual performance has been determined, this will be compared with what the organization seek to achieve
COMPAARING ACTUAL PERFORMANCE T OBJECTIVES AND STANDARDS
24
actual production output, for instance, will be compared with the______
TARGET OUTPUT
25
the purpose of comparing actual performance with the desired result is to improve management with the opportunity to take corrective action when necessary
TAKING NECESSARY ACTION
26
TAKING NECESSRY ACTION EXAMPLE
1. hire additional personnel
2. use more equipment
3. require overtime
27
TYPES OF CONTROL
1. feedforward control
2. concurrent control
3. feedback control
28
when management anticipates problems and prevents their occurrence
FEEDFORWARD CONTROL
29
this type of control provides the assurance that the required human and non-human resources are in place before operations begin
FEEDFORWARD CONTROL
30
when operations are already ongoing and activities to detect the variance are made
CONCURRENT CONTROL
30
it is always possible that ________ from standards will happen in the production process
DEVIATIONS
31
the manager of the construction firm constantly monitors the progress of the company's projects. when construction is behind schedule, corrective measures like the hiring of addition manpower are made.
CONCURRENT CONTROL
31
also necessary inputs in the pre-operation phase
INFORMATION ON THE ADJUSTMENTS
32
when the information is gathered about a completed activity, and in order that evaluation and steps for improvement are desired
FEEDBACK CONTROL
33
validates objectives and standards
FEEDBACK CONTROL
34
the supervisor who discovers the continuous overtime work for factory workers lowers the quality of output. the feedback information obtained leads to some adjustment in the overtime schedule
FEEDBACK CONTROL
35
COMPPONENTS OF ORGANIZATIONAL CONTROL SYSTEM
1. strategic plan
2. long-range financial plan
3. operating budget
4. performance appraisals
5. statistical reports
6. policies and procedures
36
provides the basic control mechanism for the organization
STRATEGIC PLAN
37
planning horizon differs from company to company
LONG-RANGE FINANCIAL PLAN
38
will require longer term financial plans
ENGINEERING FIRMS
39
recommends a direction for financial activities
FINANCIAL PLAN
40
indicates the expenditures, revenues, or profits planned for some future period regarding operations
OPERATING BUDGET
41
measures employee performance
PERFORMANCE APPRAISAL
42
it provides employee with a guide on hoe to do their jobs better in the future
PERFORMANCE APPRAISAL
43
also function as effective checks on new policies and programs
PERFORMANCE APPRAISAL
44
if a new equipment has been acquired for the use of an employee, it would be useful to find out if it had a positive effect on his performance
PERFORMANCE APPRAISAL
45
pertain to those that contain data on various developments within the firm
STATISTICAL REPORTS
46
information may be found in statistical report pertains:
1. labor efficiency rate
2. quality control rejects
3. accounts receivable
4.accounts payable
5. sales reports
6. accident report
7. power consumption report
47
refer to "the framework within which the objectives must be pursued."
POLICIES
48
is " a plan that describes the exact series of actions to be taken in a given situation"
PROCEDURE
49
" whenever two or more activities complete for the company's attention , the client takes priority"
POLICY
50
it is expected that ______and ______ laid down by management will be followed
POLICIES AND PROCEDURE
51
to be able to assure the accomplishment of the strategic objectives of the company_______ becomes necessary
STRATEGIC CONTROL SYSTEMS
52
STRATEGIC CONTROL SYSTEM
1. financial analysis
2. financial ratio analysis
53
success of most organizations depends on
FINANCIAL PERFORMANCE
54
it is just fitting that certain measurements of financial performance be made so that whatever deviations from standards are found out, corrective actions may be introduced.
FINANCIAL ANALYSIS
55
a review of the financial statements will reveal important details about company's performance
FINANCIAL ANALYSIS
56
contains information about the company's gross income, expenses, and profits.
INCOME STATEMENT
57
INCOME STATEMENT
gross income
expenses, and
profits
58
is a more elaborate approach used in controlling activities
FINANCIAL RATIO ANALYSIS
59
under this method, one account appearing in the financial statement is paired with another to constitute a ratio
FINANCIAL RATIO ANALYSIS
60
which is usually related to what other companies in the industry have achieved, or what the company has achieved in the past
required norm
61
FINANCIAL RATIOS
1. liquidity
2. efficiency
3. financial leverage
4. profitability
62
these ratios assess the ability of a company to meet its current obligations
LIQUIDITY RATIOS
63
IMPORTANT INDICATORS OF LIQUIDITY
1. current ratio
2. acid-test ratio
64
this shows the extent to which current assets of the company can cover its current liabiities
CURRENT RATIO
65
this is a measure of the firm's ability to pay off short-term obligations with the use of current assets and without relying on the sale of inventories
ACID-TEST RATIO
66
these ratios shows how effectively certain assets or liabilities are being used in production of goods and services
EFFICIENCY RATIOS
67
MORE COMMON EFFICIENCY RATIOS
1. inventory turnover ratio
2. fixed asset turnover
68
this ratio measures the number of times an inventory is turned over (or sold) each year
INVENTORY TURNOVER RATIO
69
this ratio is used to measure utilization of the company's investments in fixed assets, such as its plant and equipment
FIXED ASSET TURNOVER
70
this is a group of ratios designed to assess the balance of financing obtained through debt and equity sources
FINANCIAL LEVERAGE RATIO
71
MORE IMPORTANT LEVERAGE RATIOS
1. DEBT TO TOTAL ASSETS RATIO
2. TIMES INTEREST EARNED RATIO
72
this ratio shows how much of the firm's assets are finances by debt
DEBT TO TOTAL ASSETS RATIO
73
this ratio measures the number of times that earnings before interest and taxes cover or exceed the company's interest expense
TIMES INTEREST EARNED RATIO
74
these ratios measure how much operating income or net income a company is able to generate in relation to its assets, owner's equity, and sales
PROFITABILITY RATIOS
75
MORE NOTABLE PROFITABILITY RATIOS
1. profit margin ratio
2. return on assets ratio
3. return in equity ratio
76
this ratio compares the net profit to the level of sales
PROFIT MARGIN RATIO
77
this ratio shows how much income the company produces for every peso invested in assets
RETURN ON ASSETS RATIO
78
this ratio measures the returns on owner's investment
RETURN ON EQUITY RATIO
79
recognizing the need for control is one thing, actually implementing it is another
IDENTIFYING CONTROL PROBLEMS
80
APPROACHES IN IDENTIFY CONTROL PROBLEMS
1. executive reality check
2. comprehensive internal audit
3. general checklist of symptoms of inadequate control
81
employees at the frontline often complain that management imposes certain requirements that are not realistic
EXECUTIVE REALISTIC CHECK
82
is one undertaken to determine the efficiency and effectivity of the activities of an organization
INTERNAL AUDIT
83
among the many aspects of operations within the organization, a small activity that is not done right may continue to be unnoticed until it snowballs into a full blown problem.
COMPREHENSIVE INTERNAL AUDIT
84
aims to detect dysfunctions in the organization before thy bring bigger troubles to management
COMPREHENSIVE INTERNAL AUDIT
85
if a comprehensive internal audit cannot be availed of for some reason, the use of a checklist for symptoms of inadequate control may be used
SYMPTOMS OF INADEQUATE CONTROL
86
COMMON SYMPTOMS OF INADEQUATE CONTROL
1. an unexplained decline in revenues and profits
2. a degradation of service (customer complaints)
3. employee dissatisfaction (complaints, grievance, turnover)
4. cash shortages caused by bloated inventories or deqlinquent accounts receivable
5. idle facilities or personnel
6. disorganized operations (work flow bottlenecks, excessive paperwork)
7. excessive cost
8. evidence of waste and inefficiency (scrap, rework)
87
are easily recognized if adequate control measures are in place
PROBLEMS
88
it comes after planning, organizing, and directing
CONTROLLING
89
is aimed at determining whether objectives were realized or not, by providing means for achievement
CONTROLLING
