control Flashcards by Aditi Nair

A ———– System (DCS)
automates processing an airlines airport
management operations which includes
managing the informant required for airport
check-in, printing boarding pass, baggage
acceptance, boarding load control and
aircraft checks. Today almost 98% of DCS
manage e-ticket using interface from a
number of devices including check-in kiosks,
online check-in, mobile boarding pass and
baggage handling. DCS are able to identify
and capture updated reservations from an
airline computer reservation system for
passengers called ——–
(PNR). A DCS is used to update reservations
typically as ckecked-in, boarded, and
flown or another status. Additionally and
increasingly a DCS or some city fare sectors
may also interface with immigration control
for visa, immigration and passenger no fly
watch list

Departure Control
passenger name record

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Controlling
also ensures that an organisation’s
resources are being used effectively
and efficiently for the achievement of
predetermined goals.- E2
Controlling is,
thus, a —- -oriented function

goal

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Control is an indispensable function
of management. Without —– the
best of plans can go awry

Control is an indispensable function
of management. Without control the
best of plans can go awry

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cotrolling imp:

aditi my ignore everyone - just and fair
-acc org standrads
-making efficent use of resource
-improving employee motivation
-ensuring order dispcline
-judgign accuracy stand
-facilitating coord in action

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contr olling is like —–
keeps org on right track

guiding

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diff bw god and efiicnet:
A good control system enables
management to — whether
the standards set are accurate
and objective.
An efficient control
system keeps a careful check
on the changes taking place
in the organisation and in the
environment and helps to —-
and revise the standards in light
of such changes

verify-good
eff- check,
review and revise

si eff is also remedial in nature

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Controlling provides
—- to all activities and
efforts for achieving organisational
goals. Each department and
employee is governed by predetermined standards which
are well coordinated with one
another

direction (so guides)

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direction (so guides)

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s. Thus,
planning without controlling is
—-. Similarly, controlling
is —- without planning

meaningless
blind

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Without planning there is no
predetermined understanding of the
desired performance. Planning seeks
consistent, integrated and —-
programmes while controlling seeks
to compel events to conform to plans.

articulated - cia porgrammes

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articulated - cia porgrammes

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Controlling,
on the other hand, checks whether
decisions have been translated into —

desired ation

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Thus, planning and controlling are
interrelated and, in fact, reinforce
each other in the sense that
1. Planning based on —– makes
controlling easier and effective;
and
2. Controlling improves future
planning by providing information
derived from ———-

facts
past experince

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s. ——- are the criteria
against which actual performance
would be measured. Thus, standards
serve as benchmarks towards which
an organisation strives to work.

stanrards

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Performance should be measured in
an —– and reliable manner

objective

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Progress of work in certain operating areas
like —— may be measured
by considering the number of units
sold, increase in market share, etc.,
whereas, —– of production
may be measured by counting the
number of pieces produced and
number of defective pieces in a
batch

marketing – market share, units sold
efficiency

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Standards used in Functional Areas to Gauge Performance,
in rpoduction:

qlty
quanityt
cost
indivdiaul job
performance

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HRM is fucnt ke standards

labour relations
lab turnover
lab absentism

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finna accounting standards

cap exo
invenotry
liqiudity
cap flow

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mketing stanrads

sales vol
sales exo
adv exp
invidual performnace
sales dude performn

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: It is neither
economical nor easy to keep a
check on each and every activity
in an organisation. Control
should, therefore, focus on key
result areas (KRAs) which are
critical to the success of an
organisation. CALLED —

CPC

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Deviations may have multiple
causes for their origin. These include
—- standards, defective
process, inadequacy of resources,
—– drawbacks, ————- and environmental factors

unrealistic
structural
org constraints

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Corrective action might involve
——– if the production
target could not be met. Similarly,
if an important project is running
behind schedule, corrective action
might involve assigning of additional
workers and equipment to the
project and permission for overtime
work. In case the deviation cannot
be corrected through ———–, the standards may have to be
revised.

training of employees

managerial
action

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When a manager sets critical points and focuses attention on significant deviations which
cross the permissible limit, the following advantages accrue:
1. It saves the time and efforts of managers as they deal with only significant deviations.
2. It focuses managerial attention on important areas. Thus, there is ———— of
managerial talent.
3. The routine problems are left to the subordinates. ———, thus,
facilitates —- of authority and increases morale of the employees.
4. It identifies critical problems which need timely action to keep the organisation in right
track.

better utilisation
Management by exception (ie degree, not CPC)
delegation

2 manger benefits, 1 employee benefit
and 1 org benefit

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Causes of deviation - Corrective action to be taken 1. Defective material : Change the --- for material used 2. Defective machinery_ Repair the existing machine or replace the machine if it cannot be repaired 3. ----- machinery -- Undertake technological upgradation of machinery 4. Defective --a-- -Modify the existing ---a--- 5. Defective physical conditions of work -Improve the physical conditions of work

quality specification for the material used Obsolete process -

This is the most traditional method of control. ------------ enables the manager to collect first hand information. It also creates a psychological pressure on the employees to perform well as they are aware that they are being observed personally on their job. However, it is a very time-consuming exercise and cannot effectively be used in all kinds of jobs

personl observatiobs -most trad\ -psych pressure -time consuming, -ineffective

Statistical analysis in the form of averages, percentages, ratios, correlation, etc., present useful information to the managers regarding performance of the organisation in various areas. Such information when presented in the form of charts, graphs, tables, etc., enables the managers to read them more easily and allow a comparison to be made with performance in ----- and also with the ----------

previous periods benchmarks so ``stats analysis -help comparison -ease

Breakeven analysis is a technique used by managers to study the relationship between --, ---- and ------. It determines the probable profit and losses at different levels of activity

costs volume profit

Breakeven point is determined by the intersection of Total ---- and Total ----- curves.

total rev total cost curves

Breakeven Point = ----- Costs/ ----- per unit – ----- cost per unit

Fixed costs/sp per unit-vc per unit vc- variable costs

keven chart whats on x and y axis

x- cost nd rev y-sales vol

Breakeven analysis helps a firm in keeping a close check over its ----- costs

variable

Budgetary control is a technique of managerial control in which all operations are planned in advance in the form of ----- and actual results are compared with budgetary standards.

budgets

A budget is a quantitative statement for a ------ future period of time for the purpose of obtaining a given objective. It is also a statement which reflects the --------- of that particular period. It will contain figures of forecasts both in terms of ----- and quantities.

definite policy of a given period time so figures in form of time and quanitty

n Sales Budget: A statement of what an organisation expects to sell in terms of quantity as well as ---- n ---- Budget: A statement of what an organisation plans to produce in the budgeted period n ------ Budget: A statement of estimated quantity and ---- of materials required for production

value (v+quanttiy-sales budget) Production budget material budget quantity and cost of materials sales-quanityt and value of what we SELL mateial-quantity and cost f RAW materials needed for production

n Cash Budget: Anticipated cash inflows and outflows for the budgeted period n ----- Budget: Estimated spending on major long-term assets like new factory or major equipment n Research and Development Budget: Estimated spending for the development or --- of products and processes

Capital refinement- r and d budget

.--- form of comparison reveals the necessary actions to be taken so that organisational objectives are accomplished. IMP - vague

budgetary control

However, the effectiveness of budgeting depends on how ---- estimates have been made about future. Flexible budgets should be prepared which can be adopted if forecasts about future turn out to be different, especially in the face of changing environmental forces. Managers must remember that budgeting should not be viewed as an end but a ----- to achieve organisational objectives.

accurately means so accurate, but flexible too

Budgeting focuses on ----- and ---- -bound targets and thus, helps in attainment of organisational objectives.

specific time bound targets budgeting??-specific kyuki quantiiative time bound kyki it gives time constraibts too

Budgeting is also used for achieving --- among different departments of an organisation and highlights the ------ between them. For instance, sales budget cannot be prepared without knowing production programmes and schedules

cooridnation interdpeendece

. It facilitates ---- this concept by stressing on those operations which deviate from budgeted standards in a significant way.

management by exception

. It facilitates ---- this concept by stressing on those operations which deviate from budgeted standards in a significant way.

management by exception

------- can be used to measure overall performance of an organisation or of its individual departments or divisions. It can be calculated as under.

Return on Investment (RoI) is a useful technique which provides the basic yardstick for measuring whether or not invested capital has been used effectively for generating reasonable amount of return. RoI can be used to measure overall performance of an organisation or of its individual departments or divisions. It can be calculated as under.

Return on Investment (RoI) is a useful technique which provides the basic ---- for measuring whether or not invested capital has been used effectively for generating reasonable amount of return. its formula:

yardstick RoI= Net Income /Sales × Sales /Total Investment

Total investment includes both --- as well as fixed capital invested in business. According to this technique, RoI can be increased either by ------ sales volume proportionately more than total investment or by reducing total ---- without having any reductions in sales volume.

working increasing investment

RoI provides top management an effective means of control for measuring and comparing performance of different -----. It also permits departmental managers to find out the problem which affects RoI in an adverse manner.

departments so roi basically ab depts

Liquidity ratios are calculated to determine ------ -term solvency of business. Analysis of current position of liquid funds determines the ability of the business to pay the amount due to its stakeholders.

short temr -liquid

Ratios which are calculated to determine the long-term solvency of business are known as solvency ratios. Thus, these ratios determine the ability of a business to service its ---

indebtedness. - solve short term, liquity-stakeholders

These ratios are calculated to analyse the profitability position of a business. Such ratios involve analysis of profits in relation to ---- or funds or ----

sales capital employed.

Turnover ratios are calculated to determine the ----- of operations based on effective utilisation of resources. Higher turnover means better utilisation of resources.

efficiency of operations

------- is a system of accounting in which different sections, divisions and departments of an organisation are set up as ‘Responsibility Centres’. The head of the centre is responsible for achieving the target set for his centre.

Responsibility accounting

A cost or ---- centre is a segment of an organisation in which managers are held responsible for the cost incurred in the centre but not for the revenues. For example, in a manufacturing organisation, ----- department is classified as cost centre

expense centre production dpet -

expense centre production dpet -l

expense centre production dpet -lONLY IN manaufacturing

: A revenue centre is a segment of an organisation which is primarily responsible for generating revenue. For example, ---- department of an organisation may be classified as a revenue center

marketing

A profit centre is a segment of an organisation whose manager is responsible for both revenues and costs. For example, ------ department of an organisation may be treated as a profit center if it is allowed to bill other production departments for the services provided to them.

repair and maintenance

An investment centre is responsible not only for profits but also for investments made in the centre in the form of assets. The investment made in each centre is separately ascertained and ---------- is used as a basis for judging the performance of the centre.

return on investment

------ refers to systematic appraisal of the overall performance of the management of an organisation. The purpose is to review the efficiency and effectiveness of management and to improve its performance in future periods.

Management audit - E2 helps identify deficineces

Thus, management audit may be defined as evaluation of the----- and effectiveness of management of an organisation

functioning, performance

magament audit adv: It helps to locate present and potential ---- in the performance of management functions. 2. It helps to improve the control system of an organisation by continuously monitoring the performance of management.

deficiencies i contunuly monitors PERFORMANCE of mgmt- ie, how managemrnt is done it supervises that

mgm audit adv: It improves coordination in the functioning of various departments so that they work together effectively towards the achievement of organisational objectives. 4. It ensures ----- of existing managerial policies and strategies in the light of environmental changes.

updating

These techniques are especially useful for planning, scheduling and implementing ---- bound projects involving performance of a variety of complex, diverse and interrelated activities. - CID activites These techniques deals with time scheduling and resource allocation for these activities and aims at effective execution of projects within given time schedule and structure of -----

pert/cpm- Programme Evaluation and Review Technique) (Critical Path Method) time bound costs

PERT and CPM are used extensively in areas like ship-building, construction projects, aircraft manufacture, etc. so areas with time constraits, heavy assets and cap involved, assembling involved, long cycle too. - steps in this proess

5 steps

1. The project is divided into a number of clearly identifiable activities which are then arranged in a ------. 2. A ---- is prepared to show the sequence of activities, the starting point and the termination point of the project.

ogical sequence. 2. A network diagram is prepared to show the sequence of activities, the starting point and the termination point of the project.

3. Time estimates are prepared for each activity. PERT requires the preparation of --- time estimates – optimistic (or shortest time), pessimistic (or longest time) and most likely time. In CPM only one time estimate is prepared. In addition, CPM also requires making ---- estimates for completion of project

3 p-perrt (1-time, 1 cost for cpm cost estimates

4. The longest path in the network is identified as the ------------. It represents the sequence of those activities which are important for timely completion of the project and where no delays can be allowed without delaying the entire project. 5. If required, the plan is ----- so that execution and timely completion of project is under control.

critical path modified

Management Information System (MIS) is a ----- -based information system that provides information and support for effective managerial decision-making.

computer

MIS provides the required information to the managers by systematically ----- a massive data generated in an organisation. Thus, MIS is an important communication tool for managers

processing communication tool so it processes data. communicates it to dceision maker

---- also serves as an important control technique. It provides data and information to the managers at the right time so that appropriate corrective action may be taken in case of deviations from standards. A decision-maker requires up-to-date, accurate and timely information TIMELY, accurate, updated

MIS

MIS facilitates collection, management and ---- of information at different levels of management and across different departments of the organisation. 2. It supports planning, decision making and controlling at all levels. 3. It improves the ---- of information with which a manager works.

dissemination (+ COLLECTIONA ND MGMT) quality of info so quality of info increased, and helps in PLANNING (NOT JUST CONTROL) at all levels

4. MIS - It ensures cost effectiveness in managing information. 5. It reduces information ----- on the managers as only relevant information is provided to them.

overload so work reuction, cost reudtcion

s. Sometimes controlling turns out to be a costly affair, especially in case of ----- organisations. M

smlal org

n The importance of managerial control lies in the fact that it helps in ---- main impirtance of ocntrolling

accomplishing organisational goals.

control Flashcards

(73 cards)