14 - Control

Question 1

Enterprise Resource Planning (ERP)

Answer 1

Information systems for integrating virtually all aspects of a business

Question 2

Controlling

Answer 2

Monitoring performance, comparing it with goals and taking corrective action as needed

Question 3

Control process steps

Answer 3

These are 1) Establish standards 2) Measure performance 3) Compare performance to standards 4) take corrective action if necessary

Question 4

Control standard (performance standard)

Answer 4

The desired performance level for a given goal

Question 5

Management by exception

Answer 5

A control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Question 6

Strategic control processes

Answer 6

Monitoring performance to ensure that strategic plans are being implemented and corrective action is taken as needed.

Question 7

Tactical control processes

Answer 7

Monitoring performance to ensure that tactical plans - those at the divisional or departmental level - are being implemented and taking corrective action as needed.

Question 8

Operational control

Answer 8

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

Question 9

Bureaucratic control

Answer 9

An approach to organisational control that is characterised by use of rules, regulations and formal authority to guide performance.

Question 10

Decentralised control

Answer 10

an approach to organisational control that is characterised by informal and organic structural arrangements.

Question 11

Balanced scorecard

Answer 11

Gives top managers a fast but comprehensive view of the organisation via four indicators: 1) customer satisfaction 2) internal processes
3) innovation and improvement activities 4) financial measures

Question 12

Strategy map

Answer 12

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 organisation.

Question 13

Budget

Answer 13

A formal financial projection.

Question 14

Incremental budgeting

Answer 14

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.

Question 15

Fixed budgets

Answer 15

Allocates resources on the basis of a single estimate of costs

Question 16

Variable budgets

Answer 16

Allows the allocation of resources to vary in proportion with various levels of activity

Question 17

Financial statements

Answer 17

A summary of some aspect of an organisation’s financial status

Question 18

Balance sheet

Answer 18

Summarises an organisation’s overall financial worth that is - assets and liabilities at a specific point in time

Question 19

Income statement

Answer 19

Summarises an organisation’s financial results - revenues and expenses - over a specific period of time.

Question 20

Ratio analysis

Answer 20

The practice of evaluating financial ratios

Question 21

Audits

Answer 21

Formal verifications of an organisation’s financial and operational system

Question 22

External audit

Answer 22

A formal verification of an organisation’s financial accounts and statements by outside experts

Question 23

Internal audit

Answer 23

A verification of an organisation’s financial accounts and statements by the organisation’s own professional staff

Question 24

Deming Management

Answer 24

Proposed ideas for making organisations more responsive, more democratic and less wasteful

Question 25

PDCA cycle (Plan-Do-Check-Act)

Answer 25

A cycle using observed data for continuous improvement operations

Question 26

Total Quality Management

Answer 26

A comprehensive approach - led by top management and supported throughout the organisation - dedicated to continuous quality improvement, training and customer satisfaction

Question 27

Two core principles of TQM

Answer 27

1) People orientation - everyone involved with the organisation should focus on delivering value to customers 2) improvement orientation - everyone should work on continuously improving the work processes

Question 28

Special-purpose team

Answer 28

Meets to solve a special or onetime problem

Question 29

Continuous improvement

Answer 29

Ongoing small, incremental improvements in all parts of an organisation

Question 30

Rater scale

Answer 30

Enables customers to rate the quality of service along five dimensions - reliability, assurance, tangibles, empathy and responsiveness - each on a scale from 1 - 10

Question 31

Reduced cycle time

Answer 31

Reduction in steps in a work process

Question 32

ISO 9000 series

Answer 32

Consists of quality control procedures companies must install - from purchasing to manufacturing to inventory - to shipping - that can be audited by independant quality control experts or ‘registrars’

Question 33

ISO 14000 series

Answer 33

Extends the ISO 9000 concept, identifying standards for environmental performance.

Question 34

Six Sigma

Answer 34

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

Question 35

Lean six sigma

Answer 35

Focuses on problem-solving and performance improvement - speed with excellence of a well-defined project