18. Monitoring and controlling

Question 1

Controlling

Answer 1

The process of monitoring, comparing, and correcting work performance.

Question 2

The purpose of Control

Answer 2

To ensure that activities are completed in ways that lead to the accomplishment of organizational goals.

Question 3

(control) the planning

Answer 3

controls let managers know whether their goals and plans are on target and what future actions to take.

Question 4

(control of) Empowering employees

Answer 4

control systems provide managers with information and feedback on employee performance.

Question 5

(Control of the) protection of the workplace

Answer 5

Protecting the workplace – controls enhance physical security and help minimize workplace disruptions.

Question 6

Planning-Controlling link

Answer 6

Planning -> Organizing -> Leading -> Controlling -> Planning

Question 7

Control process

Answer 7

3 Steps

1. Measuring actual performance
2. Comparing actual performance against standard
3. Taking managerial action

Question 8

Measuring actual performance

Answer 8

• How we measure: personal observations, statistical reports, oral reports, and written reports
• What to measure: What is measured is probably more critical to the control process than how it’s measured.

Question 9

Comparing actual performance

Answer 9

• Determining the degree of variation between actual performance and the standard.
• Range of variation (The acceptable parameters of variance between actual performance and the standard.)

Question 10

Taking managerial action

Answer 10

• Immediate corrective action (corrective action that corrects problems at once in order to get performance back on track.)
• Basic corrective action (corrective action that looks at how and why performance deviated before correcting the source of deviation.)
• Revise the Standard (if performance consistently exceeds the goal, then a manager should look at whether the goal is too easy and needs to be raised.)
• Managers must be cautious about revising a standard downward.

Question 11

Organizational performance

Answer 11

the accumulated results of all the organization’s work activities.

Question 12

Organizational effectiveness

Answer 12

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

Question 13

Disciplinary actions

Answer 13

actions taken by a manager to enforce the organization’s work standards and regulations.

Question 14

Types of control for measuring organizational performance

Answer 14

• Feed forward control
• Concurrent control
• Management by walking around
• Feedback control

Question 15

Feed forward control

Answer 15

Control that takes place before a work activity is done

Question 16

Concurrent control

Answer 16

Control that takes place while a work activity is in progress

Question 17

Management by walking around

Answer 17

a term used to describe when a manager is out in the work area interacting directly with employees.

Question 18

Feedback control

Answer 18

control that takes place after a work activity is done.

Question 19

Management Information Systems (MIS)

Answer 19

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

Question 20

Data

Answer 20

an unorganized collection of raw, unanalyzed facts (e.g., an unsorted list of customer names).

Question 21

Information

Answer 21

data that has been analyzed and organized such that it has value and relevance to managers.

Question 22

Balanced scorecard

Answer 22

a performance measurement tool that examines more than just the financial perspective.
Performance measured in four areas:
1. Financial
2. Customer
3. Internal processes
4. People/innovation/growth assets

Question 23

Benchmarking

Answer 23

the search for the best practices among competitors or non-competitors that lead to their superior performance.

Question 24

Benchmark

Answer 24

the standard of excellence to measure and compare against

Question 25

Contemporary issues in control

Answer 25

• Adjusting controls for Cross-Cultural Differences and global turmoil
• Workplace privacy
• Employee theft
• Controlling customer interactions

Question 26

Employee theft

Answer 26

any unauthorized taking of company property by employees for their personal use.

Question 27

Service profit chain

Answer 27

the service sequence from employees to customers to profit.

Question 28

Corporate governance

Answer 28

the system used to govern a corporation so that the interests of corporate owners are protected.

Question 29

The Role of Boards of Directors

Answer 29

a group, independent from management, looking out for the interests of shareholders who were not involved in the day-to-day management of the organization.

Question 30

Reasons why control is important

Answer 30

1. It’s the only way to know if goals are being met, and if not, why.
2. It provides information and feedback so managers feel comfortable empowering employees.
3. It helps protect an organization and its assets.