(2) Lesson 5: Controlling Flashcards
Refers to the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance
Organizational control
Effectively ___ an organization requires information about performance standards and actual performance, as well as actions taken to correct any deviations from the standards.
controlling
Involves measuring, restraining and correcting performance to accomplish an objective as it was planned
Controlling
It involves the measurement of certain elements such as time, quality, quantity and cost against standards or models which have been established, and the evaluation of the work or performance of various personnel in the organization
Controlling
A good control system should:
be ___ so managers can respond as needed.
flexible
A good control system should:
provide ___ information about the organization
accurate
A good control system should:
provide information in a ___ manner
timely
A good control system should:
encourage each employee to exercise ___.
self-control
Type of control:
Anticipate problems before they occur
Feedforward control
Type of control:
Manage problems as they occur
Concurrent control
Type of control:
Manage problems after they have arisen
Feedback control
The ___ involves using feedback to determine whether performance meets established standards.
feedback control model
Well-designed control systems include four key steps:
establish standards
measure performance
compare performance to standards
make corrections as necessary
Steps in controlling:
Performance standard must be expressed in ___ whenever possible. It may mean the average unit of output an average employee may be able to perform per hour, per day or per week
quantitative terms
Steps in controlling:
___ address how well the work is performed and/or how accurate or how effective the final product is
Quality
Steps in controlling:
___ addresses how quickly, when or by what date the work is produced.
Timeliness
___ involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms.
Hierarchical control
___ foster compliance with organizational goals through the use of organizational culture, group norms, and a focus on goals rather than rules and procedures.
Decentralized control
Hierarchical control or decentralized control:
Basic Assumptions: People are incapable of self-discipline and cannot be trusted. They need to be monitored and controlled closely
Hierarchical Control
Hierarchical control or decentralized control:
Basic Assumptions: People work best when they are fully committed to the organization
Decentralized control
Hierarchical control or decentralized control:
Actions: uses detailed rules and procedures; formal control and systems
Hierarchical control
Hierarchical control or decentralized control:
Actions: uses top-down authority, formal hierarchy, position power, quality control inspectors
Hierarchical control
Hierarchical control or decentralized control:
Actions: relies on task-related job descriptions
Hierarchical control
Hierarchical control or decentralized control:
Actions: emphasizes extrinsic rewards (pay, benefits, status)
Hierarchical control
Hierarchical control or decentralized control:
Actions: Features rigid organizational culture; distrust of cultural norms as means of control
Hierarchical control
Hierarchical control or decentralized control:
Actions: features limited use of rules; relies on values, group and self-control, selection, and socialization
Decentralized control
Hierarchical control or decentralized control:
Actions: Relies on result-based job descriptions; emphasizes goals to be achieved
Decentralized control
Hierarchical control or decentralized control:
Actions: Emphasizes extrinsic and intrinsic rewards (meaningful work, opportunities for growth)
Decentralized control
Hierarchical control or decentralized control:
Actions: Features adaptive culture; culture recognized as means for uniting individuals, team, and organizational goals for overall control
Decentralized control
Hierarchical control or decentralized control:
Consequences: employees follow instructions and do just what they are told
Hierarchical control
Hierarchical control or decentralized control:
Consequences: employees feel a sense of indifference toward work
Hierarchical control
Hierarchical control or decentralized control:
Consequences: employees absenteeism and turnover is high
Hierarchical control
Hierarchical control or decentralized control:
Consequences: employees take initiative and seek responsibility
Decentralized control
Hierarchical control or decentralized control:
Consequences: employees are actively engaged and committed to their work
Decentralized control
Hierarchical control or decentralized control:
Consequences: employee turnover is low
Decentralized control
The ___ focuses on teamwork, increasing customer satisfaction, and lowering costs.
TQM philosophy
Organizations implement ___ by encouraging managers and employees to collaborate across functions and departments, as well as with customers and suppliers, to identify areas for improvement, no matter how small
TQM
Total quality management (TQM) is a ___ control approach
decentralized
___ offer one technique for implementing TQM and include groups of six to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work.
Quality circles
___ is the continuous process of measuring products, services, and practices against major competitors or industry leaders
Benchmarking
___ is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs.
Six sigma
___ involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process
Quality partnering
___, or ___, is the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.
Continuous improvement
kaizen
The six sigma concept:
The process is selected for improvement, and the project charter is specified
Define
The six sigma concept:
Quality variables valued by the customer are measured, and goals are set for improvement.
Measure
The six sigma concept:
The root causes of the current defect levels are identified, and alternatives are considered for process changes
Analyze
The six sigma concept:
The process is changed and checked for improvement.
Improve
The six sigma concept:
This step uses a control chart or measurements to ensure that the process improvement is not lost over time.
Control
The ___ can be applied to processes in manufacturing, service, or administrative areas.
Six Sigma approach
Once a process is selected for improvement, a ___ is formed since most processes cut across functional lines
cross-functional team
A full-time trained process improvement specialist, usually called a “___” is chosen to lead the improvement team
black-belt
The team then sets out to make improvements by using the ___ approach.
DMAIC
Lean or Six Sigma:
Goal: Understand process flow and eliminate waste
Lean
Lean or Six Sigma:
Application: primarily high volume processes
Lean
Lean or Six Sigma:
Goal: improve process capability and eliminate/minimize variation
Six Sigma
Lean or Six Sigma:
Application: Any business process
Six sigma
Lean or Six Sigma:
Approach: basic principles and “cookbook style” implementation based on accepted practices
Lean
Lean or Six Sigma:
Approach: well understood problem-solving approach relying on statistics (DMAIC or DMADV)
Six Sigma
Lean or Six Sigma:
Project selection: driven by local supervisor
Lean
Lean or Six Sigma:
Project selection: BPM and gap analysis
Six sigma
Lean or Six Sigma:
Length of projectS: 1-2 months
Lean
Lean or Six Sigma:
Length of projectS: 2-6 months
Six sigma
Lean or Six Sigma:
Infrastructure: mostly ad-hod, minimal formal training
Lean
Lean or Six Sigma:
Infrastructure: dedicated resources, broad-base training
Six sigma
Lean or Six Sigma:
Training: learning by doing
Lean
Lean or Six Sigma:
Learning by classroom & doing
Six sigma
Idenify the QC tool:
Describe the flow of work and the relationships among steps in the process, and reveal any unnecessary steps and waste that can be eliminated
Flowcharts
Idenify the QC tool:
Identify possible problems that need to be investigated via further data collection and analysis
Flowcharts
Idenify the QC tool:
shows the relationship of factors and variables that might have led to the occurrence of issues
Cause-and-effect (CE) diagram
Idenify the QC tool:
identifies the problem itself, the effect, which
is placed on the right side of the diagram
Cause-and-effect (CE) diagram
Idenify the QC tool:
fleshes out the various potential causes of the problem that are shown along the spine of the diagram and categorized, for example, as materials, workers, inspection, and tools
Cause-and-effect (CE) diagram
Idenify the QC tool:
shows an appearance of a diagram that suggests a fishbone analogy
Cause-and-effect (CE) diagram
Idenify the QC tool:
are data collection done, which are put in a tabular list representing collected data about the process
Check sheets
Idenify the QC tool:
contain critical process measurements taken at periodic intervals during the day and tabulated by the time taken
Check sheets
Idenify the QC tool:
used to tabulate the frequency of certain defects or other quality-related events
Check sheets
Idenify the QC tool:
show the relationship between two variables
Scatter diagrams
Idenify the QC tool:
if a particular cause and effect are suspected to be related, the relationship will be apparent as a linear or curved pattern on the ____
Scatter diagrams
Idenify the QC tool:
Once improvements have been made, the new process should be stabilized to hold the gains by using a new ___
Control chart
Idenify the QC tool:
The original control chart from before process improvement, will no longer be appropriate following the improvements
Control chart
Idenify the QC tool:
New charts with new center lines and upper and lower limits can be created, based on data from the improved process
Control chart
Idenify the QC tool:
a frequency count using data from the check sheet to show the form and shape of the distribution of the data
Histogram
Idenify the QC tool:
indicates that some data points are outliers, or there may be odd shapes to the distribution that indicate skewness or possibly more than one mode or peak in the distribution
Histogram
Idenify the QC tool:
Can be constructed to show the most important problems
Pareto diagram
___ observed that a few items in any population constitute a significant percentage of the entire group—the vital few
Vilfredo Pareto (1906)
According to ___’s law, a few of the failure modes account for most of the observed defects
Pareto
includes prevention, appraisal, internal failure, and external failure categories.
The cost of quality
when a ___ is assigned to poor quality, it can be managed and controlled like any other cost.
cost
one of the most commonly used forms of managerial control
Budgetary control
___ is the process of setting targets for an organization’s expenditures, monitoring results and comparing them to the budget, and making changes as needed
Budgetary control
as a control device, ___ are reports that list planned and actual expenditures
for cash, assets, raw materials, salaries, and other resources
budgets
a ___ is created for every division or department within an organization, no matter how small, as long as it performs a distinct project, program, or function
budget
___ usually list the variance between the budgeted and actual amounts for each item
budget reports
___ is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity.
Responsibility center
A/an ___ budget outlines the anticipated and actual expenses for a responsibility center
expense
A/an ___ budget lists forecasted and actual revenues of the organization
revenue
The ___ budget estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations
cash
A budget that plans and reports investments in major assets to be depreciated over several years is called a ___ budget.
capital
___ has been expanded to refer to the framework of systems, rules, and practices by which an organization ensures accountability, fairness, and transparency in its relationships with all stakeholders, including investors, employees, customers, and the general public
Corporate governance
___ is a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization’s capacity for learning and growth
Balanced scorecard
The four perspectives in a balanced scorecard:
Financial performance
Customer services
Internal business processes
Potential for learning and growth
The four perspectives in a balanced scorecard:
reflects a concern that the organization’s activities contribute to improving short- and long-term financial performance. It includes traditional measures such as net income and return on investment
Financial performance
The four perspectives in a balanced scorecard:
measure information such as how customers view the organization and customer retention and satisfaction. These data may be collected in many forms, including testimonials from customers describing superlative service or from customer surveys
Customer service
The four perspectives in a balanced scorecard:
focus on production and operating statistics. For clinical laboratories, ___ indicators may include fast turn-around-time in releasing results, the use of fully-automated systems to accommodate high-volume samples, and adherence to safety guidelines
Internal business processes
The four perspectives in a balanced scorecard:
focusing on how well resources and human capital are being managed for the company’s future. Metrics may include things such as employee retention and the introduction of new products
Potential for learning and growth
___ record, analyze, and discuss these various metrics to determine how well the organization is achieving its strategic goals
Managers
The ___ is an effective tool for managing and improving performance, but only if it is clearly linked to a well-defined organizational strategy and goals.
balanced scorecard
