Business Chapter 10 Flashcards
Controlling
Controlling
Narrowing the gap between what was planned and the actual achievement of goals and objectives, and ensuring that all activities are carried out as they should be
The purpose of control
Control is linked with planning, organizing and leading
Control helps companies adapt to environmental change
Control helps to limit the accumulation of error
Control helps companies to cope with increasing organizational size and complexity
Control helps to minimize costs
The control process
1.Setting standards(derived from goals)
2.Measuring actual performance
3.Evaluating deviations(performance gap)
4.Rectifying deviations(corrective actions)
Areas of control
Physical resources
Human resources
Information resources
Financial resources
Physical resources
Entails factors such as inventory control and quality control
Human resources
Involves orderly selection and placement of employees, control over training and personnel development, remuneration levels
Information resources
Relates to accurate market forecasting, adequate environmental scanning and economic forecasting
Financial resources
Refers to various types of capital used in a business
The control of financial resources
Resources flow into org
Financial resources that are held by the organization
Financial resources flowing out of the organization
Effective control systems
Flexibility: the system should be able to accommodate change
Accuracy: The system should provide accurate picture of the situation
Timelines: The control data should be supplied regularly, a
Simplicity: The system should be uncomplicated and cost-effective
The control of information resources
Accurate and timely information allows management to implement plans and determine on a continuous basis whether everything is proceeding according to plan, and whether adjustments need to be made
The control of human resources
The main instrument used to control on org’s human resources is performance measurement
Integration
A control system is more effective when it is integrated with planning and effective control system
Control process definition
The process of establishing and implementing mechanisms to ensure that the objectives of the organization are achieved
What happens without control
1.Planning is pointless
2.The impact of environmental change on the org is difficult to detect
3.An effective control system should detect such errors before they become critical
4.It would be extremely difficult to spot weak points in a highly complex network