Business Chapter 10 Flashcards

Controlling

1
Q

Controlling

A

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

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2
Q

The purpose of control

A

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

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3
Q

The control process

A

1.Setting standards(derived from goals)
2.Measuring actual performance
3.Evaluating deviations(performance gap)
4.Rectifying deviations(corrective actions)

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4
Q

Areas of control

A

Physical resources
Human resources
Information resources
Financial resources

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5
Q

Physical resources

A

Entails factors such as inventory control and quality control

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6
Q

Human resources

A

Involves orderly selection and placement of employees, control over training and personnel development, remuneration levels

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7
Q

Information resources

A

Relates to accurate market forecasting, adequate environmental scanning and economic forecasting

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8
Q

Financial resources

A

Refers to various types of capital used in a business

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9
Q

The control of financial resources

A

Resources flow into org
Financial resources that are held by the organization
Financial resources flowing out of the organization

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10
Q

Effective control systems

A

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

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11
Q

The control of information resources

A

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

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12
Q

The control of human resources

A

The main instrument used to control on org’s human resources is performance measurement

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13
Q

Integration

A

A control system is more effective when it is integrated with planning and effective control system

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14
Q

Control process definition

A

The process of establishing and implementing mechanisms to ensure that the objectives of the organization are achieved

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15
Q

What happens without control

A

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

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16
Q

Inventory control(raw materials, work-in-progress)

A

To the reserves of resources held in readiness to produces products and services as well as end products

17
Q

Why organizations keep inventories

A

1.To satisfy the needs of customers and consumers
2.In the case of aw materials and components, to keep uncertainties regarding delivery and availability to a minimum so that manufacturing process is not interrupted
3.As a hedge during times of high inflation

18
Q

A budget

A

Is a formal plan expressed in financial terms that indicates how resources are to be allocated to different activities, departments o sub-departments of an organization

19
Q

Economic ordering quality

A

Replenishing inventory levels by ordering the most economic quantity

20
Q

Disadvantage of EOQ

A

Inventory must be kept ,regardless of the needs of the manufacturing departments/customer, for particular raw materials, components/finished products

21
Q

The material-requireness planning system

A

Eliminates the short comings of the EOQ control system. With this system, can estimate is made of the demand for raw materials and the components necessary to create a finished product

22
Q

Just in time

A

Actual orders for finished products are converted into orders for raw materials and components, which arrive JIT for the manufacturing process, smaller quantities, reducing risk and investment in both storage and actual inventory

23
Q

Quality control

A

Quality is the responsibility of everyone in the org. TQM emphasizes how managers can continuously improve an org’s work systems so that its products and /or services are better able to deliver the quality desired by customers

24
Q

Deming’s principles

A

It supports management in coordinating resources, departments and projects
It provides guidelines on the application of the org’s resources
It defines/sets standards that are vital to the control process
It makes the evaluation of resource allocation possible