CH 10: Controlling Flashcards
When you have worked through learning unit 10, you should be able to 1. Analyse control as a management task by (a) explaining the task of control and its purpose and (b) describing how a control process should function 2. Illustrate how the task of control forms an integral part of the planning process 3. Explain the various types of control 4. Discuss the characteristics of an effective control system 5. Describe how the control process provides feedback for the revision of pl
1
Q
What is the goal of controlling in business management?
A
Narrow the gap between planned and actual achievement
2
Q
What is the purpose of controlling?
A
- Without control, effective planning cannot take place
- Enable companies to adapt to environmental change & cope with uncertainty
- Limit accumulation of errors due to poor decision making
- Minimise cost & increases output
- Identify areas of weak performance
- Identify problems before becoming critical
- Determine whether delegated tasks were carried out satisfactory
- Results in better quality
- Identifies resources being wasted or misapplied
3
Q
What are the 4 steps in the control process?
A
- Setting standards that are derived from goals
- Measuring actual performance
- Evaluating deviations
- Taking corrective action & rectifying deviations
4
Q
What are the 4 key areas of control?
A
- Physical resources
- Financial resources
- Information resources
- Human resources
5
Q
What are the 5 characteristics of an effective control system?
A
- Integration (With the planning process)
- Flexibility
- Accuracy
- Timeliness
- Simplicity
6
Q
What are two components of Financial resources for control?
A
- Budget
2. Ratio Analysis
