Ch. 19: Managing Quality and Performance Flashcards
organizational control
the systematic process of regulating organizational activities to make them consistent with the expectation established in plans, targets, and standards of performance
What are the 4 steps of feedback control?
- establish clear and specific standards of performance
- measure actual performance often
- compare performance to standards
- take corrective action
balanced scorecard
a comprehensive mgmt. control system that balances traditional financial measures with operational measures relating to a company’s critical success factors
What are the 4 parts to the balanced scorecard?
- financial performance
- customer service (satisfaction)
- internal business processes (production & operations)
- potential for learning and growth (resource mgmt.)
budgetary control
the process of setting targets for an org’s expenditures, monitoring results, comparing them to the budget and making changes as needed
zero-based budget
requires a complete justification for every line item in a budget instead of carrying forward a prior budget and applying a percentage change
hierarchical control
monitoring and influencing employee behavior through extensive use of rules, rewards and other formal mechanisms
What are 5 aspects of hierarchical control
- define explicit rules, policies and procedures
- centralized authority, close personal supervision
- job descriptions are specific and task related
- individual employees are given extrinsic rewards but rarely participate in the control process
- organizational culture is somewhat rigid
decentralized control
relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals
What are 6 aspects of decentralized control?
- rely on shared goals and values to control employee behavior
- emphasis on the election and socialization of employees
- self-control and self-discipline are what keep workers performing the jobs up to standard
- everyone is involved in quality control on an ongoing basis
- job descriptions are results-based
- managers use extrinsic and intrinsic rewards such as meaningful work and opportunity to learn and grow
open-book management
allow employees to see for themselves the financial condition of the company
What are 3 benefits of open-book mgmt.?
- shows the individual employee how his or her job fits into the big picture and affects the future of the org.
- ties employee rewards to the company’s overall success
- helps employees appreciate why efficiency is important to the organization’s success as well as their own
total quality management
and organization-wide effort to infuse quality into every activity in a company through continuous improvement
What are 5 TQM techniques?
- quality circle
- benchmarking
- Six Sigma
- quality partnering
- continous improvement (kaizen)
quality circle
a group of volunteer employees who meet regularly to discus and solve problems affecting the quality of work
benchmarking
the continuous process of measuring product, services and practices against competitors to identify areas for improvement
What are the 5 steps in the benchmarking process?
- planning (identifying objectives)
- identifying the source of the info to be collected
- collect data
- analyze the benchmarking data and recommend areas for improvement
- implement recommendations and monitor them through continuous benchmarking
Six Sigma
quality standard that specifies a goal of no more than 3.4 defects per million parts–emphasizes a disciplined pursuit of higher quality and lower costs
quality partnering
assigning dedicated personnel within a particular functional area of the business
continuous improvement
the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis
ISO 9000 standards
international consensus of what constitutes effective quality management outlined by the International Organization for Standardization
corporate governance
the framework of systems, rules, and practices by which an organization ensures accountability, fairness and transparency in its relationships with all stakeholders
Sarbanes-Oxley Act of 2002
reforms for better internal monitoring to reduce the risk of fraud and, require certification of financial reports by top leaders, improved measure for external auditing, and enhance public disclosure
