Chapter 10 Flashcards
The systematic process through which managers regulate organizational activities to make them consistent with expectations.
Organizational control
A comprehensive managemente control system that balances traditional financial measures with measures of costumer service, internal business processes, and the organization’s capacity for growth.
Balanced scorecard
This indicator reflects a concern that the organization’s capacity to improve short and long term financial performance.
Financial performance perspective
This indicator measures the way customers view the organization as well as their satisfaction.
Customer-service indicators
This indicator focuses on production, operating statistics, such as order fulfillment or cost per order.
Internal business process indicators
Indicator that focuses on how well the human resources and capital are being managed.
Organization’s potential for learning and growth
Goals for organizational departments in specific operational terms.
Standard of performance
Four steps for feedback control
- Establish standards
- Measure actual performance
- Compare performance to standards
- Take corrective actions
One of the most commonly used methods of managerial control, it consists in setting targets for the organization’s expenditures, monitoring results and comparing them to the budget.
Budgetary control
An organizational unit under the supervision of a single person who is responsible for its activity.
Responsibility center
A financial statement that shows the financial position with respect to assets and liabilities at one specific point of time.
Balance sheet
A financial statement that summarizes the firm’s financial performance for a given time.
Income statement
Another name for income statement
Profit and Loss statement
Use of rules, policies, hirearchy of authority, reward systems ando other formal devices to influence employee behavior and performance.
Hierarchical Control
Use of organizational culture, group norms, and focus on goals rather than on rules.
Decentralized control
Sharing financial information and results with all employees in the organization.
Open-book management
An organization wide commitment to infusing quality to their every activity through continuous improvement.
Total Quality Management
TQM technique in which group of 6 to 12 volunteers who meet to discuss and solve problems that affect the quality of their work.
Quality Circle
TQM technique that measures products, services and practices against major competitors or industry leaders.
Benchmarking
Aproach used in TQM that emphasizes relentless pursuit of higher quality and lower costs.
Six Sigma
Time taken to complete company process.
Cycle time
Approach used in TQM that is the implementation of a number of small, incremental improvements in all areas of the organization on an ongoing basis.
Continuous improvement
Set of standards as outlined by the IOS that represents an international consensus of what consitutes effective TQM.
ISO 9000 standards
A control System that measures performance in terms of after tax profits minus the cost of capital invested in tangible assets.
Economic Value Added (EVA)
