Chapter 10: Controlling Flashcards
What are the activities of controlling?
Monitoring performance
Compare with goals
Taking corrective actions
What is control?
Making something happen the way it is planned
What is organisational control?
Systematic process
Regulating organisational activities
Make them consistent with expectations
Established in plans, targets and standards of performance
What are the reasons why control is needed?
Adapting to change and uncertainty
Detecting irregularities and errors
Reducing costs, increasing productivity or adding value
Identifying opportunities
Dealing with complexities
Decentralizing decision-making and facilitating teamwork
Why is there uncertainty?
Organisational goals are future-ordinated
Set on basis of present knowledge
What are the factors in environment that can change?
Consumer demand
Technology
Availability of raw materials
How do managers use control to adapt to change and uncertainty using control systems?
Monitor specific activities
React quickly to significant changes in environment
What are examples of undesirable irregularities?
Product defects
Cost overrun
Staff turnover
Customer complaints
How do controls help in irregularities?
Defect early
Save large amt. of resources later on
How do control systems reduce cost?
Labour costs
Eliminate waste
How do control systems increase productivity?
Increase output
Increase delivery cycles
Control adds value to a
Product
How do controls help managers identify opportunities?
By highlighting situations
Alert of opportunities that would’ve gone unnoticed
What situations of opportunities are there?
Competitive prices on materials
Changing population trends
New overseas markets
When will an organisation face complexity?
Grows larger
engage in more operations and projects
What does control help in when there are complexities?
Coordination of major elements
When a complex situation is well coordinated, the organisation can
Run smoothly
Control helps decentralize decision making from what to what?
Top management
Lower levels
When decision making is decentralized, what is encouraged?
Employees to work together in teams
What are the 3 levels of planning?
Strategic
Tactical
Operational
Strategic control corresponds to which managerial level?
Top managers
Tactical control corresponds to which managerial level?
Middle
Operational control corresponds to which managerial level?
First line (supervisory)
What is the responsibility for mangers when dealing with controls at each level?
Establish
Evaluate
How are plans and controls related at the different levels?
Controls monitor effectiveness of a plan
What is monitored at strategic controls?
Criticism environment factors. affecting strategic plans
Assess effects of organisational strategic actions
Proper implementation of strategic plans
What are the environmental factors monitored in strategic control?
Competitor actions Political changes Volatility in customer needs Economic shifts Technological change
The environmental factors can pose as both a
Threat
Opportunity
Why is strategic control done by the top management?
They have an organisation-wide perspective
What is the time frame for strategic controls?
Long-term
Quarterly, annually, one decade
The exact time frame of the strategic control is reliant on?
The nature of the business
What does tactical control involve?
Assess implementation of tactical plans at departmental level objective
Monitor periodic results
Taking corrective action
Monitor specific internal and external factors that affect tactical plans
What are internal forces that affect tactical plans of RandD department?
Excessive spending
Slipping project schedules
What are external environmental forces that affect the tactical plans of a marketing department?
Competitors prices
Evaluating market share
Why are middle managers involved in tactical control?
Know departmental level objectives
Programmes
Budgets
What are the time frames for tactical controls?
Periodic
Middle term
What is done at the end of the time frame of tactical control?
Reporting
What are exams of tactical control reports?
Managerial reports
Financial reports
Performance reports
Customer survey
What is involved in operational control?
Over implementation of operating and
Monitor day to day results
Taking corrective actions
What is the time frame for operational control?
Short term
What do first line supervisors do at the end of the time frame of a operational control?
Give feedback
What is operational control concerned about
Budgets Standards Schedules Rules Specific outputs associated with particular individuals
What is the scope of control also known as?
Area of control
What are the areas of control?
Physical resources
Human resources
Information resources
Financial resources
The different scopes make up different parts of an
Organsation