Chapter 10: Controlling Flashcards

0
Q

What are the activities of controlling?

A

Monitoring performance
Compare with goals
Taking corrective actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

What is control?

A

Making something happen the way it is planned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is organisational control?

A

Systematic process
Regulating organisational activities
Make them consistent with expectations
Established in plans, targets and standards of performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the reasons why control is needed?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why is there uncertainty?

A

Organisational goals are future-ordinated

Set on basis of present knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the factors in environment that can change?

A

Consumer demand
Technology
Availability of raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How do managers use control to adapt to change and uncertainty using control systems?

A

Monitor specific activities

React quickly to significant changes in environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are examples of undesirable irregularities?

A

Product defects
Cost overrun
Staff turnover
Customer complaints

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How do controls help in irregularities?

A

Defect early

Save large amt. of resources later on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How do control systems reduce cost?

A

Labour costs

Eliminate waste

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How do control systems increase productivity?

A

Increase output

Increase delivery cycles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Control adds value to a

A

Product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How do controls help managers identify opportunities?

A

By highlighting situations

Alert of opportunities that would’ve gone unnoticed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What situations of opportunities are there?

A

Competitive prices on materials
Changing population trends
New overseas markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When will an organisation face complexity?

A

Grows larger

engage in more operations and projects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does control help in when there are complexities?

A

Coordination of major elements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

When a complex situation is well coordinated, the organisation can

A

Run smoothly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Control helps decentralize decision making from what to what?

A

Top management

Lower levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When decision making is decentralized, what is encouraged?

A

Employees to work together in teams

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the 3 levels of planning?

A

Strategic
Tactical
Operational

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Strategic control corresponds to which managerial level?

A

Top managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Tactical control corresponds to which managerial level?

A

Middle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Operational control corresponds to which managerial level?

A

First line (supervisory)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the responsibility for mangers when dealing with controls at each level?

A

Establish

Evaluate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How are plans and controls related at the different levels?

A

Controls monitor effectiveness of a plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is monitored at strategic controls?

A

Criticism environment factors. affecting strategic plans

Assess effects of organisational strategic actions

Proper implementation of strategic plans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are the environmental factors monitored in strategic control?

A
Competitor actions
Political changes
Volatility in customer needs
Economic shifts
Technological change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The environmental factors can pose as both a

A

Threat

Opportunity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Why is strategic control done by the top management?

A

They have an organisation-wide perspective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the time frame for strategic controls?

A

Long-term

Quarterly, annually, one decade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

The exact time frame of the strategic control is reliant on?

A

The nature of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What does tactical control involve?

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What are internal forces that affect tactical plans of RandD department?

A

Excessive spending

Slipping project schedules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What are external environmental forces that affect the tactical plans of a marketing department?

A

Competitors prices

Evaluating market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Why are middle managers involved in tactical control?

A

Know departmental level objectives
Programmes
Budgets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What are the time frames for tactical controls?

A

Periodic

Middle term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What is done at the end of the time frame of tactical control?

A

Reporting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What are exams of tactical control reports?

A

Managerial reports
Financial reports
Performance reports
Customer survey

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What is involved in operational control?

A

Over implementation of operating and

Monitor day to day results

Taking corrective actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What is the time frame for operational control?

A

Short term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What do first line supervisors do at the end of the time frame of a operational control?

A

Give feedback

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What is operational control concerned about

A
Budgets
Standards
Schedules
Rules 
Specific outputs associated with particular individuals
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is the scope of control also known as?

A

Area of control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What are the areas of control?

A

Physical resources
Human resources
Information resources
Financial resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

The different scopes make up different parts of an

A

Organsation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What is controlled in physical resources control?

A

Buildings
Equipment
Tangible products

46
Q

What are examples of physical resources control?

A

Inventory control

Quality control

47
Q

What is inventory control?

A

Ensure stocking not too few or many units

48
Q

What does quality control ensure?

A

Products are built to acceptable standards

49
Q

What does human resources controls regulate?

A

Employee performance and behaviour

50
Q

What is the intention of human resources control?

A

Improving capabilities of employees

51
Q

What are examples of human resources controls?

A

Stricter hiring policies
Training programmed
Implementing rewards, bonuses

52
Q

What does information resources control involve?

A

Generation of production schedules
Sales and marketing forecasting
Analysis of competition, environment

53
Q

What is controlled in financial resources control?

A

Money

Budget

54
Q

What is monitored in financial resources control?

A

Cost
Expenses
Profit and loss
accounts receivable/ payable

55
Q

When can controls be established?

A

Before
During
After

Workflow

56
Q

What is precontrol also known as ?

A

Feed forward controls

57
Q

When do feed forward controls take place?

A

Before work is performed

58
Q

What do feed forward controls intend to do?

A

Prevent anticipated problems, future oriented

Eliminating behaviour that cause undesirable work results

59
Q

What is done in feed forward control?

A

Establish
Rules
Procedures
Policies

60
Q

What doe feed forward controls control in financial, physical, human and information resources?

A

Quality and quantity

61
Q

when do feed forward controls control financial, physical, human and information resources?

A

Before they become part of the system

62
Q

When is concurrent control done?

A

While work is being performed

63
Q

What do concurrent controls intend to do?

A

Minimize problems as they occur, present oriented

All aspects of performance are consistent with established standards

64
Q

Why do human, equipment etc… Have to be checked if they are consistent with established standards?

A

Problems and errors can be corrected

Become too difficult or expensive

65
Q

What do concurrent controls monitor?

A

Ongoing activities

66
Q

When is feedback control done?

A

After work is completed

67
Q

What does feedback control intend to do?

A

Correct problems that have already occurred, past oriented

Take corrective action in order to bring performance back to planned level

68
Q

What is an example of feedback control?

A

Performance appraisal review

69
Q

What are the styles of implementing controls?

A

Bureaucratic

Decentralized

70
Q

Bureaucratic approach is also known as

A

Traditional

71
Q

The styles of implementing controls is known as

A

Managerial approaches

72
Q

The managerial approaches represent a company’s

A

Corporate culture

73
Q

What does bureaucratic control involve?

A

Administrative and system elements

Formal mechanisms

74
Q

What are examples of bureaucratic control?

A

Rules and procedures
Hierarchy of authority
Management control systems
Technology

75
Q

What does Hierarchy of authority rely on for control?

A

Central authority

Personal supervision

76
Q

Because of hierarchy of authority, who are not expected to participate in control process?

A

Lower level employees

77
Q

Management control systems have what nature?

A

Quantitative

Measure performance

78
Q

In management control systems, what are the examples of formal mechanisms?

A

Budgeting

Financial reporting

79
Q

What is technology used for?

A

To define the speed and standards at which workers must perform

80
Q

The speed at which workers perform is known as?

A

Flow and pace of work

81
Q

Standards that workers must attain is also known as

A

Employee performance

82
Q

What is decentralized control based on?

A
Values 
Beliefs
Traditions
Corporate culture
Shared norms
Informal relationships
Trust
83
Q

Decentralized control generates compliance

A

To attain organisational goals

84
Q

When employees are trusted, the managers do not require

A

Extensive rules

Supervision

85
Q

Employees are trusted to

A

Perform correctly

Willingly

86
Q

What is the emphasis for decentralized control? Not?

A

Motivation

Not authority

87
Q

What are the elements associated with decentralized control?

A

Corporate culture
Peer group control
Self control
Technology

88
Q

How can corporate culture be a strong control device?

A

If it is strong

Established values are consistent with goals and culture

89
Q

When there peer control is established, what is not required

A

Top down bureaucratic control

90
Q

What is self control also known as?

A

Self discipline

91
Q

What does self control keep employees doing?

A

Performing their tasks up to standard

92
Q

Greater self control also means managers need to

A

Empower

93
Q

Empowering gives employees a greater sense of

A

Responsibility

Pride

94
Q

How is technology used in decentralized control?

A

To empower employees

Give them information to make effective decisions

95
Q

What is the controlling process?

A

Establish performance standards
Measure performance
Compare performance against standards
Take corrective actions

96
Q

Major controls are based on

A

Organisational goal and objective

97
Q

Establishment of performance standards is done after?

A

Development of strategic plan

98
Q

What is evaluated in standards of performance?

A

Activities

99
Q

Why is there a need for performance standards?

A

Help employee understand expectation
Enable detection of deficiencies
Helps reduce negative effects of incompatibility of goals of organisational members

To ensure achievement of organisational objectives

100
Q

What does a manager consider in measuring performance ?

A

How to measure actual performance

How often

101
Q

The means of measuring performance depends on the

A

Standard set

102
Q

Examples data of standards include

A

Units produced
Number of defects
Quality of output
Amount of materials

103
Q

What are the two performance measures?

A

Qualitative

Quantitative

104
Q

What do you compare in step 3 of the controlling process?

A

Actual performance to performance standards

Actual versus planned

105
Q

The comparison are based on information provided in

A

Reports

106
Q

What does corrective action aim to do?

A

Bring organisational performance to the level of performance standard

107
Q

What does management need to ensure before taking drastic corrective action?

A

Standards are relevant, valid, and reliable

108
Q

Why corrective actions can be taken to bring the level of performance up?

A

Performance indicators are symptoms, not the cause

109
Q

How does the management identify the problem to correct?

A

Use their judgement

110
Q

When is corrective action not required?

A

Performance meets or exceeds standards

111
Q

When standards are met or exceeded, what is to be done?

A

Positive reinforcement

Recognition

112
Q

What are examples of corrective actions?

A

Making employees work harder

Redesign the production process