Chapter 10 - Controlling The Mng Process

Question 1

What is step 1 in the Control process?

Answer 1

Establish standards (derived from goals)

Question 2

What is step 2 in the Control process?

Answer 2

Measure actual performance

Question 3

What is step 3 in the Control process?

Answer 3

Evaluate deviations

Question 4

What is control by exception?

Answer 4

Only important or exceptional disparities between real and planned achievement are reported to top management.

Question 5

What is step 4 in the Control process?

Answer 5

Take corrective action

Question 6

How is deviations in the control process evaluated?

Answer 6

1) make sure disparities are real
2) make sure size of deviation justify investigation
3) identify all reasons and activities responsible for deviation

Question 7

What are the 4 key areas of control?

Answer 7

1) physical resources
2) human resources
3) information resources
4) financial resource

Question 8

Which 3 control systems are relevant in the control of INVENTORY?

Answer 8

1) EOQ Economic Ordering Quantity (replenish inventory at most economic levels)
2) MRP Materials Requirements Planning (demand is estimates for raw materials)
3) JIT Just In Time (raw materials only ordered on actual sales orders)

Question 9

What is TQM and what is it about?

Answer 9

Total Quality Management

Quality is the responsibility of everyone in the organisation.

Question 10

In HR what does the “specific ratio analysis” measure?

Answer 10

Labour turnover

Question 11

What are the 5 characteristics of an effective control system?

Answer 11

Integration
Flexibility
Accuracy 
Timeliness
Simplicity

Question 12

What is the purpose of control? Name 5.

Answer 12

• linked with planning (otherwise pointless)
• adapt to change
• limit error
• cope with increasing size
• minimize cost