Chapter 14 Flashcards
Bureaucratic control
The use of rules, regulations, and authority to guide performance
Control
Any process that directs the activities of individuals toward the achievement of organizational goals
Market control
Control based on the use of pricing mechanisms and economic information to regulate activities within orgs
Clan control
Control based on the norms, values, shared goals, and trust among members
Standard
Expected performance for a given goal
Principle exception
Control is enhanced by concentrating on the exceptions to or significant deviations from the expected result
Feed foward control
Control process used before operations begin
Concurrent control
The control process used while plans are being carried out
Feedback control
Control that focuses on the use of information about previous results to correct deviations from acceptable standards
Management audit
Evaluation of the effectiveness and efficiency of various systems within an organization
External audit
Evaluation conducted by one organization
Internal audit
Periodic assessment of a company’s own planning organizing, leading and controlling processes
Accounting audits
Procedures used to verify accounting reports and statements
Activity based costing
Allocate costs across particular business process according to the amount of time employees devoted to particular activities
Balance sheet
Report that shows the financial picture of a company at a given time and itemizes assets.
Assets
The valises of various items corporation owns
Liabilities
Amounts corporation owes to various creditors
Stockholders equity
The amount accruing to the corporations owners
Profit and loss statement
Statement of company revenue and expenses
Debt-equity ratio
A leverage ratio that indicates the company’s ability to meet its long-term financial obligations
Return of investment
Ratio of profit to capital used, or a rate of return from capital
Management myopia
Focusing on short-term earning and profits at be expense of longer term strategic obligations
Balanced scorecard
Control system combining four sets of performance measures: financial, customers, business process, and learning and growth
Transfer price
Price charged by one unit for a good or service provided to another unit within organization
