Chapter #15

Question 1

Cybernetic

Answer 1

The process of keeping on course

Question 2

Feedback control

Answer 2

Gathering info about performance deficiencies after they occur

Question 3

Concurrent control

Answer 3

Gathering info about performance deficiencies as they occur

Question 4

Feed forward control

Answer 4

Monitoring performance to minimize deficiencies before they occur

Question 5

Control loss

Answer 5

Situation in which work procedures do not conform to standards

Question 6

Regulation costs

Answer 6

Costs associated with maintaining control

Question 7

Cybernetic feasibility

Answer 7

Extent to which it is possible to implement each step in the control process

Question 8

Bureaucratic control

Answer 8

Rewarding/punishing employees for compliance/ non compliance

Question 9

Objective control

Answer 9

Use of measuring output to assess performance

Question 10

Balanced scorecard

Answer 10

Measurement of performance

Question 11

Suboptimization

Answer 11

Performance improved in one part and decreased in another

Question 12

Cash flow analysis

Answer 12

Ability to take in more cash than it pays out

Question 13

Balance sheets

Answer 13

Snapshot of a company’s position at that time

Question 14

Financial ratios

Answer 14

Calculations used to determine a businesses profitability

Question 15

Economic value added (EVA)

Answer 15

Amount by which the company profits exceed the cost of capital in a year

Question 16

Customer defections

Answer 16

Assessment where companies identify which customers are leaving and the rate at which they are leaving