Chapter 16 Flashcards
Control
Regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards.
Standards are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory
Standards
Benchmarking
The process of determining how well other companies perform business functions or tasks.
Cybernetic
Derives from the Greek word kubernetes meaning steersman or one who steers or keeps on course
Feedback control
A mechanism for gathering information about performance deficiencies after they occur
Concurrent control
A mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback
Feedforward control
A mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur
Control loss
The situation in which behavior and work procedures do not conform to standards
Regulation costs
The costs associated with implementing or maintaining control
Cybernetic feasibility
The extent to which it is possible to implement each step in the control process
Bureaucratic control
Top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures
Objective control
The use of observable measures of employee behavior or output to assess performance and influence behavior
Behavior control
Regulating behaviors and actions that workers perform on the job
Output control
Measures the results of their efforts or the regulation of workers results or outputs through rewards and incentives
Normative controls
A company’s widely shared values and beliefs guide workers behavior and decisions
Concertive controls
Based on beliefs that are shaped and negotiated by work groups values and beliefs
Self control or self management
Control system in which managers and workers control their own behavior
Balanced scorecard
Encourages managers to look beyond such traditional financial measures to four different perspectives on company performance
Suboptimization
Occurs when performance improves in one area at the expense of decreased performance in others
Cash flow analysis
Predicts how changes in a business will affect its ability to take in more cash than it pays out
Balance sheet
Provide a snapshot of a company’s financial position at a particular time
Income statements
Also called profit and loss statements show what has happened to an organizations income expenses and net profit income less expenses over a period of time
