chapter 16

Question 1

why is control needed (6 reasons)

Answer 1

1. to adapt to change and uncertainty
2. to discover irregularities and errors
3. to reduce costs, increase productivity, or add value
4. to detect opportunities
5. to provide performance feedback
6. to decentralize decision making and facilitate teamwork

Question 2

what is step 1 of the control process

Answer 2

establish standards

Question 3

what is step 2 of the control process

Answer 3

measure performance

Question 4

what is step 3 of the control process

Answer 4

compare performance to standards

Question 5

what is step 4 of the control process

Answer 5

take corrective action if necessary

Question 6

feedforward control

Answer 6

focuses on preventing future problems

Question 7

concurrent control

Answer 7

entails collecting performance info in real time

Question 8

feedback control

Answer 8

amounts to collecting performance info after a task or project is done

Question 9

strategic control

Answer 9

monitoring performance to ensure that tactical plans are being implemented

Question 10

tactical control

Answer 10

monitoring performance to ensure that tactical plans are being implemented

Question 11

operational control

Answer 11

monitoring performance to ensure that operational plans are being implemented and then taking corrective action as needed

Question 12

what are the six areas of control

Answer 12

structural
cultural
physical
human resources
informational
financial

Question 13

what is the financial perspective

Answer 13

how do we look to shareholders?

Question 14

what is the customer perspective

Answer 14

how do customers see us?

Question 15

what is the internal business perspective

Answer 15

at what must we excel?

Question 16

what is the innovation and learning perspective

Answer 16

can we continue to improve and create value?

Question 17

what are the four perspectives of a balanced perspectives

Answer 17

financial
customer
internal business
innovation & learning

Question 18

what is a strategy map

Answer 18

visual representation of the 4 perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to org’s objectives

Question 19

what are the 4 barriers to effective measurement

Answer 19

1. objectives are fuzzy
2. managers put too much trust in informal feedback systems
3. employees resist new measurement systems
4. companies focus too much on measuring activities of results

Question 20

balance sheet

Answer 20

summarizes an organization’s overall financial worth at a specific point in time

Question 21

income statement

Answer 21

summarizes an organization’s financial results over specified period of time

Question 22

what is an audit

Answer 22

formal verification of an organization’s financial and operational systems

Question 23

internal audit

Answer 23

performed by organization’s own professional staff

Question 24

external audit

Answer 24

performed by outside experts

Question 25

what are the 4 characteristics of Deming management

Answer 25

1. quality should be aimed at needs of customer 2. companies should aim at improving the system 3. improved quality leads to increased market share, increased company prospects, and increased employement 4. quality can be improved on the basis of hard data, using the PDCA cycle

Question 26

what is the PDCA cycle

Answer 26

1. plan 2. do 3. check 4. act

Question 27

what is total quality management (TQM)

Answer 27

a comprehensive approach dedicated to continuous improvement, training, and customer satisfaction

Question 28

what are the two orientations of TQM

Answer 28

people orientation | improvement orientation

Question 29

what are the 4 keys to successful control systems

Answer 29

1. they're strategic and results oriented 2. they're timely, accurate, and objective 3. they're realistic, positive, and understandable and encourage self-control 4. they are flexible

Question 30

what are the 5 barriers to control success

Answer 30

1. too much control 2. too little employee participation 3. overemphasis on means instead of ends 4. overemphasis on paperwork 5. overemphasis on one instead of multiple approaches

Question 31

what is productivity

Answer 31

outputs divided by inputs

Question 32

what is enterprise resource planning

Answer 32

software systems and information systems for integrating virtually all aspects of a business, helping managers stay on top of the latest developments

Question 33

what is benchmarking

Answer 33

a way to measure something against a standard

Question 34

what are best practices

Answer 34

a set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action