Chapter 16- Control

Question 1

BALANCE SHEETS

Answer 1

Accounting statements that provide a snapshot of a company’s financial position at a particular time (p.283)

Question 2

BEHAVIOUR CONTROL

Answer 2

The regulation of the behaviours and actions that employees perform in the job (p.280)

Question 3

BENCHMARKING

Answer 3

The process of identifying outstanding practices, processes and standards in other companies and adapting them to your company (p.276)

Question 4

BUDGETS

Answer 4

Quantitive plans through which managers decide how to allocate money to best accomplish company goals
(p.283)

Question 5

BUREAUCRATIC CONTROL

Answer 5

The use of hierarchical authority to influence employee behaviour by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules and procedures (p.(279)

Question 6

CASH FLOW ANALYSIS

Answer 6

A type of analysis that predicts how changes in a business will affect its ability to take in more cash than it pays (p.282)

Question 7

CONCERTIVE CONTROL

Answer 7

The regulation of employees behaviour and decisions through work group values and beliefs (p.281)

Question 8

CONCURRENT CONTROL

Answer 8

A mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback
(p.277)

Question 9

CONTROL

Answer 9

A regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary (p.275)

Question 10

CONTROL LOSS

Answer 10

The situation in which behaviour and work procedures do not conform to standards (p.277)

Question 11

CUSTOMER DEFECTIONS

Answer 11

A performance assessment in which companies identify which customers are leaving and measure the rate at which they are leaving (p.285)

Question 12

CYBERNETIC

Answer 12

The process of steering or keeping on course (p.276)

Question 13

CYBERNETIC FEASIBILITY

Answer 13

The extent to which it is possible to implement each step in the control process (p.278)

Question 14

ECONOMIC VALUE ADDED (EVA)

Answer 14

The amount by which company profits (revenues, minus expense, minus taxes) exceed the cost of capital in a given year (p.284)

Question 15

FEEDBACK CONTROL

Answer 15

A mechanism for gathering information about performance deficiencies after they occur (p.276)

Question 16

FEEDFORWARD CONTROL

Answer 16

A mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur (p.277)

Question 17

FINANCIAL RATIOS

Answer 17

Calculations typically used to track a business’s liquidity (cash), efficiency, and profitability over time compared to other businesses in its industry (p.283)

Question 18

INCOME STATEMENTS

Answer 18

Accounting statements also called profit and loss statements, that show what has happened to an organization’s income, expense, and net profit over a period of time (p.283)

Question 19

NORMATIVE CONTROL

Answer 19

The regulation of employees behaviour and decisions through widely shared organization values and beliefs (p.280)

Question 20

OBJECTIVE CONTROL

Answer 20

The use of observable measures of worker behaviour or outputs to assess performance and influence behaviour (p.280)

Question 21

OUTPUT CONTROL

Answer 21

The regulation of employees results or outputs through rewards and incentives (p.280)

Question 22

REGULATION COSTS

Answer 22

The costs associated with implementing or maintaining control (p.278)

Question 23

SELF-CONTROL SELF-MANAGEMENT

Answer 23

A control system in which managers and employees control their own behaviour by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement(p.281)

Question 24

STANDARDS

Answer 24

A basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory (p.275)

Question 25

SUBOPTIMIZATION

Answer 25

Performance improvement in one part of an organization at the expense of decreased performance in another part (p.282)

Question 26

VALUE

Answer 26

Customer perception that the product quality is excellent for the price offered (p.287)

Question 27

BALANCED SCORECARD

Answer 27

Measurement of organizational performance from four equally important perspectives: finances, customers, internal operations, and innovation and learning (p.282)