Chapter 16: Managerial Control

Question 1

The Control Cycle

Answer 1

Step 1: Setting Performance Standards
Step 2: Measuring Performance
Step 3: Comparing Performance with the Standard
Step 4: Taking Action to Correct Problems and Reinforce Successes

Question 2

Principle of Exception

Answer 2

states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard

Question 3

After-action review

Answer 3

frank and open-minded discussion of four questions aimed at continuous improvement:
What were our intended results?
What were our actual results?
What caused our results?
What will we sustain? Improve?

Question 4

feedforward control

Answer 4

takes place before operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly.

Question 5

Concurrent control

Answer 5

takes place while plans are being carried out.

Question 6

Feedback control

Answer 6

focuses on the use of information about results to correct deviations from the acceptable standard after they arise

Question 7

Six-Sigma

Answer 7

a process is producing fewer than 3.4 defects per million which is about 99.99966% accuracy.

Question 8

Effective control systems…..

Answer 8

1. maximize potential benefits and minimize dysfunctional behaviors.
2. Establish Valid Performance Standards
3. Provide Adequate Information
4. Ensure Acceptability to Employees
5. Maintain open communication
6. use multiple approaches

Question 9

balanced scorecard

Answer 9

combination of four sets of performance measures: (1) financial, (2) customer satisfaction, (3) business processes (quality and efficiency), and (4) learning and growth; goal is generally broaden management’s horizon beyond short term financial results so that the company’s long-term success is more likely.