Chapter 16 - Terms Flashcards
Control
a regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary
Standards
a basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory
Benchmarking
the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company
Cybernetic
the process of steering or keeping on course
Concurrent control
a mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback
Feedback control
a mechanism for gathering information about performance deficiencies after they occur
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
the use of hierarchical authority 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 worker behavior or outputs to assess performance and influence behavior
Behavior control
the regulation of the behaviors and actions that workers perform on the job
Output control
the regulation of workers’ results or outputs through rewards and incentives
Normative control
the regulation of workers’ behavior and decisions through widely shared organizational values and beliefs
Concertive control
the regulation of workers’ behavior and decisions through work group values and beliefs
Self-control (self-management)
a control system in which managers and workers control their own behavior by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement
Balanced scorecard
measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning
Suboptimization
performance improvement in one part of an organization but only at the expense of decreased performance in another part
Cash flow analysis
a type of analysis that predicts how changes in a business will affect its ability to take in more cash than it pays out
Balance sheets
accounting statements that provide a snapshot of a company’s financial position at a particular time
Income statements
accounting statements, also called “profit and loss statements,” that show what has happened to an organization’s income, expenses, and net profit over a period of time
Financial ratios
calculations typically used to track a business’s liquidity (cash), efficiency, and profitability over time compared to other businesses in its industry
Budgets
quantitative plans through which managers decide how to allocate available money to best accomplish company goals
