Chapter 17: Managerial Control Flashcards
The controlling process
- measuring performance
- comparing performance against standard
- taking managerial action
measuring performance
personal observations, stat, oral, written reports
comparing performance against standard
range of variation: acceptable degree of variation between actual performance and the standard
- correct perf
- revise standard
taking managerial action
process used to make better decisions
organizational performance (op)
accumulated results of all the organization’s work activities
productivity (op)
overall output of goods and/or services divided by the inputs needed to generate that output
organizational effectiveness (op)
measure of how appropriate organizational goals are and how well those goals are being met
employee performance
- delivering effective perf feedback
* using disciplinary actions
types of discipline problems
- attendance
- on-the-job-behaviours
- dishonesty
feed-forward-control
anticipates problems
concurrent control
corrects problems as they happen
feedback control
corrects problems after they happen
financial controls
important bc it makes sure og is performing as it should
- current ratio
- roi ratio
information control
managers deal:
- tool to help them control other organizational activities
- organizational asset they need to protect
management information system (MIS)
system used to provide management with needed information on a regular basis
dashboard (MIS)
interface that presents managers and other decision makers with an easy-to-read, real-time user interface, to enable decision makers to make informed decisions quickly
balanced scorecard
performance measurement tool that looks at financial and non-financial aspects
• relevant for all stakeholders
4 balanced scorecard aspects
- financial
- customer
- internal processes
- people/innovation/growth assets
benchmarking
comparing competitors and non-competitors to find ways on how to improve
suggestions for internal benchmarking
- connect best practices to strategies and goals
- identify best practices throughout the organization
- nurture best practices on an ongoing basis
6 control issues today
- employee theft
- workplace violence
- customer interactions
- organizational governance
- workplace privacy
- cross-cultural differences
employee theft
unauthorized taking of company property by employees for their personal use
controlling employee theft
- feed-forward: creating policies, discipline procedures
- concurrent: openly communicate costs of stealing
- feedback: use pro investigators
workplace violence
anger, rage, and violence in workplace is affecting employee productivity
causes of workplace violence
stressed bc: • difficult manager • overworked • info overload • unrealistic deadlines
controlling workplace violence
- feed-forward: clearly comm policies
- concurrent: use quick and decisive intervention
- feedback: openly comm about incidents
controlling customer interactions (cci)
level of customer service affects customers’ perception on service value
high service value = customer loyalty = profitability
service profit chain (cci)
service sequence from employees to customers to profit
organizational governance (og)
system used to govern organization so that the interests of stakeholders are protected
the role of boards of directors (og)
- independent from managers looking out for the interests of shareholders
- independent monitors of policies and practices
4 governance principles
- interaction
- independence
- disclosure
- internal audit
