Chapter 6 Flashcards
what is control?
process of measuring performance and taking action to ensure desired results
What are the 4 steps of the control process?
- objectives and standards
- control measures actual performance
- compares results with objectives and standards
- control takes corrective action as needed
What are output standards?
quantity, quality, cost, time
what are input standards?
work efforts that go into performance task
What is the performance gap ?
desired performance - actual performance = need for action
Organizations are open systems that interact with environment with what controls?
input, throughput, and output
what is input control?
feed forward controls, right direction, resources available, solve problems before they occur
What is throughput?
concurrent controls, right thing being done, solve problems while occurring
what is output controls?
feedback controls, final results are desired, solve problems after they occur
What are internal controls?
motivated employees exercise self-control, participation increases self-control
What are external control?
Bureaucratic, clan, and market
what is bureaucratic controls?
policies, procedures, budgets, and supervision
what is clan controls?
uses organizations culture
what is market controls?
relies on market influences
What do team leaders and team members do?
jointly control, jointly plan, and individually act
what is jointly plan?
set standards
what is individually act?
performing task and providing support
what is jointly control?
reviewing results and discuss implications
What is total quality management?
commitment to quality - goal is zero defects
what is continuous improvement?
new ways to improve work quality - incremental change
What is the purpose of project management?
to assume responsibility for planning and control of projects
What is inventory control?
reduce inventory costs - ensures inventory meets immediate needs
what is economic order quantity?
predetermined amount of inventory is ordered when inventory reaches a certain level
what is JIT scheduling?
arrives exactly when needed for production sale
What is the breakeven analysis?
fixed cost/(price-variable cost)
what is the break even point?
revenue = costs
What is profitablility?
earn revenues greater than costs
what is liquidity?
generate cash to pay bills
what is asset management?
uses resources efficiently and operate at minimum cost
what is leverage ?
ability to earn more in return than the cost of debt
what is a balanced scorecard?
combines organizational mission and vision to build goals and performance measures
The balanced scorecard builds performance measures for what?
financial performances, customer satisfaction, internal process improvement, innovation and learning
