Chapter 7 - Control

Question 1

Control

Answer 1

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

Question 2

Control is achieved when:

Answer 2

Behaviour and work procedures conform to standards, and company goals are accomplished

Question 3

The basic control process involves:

Answer 3

Standards; comparison to standards; corrective action; dynamic process; and feedback, concurrent and feed forward control

Question 4

Standards

Answer 4

A basic comparison when measuring the extent to which various kinds of organizational performances are satisfactory or unsatisfactory. (Meeting goals)

Question 5

Benchmarking

Answer 5

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

Question 6

Using benchmarking to set standards

Answer 6

1. Determine what to benchmark
2. Identify the companies against which to benchmark your standards
3. Collect data to determine other companies’ performance standards

Question 7

Comparison to standards

Answer 7

Compare actual performance to performance standards.

Question 8

Corrective action

Answer 8

Identify performance deviations, analyze those deviations, and then develop and implement programs to correct them.

Question 9

Dynamic process

Answer 9

Control is a continuous, dynamic process. Control is not a one-time achievement or result, it must be continually maintained.

Question 10

Three basic control methods

Answer 10

Feedback control
Concurrent control
Feedforward control

Question 11

Feedback Control

Answer 11

A mechanism for gathering information about performance deficiencies after the occur.

Question 12

Concurrent Control

Answer 12

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

Question 13

Feedforward Control

Answer 13

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

Question 14

Guidelines for using feedforward control

Answer 14

1. Thorough planning and analysis are required
2. Careful discrimination must be applied in selecting input variables
3. The feedforward system must be kept dynamic
4. A model of the control system should be developed
5. Data on input variables must be regularly collected
6. Data on input variables must be regularly assessed
7. Feedforward control requires action

Question 15

Control may not always be possible because of

Answer 15

Control loss, Regulation costs, Cybernetic feasibility, and Unintended consequences

Question 16

Control Loss

Answer 16

Situation in which behaviour and work procedures do not conform to standards.

Question 17

Regulation Costs

Answer 17

The cost associated with the implementing or maintaining control.

Question 18

Cybernetic Feasibility

Answer 18

The extent to which it is possible to implement each step in the control process.

Question 19

Unintended consequences

Answer 19

Control systems help companies, managers, and workers accomplish their goals, but at the same time that control systems help solve some problems, they can create others.

Question 20

Five methods of control

Answer 20

Bureaucratic Control
Objective Control
Normative Control
Concertive Control
Self-Control (Self-Management)

Question 21

Bureaucratic Control

Answer 21

Use of hierarchical authority to influence employee behaviour by rewarding or punishing employees for compliance or non-compliance with organization policies, rules, and procedures.

Question 22

Objective Control

Answer 22

Use of observable measures of worker behaviours or outputs to assess performance and influence behaviour.

Question 23

Normative Control

Answer 23

Regulation of workers behaviour and decisions through widely shared organizational values and beliefs.

Question 24

Concertive Control

Answer 24

Regulation of workers behaviour and decisions through work group values and beliefs.

Question 25

Self-Control (Self-Management)

Answer 25

Control system in which managers and workers control their own behaviour by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement.

Question 26

Types of objective control

Answer 26

Behavioural control

Output control

Question 27

Behaviour Control

Answer 27

Regulation of the behaviours and actions that workers perform on the job.

Question 28

Output Control

Answer 28

Regulation of workers results or outputs through rewards and incentives.

Question 29

Type of concertive control

Answer 29

Autonomous work groups

Question 30

Autonomous work groups

Answer 30

Groups that operate with-out managers and are completely responsible for controlling work group processes, outputs, and behaviour.

Question 31

Balanced Scorecard

Answer 31

Measurements of organizational performance in four equally important areas; Finances, customers, internal operations, and innovative and learning.

Question 32

Advantages of using the balanced scorecard

Answer 32

• It forces managers at each level of the company to set specific goals and measure performance in each of the four areas
• It minimizes the chances of sub-optimization

Question 33

Sub optimization

Answer 33

Performance improvement in one part of an organization but only at the expense of decreased performance in another part.

Question 34

The four basic parts of the balanced scorecard

Answer 34

• The financial perspective (economic value added)
• The customer perspective (customer defections)
• The internal perspective (total quality management, value)
• The innovation and learning perspective (waste and pollution)

Question 35

Economic Values Added (EVA)

Answer 35

The amount by which company profits (revenues minus expenses minus taxes) exceed the cost of capitol.

Question 36

Customer Defections

Answer 36

Performance assessment which companies identify which customers are leaving and measure the rate at which they are leaving.

Question 37

Value

Answer 37

Customer perception that the product quality is excellent for the price offered.

Question 38

4 Level of Waste Minimization

Answer 38

Waste prevention and reduction, Recycle and reuse, Waste Treatment, Waste disposal.