Control Flashcards
1
Q
Control
A
Last step in the administrative process.
Linked to planning.
Measures and corrects subordinates performance to ensure objectives are met.
2
Q
Elements
A
- Standard parameters are stablished
- Organizational performance is measured
- Standards and performance are compared
- Deviation analisys and measures are taken
3
Q
Why control?
A
Scope for errors is limited Changes can be followed Necessary to achieve objectives To be effective it must be: - understood by all - designed within organizational structure - flexible - effective as a decision tool
4
Q
Types of control
A
- time
- resources
- functional area
- impact on different levels in the organization
5
Q
Strategic, tactic and operational control
A
Strategic: Organization as a White Strategic objectives Strategic map Influenced by stability ir turbulence
Tactic: Evaluate and regulate functions to implement strategy Financial control Human resource control Supervision Budget
Operational: Activities needed to produce goods and services Inputs Outputs Transformation
6
Q
Budget
A
To value all the different types of control, financial units are used:
- liquidity
- general financial situation
- profitability
7
Q
Budget objectives
A
- obtain information for planning
- planning
- coordination between areas of the organization
- comunicating managers objectives to operational divisions
- motivate those responsable
- control
8
Q
Budget advantages
A
- leads to evaluation
- made in monetary terms
- stablish a relationship between capital and profits
- most common tool
9
Q
Budget process
A
- Development
- Approval
- Implementation
- Control
10
Q
Deviation analysis
A
Budget vs. Reality
3 situations:
-budget = reality: no deviation
-budget > real result: negative deviation
-budget < real result: positive deviation
