Control, Change and Entrepreneurship Flashcards
Problems that can result from using a bureaucratic control system?
People can become so used to following rules and SOPs that they stop thinking for themselves, Decision making slows and managers react slowly to changing situations.
Control process steps (1st to last):
Establish standards of performance, Measure actual performance, Compare actual performance to established standards. Evaluate the result and initiate corrective action.
Organizational Change
movement of an organization away from its present state and toward some desired future state to increase efficiency and effectiveness.
Top-down change
the emphasis is on making changes quickly and dealing with problems as they arise.
Methods of behavior control used by managers
management by objectives, direct supervision, and rules and standard operating procedures.
3 stages of transforming inputs into finished goods (first to last):
input stage, conversion stage, output stage.
Organizational culture influences how members of an organization
relate to one another, work together to achieve organizational goals.
Entrepreneurs responsible for:
planning leading organizing and controlling.
Managers use the control process to
monitor and regulate how well employees are performing to meet organizational goals.
Examples of liquidity ratios
Current ratio, Quick ratio.
Two ways managers can implement change
bottom-up ; and top-down.
Operating margin
allows managers to assess whether or not their company is efficiently utilizing its resources.
Measures of how well managers create value using organizational assets provided by
activity ratios.
3 main output controls
organizational goals, operating budgets, and financial measures of performance.
Operating Budget
blueprint that states how mangers intend to use organizational resources to achieve organizational goals efficiently.
Concurrent control
used in the conversion stage of transforming inputs into finished goods/services.
Managers use ______, _______, and _______ control to motivate and coordinate employees.
output, behavior, clan
Firm is highly leveraged if it uses more
debt than equity.
Bottom-up change
managers implement gradual, evolutionary change.
Return on investment lets managers measure and asses an organizations’ competitive advantage by
comparing the performance of one organization to another.
Clan Control
When managers use shared values, norms, standards of behavior, and expectations to control individuals and groups in organizations.
Feedforward control occurs
at the input stage and allows managers to look ahead to anticipate problems before they arise.
