Exam #4 Flashcards
Controlling
monitoring performance, comparing it with goals, and taking corrective action as needed
Controlling for Effective Performance
planning, organizing, leading, controlling
Why is control needed?
- To adapt to change & uncertainty
- To discover irregularities & errors
- To reduce costs, increase productivity, or add value
- To detect opportunities
- To provide performance feedback
- To decentralize decision making & facilitate teamwork
Steps in the control process
- establish standards (quantifiable)
- measure performance (written reports, oral reports, observation)
- compare performance to standards
- take corrective action, if necessary
Performance Standard
the desired performance level for a given goal
Management by exception
a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
Control Charts
visual statistical tool used for quality control purposes
Structural Area
Bureaucratic control and decentralized control
Bureaucratic Control
use of rules, regulations, and formal authority to guide performance
Decentralized Control
informal and organic structural arrangements
Balanced Scoreboard
gives top managers a fast but comprehensive view of the organization via four indicators: (1) customer satisfaction, (2) internal processes, (3) innovation and improvement activities, and (4) financial measures
Budget
formal financial projection
Incremental Budgeting
allocates increased or decreased funds to a department by using the last budget period as a reference point
- only incremental changes in the budget request are reviewed
Balanced Sheets (financial statement)
summarizes an organization’s overall financial worth – assets and liabilities – at a specific point in time
Income Statement (financial statement)
summarizes an organization’s financial results – revenues expenses – over specified period of time
Audit
formal verification of an organization’s financial and operational systems
External Audit
performed by outside experts
Internal Audit
performed by organization’s own professional staff
Total Quality Management (TQM)
a comprehensive approach - led by top management and supported throughout the organization - dedicated to continuous quality improvement, training, and customer satisfaction
2 Core Principles of TQM
1) People Orientation- everyone involved in the org. should focus on delivering value to customers
2) Improvement Orientation- everyone should work on continuously improving work process
Productivity
outputs divided by inputs
-outputs are the goods and services produced
-inputs are labor, capital, materials, and energy
Enterprise Resource Planning ERP
software and information systems for integrating virtually all aspects of a business, helping managers stay on top of the latest development
Processes to increase productivity
2) Benchmarking
A way to measure something against a standard, the benchmark.
1) Best practices
A set of guidelines, ethics or ideas that represent the most efficient or prudent course of action.
Human Resource Management (HRM)
consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce
Human Capital
the economic or productive potential of employee knowledge, experience, and actions
Knowledgeable Worker
occupation is principally concerned with generating or interpreting information, as opposed to manual labor
Social Capital
the economic or productive potential of strong, trusting, and cooperative relationships
Strategic HRM Process
consists of developing a systematic, comprehensive strategy for
- understanding current employee needs
- predicting future employee needs
Job Analysis
determining the basic elements of a job by observation and analysis
Job Description
summarizes what the holder of the job does and how and why they do it
Job Specification
describes the minimum qualifications a person must have to perform a job successfully
Predicting Future Needs
- Become knowledgeable about the staffing the organization might need
- Know the likely sources for staffing
Human Resource Inventory
a report listing your organization’s employees by name, education, training, languages, and other important information
Recruitment
the process of locating and attracting qualified applicants for jobs open in the organization
- 5% of your workforce produces 26% of your output
- Internal: hiring from the inside
- External: hiring from the outside
Most Effective sources for recruiting
- Employee Referrals
- E-Recruitment tools (LinkedIn)
Realistic Job Preview
gives a candidate a picture of both positive and negative features of the job and the organization before joining a firm
Selection Process
the screening of job applicants to hire the best candidate
- background information
- interviews
- employment test
Unstructured Interview
- no fixed set of questions and no systematic scoring procedure
- involves asking probing questions to find out what the applicant is like
Structured Interview
asking each applicant the same questions and comparing their responses to a standardized set of answers
Situational Interview (structured)
focuses on hypothetical question
Behavioral Interview (structured)
explore what applicants have done in the past
Ability Tests
measure physical abilities, strength and stamina, mechanical ability, mental abilities, and clerical abilities
Performance tests
(skills tests) measure performance on actual job tasks - may take place in an assessment center
Personality Tests
measure such personality traits as emotional, intelligence, social intelligence, resilience, personal adaptability, and need for achievement; may include career-assessment tests
Integrity tests
assess attitudes and experiences related to a person’s honesty, dependability, trustworthiness, reliability, and pro-social behavior
Other tests
drug testing, polygraph, genetic screening
Compensation
wages or salaries, incentives, and benefits
Base Pay
basic wage or salary paid in exchange for doing their job
Incentives
commissions, bonuses, profit-sharing plans, and stock options
Benefits
Health insurance, dental insurance, life insurance, disability protection, retirement plans, holidays off, vacation days, recreation options, health club memberships, family leave, discounts
Profile of an Entrepreneur
Embrace Risk
Take the Initiative
Self-Starters
High Self-Esteem
See the “Big Picture”
Engaged Learners
Energetic
Success as an Entrepreneur
Good leadership and management
Develop your employees
Remember your business plan and understand your finances
Stay flexible
Manage growth and measure success
Marketing Matters
Focus on Customer Service
Be good community members
How to get money when creating a business
- angel investors: individual who provides capital for a business startup in return for part ownership
- venture capital: 35% a year paid back in 3-5 years
- boot strap: creative process that helps companies come up with different innovations (owner putting in their own money)
On-the-job Learning and Development
coaching, training positions, job rotation, and planned work activites
Off-the-job learning and development
Classroom programs, workbooks, videos, and games and simulations
Typical actions for Creativity
- decide to do something that will probably succeed
- reward success and punish failure
- replicate past successes
- do sound or practical things
- pay attention to bosses and peers
- keep happy people happy
Weird Rules for Creativity
Decide to do something that will probably fail
Reward success and failure (punish inaction)
Forget past successes
Do ridiculous or impractical things
Ignore bosses and peers
Make happy people fight
Environmental Responsibility (CSR)
reducing pollution, increasing reliance on renewable energy, and offsetting negative environmental impact
Ethical Responsibility (CSR)
aiming to achieve fair and ethical treatment of all stakeholders
Philanthropic Responsibility
making donations to charities and nonprofits that align with the organizations values
Economic Responsibility
making financial decisions that support the three other categories
International Monetary Fund
promotes international currency stability and lending
World Bank
supplies capital to underdeveloped countries
World Economic Forum
brings together business, political, social and intellectual leaders from around the world
Microlearning
segments learning into bite-sized content, enabling a student to master one piece of learning before advancing. to anything else
