Function Of Management Flashcards
(270 cards)
1
Q
Provides a methodical way of achieving desired results.
A
Plan
2
Q
Serves as a useful guide in the implementation of activities
A
Plan
3
Q
Involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives
A
Planning
4
Q
Selection and sequential ordering of tasks required to achieve an organizational goal
A
Planning
5
Q
Is deciding what will be done, who will do it, where, when and how it will be done.
A
Planning
6
Q
Various Management Levels
A
- Top Management Level
- Middle Management Level
- lower Management Level
7
Q
Refers to the process of determining major goals of the organization and the policies and strategies for obtaining and using resources achieving these goal
A
Strategic Planning
8
Q
Refers to the process the contributions that sub units can make with allocated resources.
A
Intermediate Planning
9
Q
Refers to the process of determining how specific tasks can be best accomplished on time with available resources
A
Operational Planning
10
Q
The Planning Process
A
• Setting Goals
• Developing Strategies or Tactics
• Determining Resources Needed
• Setting Standards
11
Q
Providing a sense of Direction to firm
A
Setting Goals
12
Q
After determining the goals, the next step is to devise some means to realize them
A
Developing strategies or Tactics
13
Q
The plan of action that seeks to achieve an overall goal.
Can be considered as the general direction that one intend to take with the goal
A
Strategy
14
Q
Defines how the business is going to prioritize different steps in carrying out a specific strategy.
The specific actions that will be taken in implementing the strategy
A
Tactic
15
Q
Basis on Scheduling & Prioritizing Activities
A
- Pre-requisites
- Degree of Importance
- Deadline
- Availability of Interested Parties
- Availability of Resources
16
Q
If other activities are only possible to get started once the previous or precedent activity is already implemented
A
Pre-requisites
17
Q
The effect or outcomes of the activity once executed
A
Degree of Importance
18
Q
Activity with the nearest deadline comes first
A
Deadline
19
Q
If the activity is cross-functional and completion is not possible without the presence of the interested parties, determining the schedule that will fit each of the interested parties availability is necessary
A
Availability of Interested Parties
20
Q
If material availability is a constraint, resequencing of activities if possible can be considered
A
Availability of Resources
21
Q
When particular sets of strategies or tactics have been devised, the engineer management will determine the human and nonhuman resources required by such strategies tactics
The quality and quantity of resources needed must be correctly determined
A
Determining Resources Needed
22
Q
Examples of Resources
A
•Machineries, tools, Equipment
• Raw Materials
• Utility & Office Supplies
• Manpower
23
Q
Examples of Standards
A
•Basic Standards
•Product Specification Standards
•Process Standards
•Code of Conduct
•Management System Standards
24
Q
Fundamental standards for weights and measures
A
Basic Standards
25
Standards for the physical, chemical, electrical, technical and mechanical characteristics of products and materials
Product Specification Standards
26
Series of actions or operations used in making a product and provide the methodology to perform these processes in a consistent way
Process Standards
27
Collections of mandatory standards that have been codified by government authorities and become law
Code of Conduct
28
Requirements that can be applied to any organization, regardless of the product it makes or the service it performs
Management System Standards
29
Functional Area Plans
•Marketing Plan
•Production Plan
•Financial Plan
•Human Resources Management Plan
30
Plan for marketing activities related to a particular marketing strategy
Marketing Plan
31
States the quantity of output of a company must produce in broad terms and by product family
Production Plan
32
Summarizes the current financial situation of the firm, analyses financial needs and recommends direction for financial activities.
Financial Plan
33
Detailed human resources requirements in terms of quantity and quality based on the requirements of the company's strategic plan
Human Resources Management Plan
34
Types of Plans
1. Functional Area Plans
2. Plans with time Horizon
3. Plans According to Frequency of Use
35
Plans intended to cover a period of less than 1 year
Short Range Plans
36
Plans covering a time span of more than 1 year
Long Range Plans
37
Plans that are used again and again, and they focus on managerial situations that recur repeatedly
Standing Plans
38
Broad guidelines to aid managers and every level in making decisions about recurring situations or function
Policies
39
Plans that describe the exact series of actions to be taken in a given situation
Procedures
40
They are statements that either require or forbid a certain action
Rules
41
Plans are specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated.
Single use plans
42
Plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from
Budgets
43
Designed to coordinate a large set of activities
Programs
44
Usually more limited in scope than a program and is sometimes prepared to support a program
Projects
45
Making Planning Effective
• Recognize the Planning Barrier
• Use of Aids to Planning
46
Planning Barriers
• Manager's inability to plan
• Improper planning process
• Improper information
• Lack of commitment to the planning process
• concentrating on only the controllable variables
47
Aids to Planning
•Gather as much information as possible
•Develop multiple sources of information
•Involve others in the planning process
48
Structure of resources and activities to accomplish objectives in an efficient and effective manner
Organizing
49
Process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently.
Organizing
50
Arrangement of relationship of positions within an organization
Structure
51
The structure that details lines of responsibilities, authority and position
Formal Organization
52
Diagram of the organization's official positions and formal lines of authority.
Organization Charts
53
Provides written descriptions of authority relationships, details the functions of major organizational units, and described job procedures
Organizational manual
54
Describes personnel activities and company policies
Policy Manuals
55
Types of Organizational Structure
1. Vertical/Tall Organizational Structure
2. Horizontal/Flat Organizational Structure
56
Usually used in large, traditional companies
Vertical/Tall Organizational Structure
57
Involves self managing teams that set their own goals and make their own decisions. Organized by process instead of function and is customer-oriented.
Horizontal/Flat Organizational Structure
58
Allocating Authority
•Authority
•Hierarchy of Authority
•Span of Control
59
The power to hold people accountable for their actions and to make decisions concerning the use of Organizational resources
Authority
60
An organization's chain of command, specifying the relative authority of each manager
Hierarchy of Authority
61
Refers to the number of workers a manager manages
Span of Control
62
Fundamental Concept of Organizing
• Differentiation
• Integration
63
An organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies
Differentiation
64
Various unit must be put back together so that work is coordinated
Integration
65
Nature of Organizing
1. Group of Persons
2. Common Objectives
3. Division of Work
4. Cooperative Efforts
5. Communication
6. Central Authority
7. Rules & Regulations
8. Dynamic Element
66
Group of people working together to achieve common objectives
Group of Persons
67
Basis of cooperation among members to conquer personal interests
Common Objectives
68
Total task is divided into members of the group.
Is necessary not only because one individual cannot do all the work but specialization results in efficiency and effectiveness
Division of Work
69
When members of an organization are willing to help each other for the achievement of desired goals.
Cooperative Efforts
70
People who form a organization communicates with each other in order to integrate or coordinate their efforts
Communication
71
Authority which controls the concerted effort of the group
Central Authority
72
Laid down and enforced by central authority for the orderly and systematic working of members
Rules & Regulations
73
An organization is not a mere mechanical structure but living organism arising out of sentiments, attitudes and behaviour of people.
Dynamic Element
74
4 Steps in Organizing
1. Identification of Activities
2. Grouping of Activities
3. Delegation of Authority
4. Assignment of Duties
75
Determining the tasks that must be performed to achieve the established objectives
Identification of Activities
76
Various activities are grouped into departments or divisions according to similarity and common purpose
Grouping of Activities
77
Every individual must know to whom he is accountable and who are his subordinates
Delegation of Authority
78
Group of activities are the alloted to different positions.
Assignment of Duties
79
Importance of Organizing
1. Facilities Administration
2. Encourages Growth and Diversification
3. Optimum Use of expertise
4. Stimulates Innovation & Technology
5. Encourages Good Human Relations
6. Ensures Continuity of Enterprise
7. Coordination
80
Providing a framework of coordination and control
Facilities Administration
81
Systematic division of work and consistent delegation of authority facilities taking up of new activities and meeting new demands
Encourages Growth & Diversification
82
Appropriate knowledge, skills and experience are utilized in order to facilitate efficient execution of activities
Optimum Use of Expertise
83
High quality of their performance is achieved bigger idea are obtained
Stimulates Innovation & Technology
84
Assignment of right jobs to right person improves job satisfaction and interpersonal relations
Encourages Good Human Relations
85
It provide avenues for development and promotions through delegation and decentralization
Ensures Continuity of Enterprise
86
Clear channels of communication among the members of the organization leads to coordination
Coordination
87
Importance of Staffing
• Helps find out effective workforce
• Improves organization's performance & productivity
• Facilitates in identifying future staffing requirements
• Ensures continual survival and growth of the organization
• Ensures training and development of the employees
• Develops personnel to take up managerial position in the organization
• Increase employee morale and job satisfaction
88
Process of Staffing
• Manpower Planning
• Recruitment
• Selection
89
The process of forecasting the firm's future demand for and supply of competent workforce
Manpower Planning
90
Entails seeking, stimulating and obtaining as many applications as possible from the eligible and competent candidates
Recruitment
91
Decisive step of the staffing process, which involves differentiating between applicants, so as to identify and choose the candidate who best fulfils the qualifications and requirements of the vacant position
Selection
92
Ways of Determining The Qualifications of A Job Candidate
1. Application Blanks
2. References
3. Interviews
4. Testing
93
Provides information about a person's characteristics
Application Blanks
94
Statements may provide some vital information on the character of the applicant
References
95
Information may be gathered in an interview by asking a series of relevant questions to the job candidates
Interviews
96
This involves an evaluation of the future behaviour or performance of an individual
Testing
97
Types of Interview
1. Preliminary Interview
2. Employment Interview
98
The purpose of this interview is to scrutinized the applicants, elimination of unqualified applications
Preliminary Interview
99
Means for the employer to determine deeper technical skills and knowledge of the employee, usually in line with the activities of the open position
Employment Interview
100
Standard measure of a sample behaviour
Psychological Tests
101
Types of Psychological Tests
1. Aptitude Test
2. Performance Test
3. Personality Test
4. Interest Test
5. Physical Examination
102
Person's capacity or potential ability to learn
Aptitude Test
103
Person's current knowledge of a subject
Performance Test
104
Personality traits as dominance, sociability and conformity
Personality Test
105
Person's interest in various field of work
Interest Test
106
A type of test given to assess the physical health of an applicant.
Physical Examination
107
Allocating of rank and responsibility to selected candidate
Placement
108
Provide the new employee with the information they require for functioning comfortably and efficiently in an organization
Orientation & Induction
109
Acquire specific skills. Development implies learning opportunities, designed by the organization to ensure the growth of employees
Training & Development
110
2 General Types of Training Program
1. Training programs for non-managers
2. Training and educational programs for executives
111
Training Programs for Non-managers
1. On-the-job Training
2. Vestibule School
3. Special Courses
112
Where the trainee is placed in an actual work situation under the direction of his immediate supervisor, who acts as trainer
On-the-job Training
113
Where the trainee is placed in a situation almost exactly the same as the workplace where machines, materials and time constraints are present.
Vestibule School
114
Are those taken which provide more emphasis on education rather than training
Special Courses
115
Training Programs for Managers
1. Case Studies
2. On-the-job Experience
3. Coaching
4. Understudy
116
This method present actual situations on organizations and enable one to examine successful and unsuccessful operations
Case Study
117
This method provides valuable opportunities for the trainee to learn various skills while actually engaged in the performance of a job
On-the-job Experience
118
This method requires a senior manager to assist a lower-level manager by teaching him the needed skills and generally providing directions, advice, and helpful criticism
Coaching
119
A manager works as assistant to a higher-level manager and participates in planning and other managerial functions until he is ready to assume such position himself
Understudy
120
Rational assessment and evaluation of employees performance against clear-cut benchmarks
Performance Appraisal
121
Ways of Appraising Performance
1. Rating Scale Method
2. Essay Method
3. Management By Objectives Method
4. Assessment Centre Method
5. Checklist Method
6. Work Standards Method
7. Ranking Method
8. Critical-Incident Method
122
Where each trait or characteristic to be rated is represented by a line or scale
Rating Scale Method
123
Where the evaluator composes statements that best describe the person evaluated.
Essay Method
124
Where specific goals are set collaboratively for the organization as a whole, for various sub units, and for each individual member
Management By Objectives Method
125
Where one is evaluated by persons other than immediate superior.
Assessment Centre Method
126
Where the evaluator checks statements on a list that are deemed to characterize an employee's behaviour or Performance
Checklist Method
127
Where standards are set for the realistic worker output and later on used in evaluating the performance of nonmanagerial employees
Work Standards Method
128
Where each evaluator arranges employees in rank order
Ranking Method
129
Where the evaluator recalls and write down specific incidents that indicate the employees performance.
Critical Incident Method
130
Is a process in which the individual understand and learns new skills and interests and use them for the betterment of the organization and self
Career Management
131
Refers to the consideration which an individual gains, in return for his/her contribution to the organization
Compensation
132
These are given to employees whose performance is at far or above standard requirements
Monetary Rewards
133
This refers to a movement by a person into a position of higher pay and greater responsibilities and which is given as a reward for competence and ambition
Promotion
134
This is the movement of a person to a different job at the same or similar level of responsibility in the organization
Transfer
135
This is a movement from one position to another which has less pay or responsibility attached to it.
Demotion
136
A voluntary or involuntary termination of an employee
Separation
137
Involves obtaining, utilizing and retaining, qualified and competent personnel to fill all positions of an organization from top to operative level
Staffing
138
Is the process that ensures the proper number of employees, right skills for the job, at the right time to achieve organizational objectives
Staffing
139
Giving employees reasons or incentives to work to achieve organizational objectives
Motivating
140
Process of activating behavior, sustaining it and directing it toward a particular goal
Motivating
141
Factors Contributing to Motivation
• Willingness to do a job
• Self-confidence in carrying out task
• Needs Satisfaction
142
Motivation Process
•Need
•Drives (Motives)
•Incentives
143
A physiological or psychological imbalance leads to creation of need
Need
144
Propel individuals to attain their goals or satisfy their need
Drives (Motives)
145
Anything that can mitigate a need and decrease the intensity of a drive
Incentives
146
Types of Motivation
1. Intrinsic Motivation
2. Extrinsic Motivation
147
Geared towards internal rewards and reinforcers.
Intrinsic Motivation
148
Geared towards external rewards and reinforcer's
Extrinsic Motivation
149
Theories of Motivation
1. Maslow's needs hierarchy theory
2. Herzberg's two-factor theory
3. Expectancy theory
4. Goal setting theory
150
Was the father od humanistic psychology and creator of Maslow's Hierarchy of needs theory
Abraham Maslow
151
Indicates the needs and all this needs are arranged in hierarchy. Once one level is satisfied, the next level will emerge
Maslow's Hierarchy of Needs Theory
152
A behavioural scientist who proposed two-factor theory
Frederick Herzberg
153
That job satisfaction and job dissatisfaction act independently of each other
Herzberg's two-factor theory
154
A business school professor, developed first the Expectancy theory
Victor Vroom
155
States that the workers will only act when they have a reasonable expectation that their work will lead to the desired outcomes
Expectancy Theory
156
An American psychologist who developed goal-setting theory with Garry Latham
Edwin Locke
157
States that goal setting js essentially linked to task performance
It states that a specific and challenging goals along with appropriate feedback contribute to a higher and better task performance.
Goal Setting Theory
158
Techniques of Motivation
1. Motivation through Job Design
2. Motivation Through Rewards
3. Motivation Through employee Participation
4. Other Motivation Techniques for diverse workforce
159
Specifying the tasks that constitute a job for an individual or a group
Job Design
160
Done in order to prevent worker dissatisfaction due to routine and repetitive tasks.
Fitting People to Jobs
161
Instead of changing the person, management may consider changing the job
Fitting Jobs to People
162
Two or more specialized task in a work flow sequence is combined into a single job
Job Enlargement
163
Efforts are made to make jobs more interesting, challenging and rewarding
Job Enrichment
164
Motivation Through Employee Participation
• Setting Goals
• Making Decisions
• Solving Problems
• Designing and Implementing Organizational Changes
165
A group of three to ten employees usually doing related work, who meet at regular intervals to identify problems and discuss their solutions
Quality Control Circles (QCC)
166
Known as autonomous work groups or high performance teams, self managed teams "take on traditional managerial tasks as part of their normal work routine
Self-Managed Teams
167
Other Motivation Techniques
•Flexible Work Schedules
•Family Support Services
•Sabbaticals
168
Allows employees to determine their own arrival and departure times within specified limits
Flexible Work Schedules
169
Progressive companies provide day care facilities for children of employees
Family Support Services
170
The employee is allowed to go on leave for two months to one year with pay to give him time for family, recreations and travels
Sabbaticals
171
Process of sharing information through symbols, including words and messages
Communication
172
Information is exchanged between two or more people
Communication
173
Some Benefits of Effective Communication
• Provides Clarity
• Builds Relationships
• Create Commitment
• Defines Expectations
174
Making roles, responsibilities and relationships clear gives everyone the information they need to do their jobs and to understand their contributions to the organization
Provides Clarity
175
In a trusting and collaborative culture, people are more likely to seek help with problems and to suggest solutions and improvements
Builds Relationships
176
When employees feel like they are valued in the organization, they will likely be more engaged and motivated. Effective communication creates support and commitment
Creates Commitment
177
When expectations and standards are clear, employees know what they need to do to get a positive review and the benefits that some with it
Defines Expectations
178
Communication Process
1. Develop an Idea
2. Encode
3. Transmit
4. Receive
5. Decode
6. Accept
7. Use
8. Provide Feedback
179
The idea to be conveyed must be useful or of some value
Develop an Idea
180
Convey the idea into words illustration, figures, or other symbols suitable for transmission
Encode
181
The communication channel must be free if barriers or interference sometimes.
Noise
182
Transmission through the use of an appropriate communication channel
Transmit
183
Actual receiving of the message by the intended receiver
Receive
184
Translating the message from the sender into a form that will have meaning to the recipient
Decode
185
Receiver accepts or rejects the message
Accept
186
If the message provides information of importance to a relevant activity, then the receiver could store it and retrieve it when required
Use
187
Receiver provides feedback to the sender
Provide Feedback
188
Forms of Communication
• Verbal Communication
• Non Verbal Communication
189
Those transmitted through hearing or sight
Verbal Communication
190
Hearing the words of the sender
Oral Communication
191
Sender seeks to communicate through the written words
Written Communication
192
Conveying message through body language, as well as the use of time, space, touch, clothing, appearance and the aesthetics elements
Non Verbal Communication
193
Barrier to Communication
• Personal Barriers
• Physical Barriers
•Semantic Barriers
194
Hindrances to effective communication arising from a communicator's characteristics as a person.
Personal Barriers
195
Refers to interferences to effective communication occuring in the environment where the communication is undertaken
Physical Barriers
196
When the message is misunderstood even though it is received exactly as transmitted
Semantic Barriers
197
Overcoming Barriers to Communication
• USE FEEDBACK to facilitate understanding and increase the potential for appropriate action
• REPEAT MESSAGES in order to provide assurance that they are properly received
• USE MULTIPLE CHANNELS so that accuracy of the information may be enhanced
•USE SIMPLIFIED LANGUAGE that is easily understandable and which eliminates the possibility of people getting mixed up with meanings
198
Techniques For Communicating in Organizations
• Downward Communication
• Upward Communication
• Horizontal Communication
• Diagonal Communication
• External Communication
199
Refers to message flow from higher levels of authority to lower level
Downward Communication
200
Refers to messages from persons in lower level positions to persons in higher positions
Upward Communication
201
Refers to messages sent to individuals or groups from another of the same organizational level or position
Horizontal Communication
202
Communication that takes place between a manager and employees of other workgroups
Diagonal Communication
203
Communication that takes place between a manager and external groups
External Communication
204
A management function which involves influencing others to engage in the worm behaviours necessary to reach organizational goals
Leading
205
Influence of a leader over his followers
Power
206
The power or rights to give orders, make decisions, and enforce obedience
Authority
207
The Role of Power in Leadership
• Reward Power
• Coercive Power
• Legitimate Power
• Referent Power
• Expert Power
208
Possess the ability to reward their subordinates
Reward Power
209
An equally strong source of power is the ability to punish their subordinates. This tactic gains power, or control over others, through the fear of punishment or the loss of valued outcomes
Coercive Power
210
Ability to influence others because of the position one holds in the organization
Legitimate Power
211
Power that accompanies a strong relationship between the leader and the followers
Referent Power
212
Extend to which leaders are perceived to be knowledgeable in an area that is necessary to the attainment of group goals.
Expert Power
213
The Nature of Leadership
1. Leadership
2. Personal Drive
3. The Desire to Lead
4. Personal Integrity
5. Self-confidence
6. Analytical Ability
7. Knowledge of the Company, Industry or Technology
8. Charisma
9. Creativity
214
Process of influencing and supporting others to work enthusiastically toward achieving objectives
Leadership
215
If chosen way to reach goal is not successful, a leader finds another way to reach it.
Personal Drive
216
Leaders with a desire to lead will always have a reservoir of extra efforts which can be used whenever needed
The Desire to Lead
217
One who does not have personal integrity will have a hard time convincing his subordinates about the necessary of completing various tasks
Personal Integrity
218
For the moves to be continuous and precise, self-confidence is necessary
Self-confidence
219
The ability to analyze is one desirable trait that a leader can use to tide him over many challenging aspects of leaderships
Analytical Ability
220
Provide directions to his unit
Knowledge of the Company, Industry or Technology
221
When a person has sufficient personal magnetism that leads people to follow his directives
Charisma
222
Ability to combine existing data, experience, and preconditions from various sources
Creativity
223
Leadership Skills
• Technical Skills
• Human Skills
• Conceptual Skills
224
Skills a leader must possess to enable him to understand and make decisions about work processes, activities and technology
Technical Skills
225
Ability of a leader to deal with people, both inside and outside the organization
Human Skills
226
Ability of a leader to think in abstract term, to see how parts fit together to form the whole
Conceptual Skills
227
Theories of Leadership
1. Contingency Theory
2. Path-Goal Theory
3. Normative Decision Theory
228
A leader's effectiveness is determined by the interaction between the leader's personal characteristics and some aspect of situation (Fiedler 1978)
Contingency Theory
229
The kind of leader who will be more effective depends on the leader's degree of control over the situation
Contingency Theory
230
Control of the Situation Depends on:
• Leader-member Relations
• Task Structure
• Position Power
231
Leaders have more power/influence when they have good relationship with the members of their groups
Leader-member Relations
232
A leader has more influence if assignments are well defined than if task are nebulous and unstructured
Task Structure
233
Leaders, by nature of their position, are able to hire and fire, and to discipline and reward
Position Power
234
Focuses on kinds of behaviours a leader should exercise to allow subordinates to achieve their goals (House,1971)
Path-Goal Theory
235
States that leader can increase their subordinates' satisfaction and performance by giving rewards that are contingent on reaching performance goals
Path-Goal Theory
236
Effective leader will help subordinates by pointing out the paths they must follow to obtain the rewards or goals and by providing them with the means to do so.
Path-Goal Theory
237
Styles of Leader Behaviour
• Directive Leadership
• Supportive Leadership
• Participative Leadership
• Achievement-Oriented Leadership
238
Letting subordinates know what they should do and how they should do it.
Directive Leadership
239
Showing support and concern to subordinates
Supportive Leadership
240
Allowing subordinates to participate in decision that affect the work
Participative Leadership
241
Setting challenging goals for subordinates and emphasizing hight level of performance
Achievement-Oriented Leadership
242
Refers to norm or standard of behaviour considered to be the correct one.
Normative Decision Theory
243
Focuses on one aspect of leadership- DECISION MAKING
Normative Decision Theory
244
Components of the Decision
• Quality of the Decision
• Degree of its Acceptance by Subordinates
• Time needed to make the Decision
245
Process of ascertaining whether the organizational objectives have been achieved and determining what activities should then be taken to achieve objectives better in the future
Controlling
246
Objectives and goals that are set at tha planning stage arr verified as to achievement or completion at any given point in Organizing and implementing stages.
When expectations are not met at scheduled date, corrective measures are usually undertaken
Controlling
247
Importance of Controlling
• Help the organization achieve its goal effectively and efficiently
• Minimize the ill effects of deviations, mistakes and shortcomings
• Help company keep overhead and other costs at expected level
248
Steps in the Control Process
1. ESTABLISHING performance objectives and standards
2. MEASURING actual performance
3. COMPARING actual performance to objectives ans standards
4. TAKING NECESSARY ACTION based on the results of the comparisons
249
Establishing performance objectives and standards
1. Sales Targets
2. Production Targets
3. Worker Attendance
4. Safety Record
5. Supplies Used
250
There is a need to measure actual performance so that when shortcomings occur, adjustments could be made. The adjustment will depend on the actual findings
Measuring Actual Performance
251
Once actual performance has been determined, this will be compared with what the organization seeks to achieve
Comparing Actual Performance to Objectives and Standards
252
Provide management with the opportunity to take corrective action when necessary
Taking Necessary Action
253
Types of Control
• Feed forward Control
• Concurrent Control
• Feed Back Control
254
When management anticipates problems and prevents their occurrence
Feedforward Control
255
When operations are already ongoing and activities to detect variances are made
Concurrent Control
256
When information is gathered about a completed activity and in order that evaluation and steps for improvement ar derived
Feedback Control
257
Components of Organizational Control Systems
1. Strategic Plan
2. Long-Range Financial Plan
3. Operating Budget
4. Performance Appraisals
5. Statistical Reports
6. Policies and Procedures
258
Provides the basic control mechanism for the organization
Strategic Plans
259
Recommends a direction for financial activities
Long-Range Financial Plans
260
Indicates the expenditures ,revenues or profits planned for some future period regarding operations
Operating Budget
261
Measures employee performance
Performance Appraisals
262
Pertain to those that contain data on various developments within the firm
Statistical Reports
263
Statistical Reports
• Labor Efficiency Rates
• Quality Control Rejects
• Accident Reports
264
Framework within which objectives must be pursued
Policies and Procedures
265
When operations become complex, the manager must consider useful steps in controlling
Identifying Control Problems
266
Approaches:
• Executive Reality Check
• Comprehensive Internal Audit
• General Checklist of systems of Inadequate Control
267
Aims to detect disfunction in the organization before they bring bigger troubles to management
Comprehensive Internal Audit
268
General Checklist of Systems of Inadequate Control
1. An unexplained decline in revenues and profits
2. A degradation of service (Increased customer complaints)
3. Employee Dissatisfaction
4. Cash Shortages
5. Idle Facilities or Personnel
6. Excessive Costs
7. Evidence of Waste and Inefficiency
269
Influence by Hygiene Factors
• Working Conditions
• Coworker Relations
• Policies and Rules
• Supervisor Quality
• Based wages, Salaries
270
Influence by Satisfiers Factors
• Achievements
• Recognition
• Responsibility
• Work itself
• Advancement
• Personal Growth
