M8 Flashcards
is a function of management which helps to check errors in order to take corrective actions. It is a foreseeing action.
CONTROLLING
needs to exercise effective control over the activities of the subordinates in order to seek planned results from the subordinates.
MANAGER
is established to serve as a model for evaluating organizational performance.
CONTROLLING
FUNCTIONS OF CONTROLLING
- GENERAL ACCOUNTING
- BUDGETING
- COST ACCOUNTING
- PERFORMANCE REPORTING
- DATA PROCESSING
- OTHER DUTIES
maintain the company’s accounting books, accounting records, and forms.
GENERALA ACCOUNTING
prepare a budget outlining the company’s figure operations and cash requirements.
BUDGETING
determine the cost to manufacture a product and prepare internal reports for management of the processing divisions.
COST ACCOUNTING
identify individuals in the organization who control activities and prepare reports to show how well or how poorly they perform.
PERFORMANCE REPORTING
assist in the analysis and design of a data-based information system.
DATA PROCESSING
that may be assigned to the other controller, by the president, or by corporate by laws.
OTHER DUTIES
MAIN STEPS OF CONTROLLING PROCESS
- MEASURE PERFORMANCE
- COMPARING MEASURE PERFORMANCE TO STANDARDS
- TAKING CORRECTIVE ACTIONS
Measures performance over time
KEY PERFORMANCE INDICATORS (KPI)
Focuses on the ultimate results of a specific activity
KEY PERFORMANCE INDICATORS (KPI)
Makes sure the business works “as usual”
KEY PERFORMANCE INDICATORS (KPI)
TYPES OF MEASURING (PERFORMANCE)
- KPI
- OKR
- BENCHMARKING
- PERFORMANCE REVIEWS
- SERVICE LEVEL AGREEMENTS
Define measurable goals and target outcomes
OBJECTIVES AND KEY RESULTS (OKR)
Small goals that lead to defined objectives
OBJECTIVE AND KEY RESULTS
Process of measuring key business metrics and practices and comparing them within business areas or other companies to understand how the organization needs to change in order to improve performance.
BENCHMARKING
Document that outlines a commitment between a service provider and a client, including details of the service, the standards the provider must adhere to, and the metrics to measure the performance.
SERVICE LEVEL AGREEMENT
Formal assessment in which a manager evaluates an employee’s work performance.
PERFORMANCE REVIEWS
are the yardsticks that determine whether organizational performance is adequate or inadequate.
YARDSTICKS
Example of standards:
- PROFITABILITY STANDARDS
- MARKET POSITION STANDARDS
- PRODUCT LEADERSHIP STANDARDS
- PRODUCTIVITY STANDARDS
- PERSONNEL DEVELOPMENT STANDARDS
- SOCIAL RESPONSIBILITY STANDARDS
is managerial activity aimed at bringing organizational performance up to the level of performance standards.
CORRECTIVE ACTION
focuses on correcting the organizational mistakes that are hindering organizational performance.
CORRECTIVE ACTION
is the extent to which an individual is able to influence others so that they respond to orders.
POWER
T/F? The greater this ability, the more power an individual is said to have.
T
POWER OF A MANAGER
- POSITION POWER
- PERSONAL POWER
Power derived from the organizational position a manager holds.
POSITION POWER
is generally enhanced by a move to a higher organizational position.
POSITION POWER
derived from a manager’s relationship with others.
PERSONAL POWER
STEPS FOR INCREASING TOTAL POWER OF A MANAGER
- A sense of obligation toward the manager
- A belief that the manager possesses a significant level of expertise within the organization
- A sense of identification with the manager
The perception that they are dependent on the manager
The basic strategy suggested for creating this sense of obligation is to do personal favors for people.
A SENSE OF OBLIGATION TOWARD THE MANAGER
Managers must quietly make their notable achievements visible to others and create a successful track record and a solid professional reputation.
A BELIEF THAT THE MANAGER POSSESSES A SIGNIFICANT LEVEL OF EXPERTISE WITHIN THE ORGANIZATION
A manager’s personal power increases as organization members perceive that the ___
MANAGER’S LEVEL OF EXPERTISE IS SIGNIFICANT
A manager can strive to develop this identification by behaving in ways that other organization members respect and by espousing the goals, values and ideals that the organization members commonly hold.
A SENSE OF IDENTIFICATION WITH THE MANAGER
The main strategy here is to clearly convey the amount of authority the manager has over organizational resources – not only those necessary for organization members to do their jobs, but also those that organization members personally receive in such forms as salaries and bonuses.
THE PERCEPTION THAT THEY ARE DEPENDENT ON THE MANAGER
