MODULE 1 - UNIT 5 Flashcards
process of determining that everything is going according to plan.
controlling
TYPE OF CONTROLLING: attempt to identify & prevent deviations in standards before it occurs
Feedforward aka preliminary/ preventive controls
TYPE OF CONTROLLING:
- monitor ongoing employee activity to ensure consistency w/ quality standards.
- ensure that work activities produce the desired results
CONCURRENT
STEPS IN CONTROLLING
- set standards
- measure performance
- compare performance to standards
- determine the reasons for deviations
- take corrective action
can include changes made to performance standards – setting them higher/lower or identifying new/additional standards
CORRECTIVE ACTION
often stated in monetary terms such as revenue, costs, profits but may also be stated in other terms
PERFORMANCE STANDARS
two traditional control techniques are
- Budget
- performance audits
involves an examination & verification of records and supporting documents.
AUDIT
TYPE OF AUDIT THAT provides info about where org is w/ respect to what was planned/ budget for
BUDGET AUDIT
TYPE OF AUDIT THAT determine whether figures reported are reflection of actual performance
PERFORMANCE AUDIT
REQUIREMENTS FOR ADEQUATE CONTROLS: control systems should reflect job they are to perform
Controls must reflect the nature and needs of the activity
REQUIREMENTS FOR ADEQUATE CONTROLS: control system detects deviations before they actually occur
report deviations promptly
REQUIREMENTS FOR ADEQUATE CONTROLS: manager should strive for control technique which forecast deviations in time for him to make corrections before problem occurs.
be forward looking
REQUIREMENTS FOR ADEQUATE CONTROLS: not only point up deviations but should pinpoint them where they are important or strategic to his operations.
point up exceptions as strategic points
REQUIREMENTS FOR ADEQUATE CONTROLS: should be definite & determinable in clear & positive way.
objective
REQUIREMENTS FOR ADEQUATE CONTROLS: must remain workable in face of changed plans, unforeseen circumstances, or outright failures
flexible
REQUIREMENTS FOR ADEQUATE CONTROLS: org, being principle vehicle for coordinating work of people w/ assigned duties and delegated authority, is also means of maintaining control
reflect the organization
REQUIREMENTS FOR ADEQUATE CONTROLS: worth its cost
economical
REQUIREMENTS FOR ADEQUATE CONTROLS: sometimes manager could understand controls if he would take time to learn techniques
understandable
REQUIREMENTS FOR ADEQUATE CONTROLS: control system that detects deviations from plans will be little more than an interesting exercise if it does not show the way to corrective action
indicate corrective action
performance measurement can be best understood thru considering definitions of words ‘_____ & _____’ acc. to _____:
performance’ & ‘measurement; BALDRIGE CRITERIA
- output results & their outcomes obtained from processes, products, & services that permit evaluation &comparison relative to goals, standards, past results, & other orgs
- can be expressed in non-financial & financial terms.
performance
- numerical info that quantifies input, output, & performance dimensions of processes, products, services, and the overall organization (outcomes)
measurement
practical tool to help orgs do this by measuring where they are on path to Excellence; helping them understand gaps; & stimulating solutions
Excellence Model
