THE CONTROL TECHNIQUES Flashcards
8 Control Techniques
- Establishing Standard
- Establishing Procedures
- Training
- Setting Example
- Observing and Correcting Employee Actions
- Requiring Records and Reports
- Discipline Employees
- Preparing and Following Budgets
Defined as rules or measures established
for making comparisons and judgments.
Standard
Used to define the degree of excellence of raw materials, finished products and by extensions, work performed.
Quality Standards
Defined as measures of weight, count or volume used to make comparisons and judgment.
Quantity Standard
Defined as the cost of goods or services identified, approved, and accepted by management in order to make judgment and comparisons of the effectiveness of the operation.
Standard Cost
The method employed to prepare products or perform jobs.
Procedures
Are those that have be established as the correct methods, routines, and techniques for day-to-day operations.
Standard Procedures
Is a process by which managers teach employees how work is to be done, given the standards and standards procedures established.
Training
Employees in an operation follow the examples set by the manager - the manager ‘s behavior, manner, responses to questions, and even a failure to speak or act in some situations.
Setting Example
One of a manager’s important tasks is to __________ of all employees continually as they go about their daily jobs, judging those actions in the light of the standards and standard procedures established for their work.
Observe the actions
Is an important element in control as these information helps in decision making, judgment & comparisons of the operations. One such report is the statement of income.
Recording and Reports
Defined as action taken to give a warning, punish or telling off an employee for work performance or personal behavior incompatible with established standards.
Discipline
It is seldom practice but only used as a deterrent or if corrective action failed.
Discipline Employees
May be the most common technique for controlling business operations.
Preparing and following budgets
Defined as a financial plan and may be describe as a realistic expression of management’s goals and objectives expressed in financial terms. (Cash flow budget, capital equipment budget and advertising budget.)
Budget
