Topic 6: CONTROLLING

Question 1

The process of measuring performance, comparing it with established standards, and taking corrective actions when necessary to achieve the organization’s objective

Answer 1

Controlling

Question 2

The final link in the functional chain of management activities and brings the functions of management cycle full circle;
It ensures that plans are being implemented properly

Answer 2

Controlling

Question 3

Steps in the controlling process

Answer 3

1. Establishment of standards
2. Measurement of actual performance
3. Comparison of actual performance with standard
4. Corrective action if necessary

Question 4

Plans / objectives / targets to be achieved which are established during planning function;
Established criteria against which actual results can be compared or judged

Answer 4

Standards

Question 5

Measurable & tangible
- costs, output, revenue, expenditure, time, profit

Answer 5

Quantitative Standards

Question 6

Non-Measurable & intangible
- attitude of workers, performance of managers, improving employee morale & motivation, etc.

Answer 6

Qualitative Standards

Question 7

Performance is measured against set standards ________ task is completed

Answer 7

during & after

Question 8

Techniques used in measuring actual performance

Answer 8

• Examination of written or documented data
• Actual observation of work being done

Question 9

● Get firsthand knowledge
● Information isn’t filtered
● Intensive coverage of work activities

Answer 9

Personal Observations

Question 10

● Easy to visualize
● Effective for showing relationsips

Answer 10

Statistical Reports

Question 11

● Fast way to get information
● Allow verbal and nonverbal feedback

Answer 11

Oral Reports

Question 12

● Comprehensive
● Formal
● Easy to file and retrieve

Answer 12

Written Reports

Question 13

End result of an activity

Answer 13

Performance

Question 14

Accumulated results of all the organization’s work activities
- Productivity
- Effectiveness

Answer 14

Organizational Performance

Question 15

Specific measurable, metrics that help managers evaluate the success of an individual, team, or organization in achieving specific objectives

Answer 15

Key Performance Indicators (KPIs)

Question 16

Tends to influence the other indicators; predictive in nature

Answer 16

Leading

Question 17

Reflects past performance

Answer 17

Lagging

Question 18

Allowable or acceptable range of variation/devition from standards

Answer 18

Acceptable Variance

Question 19

Attempts to control only deviations that go beyond a certain limit

Answer 19

Management by Exception

Question 20

Revision of standards;
Improvement of processes

Answer 20

Positive corrective action

Question 21

Disciplinary sanction

Answer 21

Negative corrective action

Question 22

Control that focuses on operations before they begin;
Goal is to PREVENT anticipated problems

Answer 22

Feedforward

Question 23

Monitoring of ongoing operations to ensure that
they are being done according to plans — real time

Answer 23

Concurrent control

Question 24

Measures the quality of results (outputs) after the
process is completed

Answer 24

Feedback control

Question 25

A set of systems and procedures that gather data from a range of sources, compile it and present it in a readable format.

Answer 25

Management Information System (MIS)

Question 26

Create reports that provide a comprehensive overview of all the information they need to make decisions

Answer 26

Management Information System (MIS)

Question 27

Facilitate achieving the organization’s profit motive by monitoring and controlling the direction, allocation, and usage of its financial resources

Answer 27

Financial Control

Question 28

A plan expressing the projected activities
of the organization in numerical terms

Answer 28

Budget

Question 29

Examination & verification of accuracy of records

Answer 29

Audits

Question 30

Assess how efficiently and effectively an organization’s transformation processes create goods and services

Answer 30

Operational Control

Question 31

Statistical process control is the use of
statistical methods and procedures

Answer 31

Total Quality Management (TQM)

Question 32

A formal, structured system that compares employee performance to established standards

Answer 32

Performance Appraisal

Question 33

A behavioral control technique used by the supervisor;
involves teaching, the passing on of
knowledge

Answer 33

Coaching

Question 34

Aprocess through which one person helps another by purposeful conversation in an understanding atmosphere.

Answer 34

Counseling

Question 35

Corrective actions taken by a supervisor when an employee does not abide by organizational rules and standards

Answer 35

Disciplinary Sanctions

Question 36

Progressive discipline

Answer 36

1. Verbal warning
2. Written warning
3. Suspension, without pay
4. Termination of employment

Question 37

Involuntary employment termination initiated by the organization

Answer 37

Discharge

Question 38

Involuntary employment termination initiated by the organization for non-disciplinary reasons

Answer 38

Layoff

Question 39

Voluntary employment termination initiated by an employee.

Answer 39

Resignation