Week 11: Foundations of control

Question 1

management control

Answer 1

the process by which managers ensure that resources are obtained and used effectively and efficiently in accomplishment of organisation’s objectives

Question 2

Church and Fayol addressed control as one

Answer 2

one of the main functions of management. Management is regarded as almost synonymous with controlling

Question 3

POSDCORB:

Answer 3

Planning, Organising, Staffing, Directing, Coordinating, Reporting, Budgeting

Question 4

Renewed focus on controlling due to

Answer 4

recent surge in ‘bottom line’ and in ‘shareholder value’ thinking

Question 5

the four management functions

Answer 5

planning, organizing, leading and controlling

Question 6

Why is control such an important managerial function?

Answer 6

o Helps adapt to change and uncertainty, discover irregularities and errors, reduce costs, increase productivity, de-centralise decision making and facilitate teamwork

Question 7

how’ of control

Answer 7

Establish standards, measure performance, compare performance, take corrective action

Question 8

strategic control

Answer 8

monitoring performance to ensure strategic plans are being implemented and taking corrective action

Question 9

tactical control

Answer 9

monitoring performance to ensure tactical plans (divisional or departmental level) are being implemented

Question 10

operational control:

Answer 10

monitoring performance to ensure operation plans – day to day goals – are being implemented and taking corrective action as needed

Question 11

Control is also exercised via disciplinary practices targeting

Answer 11

routinisation, unification and compliance with norms and values of the organisation

Question 12

The Balanced Scorecard

Answer 12

is a management system that enables organizations to set, track, and achieve their key business strategies and objectives by using financial performance, internal business processes, customer perceptions, and learning and growth.

Question 13

Financial controls are

Answer 13

the management systems and processes implemented by the organisation to help it ensure that its finances are being properly managed

Question 14

Total quality management

Answer 14

can be defined as commitment of all employees to the continuous improvement of work process with the aim of satisfying customers’ requirements and needs

Question 15

Tools/techniques

Answer 15

o benchmarking, outsourcing, reduced cycle time

Question 16

keys to successful control?

Answer 16

1. They are strategic and results-oriented 2. They are timely, accurate and objective 3. They are realistic, positive, understandable and encourage self-control 4. They are flexible

Question 17

barriers to control?

Answer 17

1. Too much control 2. Too little employee participation 3. Overemphasis on means instead of ends 4. Overemphasis on paperwork 5. Overemphasis on one instead of multiple approaches