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the regulation of organizational activities so that some targeted element of performance remains within acceptable limits.
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provides organizations with indications of well they are performing in relation to their goals provides a mechanism for adjusting performance to keep organizations moving in the right direction
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AREAS OF CONTROL physical resources |
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inventory management quality control equipment control
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selection and placement, training and development, performance appraisal, and equipment control
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Sales and marketing forecasts, enviornmental analysis, public relations, production scheduling, and economic forecasting
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Managing capital funds and cash flow, collection and payment of debt
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a specialized person that helps line mangers wit their control activities
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Definition: a target against which subsequent performance will be compared should be: consistent with organizational goals, expressed in measurable terms, and identifiable indicators of performance
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Performance measurement is an ongoing process measures must be valid indicators of performance (sales, costs, units produced)
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COMPARING PERFORMANCE AGAINST STANDARDS |
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define what is the permissable deviaion from the performance standard utilize the appropriate timetable for measurement
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CONSIDERING CORRECTIVE ACTION |
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maintain the status quo (do nothing) correct the deviation to bring operations into compliance with the standard change the standard if it was set to high or low
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make improvements before we start losing customers and revenue
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involves the elements of an organization's structure
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a form of organizational control characterized by formal and mechanistic structural arrangements
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DECENTRALIZED CONTROL (CLAN CONTROL) |
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approach to organizational control characterized by informal and organic structural arrangements. A clan is a close-knit and cohesive group
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control aimed at ensuring that the organization is maintaining an effective allignment wit its environment, and moving toward achieving its strategic plan focuses on structure, leadership, technology, human resources, and informational and operational systems focuses on the extent to which an implemented strategy achieves the organizations goals
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trying to control too many details becomes problematic when control affects employees behavior and employees perceive control attempts as unreasonable. David Neelman gets beeped everytime a flight is 5 minutes late
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the control system may be too narrow or it may focus too much on quantifiable variables and leave no room for analysis or interpretation
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rewarding operational inefficiency can lead employees to behave in ways that are not in the best interest of the organizations
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efficient controls are resisted by poorly performing employees
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designing effective controls that are properly integrated with organizational planning and aligned with organizational goals and standards creating controls that are flexible, accurate, timely, and objective encouraging employee participation in the planning and implementing of control systems
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