Management and Strategy Exam #3

The management function that compares actual results with planned results and then takes corrective action as needed to ensure the actual closely matches the planned.

The four steps in the process of controlling: (1) establish standards (2) measure performance (3) compare performance to standards (4) take corrective action, if necessary

The total ability of a product or service to meet customer needs.

Takes place prior to the performance of an activity

Feedback right away

After performance has occurred

Operations, human, financial and information

Deals with the processes used to transform resources into products or services (ex. Purchasing, Inventory, Production, Quality, Maintenance).

Insuring we have the right person in the right position at the right time (ex. Selection & Placement, Training & Development, Performance Appraisal, Disciplinary actions, Compensation)

Controls expressed in numerical terms (ex. Financial Statements, Balance Sheets)

Insuring that required information is available to us in a timely, cost-effective manner (ex. Production/error reports, Economic forecasting, Sales & Market status reports & forecasting, Data Mining, Database management, Regulatory/Compliance reports)

(6) Are more effective when employees have control over the results measured (1) Are accepted and understood (2) Are appropriate & meaningful (3) Provides diagnostic information (4) Allow for self-feedback and self control (5) Provide timely information (7) Don’t contradict one another (8) Allow for random or monitor variations from standard (9) Are cost effective

Bureaucratic (Detailed rules/procedures; Top-down, chain of command) and Decentralized (Limited use of rule; relies on values, group & self control; Flexible authority; more flat structure)

Financial Management, Operating Budgets, Non-monetary Budgets)

A comprehensive approach-- led by top management and supported throughout the organization-- dedicated to continuous quality improvement, training, and customer satisfaction. It has four components: (1) Make continuous improvement a priority (2) Get every employee involved (3) Listen to and learn from customers and employees (4) Use accurate standards to identify and eliminate problems.