Questions and Answers
Why is it important to have criteria to measure standards in a workplace?
To understand how production is progressing
What types of standards are mentioned in the text?
Tangible and intangible
Which of the following is considered a tangible standard in the text?
Time
What is the purpose of setting up rules to measure performance in a workplace?
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Why do tangible standards play a crucial role in evaluating work performance?
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What is the purpose of the controlling process in business management?
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Why is the controlling process considered critical in business management?
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What can the controlling process help a company determine?
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Why is setting performance standards crucial in the controlling process?
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What happens if a company does not apply a controlling process?
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How can the five-step procedure for controlling processes benefit a business?
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Study Notes
Importance of Standards in Business Management
- To achieve business goals, cooperation, teamwork, and a collaborative effort are essential, and standards are necessary to measure performance.
- Standards help management understand how production is progressing and make adjustments when necessary.
Types of Standards
- There are two groups of standards: tangible (specific) and intangible (abstract).
- Tangible standards are measurable, such as time, cost, profit, expenditure, and output.
- Intangible standards are not measurable, such as a manager's performance, worker's attitude, etc.
The Controlling Process in Business Management
- The controlling process is crucial in business management, enabling companies to navigate changes in the supply chain, customer demand, and other variables.
- It allows companies to determine if plans are on track and make adjustments when necessary.
Controlling Process Steps in Business Management
- The five-step procedure for controlling processes includes:
- Setting performance standards to guide teams towards business goals
- Measuring and refining business activities to ensure they align with goals
- Identifying and addressing deviations from set standards
- Taking corrective action to get back on track
- Reviewing and updating standards to maintain effectiveness
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