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Questions and Answers
What is a key way to ensure that standards are being met?
What is a key way to ensure that standards are being met?
Which type of standard can be seen and counted?
Which type of standard can be seen and counted?
Why is it important to have standards to base performance on?
Why is it important to have standards to base performance on?
Which term describes standards that cannot be seen or counted?
Which term describes standards that cannot be seen or counted?
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What allows management to understand how production is progressing?
What allows management to understand how production is progressing?
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Why is the controlling process in business management considered critical?
Why is the controlling process in business management considered critical?
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Why is setting performance standards crucial in the controlling process?
Why is setting performance standards crucial in the controlling process?
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What does applying a controlling process in business management help achieve?
What does applying a controlling process in business management help achieve?
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What is one of the main benefits of following the five-step procedure for controlling processes?
What is one of the main benefits of following the five-step procedure for controlling processes?
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How does the controlling process help a company navigate changes in variables like customer demand?
How does the controlling process help a company navigate changes in variables like customer demand?
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What happens when a company doesn't apply a controlling process to its business operations?
What happens when a company doesn't apply a controlling process to its business operations?
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Study Notes
Controlling Process in Business Management
- The controlling process is a crucial task in business management that involves setting, measuring, and refining business operations to manage cost control and navigate changes in the supply chain, customer demand, and other variables.
Importance of Controlling Process
- The controlling process helps businesses stay on track and make adjustments when plans aren't working, ensuring the company remains solvent.
Controlling Process Steps
- The controlling process involves a five-step procedure to set, measure, and refine business activities:
Setting Performance Standards
- Setting performance standards involves establishing specific, measurable goals for teams or departments to work towards.
- Standards are categorized into two groups: tangible (specific and measurable) and intangible (abstract and non-measurable).
- Examples of tangible standards include time, cost, profit, expenditure, and output.
- Intangible standards relate to a manager's performance.
Measuring Performance
- Establishing criteria to measure performance helps management understand if production is on track or needs adjustment.
- Measuring performance enables management to rate and judge progress without interrupting work.
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Description
Learn about the controlling process in business management where managers set, measure, and refine business operations to manage cost control and navigate changes. Understand the critical task of keeping a business solvent by accurately assessing if plans are moving in the right direction.
