Questions and Answers
Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed?
Match the step in the control process with its description.
Step 1 = The desired performance level for a given goal is established. Step 2 = Actual performance is measured. Step 3 = Measured performance is compared to established standards. Step 4 = Corrective action is taken, if necessary.
What is the first step of the control process?
Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control?
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The ______ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures.
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The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met.
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The perspective in the balanced scorecard approach that is concerned with the shareholders' view of organizational performance, such as market share, revenue growth, and stock price, is known as the ______ perspective.
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Place the four steps of the control process in their typical order, from first (at the top) to last (at the bottom).
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When Jensen asked his boss, 'How many books do we want to sell by November?', he was trying to establish a(n) ______.
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As a property manager for a large office complex, Alisha develops a projection of the costs that will be incurred over the next 12 months. Alisha has prepared a(n) ______.
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Match the type of control (on the left) with its definition (on the right).
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Which type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point?
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What are the indicators that make up the balanced scorecard?
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A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______.
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The ______ perspective of the balanced scorecard asks the question, 'How do we look to our shareholders?'
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A budget in which the allocation of resources fluctuates in proportion to different levels of activity during the budget period is known as a(n) ______ budget.
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A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms.
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What are basic types of financial statements? (Choose every correct answer.)
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Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the budgeting approach known as ______ budgeting.
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Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time?
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A(n) ______ budget is where resources are allocated on a single estimate of costs, also known as a static budget, and that budget amount cannot be adjusted over time.
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Which of the following assets would be categorized as current assets on a firm's balance sheet?
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Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this represent?
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A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month, quarter or year.
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The ______ perspective of the balanced scorecard focuses on the analysis of different types of customers, their level of satisfaction, and the processes used to deliver products and services to customers.
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A summary of some aspect of an organization's financial status such as a balance sheet and an income statement is a ______.
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Productivity is defined by the formula of outputs divided by ______ for a specified period of time.
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Greg prepares a financial statement for his business, listing the company's current assets, fixed assets, and the debts that are owed to suppliers and lenders. What document is Greg preparing for his business?
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The balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the ______ perspective.
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Resources that an organization controls, such as cash, inventory, and accounts receivable, are classified on the balance sheet as ______.
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A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______.
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A(n) ______ summarizes an organization's financial results (revenues and expenses) over a specified period of time, such as a quarter or a year.
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Two ways for a company to guarantee quality of a product are quality control and quality ______.
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Which balanced scorecard perspective asks the question, 'How do customers see us?'
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Deming management proposed ideas for making organizations more responsive, more democratic, and ______.
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Outputs divided by inputs over a specific period of time equals ______.
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Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction?
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Which perspective in the balanced scorecard approach addresses how the organization can continue to improve?
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The four components of ______ are to make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to identify and eliminate problems.
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A ______ map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization.
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True or false: In the service industry, customer satisfaction is often based on perception.
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The ability of a product or service to meet customer needs refers to ______.
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Halimax has recently been hired by numerous city governments to handle security at major sporting events. The hiring of Halimax rather than relying on the city police force is an example of ______.
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Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful?
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Reduced cycle time is the direct result of ______.
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The focus of total quality management (TQM) is ______, training, and customer satisfaction.
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True or false: One roadblock that can keep TQM from delivering its intended benefits is the failure to develop a culture of continuous learning.
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What are the components of total quality management (TQM)? (Choose every correct answer.)
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What is true about product recalls in the 21st century?
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Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______.
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What do critics fear may result from employee monitoring programs?
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What is defined as the subcontracting of services and operations to an outside vendor?
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Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in ______.
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What are key inhibitors to implementing TQM successfully?
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Practices that use artificial intelligence to reduce defects, shorten downtimes, and facilitate transitions are called ______ manufacturing.
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Study Notes
Management Control Functions
- Controlling involves monitoring performance, comparing it with goals, and taking corrective actions as necessary.
- The control process consists of four steps: establishing standards, measuring actual performance, comparing performance to standards, and taking corrective action.
Control Process Steps
- Establish desired performance levels for goals.
- Measure actual performance against established standards.
- Compare measured performance to the standards.
- Take corrective action if performance does not meet standards.
Types of Control
- Feedback Control: Involves post-performance measurement and evaluation; example: manager helping Sonja improve latte quality.
- Concurrent Control: Collects performance information in real-time to adjust processes as they occur.
- Feedforward Control: Aims to prevent issues by addressing them before they occur.
Balanced Scorecard
- Provides a comprehensive view of an organization using four perspectives: customer satisfaction, internal processes, innovation and improvement, and financial measures.
- Financial Perspective: Focuses on shareholders, assessing market share, revenue growth, and stock price.
Budgeting Types
- Incremental Budgeting: Adjusts previous budget periods' allocations as reference points.
- Fixed Budget: Allocates resources based on a single estimate, without adjustment during the period.
- Variable Budget: Resource allocation fluctuates based on different activity levels.
Financial Statements
- Important financial documents include the balance sheet (summarizes assets and liabilities) and the income statement (summarizes revenues and expenses over a period).
- Current Assets: Items like accounts receivable, cash, and treasury bills that are expected to be liquidated or consumed within a year.
Total Quality Management (TQM)
- Focuses on continuous quality improvement, employee involvement, and customer satisfaction.
- Critical components include listening to customers, problem-solving, and establishing a culture of quality.
- Deming Management philosophy promotes responsive, democratic, and less wasteful organizational practices.
Quality Control and Improvement
- Two key strategies for ensuring product quality are quality control and quality assurance.
- The balance between ensuring customer satisfaction and maintaining product quality is crucial in service industries.
Outsourcing and Efficiency
- Outsourcing: Refers to subcontracting services to outside vendors, as seen with security services.
- Reducing cycle time can be achieved by minimizing steps in a work process.
Employee Monitoring
- Critics of employee monitoring express concerns about potential loss of privacy and its intrusive nature.
- Electronic monitoring can lead to employee dissatisfaction and potential misuse of data.
Modern Manufacturing Practices
- Utilizing artificial intelligence in manufacturing can reduce defects, improve efficiency, and decrease downtime.
- Smart manufacturing incorporates advanced technologies to streamline production processes.
Perception in Service Industries
- Customer satisfaction in services often relies on subjective perceptions rather than tangible products.
- Service industries need to actively manage and improve perceptions for better client relationships.
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Description
Test your knowledge of Chapter 16 in MAN3025 with these flashcards focused on the management control process. Enhance your understanding of key terms and concepts, including the steps in the control process and the functions of management.
