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Questions and Answers
What is the primary function of internal control?
What is the primary function of internal control?
What fosters the practice of self-control within an organization?
What fosters the practice of self-control within an organization?
Which type of control is characterized by influencing behavior through policies and procedures?
Which type of control is characterized by influencing behavior through policies and procedures?
What is the basis of clan control in an organization?
What is the basis of clan control in an organization?
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What does strategic control provide to an organization?
What does strategic control provide to an organization?
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How does market control influence organizations?
How does market control influence organizations?
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What is the focus of input standards in the control process?
What is the focus of input standards in the control process?
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What is NOT a part of output standards in controlling?
What is NOT a part of output standards in controlling?
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What is the main goal of feedforward controls in the management process?
What is the main goal of feedforward controls in the management process?
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Which type of control focuses on monitoring operations during the work process?
Which type of control focuses on monitoring operations during the work process?
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What distinguishes feedback controls from the other types of controls?
What distinguishes feedback controls from the other types of controls?
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Which of the following statements about the control process is true?
Which of the following statements about the control process is true?
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What is a benefit of implementing control processes in management?
What is a benefit of implementing control processes in management?
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How do feedforward controls assist managers?
How do feedforward controls assist managers?
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In what order do the types of controls generally occur in the management process?
In what order do the types of controls generally occur in the management process?
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What is the primary focus of feedback controls?
What is the primary focus of feedback controls?
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What is the purpose of inventory control?
What is the purpose of inventory control?
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Which method triggers new inventory orders when levels fall to specific points?
Which method triggers new inventory orders when levels fall to specific points?
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What does the breakeven point indicate?
What does the breakeven point indicate?
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Which financial ratio assesses the ability to generate cash to cover bills?
Which financial ratio assesses the ability to generate cash to cover bills?
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What aspect does asset management ratio focus on?
What aspect does asset management ratio focus on?
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Which of the following is NOT a factor used in developing balanced scorecard goals?
Which of the following is NOT a factor used in developing balanced scorecard goals?
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Breakeven analysis is primarily used for what purpose?
Breakeven analysis is primarily used for what purpose?
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Which factor contributes to customer satisfaction as per the balanced scorecard?
Which factor contributes to customer satisfaction as per the balanced scorecard?
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What is the primary objective of measuring actual performance in the control process?
What is the primary objective of measuring actual performance in the control process?
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What is the formula used to determine the need for action in the control process?
What is the formula used to determine the need for action in the control process?
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Which of the following is NOT a method of comparison for evaluating actual performance?
Which of the following is NOT a method of comparison for evaluating actual performance?
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What does 'management by exception' primarily focus on?
What does 'management by exception' primarily focus on?
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What is the purpose of a Gantt chart in project management?
What is the purpose of a Gantt chart in project management?
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What two techniques does the CPM/PERT method combine?
What two techniques does the CPM/PERT method combine?
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What type of situation occurs when actual performance exceeds desired performance?
What type of situation occurs when actual performance exceeds desired performance?
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Which of the following statements best describes effective control in management?
Which of the following statements best describes effective control in management?
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Study Notes
Management - Chapter 9: Control Processes and Systems
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Learning Objectives:
- Identify control types used by managers and their reasons
- List and describe the steps in the control process
- Explain common control tools and techniques
Why and How Managers Control
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Controlling: The process of measuring performance and taking action to ensure desired results. It plays a crucial role in management, ensuring things happen at the right time, in the right way, with a focus on organizational learning (like after-action reviews).
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Role of Controlling: Interconnected with planning (setting direction), organizing (creating structures) and leading (inspiring effort).
Types of Controls
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Feedforward controls: Implemented before a task begins, aiming to solve problems before they happen. Ensures objectives are clear, proper directions are set, and resources are readily available.
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Concurrent controls: Focus on what happens during a work project. Monitor ongoing operations to maintain alignment with plans, facilitating problem-solving in real time.
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Feedback controls: Occur after tasks are finished. Evaluate the quality of end results, addressing problems that arose and preventing future issues.
The Control Process (Four Steps):
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Step 1: Establish performance objectives and standards (output and input). Output standards measure results (quantity, quality, cost, time, error rates). Input standards measure effort (amount of work).
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Step 2: Measure actual performance. Accurate measurement is key, focusing on identifying significant variation from the original plan.
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Step 3: Compare actual performance with performance standards. Determining need for action. Comparison techniques like engineering, historical, and relative comparisons are employed.
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Step 4: Take necessary corrective action when a difference between desired and actual performance exists. Management by exception prioritizes situations needing the most attention (problem or opportunity).
Control Tools and Techniques
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Project Management: Overall planning, supervision and control over projects.
- Projects: Unique one-time events within defined periods.
- Gantt charts: Graphic displays of tasks required to finish a project.
- CPM/PERT: Critical Path Method/Program Evaluation and Review Technique, combines methods for critical path determination.
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Inventory Control: Ensures inventory only meets immediate needs.
- Economic Order Quantity: New orders when inventory is low.
- Just-in-time Scheduling: Materials arrive when needed.
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Breakeven Analysis: Determines the point where revenues equal costs. "What-if" tool for business decisions.
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Financial Statements: Understanding balance sheets (assets, liabilities, equity) and income statements (revenue, expenses, net income or loss).
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Financial Ratios: Liquidity, leverage, asset management, and profitability ratios, crucial for evaluating a business's financial health.
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Balanced Scorecard: A framework to define goals and measures in areas of financial performance, customer satisfaction, internal processes, and innovation/learning.
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Description
This quiz covers Chapter 9 on control processes and systems in management. It will help you understand various types of controls, their implementation, and their significance in ensuring effective management practices. Test your knowledge on the steps in the control process and the common tools used by managers.
