Nature of Controlling in Management
24 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What type of standards are easier to measure?

  • Qualitative standards
  • Normative standards
  • Intangible standards
  • Tangible standards (correct)

Planning is considered a meaningless exercise without controlling.

True (A)

What two aspects must a manager identify regarding deviations?

Extent of deviation and cause of deviation

The performance of a manager can be assessed through the attitude of the workers and their ________ to work.

<p>morale</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Deviation = Gap between actual performance and planned targets Controlling = Evaluation of performance against plans Planning = Setting targets and determining how to achieve them Measurement = Assessing performance standards</p> Signup and view all the answers

Which of the following is considered a non-measurable standard?

<p>Worker attitudes (C)</p> Signup and view all the answers

Controlling succeeds planning according to Billy Goetz.

<p>True (A)</p> Signup and view all the answers

What enables the measurement of actual performance?

<p>Reporting</p> Signup and view all the answers

What is the primary purpose of controlling within an organization?

<p>To ensure conformity with plans and efficient resource utilization (C)</p> Signup and view all the answers

What is the primary goal of organizational control?

<p>Achieving profitability (B)</p> Signup and view all the answers

According to Brech, controlling only involves measuring performance without any corrective actions.

<p>False (B)</p> Signup and view all the answers

What are the two main components that strategic assessment involves?

<p>Situation analysis and competitor analysis</p> Signup and view all the answers

Controlling is primarily focused on reviewing past performance only.

<p>False (B)</p> Signup and view all the answers

Controlling measures the deviation of actual performance from the __________ performance.

<p>standard</p> Signup and view all the answers

What does operational control regulate?

<p>Day-to-day output</p> Signup and view all the answers

Match the terms to their definitions:

<p>Objectives = Should run parallel on a timeline Strategy = Provides overall direction to an enterprise Tactics = Involves the actual steps needed to achieve that vision Strategic assessment = Involves situation analysis and competitor analysis</p> Signup and view all the answers

Strategies and tactics are developed with foresight of specific operational __________.

<p>objectives</p> Signup and view all the answers

Which of the following best describes a control process?

<p>Comparison and evaluation (C)</p> Signup and view all the answers

Which of the following best describes tactics in strategic management?

<p>The specific actions taken to achieve strategic goals (C)</p> Signup and view all the answers

Objectives in an organization should only focus on short-term results.

<p>False (B)</p> Signup and view all the answers

Match the components of control with their descriptions:

<p>Condition/Characteristic Sensor = A tool used to monitor business conditions Comparison with Standard = Assessing performance against established benchmarks Implementor = The person or system implementing the control measures Tactics = Practical steps to achieve strategic objectives</p> Signup and view all the answers

What does the term 'strategic management' encompass?

<p>It encompasses the overall direction and goals of an organization, along with tactics for achieving them.</p> Signup and view all the answers

Controlling is a static process that does not require ongoing adjustments.

<p>False (B)</p> Signup and view all the answers

What action should a manager take when deviations from objectives are detected?

<p>Take corrective measures</p> Signup and view all the answers

Flashcards

Control Process

A system for monitoring and measuring performance against set standards, and taking corrective actions to maintain desired results.

What is controlling?

Controlling is the process of ensuring that an organization's activities are aligned with its goals and objectives. It involves monitoring progress, identifying deviations, and taking corrective actions.

Why is controlling important?

Controlling is essential for organizations to utilize resources effectively, achieve planned goals, and ensure that actions are in line with strategic plans.

Operational Control

Focusing on daily operations, ensuring tasks align with schedules, specifications, and cost targets.

Signup and view all the flashcards

Strategic Management

Strategic management is a high-level process that involves setting goals and developing strategies to achieve them. It provides overall direction for an enterprise.

Signup and view all the flashcards

Organizational Control

A broad approach to managing the entire organization, aligning goals and strategy with performance.

Signup and view all the flashcards

Strategic Assessment

Strategic assessment involves a thorough analysis of the internal and external environment to identify opportunities and threats.

Signup and view all the flashcards

Standards

Targets and benchmarks used to measure performance and guide corrective actions.

Signup and view all the flashcards

Objectives

Objectives are specific, measurable, achievable, relevant, and time-bound (SMART) targets that guide the organization toward its overall strategic goals.

Signup and view all the flashcards

Strategies

Long-term plans for achieving organizational objectives, considering the overall business environment.

Signup and view all the flashcards

Tactics

Practical, short-term actions for implementing strategies and achieving objectives.

Signup and view all the flashcards

Tactics

Tactics are the specific actions and steps that are taken to implement and achieve the strategic objectives.

Signup and view all the flashcards

How to implement controlling?

Controlling requires monitoring actual performance against planned standards, identifying deviations, analyzing the causes, and taking corrective actions.

Signup and view all the flashcards

Remedial Actions

Corrective measures taken to address performance deviations from standards.

Signup and view all the flashcards

What is the purpose of controlling?

Controlling aims to ensure that the organization is operating efficiently, effectively, and in accordance with its plans, ultimately leading to the achievement of its objectives.

Signup and view all the flashcards

Controlling: Pervasive Function

The control process is not isolated to one department but applies throughout the entire organization.

Signup and view all the flashcards

Planning

Setting goals and objectives for the future. This includes outlining the steps to achieve those goals.

Signup and view all the flashcards

Controlling

Monitoring actual performance against planned targets and taking corrective action if necessary.

Signup and view all the flashcards

Measurable Standards

Performance criteria that can be quantified and measured, like costs, output, or time.

Signup and view all the flashcards

Intangible Standards

Qualities that are difficult to quantify, like employee attitude or morale.

Signup and view all the flashcards

Deviation

The difference between actual performance and planned targets.

Signup and view all the flashcards

Why Measure Performance?

To identify how far the actual performance is from the planned targets.

Signup and view all the flashcards

How to Measure Intangibles?

Use observations, employee surveys, and feedback to assess intangible aspects of performance.

Signup and view all the flashcards

Revising Targets

Adjusting planned goals based on the actual performance and deviations.

Signup and view all the flashcards

Study Notes

Nature of Controlling

  • Controlling is a process where an organization influences its members to achieve objectives.
  • It ensures activities conform to plans, instructions, and principles.
  • It measures performance against standards, identifies deviations, and facilitates corrective actions.
  • Controlling is based on existing goals and strategies to establish specific objectives for the overall strategic plan.
  • Strategy/Strategic Management involves managerial activities below goal setting and above tactics.
  • It provides direction to an enterprise.
  • Strategic assessment includes situation analysis, self-evaluation, competitor analysis, internal and external micro and macro-environmental factors.
  • Controlling is a systematic process of checking actual performance against standards, to ensure progress, and record experience for future use.

Components of Control

  • Organizations aim for profitability through processes.
  • Organizational control uses goals and strategies to reach optimal operation levels.
  • Control involves reviewing and evaluating overall performance against strategies, tactics, and operations.
  • Strategies and tactics are developed with specific operational objectives in mind.

Operational Control

  • Regulates daily output related to schedules, specifications, and costs needing substantial overhead for management, data collection, and improvement in process.
  • Minimizes costs and produces efficient work.
  • Controlling is an end function.
  • It is a pervasive process, being forward looking and dynamic.
  • It is related to planning.

Processes of Control

  • Establishing standards involves defining targets for business functions or criteria to judge performance.

Classification of Standards

  • Measurable/Tangible standards such as cost, output, and expenditure.
  • Non-measurable/Intangible standards such as manager performance, employee attitudes.

Measurement of Performance

  • Measuring actual performance against standards is crucial.
  • Reports and data collection are used to measure performance.
  • Measuring tangible standards is easier than intangible standards, such as manager performance or worker attitude.

Taking Remedial Actions

  • Identifying deviations and implementing corrective measures are vital.
  • Corrective measures address deviations in organizational performance and can involve adjusting targets.
  • Planning and controlling are intertwined, with planning as the foundation for effective controlling.
  • Planning and controlling are integral to the smooth operation of an enterprise.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Controlling Processes in Business PDF

Description

Explore the process of controlling within organizations through this quiz. Understand how controlling ensures activities align with plans, measures performance, and corrects deviations to achieve strategic objectives. Test your knowledge on the components of control and strategic management principles.

More Like This

Organizational Control Processes Quiz
5 questions

Organizational Control Processes Quiz

HarmlessComprehension avatar
HarmlessComprehension
Control Process in Organizations
23 questions

Control Process in Organizations

FruitfulAestheticism2095 avatar
FruitfulAestheticism2095
Management Chapter 9: Control Processes
32 questions

Management Chapter 9: Control Processes

SimplifiedFractal avatar
SimplifiedFractal
Control Process and Methods
45 questions

Control Process and Methods

PromptSerpentine8050 avatar
PromptSerpentine8050
Use Quizgecko on...
Browser
Open
Browser
Browser