Organizational Behavior Controls Quiz

Study Notes

This chapter introduces the concept of control in management
Controlling is the process of measuring performance and taking action to ensure desired results are accomplished and improve performance
Continuous adjustment is necessary to keep the management process on track
Controlling ensures that the right things happen in the right way, at the right time
The benefit of control is organizational learning
A common example of organizational learning includes after-action-reviews

Controlling is essential for ensuring desired results
The controlling process has a positive and necessary role in the management process
It involves continuous adjustment to ensure things go right
It makes certain the correct things happen in the right way, at the right time
The controlling process includes four steps:
- Establish performance objectives and standards
- Measure actual performance
- Compare actual performance with objectives and standards
- Take necessary action
Control process steps should be followed in a cyclical pattern

Feedforward controls: Implemented before a work activity begins to anticipate problems and prevent them
- Ensuring that objectives are clear, proper directions are established, and correct resources are available
- Preventative in nature
Concurrent controls: Occur during the work process to ensure plans are followed
- Monitor ongoing operations to ensure they are done according to plan and using direct supervision
- Aims to solve problems as they occur
Feedback controls: Take place after the work is completed and focuses on the quality of end results
- Correcting problems after they happen and preventing future ones

Internal controls: Allow motivated individuals and groups to exercise self-discipline and fulfill job expectations.
- Self-control: Internal control through self-discipline for fulfilling work and personal goals, responsibilities, and self-management.
- Trust: Important factor in internal control
External controls: Based on personal supervision or formal administrative systems
- Bureaucratic control: Influences behavior through authority, policies, procedures, job descriptions, budgets, and daily supervision.
- Clan control: Influences behavior through norms and expectations from an organizational culture and shared values
- Market control: Market competition influences organizational behavior and members

Project management: Overall planning, supervision and control of projects.
- Projects: Unique one-time events occurring within a defined period
- Gantt chart: Graphic representation of planned tasks in a project
- CPM/PERT: A combination of Critical Path Method and Program Evaluation and Review Technique techniques used in project management
Inventory control: Aims to ensure inventory is only as high as required to satisfy immediate needs
- Economic Order Quantity (EOQ): Determining optimal quantities to order when inventory levels are at a pre-determined point.
- Just-in-time scheduling (JIT): Route materials to workstations just when they are needed
Breakeven analysis: Analysis of where revenues equal cost.
- Breakeven point (BEP): The point where total revenues equal total costs
- Calculate breakeven point for different conditions
Financial controls: Basic foundations of Balance Sheets and Income Statement
- Balance sheet: Show assets, liability, and owner's equity at a given point in time
- Income statement: Shows profit/loss during a specified period. (e.g., month, quarter, year)
Balanced Scorecard: Scores (records) the organization's performance in:
- Financial performance
- Customer satisfaction
- Internal process improvement
- Learning and growth