The
management function of monitoring performance and adapting work
variables to improve results.
A
control system in which managers intervene to set standards,
monitor performance, decide whether results meet expectations,
and take corrective actions.
A
control system that can be substantially operated without
management intervention once standards are set; monitoring and
corrective actions are performed by the system technology.
The
use of information from recently completed operations to learn
how to improve performance or to avoid repeating mistakes.
The
use of information to project what might occur in the future,
thus allowing managers to take preventive measures.
Controls
used to adjust behavior or operations, such as correcting the
speed and direction of a car.
A
screening technique that yields a "yes" or
"no" (go or no&-go) decision at selected
checkpoints in an operation.
Another
term for "yes/no controls" go/no&-go controls
have fail&-safe standards dictating absolute corrective
action or no action.
Systems
that periodically monitor results "after the fact,"
comparing actual performance with standards to prompt
corrections and thus avoid repeating mistakes in the future.
Designated
places or times during operational activities to measure
progress, sample results, or test products.
A
formal method for rank&-ordering inventory and matching
cost&-effective controls to items with relatively different
values.
Materials
and parts imperative to operations that seldom have substitutes
and therefore require extremely close control.
Materials
and parts that are important and require close control, but can
be replaced even though costly.
Materials
and parts that have many substitutes and are usually inexpensive
to purchase and store; C items are not closely controlled.
Preventive
control measures to guide managers in resource allocations and
other decisions such as hiring, purchasing, and capital funding.
The
process of searching for the best results achieved by other
companies to define objectives and to develop organizational
standards for achieving similar results.
A
financial statement or position statement that summarizes a
firm's assets, liabilities, and net worth at a certain point in
time.
Also
called a profit and loss statement, the income statement is a
financial summary of revenues and expenses with calculations for
profits (or losses) and resulting taxes on operational income.
Computations
of selected data used to analyze performance, track company
results over time, and compare companies to one another.
Plans
expressed in commonly understood numerical terms such as dollars
or units that serve the reciprocal purpose of providing
measurable standards for controlling operations, expenses, and
performance.
A
budget derived from sales data and used to evaluate the
effectiveness of marketing efforts.
A
budget that identifies specific operational costs to evaluate
how efficiently a firm's resources are being deployed.
A
budget that consolidates revenue and expense information to
identify planned net income and to record actual results.
Usually
expressed in nonmonetary terms, an activity budget is used to
plan and control operational tasks.
A
summary budget that shows actual receipts and disbursements from
all sources to identify cash required to remain solvent.
A
budget derived from cash flow projections and capital
expenditure plans to identify how assets can be financed.
A
budget document used to make strategic decisions about
facilities, equipment, technological processes, and other assets
that represent long&-term investments.
The
difference between budgeted results and actual results used to
analyze unacceptable variations, causes, and potential
consequences.
A
work group, department, or division of a company with budgetary
controls focused on relevant and controllable activities.
A
work unit where managers are responsible for controllable
expenses, but not revenues, profits, or investments.
An
organization unit that is evaluated on its ability to generate
operating income, but not income from investments or costs or
profits from operations.
An
organization unit that is held responsible for both costs and
revenues; performance is evaluated in terms of the resulting net
income.
An
organization unit whose managers are held responsible for
capital expenditures and the structure of investments.
(BB)
A process that requires budgeting to start from scratch rather
than build on previous budget allocations.
A
method of separating budget criteria so that "allocations
are tied directly to programs or projects rather than to
functional departments or operating units.
A
method of appraising leadership behavior through surveys,
interviews, and observations of managers, often employing
evaluation teams of peer managers, consultants, and employees.
Evaluation
of organizational activities that have a significant influence
on social responsibility and external relationships.
