Introduction to Management – Chapter 8

control
the process of monitoring activities to ensure that they are being accomplished as planned, and correcting any significant deviations
performance
the end result of an activity
organizational performance
accumulated end results of all the organization’s work activities
productivity
the overall output of goods or services produced divided by the inputs needed to generate that output
organizational effectiveness
a measure of how appropriate organizational goals are and how well an organisation is achieving those goals
control process
3-step process that includes measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards
range of variation
the acceptable degree of variation between actual performance standard
benchmarking
the search for the best practices among competitors or noncompetitors that lead to their superior performance
benchmark
the standard of excellence against which to measure and compare
immediate corrective action
corrective action that corrects problems at once to get performance back on track
basic corrective action
corrective action that looks at how and why performance deviated and then proceeds to correct the source of deviation
feedforward control
a type of control that focuses on preventing anticipated problems, since it takes place before the actual activity
concurrent control
type of control that takes place while an activity is inprocess
management by walking around
a term used to describe a manager who is out in the work area and interacting directly with employees
feedback control
a type of control that takes place after a work activity is done
market control
an approach to control that emphasises the use of external market mechanisms, such as price competition and relative market share, to establish the standards used in the control system
bureaucratic control
an approach to control that emphasises organizational authority and relies on administrative rules, regulations and policies
clan control
an approach to control in which employee behaviour is regulated by the shared values, norms, traditions, rituals, beliefs and other aspects of the organizations culture
organizational culture
a system of shared values, norms and beliefs held by organization members that determines how employees act
strong cultures
organizational cultures in which they key values are deeply held and widely shared
market value added (MVA)
i financial tool that measures the stock market’s estimate of the value of a firm’s past and expected capital investment projects
management information system (MIS)
a system used to provie management with needed info on a regular basis
data
raw, unanalysed facts
balanced scorecard
a performance measurement tool that looks at 4 areas that contribute to an organization’s performance, financial, customer, internal business process and learning and growth assets
corporate governance
the system used to govern a corporateion so that the interests of corporate owners are protected
employee theft
any unauthorised taking of company property by employees for their personal use
service profit chain
the service sequence from employees to customers to profit