CHAP 9: FOUNDATION OF CONTROL

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CHAP 9: FOUNDATION OF CONTROL by Mind Map: CHAP 9: FOUNDATION OF CONTROL

1. 3RD STEP

1.1. Taking Corrective Action

1.1.1. Immediate Corrective Action

1.1.1.1. corrects problems at once to get performance back on track

1.1.2. Basic Corrective Action

1.1.2.1. looks at how and why performance deviated before correcting the source of deviation

1.2. Managers can choose among three possible courses of action

1.2.1. do nothing

1.2.2. correct the actual performance

1.2.3. revise the standards.

2. 3 TYPES OF CONTROL

2.1. Feedforward Control (most desirable)

2.1.1. prevents problems before it takes place

2.2. Concurrent Control

2.2.1. takes place while a work activity is in progress

2.3. Feedback Control (most popular)

2.3.1. Control that takes place after a work activity is done

3. Financial controls

3.1. ratio analysis

3.1.1. Liquidity ratios (Tỷ lệ thanh khoản)

3.1.1.1. measure an organization’s ability to meet its current debt obligations

3.1.2. Leverage ratios

3.1.2.1. examine the organization’s use of debt to finance its assets and whether it’s able to meet the interest payments on the debt

3.1.3. Activity ratios

3.1.3.1. assess how efficiently a company is using its assets.

3.1.4. Profitability ratios

3.1.4.1. measure how efficiently and effectively the company is using its assets to generate profit

3.2. budget analysis

4. Control Organization’s Information

4.1. 2 ways

4.1.1. as a tool to help them control other organizational activities

4.1.2. as an organizational area they need to control

4.2. Management Information System (MIS)

4.2.1. A system used to provide management with needed information on a regular basis

4.2.2. can be manual or computer based

5. Balanced Scorecard

5.1. a way to evaluate organizational performance from more than just the financial perspective

5.2. typically looks at four areas that contribute to a company’s performance

5.2.1. financial

5.2.2. customer

5.2.3. internal processes

5.2.4. people/innovation/growth assets

6. What is Control?

6.1. The management function that involves **monitoring activities ** to ensure that they’re being accomplished as planned and correcting any significant deviations

7. Control Process

7.1. A three-step process of measuring actual performance

7.1.1. comparing actual performance against a standard

7.1.2. taking managerial action

7.1.2.1. to correct deviations

7.1.2.2. to address inadequate standards

8. 1ST STEP

8.1. Measuring

8.1.1. Four common sources of information frequently used to measure actual performance are

8.1.1.1. personal observation

8.1.1.2. statistical reports

8.1.1.3. oral reports

8.1.1.4. written reports

9. Management By Walking Around (MBWA)

9.1. when a manager is out in the work area, interacting directly with employees, and exchanging information about what’s going on.

9.2. Management by walking around can pick up factual omissions (thiếu sót về mặt thực tế) , facial expressions, and tones of voice that may be missed by other sources.

10. 2ND STEP

10.1. COMPARING

10.1.1. determines the variation between actual performance and the standard

11. Contemporary Control Issues

11.1. Employee Theft

11.1.1. for their personal use

11.2. Workplace Violence