14
Chapter
Foundations
of Control
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Learning Outcomes
• Explain the nature and importance of control.
• Describe the three steps in the control process.
• Discuss the types of controls organizations and
managers use.
• Discuss contemporary issues in control.
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14.1
Explain the nature
and importance of
control.
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The Communication Process
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The Importance of Control
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14.2
Describe the three
steps in the control
process.
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The Control Process
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Measuring Performance
Sources of information:
• Personal observation
• Statistical reports
• Oral reports
• Written reports
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Criteria for Measurement
What managers measure is probably more important to the
control process than how they measure.
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Range of Variation
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Comparing Performance to Goals
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Correcting Performance
• Immediate corrective action
• Basic correction action
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Revising Standards
If performance consistently exceeds the goal,
then the goal may need to be raised.
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14.3
Discuss the types
of controls
organizations and
managers use.
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Feedward Control
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Concurrent Control
Control that takes place while a work activity
is in progress.
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Feedback Control
Control that takes place after a work activity is
done.
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Keeping Track of an Organization’s
Finances: Ratio Analysis
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Keeping Track of an Organization’s
Finances: Budget Analysis
Budgets are used for both planning and
controlling.
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Keeping Track of an Organization's
Information
Management information system (MIS):
A system used to provide management with
needed information on a regular basis.
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Keeping Track of Employee
Performance
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Keeping Track with a Balanced
Scorecard Approach
•
•
•
•
Financial
Customer
Internal Processes
People/innovation/growth assets
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14.4
Discuss
contemporary
issues in control.
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Contemporary Issues
1. Cross-cultural differences
2. Workplace concerns
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Cultural Differences
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