Controlling in Organizations

Universidad ContemporáneaLic. en Administración Turística

Quinto cuatrimestreLic. Isabel Arizmendi

October, 2006

Objectives of the lesson:

After studying this chapter you should be able to:– Explain the foundations of control.– Discuss ways that organizations can create effective

controls.– Identify the six steps of the Corrective Control Model.– Describe the Primary types of Organizational

Control.– Discuss Ethical Control Issues confronting

managers.

Tasks:

Read the case “How FedEx Runs on Time”Find the answers for the following questions:– Define:

• Effective Controls• Patterns of Control

– What are the mechanisms used to ensure that behaviors and performance conform to an organization's rules and procedures called?

Tasks:

Find the definition for Corrective Control.Find the definition for Preventive Control.Find the definition for Organizational Control.Explain the term Group Control.What do they mean for:– Make comparisons, diagnosis, correct problems.

Tasks:

How do they call the norms and values that group members share and maintain through rewards and punishments?What is Financial Control?Explain Ratio Analysis.Why is it called Comparative Financial Analysis?Explain the process of Budgeting.

Tasks:

Which are the most common types of budgets?What elements are included when we want to set standards?What are the elements of the primary sources of control in an organization?What elements are involved in the Market control?

Review:

How are planning and control linked?What types of control does FedEx Use?What organizational factors create the need for control?How would you apply the key characteristics of the corrective control model to a Bed & Breakfast?

Review:

What are the primary types of Control?How is each used?Which is the most important? Why?What is activity based costing?How would you apply it to a fast-food restaurant?Do organizations have the right to monitor their employees by computer without their knowledge? Explain.