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Chapter8Foundationsof Control
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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14.1Explain the nature and importance of control.
The Communication Process
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The Importance of Control
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14.2Describe the three steps in the control process.
The Control Process
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Measuring Performance
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Sources of information:• Personal observation• Statistical reports• Oral reports• Written reports
Criteria for Measurement
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What managers measure is probably more important to the control process than how they measure.
Range of Variation
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Comparing Performance to Goals
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Correcting Performance
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• Immediate corrective action• Basic correction action
Revising Standards
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If performance consistently exceeds the goal, then the goal may need to be raised.
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14.3Discuss the types of controls organizations and managers use.
Feedward Control
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Concurrent Control
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Control that takes place while a work activity is in progress.
Feedback Control
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Control that takes place after a work activity is done.
Keeping Track of an Organization’s Finances: Ratio Analysis
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Keeping Track of an Organization’s Finances: Budget Analysis
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Budgets are used for both planning and controlling.
Keeping Track of an Organization's Information
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Management information system (MIS):A system used to provide management with needed information on a regular basis.
Keeping Track of Employee Performance
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Keeping Track with a Balanced Scorecard Approach
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• Financial• Customer• Internal Processes• People/innovation/growth assets
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14.4Discuss contemporary issues in control.
Contemporary Issues
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1. Cross-cultural differences2. Workplace concerns
Cultural Differences
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Controlling Technology Usage
Is my work computer really mine?
Do I have a right to privacy at work?
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Controlling Employee Theft
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Controlling Workplace Violence
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