Chapter 14 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Effective control systems maximize potential benefits and minimize dysfunctional behaviors. To achieve this, management needs to design control systems that meet several criteria:
The systems are based on valid performance standards.
They communicate adequate information to employees.
They are acceptable to employees.
They use multiple approaches.
They recognize the relationship between empowerment and control.
answer
Effective control systems maximize potential benefits and minimize dysfunctional behaviors. To achieve this, management needs to design control systems that meet several criteria:
question
valid____accurate
answer
An effective control system must be based on ______ and _______performance standards.
question
objective ____ subjective
answer
the most effective standards tend to be expressed in quantitative terms; they are _______ rather than _______.
question
overcontrol and _______ resistance.
answer
Management also must defend against problem: too many measures that create ___________and employee ________.
question
balanced scorecard
answer
control system combining four sets of performance measures: financial, customer, business process, and learning and growth ; GOAL is to broaden managment horizon beyond short term goals
question
1.Financial.
2.Customer satisfaction.
3.Business processes (quality and efficiency).
4.Learning and growth.
answer
balanced scorecard, a combination of four sets of performance measures:43
question
When output from an individual, department, or business unit has value to other people, a price can be negotiated for its exchange.
answer
what are the Market controls involve the use of economic forces—and the pricing mechanisms that accompany them—to regulate performance?
question
Price becomes an indicator of the value of the good or service.
Price competition has the effect of controlling productivity and performance.
answer
What are the effect of Market control?
question
corporation
individual
answer
The basic principles that underlie market controls can operate at the level of the ________, the business unit (or department), and the_______.
question
1. criticized by those who insist that economic measures do not adequately reflect environmental sustainability or the complete value of an organization. 2. Employees often suffer as diversified companies are repeatedly bought and sold based on market controls.
answer
What are the critisicm of the use of market control?
question
exchanges
answer
market control also can be used within business units to regulate __________ among departments and functions.
question
transfer price
answer
price charged by one unit for a good or service provided to another unit within the organization (MArket control buiness unit)
question
Employees' jobs have changed. Because of this, there is no one best way to perform a task, and programming or standardizing jobs is extremely difficult. Close supervision also is unrealistic because it is nearly impossible to supervise activities such as reasoning and problem solving.
The nature of management has changed. Today, with the shift to knowledge work, employees typically know more about their jobs than anyone else does. When real expertise in organizations exists at the very lowest levels, hierarchical control becomes impractical.48
The employment relationship has changed. The social contract at work is being renegotiated. Today, however, more and more employees want to be more fully engaged in their work, taking part in decision making, devising solutions to unique problems, and receiving assignments that are challenging and involving.
answer
Managers are discovering that control systems based solely on bureaucratic and market mechanisms are insufficient for directing today's workforce. There are several reasons:
