Chapter 7 controlling

• Controlling is a management function involves ensuring the work performance of the organization's values and standards through monitoring, comparing and correcting their actions
• Standard Any established measure of extent quantity, quality or value
• Control Techniques is used for controlling financial resources, office management, quality assurance and others are essentially the same
• Establishing standards means setting criteria for a performance.
• Measuring and reporting actual performance and comparing it with set standards is essentially the monitoring of performance
• Taking action involves the correction of deviation from a set standards. This activity clearly show the control function of management
• Double entry accounting is a accounting strategy of some firms which requires the preparation of two different accounting reports, one for internal use and another for external use
• Dual entry is the process of journalizing with debit and credit entries
• Liquidity is the organization's ability to meet short-term obligations
• Pro forma financial statement which serves as a forecast of the Balance sheet, Income statement, and cash flow statement in order to make in projections. This may be used as an aid to present plans to creditor and future investors, but primarily, it is used for internal planning and control purposes.
• Balance sheet is a financial statement which is defined by most accounting books as the "snapshot" of any entity's financial condition because it present the
• Long-range planning reports may include five to ten year projection for the company and it's major business segments
• Specialized planning control reports may include effect of cost reduction programs, production issues in Cost or quality terms, cash flow plans for line of credit agreements, evaluation of pension of termination costs in plant costing, contingency and downsizing plans and appraisal of risk factors in long-term contracts
• Income statement is also know as the profit and loss statement, revenue and expenses statement of financial performance, or earnings statement.
• The statement of cash flow/cash flow statement summarizes the inflow and outflow of cash during a given period.
• The statement of cash flow/cash flow statement summarizes the inflow and outflow of cash during a given period.
• Inflow activities are those that result in providing the firm with sources of funds
• Outflow activities result in cash leaving the firm due to disbursement or expenses that utilize cash.
• Organizational productivity is the amount of good or services produced (output) divided by the inputs needed to produce the said output.
• Organizational effectiveness is a measure of the organizational goal's suitability to organizational needs and how well these said goals are being attained
• Rankings in industry is a way commonly used by managers to measure organizational performance.
• Bureaucratic control makes use of strict rules, regulations, policies, procedures, and orders from authority.
• Negative performance is a given to human resources who do not comply with the said control measures
• Clan control is based on compliance with norms, values, expected behavior related to the firm's organizational culture, and other cultural variables of the country where the company is located.
• Positive performance is ratings are given to employees it teams who quickly adopt to possible changes if norms and values in the firm's internal and external environment
• Control methods is a techniques used for measuring and organization's financial stability, efficiency, effectiveness, production, output, and organization members attitudes and morale.
• Quantitative control methods -methods which make use of an data and different tools expressed in members for monitoring and controlling production output.
• Non-quantitative methods which make use of tools such as inspections, reports, direct supervision, performance evaluation and on-the-spot checking to accomplish goals.
• Charts is used as control tools normally contrast time and performance.
• Budgets is a remain the best known control device.
• Audits or internal auditing involves the independent review and evaluation of the organization's nontactical operations, such as accounting and finances.
• Feedforward control prevents problem because of managerial action is taken before the actual problem occurs.
• Concurrent control takes place while work activity is happening. The best example of this type of control us direct supervision or management by walking around.
• Feedback control that takes place after the occurrence of the activity
• Project management control ensures that the task of getting a project's activities done on time, within the budget, and according to specifications, is successfully carried out.
• Employee discipline control is a challenge for managers
• Management control - control use of balance sheet, income statements, cash flow statements to analyze and examine financial statements in order to determine the company's financial soundness and viability, as well as financial ratios to determine the organization's stability.
• Strategic control is a systematic monitoring at control points in strategic plans that may tend to change in the organization's strategies
• Macroeconomic business environment is a business environment that includes or considers economic aggregates such as national income, total volume of savings, and money supply.
• Sales is considered to be the "lifeblood of the business".