Chapter 16

Managerial Control:

*Control:
-Any process that directs the activities of individuals toward the achievement of organizational goals.

 *Out of Control Company:

*The Control Process:

 

*Characteristics of Control:

*The Control Cycle:
1. Setting performance standards.
2. Measuring performance.
3. Comparing performance against the standards and determining deviations.
4. Taking action to correct problems and reinforce successes.

*Budgeting Controls:
-The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences
also called budgetary controlling.

*Sales Expense Budget:

 *Budget Types:

*Financial Controls:
-Balance Sheet:
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity.

*Profit and Loss Statement:
-An itemized financial statement of the income and expenses of a company’s operations.

*Financial Controls:
-Assets: The values of the various items the corporation owns.
-Liabilities: The amounts a corporation owes to various creditors.
-Stockholders’ equity: The amount accruing to the corporation’s owners.

*Designing Effective Control Systems:
1. Establish valid performance standards.
2. Provide adequate information to employees.
3. Ensure acceptability to employees.
4. Maintain open communication.
5. Use multiple approaches.
*Market Control:

 *Management Control in an Empowered Setting: