Exam 17: Introduction to Controlling

Bahrul Kabeer's Control (Scenario) Bahrul Kabeer, Inc., is a statistical software company based in Kuwait. This publicly traded firm has grown in a systematic fashion over its 25 year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. While it is true that world financial markets have been in a free- fall over the past three years, demand for the firm's products has typically been fairly recession- proof in the past. The board of directors is growing increasingly impatient with the management team. The firm's president, Samira is concerned that recent performance indicates that management has lost control of the workforce. She has hired Majid, an expert in control system design, to evaluate Bahrul Kabeer, Inc., and offer suggestions to improve the firm's performance. -Samira has just gotten out of a rough meeting with the board. She is looking to take immediate corrective action by letting a few heads roll in the sales department. She hopes that such a drastic move might light a fire under the remaining sales force. Majid cautions that Bahrul Kabeero's sales management has been perpetually putting out fires over the past 3 years and that it might be wiser to take basic corrective action. Samira asks Majid what he means. Majid explains that basic corrective action __________.

describe the most frequently used organizational performance measures.

The differences seen in organizational control systems of global organizations are primarily in the __________ .

Bahrul Kabeer's Control (Scenario) Bahrul Kabeer, Inc., is a statistical software company based in Kuwait. This publicly traded firm has grown in a systematic fashion over its 25 year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. While it is true that world financial markets have been in a free- fall over the past three years, demand for the firm's products has typically been fairly recession- proof in the past. The board of directors is growing increasingly impatient with the management team. The firm's president, Samira is concerned that recent performance indicates that management has lost control of the workforce. She has hired Majid, an expert in control system design, to evaluate Bahrul Kabeer, Inc., and offer suggestions to improve the firm's performance. -Samira asks how management will know whether the new control system is working. Majid tells Samira that final judgments regarding the effectiveness of a control system rests upon _________.

What common source of information for measuring performance has the disadvantages of being subject to personal biases, time consuming, and obtrusive?

Which of the following ratios measures how efficiently and effectively a firm is using its assets to generate profits?

Deviations that exceed the acceptable range of variation become significant and need the manager's attention.

When a company like the Savola Group establishes a corporate governance committee, it aims at reinforcing the control role played by the company's __________.

Managers of foreign companies tend to be less controlled directly by the home office.

Some control criteria need to recognize _________.

Many managers are tempted to do things themselves and avoid __________ .

list and briefly explain the steps, processes, and best practices managers typically utilize in the control process. Provide examples where appropriate.

Corporate governance is_________ .

Bahrul Kabeer's Control (Scenario) Bahrul Kabeer, Inc., is a statistical software company based in Kuwait. This publicly traded firm has grown in a systematic fashion over its 25 year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. While it is true that world financial markets have been in a free- fall over the past three years, demand for the firm's products has typically been fairly recession- proof in the past. The board of directors is growing increasingly impatient with the management team. The firm's president, Samira is concerned that recent performance indicates that management has lost control of the workforce. She has hired Majid, an expert in control system design, to evaluate Bahrul Kabeer, Inc., and offer suggestions to improve the firm's performance. -Dania was also interested in understanding the company's ability to meet short- term obligations, which meant that Jana had to calculate a(n) _________ratio.

What is defined as the acceptable parameters of variance between actual performance and the standard?

The_________ ratios measure an organization's ability to meet its current debt obligations.

The balanced scorecard is an approach that looks at four areas in the organization, financial, customer, internal processes, and _________ that contribute to a company's performance.

Concurrent control prevents anticipated problems since it takes place before the actual activity.

When organizations "manage" earnings, they "time" income and expenses to enhance current financial performance.

When data are analyzed and processed, they become _________.