Exam 17: Introduction to Controlling

There are no company rankings in the Arab world similar to Fortune's "Best Companies to Work For".

Direct supervision is the best- known form of concurrent control.

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. -After clearing up questions regarding measurement issues, Majid tells Samira that the next step in the control process is __________ .

Understating sales is not nearly as troublesome as overstating them.

Which of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?

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. -Majid is adamant in telling Samira that what management measures is much more critical to the control process than how it is measured. Samira asks why Majid feels so strongly about this. Majid responds that what the organization measures_________ .

The first step in the control process is _________.

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using __________ _.