Exam 19: Basic Elements of Control

A(n)____ is a financial statement that presents a picture of the organization's financial performance over a period of time as opposed to a single point in time.

Strategic controls are concerned with how well the organization aligns itself with the environment.

The financial statement that reflects revenues and expenses over a period of time is the ____________________.

Businesses that use H-form or M-form organizational design may have several ____ who are responsible for helping line managers with their control functions,for coordinating the organization's overall control system,and for gathering and assimilating relevant information.

Describe the steps in the control process.

Match the following.You may use a response once,more than once,or not at all. -Hiring only high school graduates for entry level positions

An after-action report is a screening control.

The purpose of control is to

A properly designed control system can help management anticipate,monitor,and respond to changing circumstances.

Match the following.You may use a response once,more than once,or not at all. -Applied to the transformation stage of an organizational system

Apple iPhones are notorious for cracked screens.When a customer brings one in to an iStore,the employee checks the customer records and may replace the screen for free.Which step in the control process does this represent?

During episodes of the Biggest Loser,contestants compete to lose weight and stay at the ranch,because someone leaves each week.This is an example of a ____ control.

Match the following.You may use a response once,more than once,or not at all. -Profit budget

Politicians transform information from many sources into decisions about policies for the area they govern.When politicians follow poll results during legislative debate,the politicians are using ____ control.

Special Exercises FedEx.The package delivery service is committed to accurate and speedy delivery,along with excellent customer service.Information systems are vital to support the firm's complex operations and enable the delivery of 6 million packages daily.It coordinates 90,000 vehicles,677 airplanes,and 200,000 employees in 220 countries,while also ensuring that the firm meets its goals of accuracy,speed,and service.The chief information officer,Rob Carter,puts the emphasis on effectiveness,quality,and satisfaction rather than on efficiency and cost control.JetBlue.The airline industry is one of the most challenging industries for managers.Yet JetBlue,founded in 2000,became one of the most profitable airlines in the United States.Many credit CEO David Neeleman's dedication to monitoring the airline's performance and his passion for feedback.He jumps on a plane once a week or so,serving drinks and loading baggage.Along the way,he smiles politely at praise,but asks passengers to tell him more about their complaints.No concern is too small or too large,from a desire for better biscotti to a request for flights to Chicago.Neeleman gives employees the autonomy to make customer service decisions immediately."Employees at other airlines get so caught up in procedure⎯rules,rules,rules⎯that they often forget there is a paying customer there," Neeleman asserts.The following is a list of organization design terms.Mark which term best describes these two organizations. -Dynamic structural arrangement

Match the following.You may use a response once,more than once,or not at all. -Sales budget

The last step in the control process is to change the standard.

Multiple standards and information systems provide checks and balances in control and allow the organization to verify the ____________________ of performance indicators.

As the product being produced becomes more complex,which of the following types of operations controls would logically become more important?

A plant manager is told that she has 8,000 labor hours to allocate in a week.This is an example of a(n)____ budget.