KEY TERMS – CHAPTER 18
controllingThe process of monitoring, comparing, and correcting work performance.
market controlAn approach to control that emphasizes the use of external market mechanisms to establish the control standards.
bureaucratic controlAn approach to control that emphasizes organizational authority and relies on administrative rules, regulations, procedures, and policies.
clan controlAn approach to control in which employee behavior is regulated by the organization’s culture.
control processA three-step process including measuring actual performance, comparing actual performance against a standard, and taking managerial action.
range of variationThe acceptable parameters of variance between actual performance and the standard.
immediate corrective actionCorrective action that corrects problems at once to get performance back on track.
basic corrective actionCorrective action that looks at how and why performance deviated and then proceeds to correct the source of deviation.
performanceThe end result of an activity.
organizational performanceThe accumulated end results of all the organization’s work activities.
productivityThe overall output of goods or services produced divided by the inputs needed to generate that output.
organizational effectivenessA measure of how appropriate organizational goals are and how well an organization is achieving those goals.
feedforward controlA type of control that takes place before a work activity is done.
concurrent controlA type of control that takes place while a work activity is in progress.
management by walking aroundA term used to describe when a manager is out in the work area interacting directly with employees.
feedback controlA type of control that takes place after a work activity is done.
economic value added (EVA)A financial tool for measuring corporate and divisional performance, calculated by taking after-tax operating profit minus the total annual cost of capital.
market value added (MVA)A financial tool for measuring the stock market’s estimate of the value of a firm’s past and expected investment projects.
management information system (MIS)A system used to provide management with needed information on a regular basis.
dataRaw, unanalyzed facts.
informationProcessed and analyzed data.
balanced scorecardA performance measurement tool that looks at four areas—financial, customer, internal processes, and people/innovation/growth assets—that contribute to a company’s performance.
benchmarkingThe search for the best practices among competitors or noncompetitors that lead to their superior performance.
employee theftAny unauthorized taking of company property by employees for their personal use.
service profit chainThe service sequence from employees to customers to profit.
corporate governanceThe system used to govern a corporation so that the interests of corporate owners are protected.