Class Notes (806,815)
Canada (492,451)
York University (33,494)
ADMS 1500 (43)

Chapter 8 Summary A summary of Chapter 8 includes definitions following the Budgeting chapter (chapter 7).

2 Pages
Unlock Document

York University
Administrative Studies
ADMS 1500
Marcela Porporato

P a g e | 1 Control: - Budget enables budgetary control – used as an objective or standard - If the budget in question is a budget for the whole organization, then the bottom line will be a budgeted profit - Management by exception: idea proposes that once organizational objectives have been set and communicated to organizational members, then a routine process of comparison of actual outcomes with the objectives will reveal one of two states: o the objectives will not have been achieved o management will have an obligation to investigate the situation so that an explanation of the exception can be found Imposed and Participative Budgets: - In order for the budget to be an effective control, it has to have validity (all people involved have to accept it) - Imposed budgets: dictated by the higher levels of management, without the people responsible for carrying it out having any say in what it comprises o Hierarchical approach to management o Danger: may set at an unreasonable level of performance; people may become careless & cease trying b/c of known result of failure - Participative budget: people who have to actually carry out the work engage in an interchange of information with their managers, such that both sides can eventually agree on a budget that is acceptable o Senior managers- Meets organization’s objectives o Operating staff- regard it as reasonable task within capabilities o People controlled by a participative budget will be more motivated to achieve it, and likely to have a more positive attitude toward their work o Sometimes allows people to set unreasonably low standards therefore slacks off Responsibility and Control: - Reasonable assumption that you can hold someone responsible for things they can control, but should not hold them responsible for things over which they have no control - Each manager has responsibility area within which his or her decisions affect the outcomes – can be held accountable for those outcomes through the control process Control in Organizational Sub-Units: - Control in Revenue Centres: responsible for making sales; success/failure may be judged by the difference between bud
More Less

Related notes for ADMS 1500

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.