MARKET 1 Lecture Notes - Lecture 3: Theory Of Planned Behavior, Job Satisfaction, Indian Railways
Document Summary
Trying to identify why things went differently to what was expected/ planned. Exercising control involves finding out where and why things didn"t go according to plan and then seeking ways to put them right for the future. Budgets are the short-term plans to achieve the business" objectives so ensuring they are achieved is essential. Predictions are made as to what can go wrong and steps are then taken to avoid any undesirable outcomes. Steps are taken to get operations back on track as soon as there is a signal that they"ve gone wrong. As it"s better to avoid than having to solve problems, feedforward controls are preferable. However, they require timely and accurate predictions of actual outcomes, which aren"t always available. Flexing the budget: revising the original budget, assuming a different level of output. The original budgeted figures are used, just changed for the volume of output the business have achieved. Taking account for the change in volume of output.
