ADMN 232 Chapter Notes - Chapter 7: Global Positioning System, Cash Flow, Balanced Scorecard
Document Summary
Chapter 7: control is important because there is so much at stake when a company fails to meet standards, comparison to standards: The next step in the control process is to compare actual performance to performance standards. The better the system, the easier it is for companies to track their progress and identify problems that need to be fixed: corrective action: The next step in the control process is to identify performance deviations, analyze those deviations, and then develop and implement programs to correct them: dynamic, cybernetic process: Control is a continuous, dynamic, cybernetic process. Control begins by setting standards, measuring performance, and then comparing performance to the standards. If the performance deviates from the standards, then managers and employees analyze the deviations and develop and implement corrective programs. Cybernetic: the process of steering or keeping on course: feedback, concurrent, and feedforward control: Feedback control: a mechanism for gathering information about performance deficiencies after they occur.