Business Management II 1.01 Review

Managerial control is the management function that involves

• providing guidance to workers and work projects

• setting up the way the business’s work will be done

• deciding what will be done and how it will be accomplished

• monitoring the work effort by comparing actual results to standards.

An effective control system must

• be based on accurate information.

• apply only to a select few employees

• involve complicated language and complex steps

• require that new work processes be established

Controls help managers make informed decisions by

• improving efficiency and reducing errors

• keeping organizations on track to meet their goals

• providing evidence and facts needed for decision-making.

• encouraging higher employee performance

The first step in the managerial control process is

• determining standards of excellence.

• comparing performance with standards

• measuring performance

• taking corrective action

Number of sales, number of defects, length of time needed to complete a task, and how much a product costs are all examples of

• human resources controls

• financial analysis tools

• standards used to measure results.

• methods for taking corrective action

Employee self-reporting, automatic data collection and analysis, and meetings are all methods that managers can use to

• take corrective action

• set standards of excellence

• compare performance with standards

• measure the organization’s performance.

Which of the following is an example of a control related to products/production:

• Financial statements

• Quality checks.

• Data security training

• Performance reviews

Balance sheets, break-even analysis, and cash flow analysis are all examples of controls relating to

• technology

• human resources

• marketing

• finance.

Introducing a product to a limited group of customers to see what its acceptance will be is an example of a(n) __________ control.

• technology

• product/production

• marketing.

• human resources

When determining which controls to implement, managers should

• avoid thinking about the implications

• attempt to spend as much money as possible

• consider the company budget.

• create more needs for controls to fill