Chapter 1: Management & Control

Question 1

How can management be defined an divided?

Answer 1

Functions:
- Product / Service Development
- Operations
- Marketing / Sales
- Finance

Resources:
- People
- Money
- Machines
- Information

Processes:
- Objective Setting
- Strategy Formulation
- Management Control

Question 2

What are the basic functions of control systems?

Answer 2

• Strategic control (external focus)
• Management control (internal focus)

=> necessary to guard org. against people do things, they should not

Question 3

What are the causes of management control problems?

Answer 3

• Lack of direction
• Motivational problems
• Personal limitations

Question 4

Where is the optimal amount of control?

Answer 4

Between good and perfect control

=> sweetspot: control losses < cost of implementing more controls

=> must be future and objectives driven

Question 5

What are the 4 strategies to avoid control problems?

Answer 5

• Active elimination
• Automation
• Centralisation
• Risk Sharing