Control

Question 1

Control

Answer 1

Last step in the administrative process.
Linked to planning.
Measures and corrects subordinates performance to ensure objectives are met.

Question 2

Elements

Answer 2

1. Standard parameters are stablished
2. Organizational performance is measured
3. Standards and performance are compared
4. Deviation analisys and measures are taken

Question 3

Why control?

Answer 3

Scope for errors is limited 
Changes can be followed 
Necessary to achieve objectives
To be effective it must be: 
- understood by all
- designed within organizational structure
- flexible
- effective as a decision tool

Question 4

Types of control

Answer 4

• time
• resources
• functional area
• impact on different levels in the organization

Question 5

Strategic, tactic and operational control

Answer 5

Strategic:                            
Organization as a White
Strategic objectives
Strategic map
Influenced by stability ir turbulence 

Tactic:
Evaluate and regulate functions to implement strategy
Financial control
Human resource control
Supervision 
Budget

Operational:
Activities needed to produce goods and services
Inputs
Outputs
Transformation

Question 6

Budget

Answer 6

To value all the different types of control, financial units are used:

• liquidity
• general financial situation
• profitability

Question 7

Budget objectives

Answer 7

• obtain information for planning
• planning
• coordination between areas of the organization
• comunicating managers objectives to operational divisions
• motivate those responsable
• control

Question 8

Budget advantages

Answer 8

• leads to evaluation
• made in monetary terms
• stablish a relationship between capital and profits
• most common tool

Question 9

Budget process

Answer 9

1. Development
2. Approval
3. Implementation
4. Control

Question 10

Deviation analysis

Answer 10

Budget vs. Reality
3 situations:
-budget = reality: no deviation
-budget > real result: negative deviation
-budget < real result: positive deviation