Describe the three key steps in the control process.
What will be an ideal response?
Answers will vary. Controlling means monitoring performance of the firm-or individuals within the firm-and making improvements when necessary. The control process includes three key steps:Establishing clear standards: Establishing clear standards-or performance goals-begins with planning. At every level of planning, objectives should emerge that are consistent with the company's mission and strategic plan. The objectives must be specific and measurable, realistic but challenging, and tied to a time frame. Individual managers may need to break these goals into smaller parts for specific employees, but the subgoals should retain the same three qualities as the original objective.Measuring performance against standards: Measuring performance against standards should happen well before the end of the time frame attached to the goal. A strong information-tracking system is probably management's best tool in this phase of the control process.Taking corrective action if necessary: If the company or individual is not on track to meet the goals, management's first response should be communication. Employees with full information are far more likely to improve their performance than employees who never learn that they're falling behind. But sometimes workers need more than information-they may need additional resources or coaching to meet their goals. Given the expense in both human and financial terms, disciplining employees for poor performance should come only after exploring the reasons for not meeting goals and making changes if necessary.
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To take advantage of increased customer demand, a hair salon may use all the following strategies EXCEPT
A. keeping the salon open for longer hours. B. storing inventories of salon services in warehouses. C. creating a larger store with more capacity. D. hiring more specialists. E. opening additional stores.
Investors who buy mutual funds that have had large gains over the last few years are exhibiting a tendency known as
A) overconfidence. B) narrow framing. C) loss aversion. D) representativeness.
A merger occurs when two corporations combine to form a new corporation
Indicate whether the statement is true or false
Which of the following comprises a family business?
A. A firm in which no family members are involved in the management of the business B. A firm in which two or more families own a stake in a company but with no authority for daily management C. A firm in which two or more families are involved in the occasional management of the business D. A firm in which one family owns a majority stake