Submitted by: Submitted by Zhanrey
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Category: Business and Industry
Date Submitted: 10/23/2014 05:56 PM
Four Characteristics of Organizations Managers Must Control
ELEMENTS OF CONTROL
Control
The process of maintaining conformance of the system.
Steps in the Control Process
Operational Definition – a definition that converts a concept into measurable, objective units
TYPES OF CONTROL
The Controlling Function
Human, material, capital and Within which planned Leading to
financial resources acquired activity occurs results achieved
Preliminary control Concurrent control Feedback control
Preliminary Control
Control method focusing on preventing deviations in the quality and quantity of resources used in the organization.
Four Areas of Preliminary Control
Human Resources – the organizing function defines the job requirements and pre-determines the skill requirements of jobholders.
Job applicants
Materials – the raw materials that are converted into a finished product must conform to quality standards before they are used in the production process.
Capital – the acquisition of capital reflects the need to replace existing equipment or to expand the firm’s productive capacity.
Capital budget – an intermediate and long-run planning document that details the alternative sources and uses of fund.
Investment decisions – managerial decisions that involve the commitment of present funds in exchange for future funds.
Payback Method – calculates the number of years needed for the proposed capital acquisition to repay its original cost out of future cash earnings.
Rate of Return on Investment – one alternative measure of profitability, consistent with methods ordinarily employed in accounting.
Discounted Rate of Return – measurement of profitability that takes into account the time value of money.
Financial Resources – adequate financial resources must be available to ensure payment of...