Management and Quality Control

Data regarding performance is gathered to detect problems.

A standard can be defined and more precisely it can be measured.

If managers gather too little information, there will not be enough data to detect problems.

Good controls are bias so that employees are not evaluated fairly.

Reduces efficiency and prevents employees from meeting their objectives.

Measures are in place to limit errors and ensure smooth workflow

Outlines what is expected of the employee or organizational unit.

Managers should address the cause of a problem rather than simply try to fix the symptoms.

Performance may decline slightly during the learning period.

A management control system helps managers identify need for change when a problem is detected.

Can show up in many ways, including incorrect estimates of demand for a product or service.

A budget is a statement of expected results or requirements expressed in financial terms.

Occurs when the output of a system is used to drive its subsequent operation.

A budget is a statement of expected results or requirements expressed in financial terms.

Only middle managers are accountable for performance in their department.

Good managers use controls to give them information to monitor the progress of their activities

Three req. for controls: Setting standards, Monitoring performance and Correcting deviations.

Controls allow managers to react quickly to a changed environment

Look at a business activity, compare it to what is supposed to be and addressing any problem.

Outside the organization can include anything from new govt. regulations to natural disasters.

Simply means differences in the standard product, service or activity.

Leaves employees wondering what is expected of them. Managers may not be aware of issues.

Controls cannot protect assets from waste and theft.