Managing Chap 10
MGMT 371
FRINK
University of Mississippi
FRINK
University of Mississippi
Terms
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- Control
- The processes for ensuring that behaviors and decisions conform to an organization's standards and legal requirements, including its rules, policies, procedures, and goals.
- Mechanistic controls
- The extensive use of rules and procedures, top-down authority, relatively loose job descriptions, individual self-controls, and other informal methods for preventing and correcting deviations from desired behaviors and results.
- Bylaws
- Document stating the rules of internal governance for a corporation as adopted by its board of directors.
- Ratio analysis
- Involves selecting two significant figures (or a combination of a number of figures), expressing their relationship as a fraction or percent, and comparing the value for two or more periods of time.
- Market controls
- The collection and evaluation of data related to sales, prices, costs, and profits for guiding decisions and evaluating results.
- Return on investment (ROI) Ratio
- Net profit before tax divided by net worth and is a measure of the efficiency of total assets in generating net profits.
- Standards
- Criteria for evaluating qualitative and quantitative characteristics and should be set for each characteristic measured.
- Principle of selectivity
- A small number of characteristics always account for a large number of effects.
- Inventory turnover ratio
- Cost of goods sold divided by dollar value of inventory and is a measure of internal performance.
- Financial controls
- The mechanisms for preventing or correcting the misuse and misallocation of resources, especially monetary resources.
- Individual self-controls
- Comprise the guiding mechanisms that operate consciously and unconsciously within each person.
- Preventive controls
- Mechanisms intended to reduce the likelihood of an unwanted event and thereby minimize the need for corrective action.
- Stakeholder controls
- Expressed as pressures from sources and entities on organizations to maintain or change their behaviors and decisions.
- Automation
- The use of self-regulating devices and processes that operate independently of people.
- Proxy statement
- Document sent by publicly listed corporations to their shareholders that provides material information on corporate matters subject to vote at the general shareholders' meeting.
- Organizational controls
- Comprise the formal policies, rules, procedures, and records for preventing or correcting deviations from plans and for achieving desired goals.
- Sales-to-assets ratio
- Sales divided by total assets and is a measure of asset efficiency in generating sales.
- Chief financial officer (CFO)
- The corporate officer primarily responsible for the strategic management of financial risks and controls of a business
- Corrective controls
- Mechanisms intended to reduce or eliminate unwanted behaviors or results and thereby return the situation to conformity with the organization's regulations and standards.
- Profit sharing
- An individual's compensation may be increased, based on predetermined formula according to the level of earnings by the firm or each of its subsidiaries
- Corporate Governance
- The pattern of relations and controls between the stockholders, the board of directors, and the top management of company.
- Debt-to-worth ratio
- Total liabilities divided by net worth and is a measure of financial risk.
- Machine control
- Self-regulating instruments or devices to prevent and correct deviations from preset standards.
- Budgetary control
- The process of monitoring, comparing, and evaluating actual expenditure levels in various categories in relation to budgeted amounts, and making changes as needed during the budget time period.
- Disclosure
- Public dissemination of important market-influencing information.
- Corporation
- A government-approved form of organization that allows different parties to contribute capital, expertise, and labor for the benefit of all of them.
- Customer monitoring
- Ongoing efforts to obtain feedback from customers concerning the quality of good and services.
- Annual meeting
- A company gathering, usually held at the end of each fiscal year, at which shareholders and management discuss the previous year and the outlook for the future, directors are elected, and other shareholder concerns are addressed.
- Annual report
- Audited document issued annually by all publicly listed corporations to their shareholders in accordance with Securities and Exchange Commission regulations and those of other regulatory bodies, as relevant.
- Internal control
- A process - effected by an organization's board of directors, management, and other personnel - designed to provide reasonable assurance regarding achievement of foals in the various categories.
- Corrective control model
- A process for detecting and eliminating or reducing deviations from an organization's established standards.
- Incentive compensation
- Provides various types of financial rewards based on achievement of defined performance outcomes.
- Group controls
- Comprise the norms and values that group or team members share and maintain through rewards and punishments.
- Board of directors
- The collective group of individuals elected by the shareholders of a corporation to oversee the management of the corporation.
- Current ratio
- Current assets divided by current liabilities and is a measure of short-term liquidity.