1. Managerial Control
Chapter Sixteen

2. Managerial Control Control
Any process that directs the activities of individuals toward the achievement of organizational goals

3. Symptoms of an Out-of-Control Company
Table 16.1

4. The Control Process
Figure 16.1

5. Characteristics of Control
Table 16.2

6. The Control Cycle Setting performance standards.
Measuring performance.
Comparing performance against the standards and determining deviations.
Taking action to correct problems and reinforce successes.

7. Budgetary Controls Budgeting
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences
also called budgetary controlling.

8. A Sales-Expense Budget
Table 16.4

9. Types of Budgets
Sales
Production
Cost
Cash
Capital
Master

10. Financial Controls Balance sheet
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity.

11. The Profit and Loss Statement
An itemized financial statement of the income and expenses of a company’s operations
Table 16.6

12. Financial Controls Assets Liabilities Stockholders’ equity
The values of the various items the corporation owns.
Liabilities
The amounts a corporation owes to various creditors
Stockholders’ equity
The amount accruing to the corporation’s owners.
Assets = Liabilities + Stockholders’ equity

13. Designing Effective Control Systems
Establish valid performance standards.
Provide adequate information to employees.
Ensure acceptability to employees.
Maintain open communication.
Use multiple approaches.

14. Examples of Market Control
Figure 16.3

15. Management Control in an Empowered Setting
Table 16.7