Fast Learning Review (Page 103)

1. Define the term ‘controlling’.

 Controlling means it is a management function that involves ensuring that the work
performance of the organization’s members are aligns with the organization’s values
and standards through monitoring, comparing, and correcting their actions.
3. Is management control important for all types of business? Explain your answer.
 Yes, because it makes sure that the firm’s operating cash flow is sufficient, efficient, and
if possible, profitable when invested. It also makes sure that the decision to seek funds
should be appropriate, so as not to incur expenses as well since borrowing would be
subjected to payment of interest. It also makes sure that there is a continuous
monitoring of the organization’s activities, followed by corrective actions based on
previously planned programs of actions. And lastly, it makes sure that tasks are
completed with less errors by comparing these with previously set standards or with
competitor’s standards or standards prevailing in their particular industry setting.

Exercise (Page 109)

1. Describe briefly the three frequently used organizational performance measures; which, in your
opinion, is the beast measure of organizational performance. Defend your opinion by explaining
your choice.
 Performance measures can be grouped into two basic types: those that relate to results
(outputs or outcomes such as competitiveness or financial performance) and those that
focus on the determinants of the results (inputs such as quality, flexibility, resource
utilization, and innovation). This suggests that performance measurement frameworks
can be built around the concepts of results and determinants. For me, I prefer the
determinants of the result such as quality, flexibility, resource utilization, and innovation
because I believe that it all starts from these. I want to focus first on my product to
make it all better and provide the needs of my customer. After planning all necessities
that needs to be provided, then that’s the time I’ll proceed to the relate to results such
as outputs or outcomes such as competitiveness or financial performance to see to it
that my business is doing better and to see if there’s a need of a change or to improve
my business.