1.COSTS(Please match the letters with the phrases posted below them.)

A. direct (i.e., paying for an accountant for an audit) and indirect (i.e., people such as internal quality control the organization employs whose primary function is related to control).

B. -the intangible costs associated with any form of control. Examples include damaged relationships with employees, or tarnished reputation with investors or government.

C. downtime between a decision and the actions required to implement it due to compliance with controls.

D. implementation is botched or the implementation of a new control conflicts with other controls

Culture and reputation costs

Responsiveness costs

Poorly implemented controls

Financial costs

2. BENEFITS (match them)

E. ensures that the firm functions effectively and efficiently.

F. contributes to cost control (i.e., fewer defects, less waste), customer satisfaction (i.e., fewer returns), and greater sales (i.e., repeat customers and new customers).

G. helps managers identify and isolate the source of positive surprises, such as a new growth market. Though opportunities can also be found in internal comparisons of cost control and productivity across units.

H.keeps the organization focused on its strategy, and helps managers anticipate and detect negative surprises and respond opportunistically to positive surprises.

I.allows the organization to be more responsive by moving decision making to those closest to customers and areas of uncertainty.

Opportunity recognition

Decentralized decision making

Quality control

Manage uncertainty and complexity

One is missing... which one?

3. TYPES OF CONTROL:Provide an example of each below.Is your example a behavioral control or an outcome control?

Feed-forward

Concurrent

Feedback

4. FINANCIAL VS. NON-FINANCIAL CONTROLS

a. Financial: What are the three basic financial statements?

b. Non-financial can be categorized as:

Human Resources

Marketing

Production

Purchasing

Research and Development

Customer Service

What category above does each of the non-financial controls below fall under? For example, what department would mosts likely measure average turnover?

Average tenure

Turnover

Brand power

Number of defects

Capacity utilization

Employee satisfaction

Number of employees with PhDs

Average complaint response time

Quality of purchased inputs

New products launched

Product returns

New patents

Customer satisfaction

Average wait time

New products introduced by suppliers