New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Chapter 15 studyguide

by: Vishal Gulati

Chapter 15 studyguide MGMT 340

Vishal Gulati
GPA 3.0

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

My notes with the teachers
Introduction to Organizations
Peter B. Thompson
Class Notes
Management340, Chapter15
25 ?




Popular in Introduction to Organizations

Popular in Management

This 4 page Class Notes was uploaded by Vishal Gulati on Tuesday September 13, 2016. The Class Notes belongs to MGMT 340 at University of Illinois at Chicago taught by Peter B. Thompson in Fall 2016. Since its upload, it has received 9 views. For similar materials see Introduction to Organizations in Management at University of Illinois at Chicago.


Reviews for Chapter 15 studyguide


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/13/16
Chapter 15  15­1 The meaning of control ● Control is simply problem solving ● Organizational control is the systematic process through which managers  regulate organizational activities to meet planned goals and standards of  performance. 15­2a steps of feedback control  ●  feedback control model helps managers meet strategic goals by monitoring and  regulating an organization’s activities and using feedback to determine whether  performance meets established standards. ● Tracking such measure a customer service, product quality, or order accuracy ● Standards should be defined clearly and precisely  ● ● ● ● ● ● ● ● ● ● ● Exhibit 15.1­ diagnose  the cause 15­2b The balanced Scorecard ● The balanced scorecard is a comprehensive management control system that  balances traditional financial measures with operational measures relating to a company’s critical success factors. ○ 4 major perspectives: financial performance, customer service,  internal business processes, and the organization’s capacity for learning and  growth. ● 3 legs of the stool  ● Exhibit of the stool ● Movie idiocracy­ people don't learn from mistakes ● If you don't satisfy all three.. Then you will fail ● potential for learning and growth ● As with all management systems, the balanced scorecard is not right for every  organization in every situation ● Story about burnt toast: Customer doesn't like burnt toast so employee scrapes it  out but next customer is the same so now the employee has to figure out why the toast  was burnt. LEARN FROM YOUR MISTAKES ● Links targets and measurements to corporate strategy  15.3 Budgetary control ● Definition: Process of setting targets for an organization's expenditures,  monitoring results and comparing them to the budget, and making changes as needed ●  A responsibility center is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity. 15­3 a expense budget ● An expense budget includes anticipated and actual expenses for each  responsibility center and for the total organization ● expense budgets help identify the need for further investigation but do not  substitute for it. 15­3b revenue budget ● A revenue budget lists forecasted and actual revenues ● venues below the budgeted amount signal a need to investigate the problem to see whether the organization can improve revenues.  ● In contrast, revenues above budget would require determining whether the  organization can obtain the necessary resources to meet the higher­than­expected demand for its products or services. 15­3c Cash budget ● The cash budget estimates receipts and expenditures of money ● If the cash budget shows that the firm has more cash than necessary to meet short­ term needs, the company can arrange to invest the excess to earn interest income.  ● In contrast, if the cash budget shows a payroll expenditure of  coming at the end  of the week but only  in the bank, the organization must borrow cash to meet the payroll. 15­3d capital budget  ● Capital budget lists planned investments in major assets such as buildings, heavy  machinery, or complex IT systems, often involving expenditures ● Like how UH is being repaired because it is different cash. 15­e zero­based budget ● Is an approach to planning and decision making that requires a complete  justification for every line item in a budget, instead of carrying forward a prior budget  and applying a percentage change ● Between thompson and wife make 100000 and <80000> in expenses so 20000 ● Next year thompson and wife make 105000 and <84000> in expenses so 21000 ● Zero based is saying get rid of the and starting from scratch ● Top down budgeting ○ The budget amounts for the coming year are made by middle and  lower level managers ● Bottom up budgeting ○ Lower level managers anticipate their departments’ resource needs  and pass them up to top management approval Accounting terminology  GAAP­­ generally accepted accounting principles  Profits and cash are not necessarily the same number  Income statements­ money coming in, money coming out 15­4B Financial analysis: Interpreting the numbers ● A manager's needs to be able to evaluate financial reports that compare the  organization's performance with earlier data on industry norms 15.5 ratios ● The liquidity ratio indicates an organization's ability to meet its current debt  obligations  ○ Current ratio = current assets/current liabilities ○ Quick ratio= (cash + accounts receivable)/ current liabilities ● Activity ratio measure internal performance ○ Inventory turnover = total sales/ average inventory ○ Conversion ratio= purchase orders/ customer inquiries ● Profitability ratios describes the firm's profits relative to a source of profits ○ Profit margin on sales= net income/ sales ○ Gross margin = gross income/ sales ● The balance sheet shows the firm’s financial position with respect to assets and  liabilities at a specific point in time. ● The income statement summarizes the firm’s financial performance for a given  time interval.


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.