BBA102 Lecture Notes - Lecture 11: Balanced Scorecard, Customer Satisfaction, Income Statement

• School: Macquarie University
• Department: Business Administration
• Course: BBA102
• Professor: All

Document Summary

Part 1; understanding management control and its importance. Cybernetic control system is self-contained in its performance monitoring and correction capabilities. The control process practiced in social settings including those of organisations is not cybernetic, but does follow similar principles. Controlling is defined as monitoring performance, comparing it with goals and taking corrective action as needed. It is part of the 4 functions of management, they all lead to productivity. Adapt to change and uncertainty : environmental changes such as technology, consumer tastes, government regulations etc control systems can help managers anticipate, monitor and react to these changes. Discover irregularities and errors : cost overruns, manufacturing defects, employee turnover, bookkeeping errors and customer dissatisfaction. Reduce costs, increase productivity or add value : labour costs, eliminate waste, increase output and increase product delivery cycles, add value so customers choose it over rivals. Detect opportunities : hot selling products, competitive prices on materials, changing population trends, new overseas markets.