Operations managementLesson 5 of 5 in the course Organizational Planning and Controlling

Planning and Control: Employee Involvement, MBO, and Global Business Risk

5 flashcards · 5 quiz questions · 5 match pairs · 4 fill-in sentences · English

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Summary

Planning and controlling are carried out differently depending on how much authority and responsibility employees have. This lesson compares control-oriented management, where the hierarchy directs much of the work, with involvement-oriented management, where employees participate actively.

In a control-oriented approach, planning and controlling are generally concentrated in the management hierarchy. In a mechanistic organization, managers—often those above the level where work is performed—create plans, set expectations, and monitor whether employees follow them.

All flashcards

Control-oriented management
An approach that concentrates planning and monitoring mainly in the management hierarchy, with employees primarily carrying out directives.
Management by objectives (MBO)
A system in which managers and employees establish objectives and use them to guide and assess work.
Planning and control under uncertainty
Greater uncertainty and rapid change often encourage planning and control closer to where work is carried out.
Currency exposure
The risk that exchange-rate movements will affect a firm's costs, revenue, or profitability.
Cryptocurrency and blockchain
Blockchain is a transaction-recording technology; cryptocurrencies are digital assets that may use it.

Quiz questions

  1. What characterizes management by objectives (MBO)?Answer: Managers and employees establish objectives and use them to guide and assess work.
  2. When environmental or technological uncertainty increases, where does planning and control often move?Answer: Closer to the point where plans are implemented day to day.
  3. Which statement correctly distinguishes blockchain from Bitcoin?Answer: Blockchain is a record-keeping technology, while Bitcoin is a cryptocurrency that uses it.
  4. How may a firm use puts or calls when planning for currency risk?Answer: As financial instruments that may help mitigate potential losses from exchange-rate movements.
  5. Which is a potential benefit of a shared ledger maintained across a network?Answer: It can provide a transparent and auditable record of transactions.

Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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