2nd Partial Cheat Sheet

Management: the organization and coordination of the activities of a business in

order to achieve defined objectives.

Elements of Management: Planning, organizing, leading and controlling.

Control: Controlling is measuring, comparing, finding deviation and correcting the

organizational activities which are performed for achieving the goals or objectives.
Controlling consist of activities, like; measuring the performance, comparing with
the existing standard and finding the deviations, and correcting the deviations.
This function is perceived as a method that pressures individuals in the
organization, and establishes limits for performance.

Elements of Control:
 Relationship with what is planned. Control exists to verify that objectives
set in the planning process are achieved.
 Measure: In order to control, it is absolutely necessary to quantify and
measure results.
 Detect deviations. One of the functions of control is to find differences that
may appear between planning and execution.
 Establish corrective measures. The whole idea of control is to prevent and
correct mistakes and errors.

Elton Mayo: Mayo management theory states that employees are motivated far
more by relational factors such as attention and camaraderie than by monetary
rewards or environmental factors such as lighting, humidity, etc.

Frederick Taylor: Frederick Taylor's scientific management theory, also called

the classical management theory, emphasizes efficiency. Instead of scolding
employees for every minor mistake, employers should reward workers for
increased productivity.
Burt K. Scanlan: According to Burt Scanlan, the objective of the control process is
to make sure that events go accord with established plans.

Peter Druck: Also known as the Father of Modern Management Theory, he

advocated for a more flexible, collaborative workplace, and the delegation of
power across the board. Drucker thought that subordinates should have the
opportunity to take risks, learn and grow in the workplace.

Robert Eckles: Control is the regulation of activities, of conformity with a preset

plan created to reach objectives.

George Terry: Control is the process to determine what is being done, evaluating
it and if necessary applying corrective measures in order to have performance
according to what was planned.

Robert C. Appleby: Control consists of measuring and correcting what is being

done by subordinates, as well as the company's objectives and plans to reach them
in order to make sure they are being met both efficiently and economically.

Henry Fayol: Control is in charge of making sure that everything occurs according
to the chosen plan, with the instructions that were emitted and established
principles.

Robert Bucéele. Control is the process of measuring the current results with
relation to the plans, identifying the reason for deviations and taking necessary
actions to correct it.

Harold Koontz y Ciril O´Donell: Control implicates the measurement of what has

been achieved with the standard, and correction of deviations to ensure that
objectives are met according to the plan.

Control bases its importance in:

 Establishes measures to correct the activities in a way that helps reach
plans successfully.
  It applies to everything: things, people and acts.
 Quickly determines and analyzes possible causes of deviations to make sure
they don't come up again in the future.
 Identifies the sectors in charge of management, since the moment
corrective measures are established.
 It gives information about the execution of plans, serving as basis when the
planning process has been restarted.
 Reduces costs and saves time by avoiding errors.
 Its application impacts directly in the rationalization of management and
consequently in the achievement of productivity of all the resources of the
company.

Control Principles:
 Of Equilibrium: Equal degree of responsability and authority should be
given to each of the groups.
 Of Objectives: Control that exists in function of objectives. Control won't be
valid if its not founded on objectives and if through it achievements are not
evaluated.
 Of Opportunity: For control to be efficient it needs to be opportune, it must
be applied before a mistake is made, that way corrective measures can be
taken with anticipation.
 Of Deviations: All deviations that occur with relation to the plans must be
analyzed in detail, allowing the identification of the causes originating the
deviations in order to take the pertinent preventive measures.
 Of Affordability: Establishing a control system must justify the cost that this
represents in time and money with relation to the advantages that it
reports.
 Of Exception: Control must be applied, preferably on exceptional or
representative activities with the objective of reducing costs and time,
properly identifying which strategic functions require of control.
  Of the Controlled Function: The controlled function states that the person
or function that is in charge of control must not be involved with the activity
that is being controlled.

Sales Budget Formula

PV= [( V± f) E] D
PV= Sales Budget
V± = Last Year Sales
F = Specific Sales Factors
a) Adjustment Factors
They are nonrecurring accidental events.
• Detrimental Adjustment Factors (riots, fire).
• Adjustment of Healthful factors (special contracts, etc)
• They influence beneficially in the sales.
b) Change Factors
a) Product change, material or redesign.
b) Change of production, facilities, etc.
c) Changes of markets, fashion, etc.
d) Changes in the sale methods, publicity and propaganda, commissions and
compensations, etc.
c) Growth Currents Factors
Overcoming expected Sales
Growth or Expansion.
Mercantile Credit.
E = General Economic Forces (Estimated % of expected realization)
External Factors that affect sales.
Prices, production, Currency Rate, Stocks information, etc.
D = Administrative Influence ( Estimated % of realization by the administration)
Decisions made by executives that influence the sales budget.