Steps of Control/Changes in Management - Assignment Example

These goals help ensure that employees do not slack off and by accomplishing the set objectives it is easier to make rewards such as promotions. The next step is “Measuring the actual performance” this step is necessary since it allows the management a chance to measure the actual performance of the organization. From there, a performance analysis and individual measures are undertaken to allow for performance appraisal (Reilly & Baack, 2010). “Comparing performance to standards” this is an essential step since it gives the management a clear picture of the performance of a particular period since it allows a direct comparison of the set standards and the actual performance (Reilly & Baack, 2010).

The final step “making the decision” is the most valuable as it allows the manager to take the necessary actions in reference to the organization’s performance. A positive performance leads to reward while negative performance will lead to investigations in areas of concern and corrective measures established. Importance of ratio analysis to controlling function The controlling function helps management to make proper decisions and adjustments depending on the organization’s performance.

An organization’s management uses several methods in assessing its performance. One best-known method is through ratio analysis. These ratios are very valuable for the controlling function since they provide a clear overview of the organization’s performance in financial terms. These ratios include Profitability Ratios, which give a clear overview of the organization’s performance in terms of profits (Reilly & Baack, 2010). Some common examples of profitability ratios include return on equity, return on sales, and return of capital employed.

Liquidity Ratios, which show the organization’s capability to offset its short-term obligations a good example is the acid test ratio. Others include Leverage ratios e.g. debt to equity ratio, which measures an organization’s risk and debt, and finally Activity Ratios, which measure the level of efficiency of a company’s operations. References Reilly, M. M., & Baack, D. (2010). The five functions of effective management. San Diego: Bridgepoint Education, Inc. Responses: Discussion 1 Hi Amber Larson, Thanks for such an informative post on this week’s discussion topic.

I found your argument on the standard control process to be very comprehensive and I was able to learn a few new ideas such as “Decisions reached in the controlling process lead to new plans for the future”. I would however like to request you elaborate more on the discussion about the link between managers, ratios, and controlling function. Hello Quinetta, I would like to thanks you for such an informative post on this week’s discussion. I found the post to have comprehensively covered the topic, as I was able to clearly get the idea and relate it with the class text.

I would also like to add that some of the problems that function controls include ensuring that employees do not slack off and the company objectives are strictly met. Discussion 2: Changes in Management The function among the five management functions that will experience the most dramatic changes in the next decade On a personal level after reviewing the five management functions, I believe that the staffing function will experience the most dramatic changes. This is because the world of business is rapidly changing