FMGT 4210 Chapter 21
Management Control Systems - ANS-A means of gathering and using information to aid and
coordinate the planning and control decisions throughout an organization and to guide the
behavior of its managers and other employees.
Formal Management Control System - ANS-Includes explicit rules, procedures, performance
measures, and incentive plans that guide the behavior of its managers and other employees.
Informal Management Control System - ANS-Includes the shared values, loyalties, and mutual
commitments among members of the organization, the company's culture, and the unwritten
norms about acceptable behavior for managers and other employees.
Motivation - ANS-The desire to achieve a certain goal.
Goal Congruence - ANS-Exists when individuals and groups work toward achieving the
organization's goals. Managers working in their own best interest take actions that align with the
overall goals of top management.
Effort - ANS-The extent to which managers strive to or endeavour to achieve a goal.
Decentralization - ANS-The freedom for managers at lower levels of the organization to make
decisions.
Autonomy - ANS-The degree of freedom to make decisions.
Subunit - ANS-Any part of an organization.
Multinational Companies - ANS-Companies that operate in multiple countries.
Intermediate Products - ANS-Products used as input in the production of some other product.
Transfer Pricing - ANS-Occurs when one unit in an organization sells a product to another unit.
Organization for Economic Cooperation and Development - ANS-OECD
OECD - ANS-An organization that promotes policies that will improve the economic and social
well being of people around the world.
Market-Based Transfer Price - ANS-A transfer price that is based on existing market prices of
competing products.
Management Control Systems - ANS-A means of gathering and using information to aid and
coordinate the planning and control decisions throughout an organization and to guide the
behavior of its managers and other employees.
Formal Management Control System - ANS-Includes explicit rules, procedures, performance
measures, and incentive plans that guide the behavior of its managers and other employees.
Informal Management Control System - ANS-Includes the shared values, loyalties, and mutual
commitments among members of the organization, the company's culture, and the unwritten
norms about acceptable behavior for managers and other employees.
Motivation - ANS-The desire to achieve a certain goal.
Goal Congruence - ANS-Exists when individuals and groups work toward achieving the
organization's goals. Managers working in their own best interest take actions that align with the
overall goals of top management.
Effort - ANS-The extent to which managers strive to or endeavour to achieve a goal.
Decentralization - ANS-The freedom for managers at lower levels of the organization to make
decisions.
Autonomy - ANS-The degree of freedom to make decisions.
Subunit - ANS-Any part of an organization.
Multinational Companies - ANS-Companies that operate in multiple countries.
Intermediate Products - ANS-Products used as input in the production of some other product.
Transfer Pricing - ANS-Occurs when one unit in an organization sells a product to another unit.
Organization for Economic Cooperation and Development - ANS-OECD
OECD - ANS-An organization that promotes policies that will improve the economic and social
well being of people around the world.
Market-Based Transfer Price - ANS-A transfer price that is based on existing market prices of
competing products.
