Executive Reality Checks: Top managers periodically
work at lower-level jobs to become more aware of operations.
Internal Audits: Independent appraisals of
organizational operations and systems are conducted to assess effectiveness and
efficiency.
Symptoms of Inadequate Control
An unexplained decline
in revenues or profits
A degradation of service
(customer complaints)
Employee
dissatisfaction
Cash shortages caused
by bloated inventories or delinquent accounts receivable
Idle facilities or
personnel
Disorganized operations
Excess costs
Evidence of waste and
inefficiency (scrap, rework)
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