Fundamentals of Management, 8th ed

postaction control

Monitors the outputs

or results of the

organization after the

transformation

process is complete

financial control

Concerned with the

organization’s

financial resources

budget

A plan expressed in

numerical terms

436

Part 5: Controlling

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animated-movie flops, such as Atlantis: The

Lost Empire and Treasure Planet, the com-

pany had to take a much harder line on bud-

get overruns.

18

More recently, major losses

on Disney live-action films like 2014’s The

Lone Ranger have prompted increased bud-

get scrutiny on all future films.

Because of their quantitative nature, bud-

gets provide yardsticks for measuring perfor-

mance and facilitate comparisons across

departments, between levels in the organiza-

tion, and from one time period to another.

Budgets serve four primary purposes. They

help managers coordinate resources and

projects (because they use a common denom-

inator, usually dollars). They help define the

established

standards

for

control.

They

provide guidelines about the organization’s

resources and expectations. Finally, budgets

enable the organization to evaluate the

performance of managers and organizational

units.