Final answer:
Looking backward to compare actual events with planned outcomes is known as control, a key concept within the business management process. Control involves analyzing past performance to guide future adjustments and ensure goals are met, as exemplified by planning travel times with the working backwards heuristic.
Step-by-step explanation:
Looking backward to determine what actually happened and comparing it with the previously planned outcomes is referred to as control. This is an essential part of the management process where actual results are measured and compared with the expected outcomes. Control helps managers understand if they are on track towards achieving their goals and what adjustments need to be made if they are not.
For example, in a scenario where you are planning to attend a wedding, using the working backwards heuristic, you'd plan your departure time based on the desired arrival time and taking into account potential traffic on Interstate 95. This type of planning and adjustment is a practical example of exercising control in everyday life.
In the context of expectations, rational expectations are those that look back at past experience to predict future events, while adaptive expectations adjust based on new information looking ahead to the future.