Chapter 11
_______ is control by means of a comprehensive system of rules and standard operating procedures (SOPs).
Bureaucratic control
_______ control is the control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.
Clan
Why is return on investment (ROI) the most commonly used financial performance measure?
It allows managers of one organization to compare performance with that of other organizations.
Which of the following is true about evolutionary change?
It is narrowly focused.
Which of the following is true about the control process?
Managers can easily take corrective action when reasons for poor performance are identified.
______ is(are) the set of values, norms, and expectations of behavior which control the ways in which workers interact with one another within the organization.
Organizational culture
_____ tends to be the first type of control that managers at all levels use to evaluate performance.
Output control
Which of the following is true about the control process?
Realistic standards reduce the gap between actual performance and desired performance.
After measuring and evaluating the manufacturing performance of a new product, a manager raised the performance standard for the next period of challenge. Which of the following would justify the manager's reason for raising the standard?
The manager wants to challenge the subordinates.
Which of the following is true about bureaucratic control and standardization?
Too many rules can stop employees from thinking for themselves.
What is an operating budget?
a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently
According to the force-field theory,
a wide variety of forces arise from the way an organization operates that make organizations resistant to change.
Which type of financial ratio measures how well the managers of L&B Rentals, Inc. are converting the organization's assets into cash or sales?
activity ratios
The first step managers must take to manage change effectively is to
assess the need for change.
The managers at Mt. Slide Ski Resort are comparing the number of annual passes they sold last year with the number of annual passes sold by other high-performing ski resorts. This is called
benchmarking.
The manager of a pizza restaurant monitors the employee's behavior by counting the number of customers each employee serves and how much each customer spends. This is an example of
clan control.
Which of the following types of controls do managers use during the conversion stage to gain feedback on the conversion process?
concurrent control
Which of the following types of controls helps monitor the quality of goods or services provided during the production process?
concurrent control
One of Carlos's work responsibilities is to check the inspection stations periodically to monitor the quality of the products during the production process. This is an example of
concurrent control.
Which of the following steps of the organizational change process includes identifying obstacles to change?
deciding on the change to make
What is the most instantaneous and powerful form of behavior control?
direct supervision
Which of the following is a mechanism of behavior control?
direct supervision
Martin becomes personally involved with his subordinates and guides them. This is an example of
direct supervision.
MBO starts when top managers
establish overall organizational objectives.
Which of the following is the first step of the control process?
establishing the standards of performance
Which of the following steps of the control process involves goal setting?
establishing the standards of performance
Which of the following steps of the organizational change process includes benchmarking?
evaluating the change
Which of the following types of change is gradual, incremental, and narrowly focused?
evolutionary change
As regional manager of KIM Corp., Dwight is given an operating budget of $1 million for that financial year and is evaluated on the basis of the amount of goods produced based on that budget. Dwight's performance is evaluated on a(n)
expense budget approach
An organization monitors the number of customer returns for each product model as a part of an attempt to recognize defective products. This is an example of
feedback control
Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods?
feedback control
During the input stage, managers use __________ control procedures to anticipate problems before they occur.
feedforward
Starling Manufacturing Inc. has carefully set up strict specifications for raw materials that are sourced from suppliers. It follows a three-step approval process to select new suppliers and ensures that they are aware of raw material specifications. This is an example of ________ control.
feedforward control
Which of the following types of control allows managers to anticipate problems before they arise?
feedforward control
RST Consulting screens job applicants by viewing their résumés electronically and using several interviews to select highly skilled people. By doing so, the managers at RST Consulting ensure that the wrong candidates are not picked for a particular job. This is an example of
feedforward control.
Which of the following can be inferred from calculating a company's operating margin?
how efficiently an organization is using its resources
The final step in the control process is to
initiate corrective action
The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of
leverage ratio.
Current ratio (current assets divided by current liabilities) is a type of _____ financial measure.
liquidity ratio
Which of the following provides a framework to monitor progress toward achieving goals?
management by objectives
Once managers have chosen the standards to evaluate performance, the next step in the control process is to
measure actual performance
The _____ shows whether an organization can pay claims of short-term creditors without selling inventory.
quick ratio
Which of the following types of change is rapid, dramatic, and broadly focused?
revolutionary change