Chapter 16
Which of the following is not one of the reasons that control is needed in an organization? A. To adapt to change and uncertainty. B. To eliminate the need for teamwork. C. To detect opportunities. D. To deal with complexity. E. To decentralize decision making.
B
Which of the following is a perspective of the balanced scorecard? A. Internal weaknesses B. Innovation and learning C. External processes D. Stakeholder satisfaction E. Collaboration and teamwork
B
Which of the following is a primary function of management? A. Communicating B. Organizing C. Cooperating D. Globalizing E. Influencing
B
Which of the following is the best example of bureaucratic control? A. Southwest Airlines B. U.S. Army C. General Electric D. Levi Strauss E. Ritz Carlton
B
Which of the following may be done as corrective action in the control process? A. Evaluate performance. B. Revise standards. C. Compare performance to standards. D. Align processes with goals. E. Establish standards.
B
Strategic control is monitoring performance to ensure that day-to-day goals are being met and taking corrective action when needed
F
Strategy maps show the cause-and-effect links between environmental factors and preferred strategy
F
TQM assumes that, if given empowerment, employees will focus on strategic goal setting
F
The 1960s were characterized by very low productivity in the United States
F
The RATER scale enables customers to rate the quality of manufactured goods along five dimensions
F
The balanced scorecard, also known as the triple bottom line, gives top managers a fast but comprehensive view of the organization via three indicators
F
The control process begins with measuring performance
F
The most popular form of budgeting is known as zero-based budgeting
F
The practice of evaluating financial ratios to determine an organization's financial health is called viability analysis
F
Though ISO 9000 can help a company improve its processes, unfortunately this quality designation is only accepted currently by the United States
F
Twice daily, factory workers at Teller Copperworks select random samples from the production runs and test them for quality, rejecting runs if too many samples fall outside a standard range of acceptability. These workers are engaged in benchmarking
F
When performance exceeds the standards set in the control systems, managers should take no action
F
Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards
T
Managers should develop control standards when they are developing strategic plans
T
Measurement-managed companies are those in which senior management agrees on measureable criteria to determine strategic success
T
On her first visit to a new doctor's office, Melanie noted the fine furniture in the lobby and the crisp white coats that each of the staff wore. She was judging the tangibles dimension of the RATER scale
T
One difficulty with incremental budgets is that they tend to lock departments into stable spending arrangements
T
One way to improve productivity is to encourage employee involvement in improving work processes.
T
Performance measures can be obtained through personal observation
T
Raising productivity contributes to an increasing gross domestic product in the United States.
T
Reduced cycle time means a reduction in steps in a work process
T
Standards are best measured when they can be made quantifiable
T
TQM assumes that it's better to make small improvement all the time
T
Tactical control is monitoring performance to ensure that divisional or departmental plans are being implemented and taking corrective action as needed
T
The purpose of controlling is to make sure that performance meets objectives
T
The task of external auditors is to verify that the organization, in preparing its financial statements, followed generally accepted accounting principles
T
The three levels of control are strategic, tactical, and operational
T
The two core principles of TQM are people orientation and improvement orientation
T
Control systems should leave no room for individual judgment
F
Controlling is arranging tasks, people, and other resources to accomplish the work.
F
Controlling is the only management function that affects productivity
F
Decentralized control is most appropriate for an organization in which the tasks are explicit and certain
F
Except for in rare instances, employees at McLaren Professional Painting take responsibility for their own work and how it is done, rather than being governed by a rigid set of rules. McLaren is using bureaucratic control
F
A balance sheet summarizes an organization's overall financial worth at a specific point in time
T
A formal financial projection is known as a budget
T
A strategy map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals
T
A variable budget allows the allocation of resources to vary in proportion with various levels of activity
T
An internal audit is a verification of an organization's financial accounts and statements by the organization's own professional staff
T
Bureaucratic control is characterized by the use of rules, regulations, and formal authority to guide performance
T
Computer information systems are helpful in the internal business perspective of the balanced scorecard
T
Control is making something happen the way it was planned to happen
T
Control systems can help managers anticipate, monitor, and react to environmental changes
T
Controlling is one of the four management functions
T
Drug tests at hiring are an example of the human resources area of organizational control.
T
Employees frustrated by too much control in the workplace may turn to sabotage of the control process
T
Financial measures like quarterly sales figures are not adequate for gauging changes in contemporary value-creating activities
T
Gulf Satellite has restructured its procedures for service calls, reducing the number of steps involved so that employees can finish each call faster. Gulf has engaged in reduced cycle time
T
If a manager increases the efficiency of labor but makes no improvements to the efficiency of capital, an increase in productivity will result
T
Informal feedback systems interfere with effective measurement
T
Japanese-produced cars that were perceived as better built than American ones resulted from the Japanese use of controls
T
Lean Six Sigma focuses on problem solving and performance improvement
T
In Deming's PDCA cycle, "A" stands for "act," which means to implement the change or make a small scale test
F
Incremental budgeting requires setting up many budgets based on short periods, which together make up the full resource requirement
F
Lumber mills that sell sawdust and wood chips are increasing their efficiency of labor and thereby improving productivity
F
Middle-level managers are responsible for operational control
F
Most economists agree that recent productivity growth is the result of an improved work ethic, primarily due to more Millennials in the workforce.
F
One of the reasons that measurement-managed firms succeed is that their organizational cultures tend to minimize risk taking
F
One reason why control is needed is to centralize decision making
F
Productivity equals inputs divided by outputs
F
______ control is an approach to organizational control that is characterized by informal and organic structural arrangements. A. Decentralized B. Functional C. Relational D. Bureaucratic E. Market
A
Social responsibility and ethics make up one of the four indicators used in the balanced scorecard
F
Corrine, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce them to fewer than 0.2% with additional training for her staff. She is engaged in A. controlling. B. organizing. C. measuring. D. leading. E. planning.
A
Some managers use _____, which provides four indicators with which organizations can set goals and measure performance. A. the balanced scorecard B. a strategic map C. measurement management D. a strategic scorecard E. evidence-based management
A
Tactical control is performed mainly by A. middle managers. B. top managers. C. the CEO. D. first-level managers. E. team leaders.
A
Tara was required to take a word processing test as part of her application for an executive assistant position. This control is part of the ______ area. A. human resources B. physical C. financial D. informational E. structural
A
Typically, operational control is accomplished through reports issued A. daily. B. weekly. C. monthly. D. quarterly or less frequently. E. randomly.
A
Which of the following best describes ERP systems? A. Information systems that integrate all aspects of business. B. Comprehensive systems for identifying and measuring changes in productivity. C. Popular recruiting systems that help to maximize diversity in the workplace. D. Training systems for employees that allow self-discovery and correction of weaknesses. E. Control systems in which managers are made aware of all deviations from standards.
A
Which of the following is a challenge a manager will deal with in the 21st century? A. Sustainability B. Employee revolts C. Economic stagnation D. Leadership vacuums E. Religious issues
A
A sales forecast is an example of an organizational control from the _____ area. A. physical B. informational C. human resources D. financial E. capital
B
The amount of acceptable deviation from a standard, determined when the standard was established, is called the A. span of exception. B. range of variation. C. breadth control. D. benchmark. E. zero-based control.
B
______ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. A. Measuring B. Controlling C. Organizing D. Leading E. Planning
B
At UPS, delivery ______ vary according to whether a route is urban, suburban, or rural in nature. A. RATER scales B. ratio analyses C. standards D. PDCA cycles E. strategy maps
C
Jimmy's supervisor noticed that he was struggling with the computerized setup for production runs at his new job. The supervisor sat next to him while he tried it again and gave suggestions for improvement. The supervisor is doing which step of the control process? A. Compare performance to standards. B. Establish standards. C. Take corrective action. D. Measure performance. E. Control productivity.
C
Managers can increase overall productivity by A. decreasing efficiency of capital. B. increasing energy. C. increasing the efficiency of materials. D. decreasing the efficiency of labor. E. decreasing outputs.
C
Which of the following is a step in the control process? A. Complete a job redesign. B. Evaluate opportunities. C. Establish standards. D. Implement TQM. E. Compare work units to one another.
C
Which of the following standards is the most difficult to measure directly? A. An increase in insurance policies sales month to month. B. Stable material costs. C. More effective teamwork. D. 0.5% of products rejected for poor quality. E. Reduced energy costs compared to the same month last year.
C
Eileen manages employees at Maui Tours and Lodging. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of ______ control. A. clan B. market C. decentralized D. bureaucratic E. functional
D
Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ______ control. A. strategic B. functional C. tactical D. operational E. managerial
D
Productivity equals A. labor, capital, energy, and materials, divided by goods and services produced. B. goods and services and energy and materials, divided by labor and capital produced. C. labor, energy, and capital, divided by goods, services, and materials. D. goods and services produced, divided by labor, capital, energy, and materials. E. energy and materials, divided by labor and capital.
D
Standards are best measured when they are A. broad. B. efficient. C. narrow. D. quantifiable. E. ethical.
D
Which of the following areas of control for organizations exerts informal control? A. Structural B. Human resources C. Informational D. Cultural E. Competitive
D
Which of the following has been a primary source of productivity gains in the years 1995 to 2001? A. Reduced standards of living. B. Recessionary spending. C. Reemphasis on ethical business behaviors. D. Enterprise resource planning software systems. E. Reduced costs of raw materials through globalization.
D
Carlyon Land Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business. A. team problems B. a potential merger C. competence D. a tax break E. irregularities
E
Reema was recently promoted to facilities director at Harvest Processing. Which of the following should she do immediately as she tries to improve productivity? A. Use the established technology with which her employees are most familiar. B. Rotate all personnel so that each has an opportunity to try something new. C. Hire new employees such that they are similar to those already on the team. D. Immediately cut costs. E. Establish a system of measurement.
E
Which of the following is an example of an informational resource control? A. A personality test B. A delivery-tracking system C. A debt-repayment schedule D. A leadership survey E. A competition analysis
E
A cash flow statement summarizes an organization's financial results over a specified period of time
F
A control standard is the average performance level for a given workplace activity
F
A fixed budget does not allow for adjustment over time except when there are pertinent changes in the environment
F
A markdown on certain grocery-store items may result in a rush of customer demand for those products, which is an example of the control systems benefit of detecting threats
F
A maximum 2% deviation from the standard is the acceptable level prescribed for control systems
F
A principle of Deming management is that quality should be aimed at the needs of the worker
F
According to Six Sigma, 99% perfect is the threshold for accepting defects in manufacturing and service-related products
F
An equipment control that monitors the use of computers is part of the informational area of organizational control
F
An expense budget anticipates investment in major assets such as land, buildings, and major equipment
F
Control systems are significantly improved by focusing them on reporting
F