Fundamentals of Management by Griffin Chapter 14

EMCW is a large international business with interests in most developed nations. In order to meet certain benchmarks, there must be a certain level of consistency throughout the operations. This scenario calls for a _____ strategic control perspective. -screening -decentralized -preliminary -centralized

centralized

Quality assurance testing of all alpha and beta versions of a software program is an example of _____ control. -screening -postaction -preliminary -output

screening

Tracy is a quality assurance agent at Purity Water Filtration Systems. The company uses a reverse osmosis double pass system to purify water for industrial applications. Water purity is monitored continuously through the filtration operation to achieve 99% removal of total dissolved solids (TDS) and 97% of naturally occurring organics. Monitoring TDS and organic content during the filtration process is a form of _____ operational control. -screening -postaction -preliminary -output

screening

Stan works for Moto To Go, a large rental car company. Before he was able to work independently in his job, he had to complete four training courses. Stan must pass each course with a minimum achievement level of 90%. The 90% achievement level is a control _____ set in the first step of the control process. -measure -comparison -standard -timetable

standard

Which of the following is true of an organization with decentralized control? -It allows limited and formal employee participation. -It has organic structural arrangements. -It has a rigid hierarchy. -Its primary goal is employee compliance.

It has organic structural arrangements.

Which of the following is true of organizations using bureaucratic control? -They direct rewards at group performance. -They are usually relatively flat. -They rely on a strict rules and a rigid hierarchy. -They favor widespread employee participation.

They rely on a strict rules and a rigid hierarchy

Which of the following control systems is likely to be highly effective? -a control system that is rigid -a control system that relies exclusively on quantifiable data -a control system that provides information as quickly as possible -a control system that provides objective information

a control system that provides objective information

Control systems are more effective when they are timely, meaning that information is shared -on a regularly scheduled basis. -at the same time each day. -as quickly as possible. -as often as necessary.

as often as necessary.

The goal of _____ control is employee compliance. -decentralized -bureaucratic -strategic -operating

bureaucratic

The organizational design of _____ control is a tall structure with top-down influence. -postaction -financial -decentralized -bureaucratic

bureaucratic

One of RadTrek's primary goals is employee commitment to the company. If that were the only factor to consider, which approach to organization design would be most appropriate for RadTrek? -screening control -preliminary control -decentralized control -bureaucratic control

decentralized control

What type of control is used for resources such as stockholder investments and employee salaries? -nonmonetary -financial -structural -operating

financial

Bureaucratic control is an approach to organization design that is characterized by _____. -a relatively flat structure -formal and mechanistic structural arrangements -rewards for group performance -widespread employee participation

formal and mechanistic structural arrangements

Which of the following is NOT one of the aspects of strategic control? -technology -human resources -leadership -globalization

globalization

Managers at Champion Spark Plug Company decided to broaden their product line. They decided what level of sales they wanted for each product for each of the next five years. This example shows that effective control is -flexible. -objective. -integrated with planning. -accurate.

integrated with planning.

Maria is the controller for a specialty spice company. She is responsible for developing the firm's budget each year. Maria requires a great deal of input from each of her operating divisions to formulate a comprehensive plan. Each division head provides her with operational plans that forecast production levels and the human resources needed to achieve them. This information enables Maria to establish the company's _____ budget. -revenue -labor -balance sheet -expense

labor

Which of the following is NOT a purpose of control? -maximizing costs -coping with organizational complexity -adapting to environmental change -limiting the accumulation of error

maximizing costs

A labor budget is a type of _____ budget. -expense -financial -operating -nonmonetary

nonmonetary

RadCycle will use a(n) _____ budget to determine how many of each model of its bicycles it will produce each quarter for the coming year. -operating -space -labor -financial

operating

Stan works for Moto To Go, a large rental car company. Before he was able to work independently in his job, he had to complete four training courses. Stan had to pass each course with a minimum achievement level of 90%. Moto To Go's new employee training program serves to ensure tight control of the company's _____. -financial resources -strategic performance -operational processes -structural elements

operational processes

Quality control is a type of _____ control. -structural -financial -operations -strategic

operations

It is important that the customer service techs at LWC Co. wear uniforms so they are easily recognizable when they go out to service accounts. Whenever changes need to be made to the uniforms, various options are assembled and the service techs are polled to help choose the new uniforms. LWC is using _____ to reduce resistance to control. -planning -verification procedures -participation -appropriate focus

participation

Tracy is a quality assurance agent at Purity Water Filtration Systems. The company uses a reverse osmosis double pass system to purify water for industrial applications. Water purity is monitored continuously through the filtration operation to achieve 99% removal of total dissolved solids (TDS) and 97% of naturally occurring organics. This afternoon, water tested at the end of the batch run indicated TDS levels of 1.8%. Measuring TDS and organic content after the filtration process is a form of _____ operational control. -screening -postaction -preliminary -output

postaction

Everyone who works at Smiles Elementary School must go through a thorough background check and drug testing before being hired. This is an example of _____ control. -screening -postaction -preliminary -output

preliminary

Hiring only qualified employees and ordering parts that meet high quality standards are two examples of _____ control. -screening -postaction -preliminary -output

preliminary

Stan works at the receiving dock at Midwestern Textiles. He checks every bolt of fabric that is delivered to the warehouse to make sure it matches all of the specifications listed on the spec sheet before entering it into inventory. Any shipments not matching the specs are returned to the supplier. This is an example of _____ control. -screening -postaction -preliminary -output

preliminary

Television networks should verify the accuracy of news stories before they are broadcast. This is an example of _____ control. -expense -preliminary -postaction -screening

preliminary

Stan works for Moto To Go, a large rental car company. Before he was able to work independently in his job, he had to complete four training courses. Stan must pass each course with a minimum achievement level of 90%. Moto To Go's new employee training program represents a _____ form of operational control. -standard -postaction -preliminary -screening

preliminay

Which of the following is a disadvantage of postaction control? -Most organizations use more than one form of operations control. -It provides a basis for rewarding employees. -It can provide management with information for future planning. -It is not as effective as preliminary or screening control.

It is not as effective as preliminary or screening control.

Which of the following is true of screening control? -It monitors the quality of resources before they enter the organization. -It is useful in identifying the cause of problems. -It focuses on outputs after the transformation process is complete. -It does not make use of feedback processes.

It is useful in identifying the cause of problems.

Purity Water Filtration Systems (PWFS) is a large international business with interests in most emerging nations. The company uses a reverse osmosis double pass system to purify water. The core technology achieves 99% removal of total dissolved solids (TDS) and 97% of naturally occurring organics, which is particularly important in underdeveloped regions of the world. Since completing the new facility three years ago, the company's South American division has struggled to meet strategic goals of growth and full-scale production. How should top management handle the strategic control variance? -Adopt a new core technology. -Allocate additional research money to improve operational processes. -Replace the leaders of the South American division. -Close the South American operations.

Replace the leaders of the South American division.

Laura is the controller of Master Tractor Ltd., an international tractor supply and equipment company with distribution outlets located in 18 countries. She is evaluating Master Tractor's organizational design, improving the "fitness" of the company's structural controls with existing structural performance. Which of the following conditions calls for Laura to use a decentralized control system? -Employees are required to meet minimally acceptable levels of performance. -Employee participation levels at Master Tractor are formal. -The company relies on conformance to strict rules. -The company relies on group norms and a strong organizational culture.

The company relies on group norms and a strong organizational culture.

Which of the following is true of the effectiveness of control systems? -The control system must be flexible enough to accommodate change. -The control system should provide information that is as subjective as possible. -The more explicit the linkage between control and planning, the less effective the control system is. -The more uncertain the circumstances, the less frequently measurement is needed.

The control system must be flexible enough to accommodate change.

Why should a firm periodically examine its structure? -To determine whether it is facilitating the attainment of its strategic goals -To evaluate the competition -To evaluate its capital expenditures -To increase shareholder value

To determine whether it is facilitating the attainment of its strategic goals

RadTrek focuses rewards on individual performance. It insists that employees meet minimally acceptable levels of performance and allows limited and formal employee participation. These are aspects of which approach to organization design? -postaction control -financial control -decentralized control -bureaucratic control

bureaucratic control

RadTrek relies on numerous rules to regulate employee travel, expense accounts, and other expenses. Its performance appraisal system precisely specifies minimally acceptable levels of performance for everyone. These are characteristics of which approach to organization design? -screening control -preliminary control -decentralized control -bureaucratic control

bureaucratic control

Under a _____ system of strategic control, managers from the home office often visit foreign branches to observe firsthand how the units are functioning. -centralized -nonmonetary -decentralized -financial

centralized

The managers at Moto To Go, a large rental car company, have been reviewing processes in one of its divisions. They have discovered a certain deviation and have decided, at this time, to change the standard to meet that deviation. Which step have they reached in the control process? -considering corrective action -measuring performance -comparing performance against standards -establishing standards

considering corrective action

Maria is the controller for a specialty spice company. She has been analyzing the company's various financial statements. Right now she is focusing on the long-term financial obligations of the company. What type of ratio should she calculate to determine if the company has the ability to meet those obligations? -coverage -debt -return -operating

debt

Moto To Go is a large rental car company. While the home office does set some standards and benchmarks, the local offices have a lot of freedom to make their own decisions towards meeting those goals. For example, the popularity of different types of rental cars varies from market to market, and the local managers decide how to staff their fleets. This scenario reflects a _____ strategic control perspective. -screening -decentralized -postaction -centralized

decentralized

Purity Water Filtration Systems (PWFS) is a large international business with interests in most emerging nations. Varying conditions in each nation require that each division be free to develop localized approaches to satisfy the unique needs of each market. Actions that grow sales in one country are not necessarily effective in the others. This scenario calls for a _____ strategic control perspective. -screening -decentralized -preliminary -centralized

decentralized

Slim Pickin's is a small start-up company located in Kansas City, MO. Its owner, Sharon, developed a line of gluten- and dairy-free power bars that is gaining the attention of health-minded consumers and those with diet restrictions. The business is growing rapidly. Sharon now employs 45 employees who share her passion and commitment to the organization. Slim Pickin's has few formal job assignments or work boundaries. Everyone pitches in where needed. Sharon distributes a generous share of profits with all of the workers equally. As Sharon continues to build her organization, a _____ type of structural control is recommended to ensure that the organizational design is achieving its intended results. -postaction -financial -decentralized -bureaucratic

decentralized

Resistance to control can be overcome by: -decreasing employee participation. -developing verification procedures. -ensuring excessive accountability. -increasing focus on quantifiable variables.

developing verification procedures.

Screening control: -gathers financial, physical, human, and information resources from the environment. -focuses on the outputs of an organization after the transformation process is complete. -monitors the quality of financial, physical, human, and information resources before they become part of organizational systems. -focuses on meeting standards for product or service quality during the actual transformation process.

focuses on meeting standards for product or service quality during the actual transformation process.

By alerting managers that an employee has exceeded expectations, _____ control can identify when employees deserve recognition. -screening -postaction -preliminary -output

postaction

Quality assurance testing of the gold master version of a software program is an example of _____ control. -screening -postaction -preliminary -standard

postaction

Jacob's Kosher Deli ensures that all ingredients and food products that come into the restaurant are kosher. This is an example of _____ control. -screening -postaction -preliminary -output

preliminary

Maria is the controller for a specialty spice company. She is responsible for developing the firm's budget each year. Maria requires a great deal of input from each of her operating divisions to formulate a comprehensive plan. Each division head provides her with a forecast of his or her expected income. This information enables Maria to establish the company's _____ budget. -revenue -labor -balance sheet -expense

revenue

Slim Pickin's is a small start-up company located in Kansas City, MO. Its owner, Sharon, developed a line of gluten- and dairy-free power bars that is gaining the attention of health-minded consumers and those with diet restrictions. Brand awareness is growing rapidly. Future sales growth will depend on rapid expansion into new locations and through new types of sales channels. The extent to which Sharon is able to meet these expansion goals should be regulated through _____ control measures. -financial -strategic -operations -structural

strategic

What type of control focuses on structure, leadership, technology, human resources, and information and control systems of organizations? -financial -budgetary -strategic -preliminary

strategic

_____ control is aimed at ensuring that an organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals. -Structural -Operations -Decentralized -Strategic

strategic

The new CEO of EMCW has started to initiate a number of changes to the company. One of his initiatives is to shift from a U-form to an M-form design to spur growth. This change falls into which aspect of strategic control? -leadership -human resources -structure -technology

structure