Principles of Management Chapter 19

The quality guidelines at Riko Toys require close adherence to safety specifications. A group of 10 employees voluntarily meet each week to identify and solve problems that hinder the productivity and quality of their work. These employees are trained in statistical quality control, and they analyze the problems and refer them to the organizational level where actions can be taken to solve them. In the context of total quality management (TQM), the voluntary group of 10 employees is an example of a:

quality circle

quality partnering

quality control personnel work alongside others within a functional area identifying opportunities for quality improvements throughout the work process

In the context of financial control, the most common financial analysis focuses on the use of ________ , statistics that express the relationships between performance indicators such as profits and assets, sales, and inventory.

ratios

decentralized control

relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals

ISO 9000 standards

represent an international consensus of what constitutes effective quality management as outlined by the International Organization for Standardization

benchmarking

the continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders to identify areas for improvement

Bradford, a restaurateur, meets his staff every morning to discuss daily plans, work-related problems, and their solutions. His employees have devised a unique method to deliver efficient and error-free service. Bradford gives his chefs full freedom to innovate and experiment with the dishes on the menu and shares customer feedback with them. In case of exceptional customer reviews, he rewards the entire staff with weekend outings. Which of the following approaches to organizational control does Bradford use at his restaurant?

the decentralized control approach

In the context of the changing philosophy of control, which of the following statements is a difference between the hierarchical and decentralized methods of organizational control?

the hierarchical method relies on task-related job descriptions, whereas the decentralized method relies on results-based job descriptions

In the context of the feedback control model, which of the following statements is true of the balanced scorecard management control system?

the simplicity of this system causes some managers to underestimate the time and commitment needed for the approach to become a truly useful management control system

Organizational control

the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance

In the context of budgetary control, an expense budget includes anticipated and actual expenses for each responsibility center and for the total organization.

true

Managers who consider efficiency extremely important do all except

welcome small improvements

total quality management (TQM)

an organization-wide effort to infuse quality into every activity in a company through continuous improvement

responsibility center

any organizational department or unit under the supervision of a single person who is responsible for its activity

Lucas uses a fitness tracker app on his smartphone to measure his calorie intake in a day and track the activities that help him burn calories through the day. His aim is to modify his lifestyle for better health and increased work productivity. In the context of managing quality and performance, Lucas's practice of voluntarily collecting and analyzing data about himself in order to improve is an example of:

auto-analytics

In the context of budgetary control, the _________ of an organization estimates receipts and expenditures of money on a daily or weekly basis to ensure that the organization has sufficient funds to meet its obligations.

cash budget

balanced scorecard

comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors

Advantages of electronic monitoring

cut expenses, increase sales, and decrease employee theft

Disadvantages of electronic monitoring

damage employee trust, create unhealthy levels of trust for employees, and hurt performance

Telematics

describes technologies that wirelessly transmit data from remote sensors and GPS devices to computers for analysis

This self-assessment indicates that organizations often face a clash between

efficiency and quality improvements

Four steps of feedback control mode

establish standards of performance, measure actual performance, compare performance to standards, and take corrective action

Minnie owns a furniture and home décor showroom. She has instructed her sales floor employees to always sort and arrange furniture as room displays. For example, living room merchandise should be arranged and decorated like a real room so that shoppers get a feel of the actual look. This rule is followed for arranging kitchen furniture, study furniture, and so on. This saves time and helps employees restore order and place items in their exact locations. In the context of managing quality and performance, Minnie's rule about furniture displays in her showroom is an example of:

establishing standards of performance

In the context of budgetary control, a responsibility center is defined as any organizational department or unit under the supervision of a team of 6 to 12 employees responsible for its activity.

false

balance sheet

financial statement that shows the firm's financial position with respect to assets and liabilities at a specific point in time

income statement

financial statement that summarizes the firm's financial performance for a given time interval, usually one year

Which of the following questions is not a reason for continuous improvement?

if a method is working well, why change it?

continuous improvement

implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis

hierarchical control

involves monitoring and influencing employe behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms

In the context of total quality management (TQM), which of the following statements is true of Six Sigma?

it emphasizes a disciplined and relentless pursuit of higher quality and lower costs

In the context of total quality management (TQM), which of the following statements is true of continuous improvement?

it is the implementation of a large number of small, incremental improvements in all areas of an organization on an ongoing basis

In the context of total quality management (TQM), which of the following statements is true of quality partnering?

it makes it possible to detect and address defects early in the product life cycle, when they can be corrected most easily

The management at Revelio Corporation wants its employees to actively participate in the achievement of the firm's goals. It wants them to appreciate the importance of financial efficiency for the firm's success as well as their own. The goal of the management is to train the employees to interpret the firm's financial data and to make them think like owners by giving them the same information owners have: what money is coming in and where it is going. In this scenario, Revelio Corporation is using _____.

open-book management

Esky Corporation, a chain of retail stores, monitors 10 performance indicators that are believed to be correlated with better quality service, including how quickly employees respond to queries, how well employees assist customers in shopping, whether purchases are delivered on time, and so forth. This monitoring of performance indicators by Esky Corporation is an example of:

organizational control

five steps for benchmarking process

plan, find, collect, analyze, and improve

budgetary control

process of setting targets and monitoring expenditures

quality circle

a group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work

six sigma

a highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts

Praque Inc., a machinery manufacturing firm, relies on suppliers to deliver raw materials on demand. John, the manager at Praque Inc., has set the following rules about the firm's operations: Materials should be purchased from only a preapproved set of vendors; a formal bidding method should be used for purchases above a fixed amount; and a thorough inventory count should be conducted at regular intervals and matched against the inventory list of the company. In the given scenario, John has set these rules to:

achieve organizational control