chapter 11

_______ is control by means of a comprehensive system of rules and standard operating procedures (SOPs).

Bureaucratic control

_______ is the process by which managers monitor and regulate the efficiency and effectiveness of the workers in an organization.

Controlling

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 direct supervision?

It is an expensive form of behavior control

Which of the following is true about revolutionary change?

It is dramatic.

Which of the following is true about evolutionary change?

It is narrowly focused.

Which of the following is true about clan control?

It serves a dual function of keeping organization members goal-directed while open to new opportunities.

Which of the following is an important reason for subordinates to participate in goal setting?

It strengthens subordinates' commitment to achieving goals and meeting budgets

_____ is the movement of an organization away from its present state toward some preferred future state to increase its efficiency and effectiveness.

Organizational change

______ 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

_____ guide behavior and specify what employees are to do when they confront a problem that needs a solution.

Rules and SOPs

The first step managers must take to manage change effectively is to

assess the need for change

Management by objectives (MOB) is a mechanism of

behavior control.

Which of the following controls leads to standardized behavior and standardized work outputs?

bureaucratic control

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.

_____ control allows managers to get immediate feedback on how efficiently inputs are being transformed into outputs.

concurrent

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 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

Which type of financial ratio is computed by dividing the organization's present assets by its present liabilities?

current ratio

Which of the following steps of the organizational change process includes identifying obstacles to change?

deciding on the change to make

Martin becomes personally involved with his subordinates and guides them. This is an example of

direct supervision

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

_____ is the most likely to cause organizational costs to increase.

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

During the input stage, managers use __________ control procedures to anticipate problems before they occur.

feedforward

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 types of control allows managers to anticipate problems before they arise?

feedforward control

Which of the following can hurt the performance of an organization?

focusing on only one standard instead of a hundred different standards

Which of the following describes stretch goals?

goals that are specific and difficult but not out of reach

Which of the following can be inferred from calculating a company's operating margin?

how efficiently an organization is using its resources

According to Lewin's force-field theory, what must an organization do to change?

increase the forces for change and reduce resistance to change

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 financial ratios measures the ability of the organization to pay its short-term debts?

liquidity ratios

Managers for an e-commerce business use a formal system for evaluating subordinates' behavior by their ability to achieve specific goals. This is an example of

management by objectives

Which of the following provides a framework to monitor progress toward achieving goals?

management by objectives

As the regional manager, Ted's performance is evaluated on the difference between the sales revenues generated by his region and the cost of making those goods and services. Ted is being evaluated using a(n) ________ approach.

profit budget

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

The CEO of a large corporation mandates that new goals be implemented immediately. This is an example of

revolutionary change.

When is an organization in a state of inertia?

when the forces are evenly balanced