Chapter 14 MANAGMENT

Health care providers learn that Medicare will begin requiring higher performance on certain measures of patient safety.

Adapt to environmental change

You are reviewing your organization's financial statements, because you need to see how much debt the company has. Which statement will you use to get this information?

Balance sheet

Compensation

Human

Sales forecasting

Information

Inventory management

Physical

Which financial tool will you use if you need to understand how much return the company has generated relative to its assets?

Ratio analysis

Speedy Sales Group rewards salespeople based on the number of calls made per week but not on the size of the orders made. Some salespeople have responded by making more calls but spending less time per prospect.

Rewards for inefficiency

Cash reserves

financial

Walmart has standards for operational control. You've been asked to revise the __________ standards for how quickly boxes should be packed for shipping.

screening control

When managers assess __________ they understand that the organization relies on multiple areas, and one area is inhibiting the attainment of goals.

strategic control

Which type of control advocates that if structure, leadership, technology, human resources, or operations inhibit the attainment of the organization's goals, that aspect of the organization should be changed?

strategic control

Long-term care facilities evaluate ways to reduce the amount they charge patients without compromising quality.

Minimize costs

Which budget includes estimates of resources needed, such as space and labor?

Nonmonetary

Your chief financial officer has asked that you assess whether an acquisition of a small company is possible, given the company's current debt load. You have to figure out how much cash your company has access to and how much debt it has relative to income. Which financial control do you need to use?

Ratio analysis

Your project proposal must include an operating budget, so you are providing estimates for

how much it will cost to implement each aspect of the project .

Technicians are the key providers of the transformation part of Southwest's customer service. By measuring how technicians utilize their time, Southwest is engaging in

screening control

For your project, you've identified a process and set quality standards for all phases of implementation. To ensure that the project can be profitable after costs are considered, you need to develop

a budget

When Southwest measures the annual operating expense of their service desk, they are focusing on

financial

Which budget includes revenue estimates at different points in time?

financial

You are planning an appearance for your company at a trade show. You must forecast the revenue your company may earn as a result of your participation.

financial

Because of a low cash balance in the company's bank account, David is concerned about customers paying their bills on time. His concern deals with

financial control

Your project can only work if you can complete it within the cost approved by the company. Fortunately, budgets

help define standards for control, such as preventing budget overruns .

Which budget includes estimates of differences between sales revenue and expenses?

operating

You have to assess the likely costs needed to participate in a trade show. A big purchase is required a new demonstration booth.

operating

You are analyzing shipping statements and error notifications from stores and realize that boxes packed by Ginny have a nearly perfect accuracy rate. You recommend Ginny for a raise based on this form of

postaction control

Troy works in sports ticket sales for his university. He needs information when he needs it. Not before. Not after. In sports, that means knowing whether tickets are still available on game day. Troy is concerned with

timeliness

Genesis HealthCare provides long-term skilled nursing at about 400 sites in 26 states, employs 70,000 people, and earns annual revenues of over $1 billion.

Cope with organizational complexity

You have a committed group of employees. Which form of structural control should you use?

Decentralized

It will take a lot of time to plan for a trade show, and this is not your only responsibility. You need a plan to ensure that you complete the full range of duties.

Nonmonetary

What is the final step in the control process?

Determine need for corrective action

Your supervisor relies on her line manager for screening control. Which statement explains why the line manager is the right person to be accountable for screening control?

The line manager is best able to monitor quality standards during the transformation process.