Chapter 16 SmartBook
The acceptable threshold for quality defects according to Six Sigma standards is 3.4 defects per ______ products or procedures. 10,000 100,000 1,000,000 10,000,000
1,000,000
How can managers help ensure that employees will accept monitoring of their time and activities? Fire those who complain. Keep monitoring secret. Raise salaries of those who are monitored. Communicate expectations clearly.
Communicate expectations clearly.
What steps should employers take to make monitoring of their workers more successful? (Choose every correct answer.) Make monitoring invisible. Communicate expectations. Point out the benefits to workers. Make monitoring visible.
Communicate expectations. Point out the benefits to workers. Make monitoring visible.
What are some of the downsides to electronic monitoring of employees? Data can be misused. It places too much trust on employees. Employees may leave the job. It is intrusive.
Data can be misused. Employees may leave the job. It is intrusive.
Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control? Primacy Concurrent Tactical Feedback
Feedback
Which of the following consists of quality-control procedures companies must install in all facets of their operations that can be audited by independent quality-control experts, or registrars? Statistical process control ISO 1000 Six Sigma ISO 9000
ISO 9000
Which type of budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point? Incremental Production Fixed Informal
Incremental
Jorge's firm has a mortgage on its factory in the amount of $540,000. It also owes $60,000 to a supplier. How would these amounts be listed on the firm's balance sheet? Liabilities Revenues Fixed assets Current assets
Liabilities
Which of the following is the second step of the control process? Compare performance Establish standards Measure performance Take corrective action, if necessary
Measure performance
Which of the following are readily accessed technological resources for self-improvement? (Choose every correct answer.) Online classes Private corporate databases Apps for mobile devices Podcasts
Online classes Apps for mobile devices Podcasts
Which of the following is a statistical analysis process that reduces defects in manufacturing and service-related processes and requires no more than 3.4 defects per million products or procedures? Malcolm Baldrige Award Six Sigma Pareto analysis Statistical process control
Six Sigma
What are characteristics of the production-run samples used for statistical process control? (Choose every correct answer.) They always include the first item produced. They are chosen randomly. They are taken periodically. They are taken only once.
They are chosen randomly. They are taken periodically.
What is true about product recalls in the 21st century? They are the result of "smart" manufacturing. They cost companies almost nothing. They have cost businesses billions of dollars. They have been eliminated by improved manufacturing techniques.
They have cost businesses billions of dollars.
Which of the following are among the keys to managerial success? (Choose every correct answer.) Treat people as if they matter, because they do. Fine-tune your people skills. Learn how to develop leadership skills. Encourage self-discovery and be realistic. Lose your temper once in a while.
Treat people as if they matter, because they do. Fine-tune your people skills. Learn how to develop leadership skills. Encourage self-discovery and be realistic.
Two ways for a company to guarantee quality of a product are quality control and quality ______. feedback benchmarking assurance efficiency
assurance
The ______ approach gives upper management a quick but thorough view of the organization via four indicators: customer satisfaction, internal processes, innovation and improvement activities, and financial measures. balance sheet RATER scale balanced scorecard external audit
balanced scorecard
Business can improve management of the supply _________ through the use of AI
chain
Under the people orientation of TQM, delivering ______ value is most important. economic product customer efficient
customer
Freeforward control
focuses on preventing future problems
The balanced scorecard perspective that assesses whether or not the organization encourages employees to make suggestions and question the status quo is known as the ______ perspective. internal business innovation and learning financial customer
innovation and learning
Productivity is defined by the formula of outputs divided by ______ for a specified period of time. capital inputs labor processes
inputs
The ______ perspective of the balanced scorecard approach examines such metrics as productivity, efficiency, quality, and safety. financial innovation and learning customer internal business
internal business
Step 3 Control Process
measured perforamnce is compared to established standards
Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______. price perception client interaction personality
perception
Statistical process control is a statistical technique that uses ______ from production runs to see if quality is being maintained within a standard range of acceptability. documentation customer feedback periodic random samples expert advice and worker input
periodic random samples
The two core principles of total ______ management are people orientation and improvement orientation. quality value service placement
quality
A _______ map is a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization. strategy performance goal
strategy
What are small things in a job interview that many recruiters consider deal-breakers when hiring? Bad hygiene Checking your phone Being rude to support staff Showing up a little early
Bad hygiene Checking your phone Being rude to support staff
Greg prepares a financial statement for his business, listing the company's current assets, fixed assets, and the debts that are owed to suppliers and lenders. What document is Greg preparing for his business? Income statement Operating budget Balance sheet Annual report
Balance sheet
Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time? Ratio analysis Income statement Capital expenditure budget Balance sheet
Balance sheet
Which activities related to internal business control are powered by AI? (Choose every correct answer.) Boosting supply-chain management Increasing in-person sales Decreasing defects Improving productivity
Boosting supply-chain management Decreasing defects Improving productivity
Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed? Planning Organizing Leading Controlling
Controlling
Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful? Total quality management (TQM) Deming management ISO 9000 Six Sigma
Deming management
What is the first step of the control process? Take corrective action, if necessary. Establish performance standards. Measure performance. Compare performance to standards.
Establish performance standards.
True or false: The quality-control procedures outlined by ISO 9000 certification are based on the honor system that the company with the certification will carry out procedures as promised. True False
False
What are the components of total quality management (TQM)? (Choose every correct answer.) Get every employee involved. Focus on problem solving and performance improvement. Listen to and learn from customers and employees. Use accurate standards to identify and eliminate problems. Make continuous improvement a priority. Jointly establish SMART goals with employees.
Get every employee involved. Listen to and learn from customers and employees. Use accurate standards to identify and eliminate problems. Make continuous improvement a priority.
What are basic types of financial statements? (Choose every correct answer.) Financial budget Income statement Ratio analysis Balance sheet
Income statement Balance sheet
What are the indicators that make up the balanced scorecard? Innovation and improvement activities Customer satisfaction Employee engagement Financial measures Internal processes
Innovation and improvement activities Customer satisfaction Financial measures Internal processes
Which perspective in the balanced scorecard approach addresses how the organization can continue to improve? Customer perspective Innovation and learning perspective Internal business perspective Financial perspective
Innovation and learning perspective
Which of the following are claims, or debts, by suppliers, lenders, and other nonowners of the organization against a company's assets? Current assets Liabilities Profits Revenues
Liabilities
What do critics fear may result from employee monitoring programs? Loss of privacy Inappropriate workplace relationships Increased product defects Reduction of the supply chain
Loss of privacy
What are recommended actions for managing your career? (Choose every correct answer.) Network with others in your profession. Make every day count. Do not engage in self-promotion. Stay informed.
Network with others in your profession. Make every day count. Stay informed.
What is defined as the subcontracting of services and operations to an outside vendor? Decentralization Benchmarking Outsourcing TQM
Outsourcing
What are two ways that using AI can increase productivity? Encouraging employees to work faster Increasing stockholder dividends Speeding up decision making Gathering performance data
Speeding up decision making Gathering performance data
What are assumptions of the people orientation of TQM? TQM requires training, teamwork, and cross-functional efforts. It is better to make product improvements in separate phases. Delivering product value is most important. People will focus on quality if given empowerment.
TQM requires training, teamwork, and cross-functional efforts. People will focus on quality if given empowerment.
Which balanced scorecard perspective asks the question, "How do customers see us?" The customer perspective The financial perspective The innovation and learning perspective The internal business perspective
The customer perspective
What are key inhibitors to implementing TQM successfully? (Choose every correct answer.) The adoption of a system to track the results of the TQM program The failure to provide evidence supporting previous improvement activities The inability to develop a culture of quality The emergence of a champion who takes responsibility for leading the implementation
The failure to provide evidence supporting previous improvement activities The inability to develop a culture of quality
Which balanced scorecard perspective asks the question, "At what must we excel?" The financial perspective The customer perspective The internal business perspective The innovation and learning perspective
The internal business perspective
How can time management apps such as Toggl and Hours help you increase productivity? They offer help with task management. They force you to stay on task. They have tools for sharing tasks. They help you avoid distractions.
They offer help with task management. They have tools for sharing tasks. They help you avoid distractions.
At the end of the year, Kavita compares each employee's performance to the standards that were set at the beginning of the year. Which step of the organizational control process does this exemplify? Third Second Fourth First
Third
Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction? ISO 9000 Total quality management Statistical process control Deming management
Total quality management
True or false: In the service industry, customer satisfaction is often based on perception. True False
True
True or false: One roadblock that can keep TQM from delivering its intended benefits is the failure to develop a culture of continuous learning. True False
True
Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this represent? Marginal Variable Incremental Fixed
Variable
Step 2 Control Process
actual performance is measured
Resources that an organization controls, such as cash, inventory, and accounts receivable, are classified on the balance sheet as ______. claims assets liabilities
assets
A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms. statement budget trajectory
budget
As a property manager for a large office complex, Alisha develops a projection of the costs that will be incurred over the next 12 months, such as landscape expenses, snow removal, insurance, and repairs. Alisha has prepared a(n) ______. budget ratio analysis audit response annual report
budget
A fixed budget, also known as a static budget, has resources allocated on a single estimate of costs. That budget amount ______. must be adjusted over time is often adjusted over time cannot be adjusted over time is adjusted frequently during the budget period
cannot be adjusted over time
The focus of total quality management (TQM) is ______, training, and customer satisfaction. resource planning continuous quality improvement process efficiency enhanced profitability
continuous quality improvement
When Jensen asked his boss, "How many books do we want to sell by November?" he was trying to establish a(n) ______. upper bound unrealistic expectation control standard corrective action
control standard
The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met. controlling organizing leading planning
controlling
Step 4 Control Process
corrective action is taken, if necessary
The ______ perspective on the balanced scorecard approach focuses on the analysis of different types of customers, their level of satisfaction, and the processes used to deliver products and services to customers. innovation financial customer producer
customer
Reduced cycle time is the direct result of ______. decreasing the steps in a work process introducing outsourcing into the work process increasing the quality of training programs cutting the number of workers required to complete a job
decreasing the steps in a work process
The costs required to produce the goods or services of the organization are known as ______. expenses revenues liabilities
expenses
Dicte has a small business making beaded jewelry. The costs of purchasing the beads, semi-precious stones, clasps, and other supplies used to make the jewelry and the rent on her store are the ______ of her business, whereas the assets resulting from the sale of her jewelry are the business's ______. assets; liabilities revenues; expenses profits; losses expenses; revenues
expenses; revenues
The ______ perspective of the balanced scorecard asks the question, "How do we look to our shareholders?" internal business innovation and learning financial customer
financial
The perspective in the balanced scorecard approach that is concerned with the shareholders' view of organizational performance, such as market share, revenue growth, and stock price, is known as the ______ perspective. internal business innovation and learning customer financial
financial
A summary of some aspect of an organization's financial status such as a balance sheet and an income statement is a ______. strategy map balanced scorecard fixed budget financial statement
financial statement
A(n) ______ budget is where resources are allocated on a single estimate of costs, also known as a static budget, and that budget amount cannot be adjusted over time. variable dynamic fixed austerity
fixed
Assets not easily converted to cash, such as property, buildings, and equipment, are classified on a firm's balance sheet as ______ assets. income consumable variable fixed
fixed
Petra adjusts her management style based on the reaction of her employees to a project. She does not employ the same tactics every time. What approach to management is Petra using? Inclusion Flexibility Self-discovery Singularity
flexibility
Feedback control
focuses on collecting performance information after a task or project is complete
Concurrent control
focuses on collecting performance information in real time
A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month, quarter or year. balance income fiscal
income
A(n) ______ summarizes an organization's financial results (revenues and expenses) over a specified period of time, such as a quarter or a year. balance sheet stockholder's report income statement audit
income statement
The ability of artificial intelligence to automate decision making and analyze data leads to ______. unquantifiable cost increased productivity lower customer service less fear of computers
increased productivity
Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the budgeting approach known as ______ budgeting. zero base incremental supplementary marginal
incremental
Deming management proposed ideas for making organizations more responsive, more democratic, and ______. smaller better controlled less wasteful more hierarchical
less wasteful
Within the third step of the control process, ______ is a principle that states that managers should be informed of a situation only if data show a significant deviation from standards. balanced scorecard management by walking around management by exception standard deviation
management by exception
Samira receives a written report every six months detailing the production outputs of the warehouse. These reports demonstrate which step in the control process? take corrective action compare performance to standards measure performance establish standards
measure performance
Halimax has recently been hired by numerous city governments to handle security at major sporting events. The hiring of Halimax rather than relying on the city police force is an example of ______. outsourcing enterprise resource planning benchmarking strategic control
outsourcing
The two core principles of TQM are ______ orientation and ______ orientation. people; product people; improvement process; profit improvement; innovation
people; improvement
Outputs divided by inputs over a specific period of time equals ______. service dividends productivity cash
productivity
The ability of a product or service to meet customer needs refers to ______. quality continuous improvement inventory benchmarking
quality
Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in ______. decreased customer interaction increased manpower requirements reduced cycle time unhappy robots
reduced cycle time
Practices that use artificial intelligence to reduce defects, shorten downtimes, and facilitate transitions are called ________ manufacturing.
smart
A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______. strategy map RATER scale balance sheet strategic plan
strategy map
Step 1 Control Process
the desired performance level for a given goal is established
The four components of ______ are to make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to identify and eliminate problems. budget auditing and control change management the management process total quality management
total quality management
A budget in which the allocation of resources fluctuates in proportion to different levels of activity during the budget period is known as a(n) ______ budget. forecast incremental informal variable
variable
