management 16

One important reason controls are useful to organizations is so that decision-making power can be centralized to a few key leaders.

false

Threadless receives immediate customer feedback on specific promotions through online orders. What type of control does this represent?

concurrent

The oversupply of oil in world markets and the increase in interest rates primarily negatively impacted which perspective of U.S. shale's balanced scorecard?

financial

Managers today need to look past traditional viewpoints in determining the success of their company's strategy. One way to do this is to use what is known as the balanced scorecard. This approach involves looking past just one measure and instead taking a comprehensive view of the organization. This activity is important because the balanced scorecard give managers a quick and comprehensive view of organizational performance. The goal of this activity is to challenge your knowledge of the four perspectives in the balanced scorecard. For each item, select the balanced scorecard perspective that the item represents.

1. "At what must we excel?" Internal business perspective Correct 2. "How do we look to shareholders?" Financial perspective 3. "Can we continue to improve and create value?" Innovation and learning perspective 4. "How do customers see us?" Customer perspective 5. The goal of this perspective would be an increase in sales and could be measured by looking at annual sales figures. Financial perspective 6. A goal of this perspective would focus on providing enhanced training opportunities for employees. It could be measured by looking at changes in the skill level of employees. Innovation and learning perspective 7. A goal of this perspective would concentrate on changes to the processes involved in production. It could be measured by using data from the ERP system to look into success levels of company processes. Internal business perspective 8. A goal of this perspective would focus on the level of customer service. It could be measured by looking at the results of an online customer satisfaction survey. Customer perspective

Threadless sets an annual budget for the next year after the end of the current year's holiday season. The process includes reviewing the current budget and setting goals for the next year. The company then supplements the annual budget with forecasts. What type of budgeting does this resemble?

incremental

A company that works to create a culture that encourages rank-and-file employees to make suggestions, question the status quo, and also measure employee growth, is developing which perspective of the balanced scorecard?

innovation and learning perspective

U.S. shale companies' use of technology such as AI, to make drilling more efficient, primarily supports the ______ perspective of the balanced scorecard.

internal business

The case mentions that Saudi Arabia, for instance, is able to produce conventional oil for under $10 a barrel, making it more resilient during price slumps. With this in mind, the primary reason why U.S. shale companies need to utilize effective control measures is to

reduce costs.

________ focuses on problem solving and performance improvement, or speed with excellence, of a well-defined project.

Lean Six Sigma

Control helps an organization

detect opportunities

Assume that a U.S. shale company partners with an oil refinery to take random samples of oil that's been produced in order to confirm adequate quality and proper viscosity. This would be an example of utilizing which TQM tool or technique?

statistical process control

Threadless switched to 100 percent on-demand printing, allowing vendors to print one shirt at a time (instead of bulk) and to send the shirt directly to customers. Threadless never has to actually touch the product, reducing its fixed costs. This is an effective way to manage the company's

supply chain.

Assume that Jason Macatangay, the company's VP of Finance and Treasurer, changes the company to 100 percent on-demand printing, completely overhauling its supply chain so that performance will meet standards. What step in the control process would this represent?

take corrective action

Jaheem, who owns a hardware store, uses an income statement to show his revenue and expenses over the past three years to potential investors.

true

There are a multitude of ways in which Artificial Intelligence (AI) can benefit managers and organizations. One of these ways is by enhancing an organization's control functions. Specifically, AI can be used to reduce errors and defects, increase productivity, and enhance supply chain management. This activity is important because managers who understand how to properly implement AI toward these ends will be more effective in their roles. The goal of this activity is to test your understanding of the three AI activities related to internal business control. Read the statements regarding AI. Then, select the AI activity related to internal business control that the statement best represents.

1. AI helps managers to analyze processes, detect potential problems, and find solutions before major issues arise. Reducing errors and defects 2. Managers can make quicker and more precise decisions by using AI to automate routine decision processes. Increasing productivity 3. AI can greatly increase the efficiency with which products and components are sourced, shipped, and stored. Enhancing supply chain management 4. Applying AI in this way can improve manufacturing efficiency and prevent mishaps. Reducing errors and defects 5. AI has the advantage of being able to grasp data patterns that are beyond human understanding. Increasing productivity 6. Companies can use AI to provide more accurate information about production and delivery times. Enhancing supply chain management

Many college students are more focused on getting a job after graduation than on planning for their careers. Even if you are not currently pursuing your dream job, successfully managing your career requires many career readiness competencies that employers are already looking for, including self-awareness, self-motivation, ownership/accepting responsibility, and openness to change. This activity is important because enhancing these skills will make you a more attractive job candidate in addition to increasing your ability to manage your career. The goal of this activity is to challenge your knowledge of tips for managing your career. For each person, select the tip for managing your career that the description best exemplifies.

1. Angèle breaks her workday into two main chunks. She reserves the first half of the day—the morning, when she is most productive—for activities that are time-consuming, complex, and don't produce any immediate gratification. She then spends the afternoons catching up on emails and other personally satisfying, albeit mindless, work tasks. Make every day count 2. Darnell runs into the CEO of his company while attending a conference in another state. Darnell takes the rare one-on-one opportunity to tell the her about the success he and his team have had on a recent company project. Promote yourself 3. Wesley loves his current job. However, he still views every new project as an opportunity to gain valuable skills that will make him more marketable to other companies. Roll with change and disruption 4. Esteban treats every interaction at work as a job interview. He wants his coworkers, subordinates, and supervisors to know that he is a dedicated, conscientious, and hard-working person. Make every day count 5. Teresa is the VP of Human Resources at her company. Next week she is attending a training to bring her up to speed on the latest in medical marijuana legislation and how it will impact organizational policies in her state. Stay informed and network 6. Luke thinks he is losing ground on the younger workers in his company because he continuously has to ask them for help with technology-related matters. Luke decides to enroll in some seminars on social media management so that he can update his skill set. Stay informed and network 7. In her LinkedIn profile, Reena lists the major projects she has led successfully with her current employer. For each project, she notes the impact that the project had on the organization's financial performance. Promote yourself 8. Brandy is offered an interview for her dream job. She spends several days emailing back and forth with the interviewer's administrative assistant to get things set up. The assistant is impressed by his interactions with Brandy because she is prompt and respectful in her responses to him. He passes this information along to his boss. Small things matter during interviews 9. Monique is quitting her job and moving to another state because her partner was offered a tremendous job there. Monique is excited about the opportunity to recharge and refocus her own career. Roll with change and disruption 10. Khalil researches the norms for attire at each company he plans to interview with. This way he can be certain to dress according to specific organizational expectations. Small things matter during interviews

Control is monitoring performance, comparing it with goals, and taking corrective action, if needed. The control process is comprised of four main steps: establish standards, measure performance, compare performance to standards, and take corrective action, if necessary. This activity is important because each of these steps is important to help managers effectively determine that the right things happen at the right time, in the right way, in their organizations. The goal of this activity is to challenge your knowledge of the steps in the control process. Select the appropriate step in the control process for each manager.

1. Aaliyah is the head of the customer experience division. She establishes the acceptable level of performance for her staff. Establish standards 2. Jefferson is head of the parts department. He measures the actual number of defective parts to the standard number of defective parts. Compare performance to standard 3. Grace is head of accounting. She evaluates the cost management of divisional inventory by examining the cost per item purchased. Measure performance 4. As an executive manager of the international sales division, Tristan examines the product sales reports and decides to take corrective action for negative performance. Take corrective action 5. Tahir manages the production department. He determines the number of products to be manufactured monthly and quarterly. Establish standards 6. Xiu is the manager of the finance department. She determines the actual sales revenue by analyzing the number of products sold. Measure performance 7. As the VP of Marketing, Widad examines the latest advertising forecasts and determines that no changes are necessary to reach the desired outcome at her organization. Take corrective action 8. Mary supervises the quality control department. She compares the actual number of returned products to the desired number of returned products. Compare performance to standard

Total quality management (TQM) is defined as a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction. TQM is led by top management and supported throughout the organization. This activity is important because TQM requires hard work, and managers should understand its core principles in order to properly instill and support TQM in their organizations. The goal of this activity is to challenge your knowledge of core TQM principles. For each item, select the core TQM principle that its description best exemplifies.

1. Employees, suppliers, and customers are all entrusted with decision-making power. People orientation 2. The way to success in business is through continuous, small enhancements to products. Improvement orientation 3. Is driven by strong support at the highest levels of the organization. Improvement orientation 4. The focus is on creating the most value possible for customers. People orientation 5. Assumes that it is better to expend more resources getting something right the first time than to have to engage in costly repairs and reworking after the fact. Improvement orientation 6. Executives and researchers at the corporate level frequently interact with front-line salespeople to garner information on customer and product issues. People orientation

There are three primary types of control: feedforward, concurrent, and feedback. This activity is important because good control systems—along with effective use of those systems—allow managers to better achieve organizational objectives. The goal of this activity is to test your knowledge of the three types of control. Read the short statements about the different types of control. Then, select the type of control that each statement best describes.

1. This type of control focuses on preventing potential future issues. Feedforward control 2. This type of control allows managers to take corrective action immediately if performance is not at the expected level. Concurrent control 3. One drawback of this type of control is that it often occurs too late. Feedback control 4. Advances in word processing and GPS technology have enabled more widespread use of this type of control. Concurrent control 5. This type of control allows managers to evaluate employees' performance and then provide information that hopefully improves that performance in the future. Feedback control 6. This type of control is used to establish new performance standards that help workers avoid roadblocks before they even begin a project. Feedforward control

Deming suggested that organizations could improve quality if they acted on the basis of hard data. The process used to do this has become known as the PDCA cycle. This activity is important because managers' knowledge of these steps can enhance their ability to enact total quality management (TQM) in their organizations in the interest of continuous improvement. The goal of this activity is to challenge your knowledge of the PDCA cycle. Match each description with the corresponding stage of the PDCA Cycle. 1. Check 2. Plan 3. Do 4. Act

2. Plan: Bahira reviews last year's reports in order to work on ideas for new techniques and methods. 3. Do: Marco gathers a group of his top employees to try out some new methods he would like to use. 1. Check: Hong gathers some data shortly after implementing new methods. 4. Act: Valerie looks over the data for performance so far this year.

Organizing is monitoring performance, comparing it with goals, and taking corrective action.

false

When you grandstand and boast about your greatness, you are promoting yourself.

false

Thousands of organizations use TQM principles. The data strongly suggest that following these general principles fosters improved performance for organizations. This activity is important because managers should be familiar with the variety of tools and techniques available for improving quality in their organizations. The goal of this activity is to challenge your knowledge of TQM tools, techniques, and standards. Match each item to the TQM tool, technique, or standard that its description best represents. 1. Reduced Cycle Time 2. Statistical Process Control 3. Outsourcing 4. ISO 9000 and ISO 14000 5. Six Sigma and Lean Six Sigma

3. Outsourcing: Subcontracting project work to freelancers in the gig economy saves companies many employee-related expenses. 1. Reduced Cycle Time: The goal of this technique is to improve performance by eliminating barriers, waste, and unnecessary steps. 2. Statistical Process Control: Periodic random samples during production ensure that quality is maintained within a standard acceptable range. 5. Six Sigma and Lean Six Sigma: Companies that use this technique are focused on improving quality and reducing waste to the point that errors nearly vanish. 4. ISO 9000 and ISO 14000: Identifies standards for corporate environmental performance that can be audited by independent quality control experts. Identifies standards for corporate environmental performance that can be audited by independent quality control experts.

Some U.S. shale companies fit their machines with sensors that collect performance data in real time. What type of control does this represent?

concurrent

Amaia has been very careful to work with her team to finalize next year's goals. She has taken the process seriously and now wants to make sure that others do their part. Amaia is insisting that all employees follow instructions fully and completely. Amaia seems to be exhibiting the

controlling function because she is concerned with seeing that the right things happen at the right time.