mgmt 301 chapter 16 quiz

7.As part of their strategic control of the organization, the CEO and senior managers at Ford review the daily performance of the company's suppliers to determine which should be kept. True False

False Strategic control is monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed. Strategic control is mainly performed by top managers, such as those at the CEO and VP levels, who have an organization-wide perspective.

1. Productivity is monitoring performance, comparing it with goals, and taking corrective action. True False

False Controlling is monitoring performance, comparing it with goals, and taking corrective action. Productivity is defined by the formula of outputs divided by inputs for a specified period of time.

19. ______ focuses on problem solving and performance improvement, or speed with excellence, of a well-defined project. Reduced cycle time ISO 9000 Benchmarking ISO 14000 Lean Six Sigma

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

4. __________ is the last step in the control process. Measure the performance Establish standards Develop an ideal Take corrective action if necessary Determine the problem

Take corrective action if necessary The four control process steps are (1) establish standards, (2) measure performance, (3) compare performance to standards, and (4) take corrective action, if necessary.

8. The six areas of organizational control include _____, physical, informational, financial, structural, and cultural. governmental material human categorical functional

human The six areas of organizational control are physical, human, informational, financial, structural, and cultural.

18. The two core principles of TQM are _____. -uniform focus on delivering customer value, and continuous improvement of work processes -improvement of customer relationships, and development of strong corporate culture -uniform focus on delivering customer value, and improvement of management-employee relationships -improvement of employee morale, and enhancement of shareholder satisfaction -development of strong organizational culture, and continuous improvement of work processes

uniform focus on delivering customer value, and continuous improvement of work processes The two core principles of TQM are (1) people orientation: everyone involved with the organization should focus on delivering value to customers; and (2) improvement orientation: everyone should work on continuously improving the work processes.

Jeff's sales goal was to "improve sales". Which barrier to measurement is this? A. Objectives are fuzzy B. Managers put too much trust in informal feedback systems C. Employees resist new measurement systems D. Companies focus too much on measuring activities

A. Objectives are fuzzy

A drug test employed by an organization in its hiring process is an example of a(n) _______ resource control. A. Physical B. Human C. Financial D. Informational

B. Human

In Harvey's job, he takes random samples of production runs to ascertain quality. His job involves: A. Benchmarking B. Statistical process control C. Reduced cycle time D. Feedforward control

B. Statistical process control

A UPS driver fails to perform according to the standards set for the route and traffic conditions. A supervisor rides along and gives suggestions for improvement. This is the ____________ stage of the control process. A. Compare performance to standards B. Establish standards C. Take corrective action D. Measure performance

C. Take corrective action

3. Which of the following is not a reason why control is needed? -Control allows one to adapt to change and uncertainty and detect opportunities. -Control helps an organization deal with complexity. -Control increases productivity or adds value. -Control allows one to maintain authority over employees. -Control helps one discover irregularities and errors.

Control allows one to maintain authority over employees. control is needed to adapt to change and uncertainty; to discover irregularities and errors; to reduce costs, increase productivity, or add value; to detect opportunities; to deal with complexity; and to decentralize decision making and facilitate teamwork.

17. The PDCA cycle is part of _____. statistical process control Deming management applying the RATER dimensions Six Sigma management by exception

Deming management Deming management proposed ideas for making organizations more responsive, more democratic, and less wasteful. These included the principle that quality can be improved on the basis of hard data, using the PDCA cycle.

5. A company that determines the acceptable number of consumer complaints it will expect for the upcoming year has set a statistical target. True False

False A control standard, or performance standard, is the desired performance level for a given goal. For-profit organizations might have standards of financial performance, employee hiring, manufacturing defects, percentage increase in market share, percentage reduction in costs, number of customer complaints, and return on investment.

10. A pattern is a visual representation of the balanced scorecard that enables managers to communicate their goals. True False

False A strategy 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.

14. Zero-based budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point. True False

False Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed.

6. Management by measurement is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards. True False

False Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards

20. Control systems should be realistic, positive, understandable, and flexible and encourage self-control. True False

True Control systems have to focus on working for the people who will have to live with them. They operate best when they are made acceptable to the organization's members who are guided by them. Therefore, they should be realistic, be positive, be understandable, and encourage self-control. Control systems should be flexible rather than permanent.

15. The income statement summarizes an organization's financial results, its revenues and expenses, over a specified period of time such as a quarter or a year. True False

True The income statement summarizes an organization's financial results, its revenues and expenses, over a specified period of time such as a quarter or a year.

9. Bureaucratic control attempts to elicit employee compliance using strict rules, a rigid hierarchy, well-defined job descriptions, and administrative mechanisms such as budgets, performance appraisals, and compensation schemes. True False

True Bureaucratic control is an approach to organizational control that is characterized by use of rules, regulations, and formal authority to guide performance. This form of control attempts to elicit employee compliance using strict rules, a rigid hierarchy, well-defined job descriptions, and administrative mechanisms such as budgets, performance appraisals, and compensation schemes (external rewards to get results).

12. Among the mechanisms that contribute to measurement-managed companies' success are that top executives agree on strategy and the organizational culture emphasizes teamwork and allows risk taking. True False

True Measurement-managed companies outperform those that are less disciplined. Four mechanisms that contribute to these companies' success are as follows: top executives agree on strategy, communication is clear, there is better focus and alignments, and the organizational culture emphasizes teamwork and allows risk taking.

2. Ensuring that employees follow instructions fully and completely is the purpose of which one of the following management functions? organize lead control motivate plan

control Controlling is the fourth management function, along with planning, organizing, and leading, and its purpose is to ensure that performance meets objectives.

11. A company that works to create a culture that encourages rank-and-file employees to make suggestions and question the status quo, and also measures employee growth, is developing which perspective of the balanced scorecard? customer perspective financial perspective internal business perspective innovation and learning perspective employee perspective

innovation and learning perspective In the innovation and learning perspective, the focus is on learning and growth of employees, which is the foundation for innovation and creativity. Thus, the organization must create a culture that encourages rank-and-file employees to make suggestions and question the status quo and it must provide employees with the environment and resources needed to do their jobs. The company can use employee surveys and analysis of training data to measure the degree of learning and growth.

13. A budget is a formal financial _____. summary audit scorecard projection statement

projection A budget is a formal financial projection.

16. An organization that is examining its return on investment (ROI) is using _____. ratio analysis flexible budgeting external auditing internal auditing trend analysis

ratio analysis Managers often use ratio analysis, the practice of evaluating financial ratios, to determine an organization's financial health. Return ratios, often called return on investment (ROI) or return on assets (ROA), indicate how effective management is in generating a return, or profits, on its assets.