Mgmt ch 16

T/F: 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

T/F: Control systems should be realistic, positive, understandable, and flexible and encourage self-control.

True

T/F: 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

Which of the following is not one of the reasons that control is needed in an organization?

to eliminate the need for teamwork

T/F: 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

T/F: Zero-based budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point.

False

Employees' knowledge, courtesy, and ability to convey trust and confidence make up which dimension of the RATER scale?

Assurance

Which of the following is part of Deming's PDCA cycle?

Check

Which of the following is not a principle of Deming management?

Companies should determine which workers are to blame for problems.

Ensuring that employees follow instructions fully and completely is the purpose of which one of the following management functions?

Control

Which of the following is not a reason why control is needed?

Control allows one to maintain authority over employees.

______ control is an approach to organizational control that is characterized by informal and organic structural arrangements.

Decentralized

The PDCA cycle is part of _____.

Deming management

Which of the following is a frequent barrier to effective measurement?

Employees resist new measurement systems.

T/F: A company that determines the acceptable number of consumer complaints it will expect for the upcoming year has set a statistical target.

False

T/F: A pattern is a visual representation of the balanced scorecard that enables managers to communicate their goals.

False

T/F: 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.

False

T/F: 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.

False

T/F: Productivity is monitoring performance, comparing it with goals, and taking corrective action.

False

The six areas of organizational control include _____, physical, informational, financial, structural, and cultural.

Human

Kara was required to take a word-processing test as part of her application for an executive assistant position. This control is part of the ______ area.

Human resources

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?

Innovation and learning perspective

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

Lean six sigma

A budget is a formal financial _____.

Projection

Which of the following is not a financial control?

RATER

Which of the following is not a common characteristic of successful control systems?

Subjective

__________ is the last step in the control process.

Take corrective action if necessary

Michele manages employees at Maui Tours and Lodging. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of ______ control.

bureaucratic

At Phoenix Instruments, Claudia pulls six samples an hour from an assembly line to examine them for quality defects. If she finds any, she makes adjustments to various pieces of equipment in his area. Claudia job involves _____.

statistical process control

Gina was recently promoted to facilities director at Wholesome Grains. Which of the following should she do immediately as she tries to improve productivity?

establish a system of measurement

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

financial perspective

Profits or losses incurred by an organization are represented in its _____

income statement

A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n) _____.

incremental budget

A sales forecast is an example of an organizational control from the _____ area.

informational

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

irregularities and errors

One characteristic of incremental budgeting is that it _____.

locks managers into stable spending arrangements

A(n) ______ budget projects what an organization will create in goods and services, what financial resources are needed, and what income is expected.

operating

Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ______ control.

operational

Recruiters for Mountainview College were under extreme pressure to increase an enrollment goal by 10%. As a result, they admitted many students who were marginally qualified and who performed poorly in classes. This is an example of which problem associated with control systems?

overemphasis on means instead of ends

Before the fall term began, professors at Hillview College were required to fill out numerous forms, ranging from performance objectives, surveys, reports to lists of summer contacts with prospective students. Many professors complained that their time would be better spent preparing for their courses. This is an example of which barrier to successful control?

overemphasis on paperwork

TQM is defined as a comprehensive approach dedicated to continuous _____.

quality improvement, training, and customer satisfaction

The amount of acceptable deviation from a standard, determined when the standard was established, is called the _____.

range of variation

An organization that is examining its return on investment (ROI) is using _____.

ratio analysis

Which of the following best describes ERP systems?

software information systems that integrate all aspects of business, helping managers stay on top of the latest developments

The two core principles of TQM are _____

uniform focus on delivering customer value, and continuous improvement of work processes