Chap 11_Mgt

Clan control keeps organizational members goal-directed, while they are still open to new opportunities. True False

a

The more complex a job is, the more difficult it is for a manager to evaluate how well a subordinate is performing. True False

a

Which of the following types of control allows managers to anticipate problems before they arise? Feedforward control Concurrent control Feedback control Bureaucratic control Clan control

a

____ guide behavior and specify what employees are to do when they confront a problem that needs a solution. Rules and SOPs Output controls Feedback controls Evolutionary changes Force-fields

a

_____ shows whether an organization can pay claims of short-term creditors without selling inventory. Quick ratio Current ratio Days sales outstanding ratio Inventory turnover ratio Profit ratio

a

A control system must be rigid in order to be effective. True False

b

According to the force-field theory: a manager cannot evaluate the forces at work when observing the performance of workers such as doctors, research scientists, or engineers. a wide variety of forces arise from the way an organization operates that make organizations resistant to change. forces that support clan control are significantly different from the forces that form the foundation of organizational culture. the forces of evolutionary change and revolutionary change are equal and complement each other. an organization is in a state of inertia when it reduces the forces for change and increases resistance to change.

b

Behavior control tends to be the first type of control that managers at all levels use to evaluate performance. True False

b

Being under close scrutiny or not being evaluated in an impartial way motivates employees to perform better. True False

b

Bureaucratic rules constrain and standardize behavior and encourage people to think for themselves. True False

b

Control is not concerned with keeping employees focused on the important problems confronting the organization but with reacting to events after they have occurred. True False

b

Days sales outstanding is a profit ratio that reveals how efficiently managers are collecting revenue from customers to pay expenses. True False

b

Once managers have measured actual performance, they should: revise accepted standards. compare actual performance to the standards. establish the standards of performance. initiate corrective action. develop goals and objectives.

b

Output control and behavior control are appropriate for the most important and significant organizational activities. True False

b

Profit ratios measure how well managers have protected organizational resources to be able to meet short-term obligations. True False

b

RST Consulting screens job applicants by viewing their résumés electronically and using several interviews to select highly skilled people. By doing so, the managers at RST consultin ensure that the wrong candidates are not picked for a particular job. This is an example of: concurrent control. feedforward control. feedback control. bureaucratic control. clan control.

b

Starling Manufacturing Inc. has carefully set up strict specifications for raw materials that are sourced from suppliers. It follows a three-step approval process to select new suppliers and ensures that they are aware of raw material specifications. This is an example of: concurrent control. feedforward control. feedback control. bureaucratic control. clan control.

b

The first step in the control process is to evaluate results in terms of performance standards. True False

b

The subjectivity of financial measures of performance is the reason why managers use them to measure the efficiency and effectiveness of their organizations. True False

b

When you divide the organization's current assets by its current liabilities, the result is known as the times-covered ratio of the organization. True False

b

Which of the following is a mechanism of behavior control? Clan control Direct supervision Output control Feedback control Organizational change

b

Which of the following is true of direct supervision? It is an inexpensive form of control. It can demotivate subordinates. It is the least potent form of behavior control. It is feasible for complex jobs. It is preferred over bureaucratic control.

b

With bottom-up change, the emphasis is on making the changes quickly and dealing with problems as they arise; it is revolutionary in nature. True False

b

A change that is gradual, in which managers at all levels work together to develop a detailed plan for change, is called a(n) __________. top-down change radical change bottom-up change stagnation change restructuring change

c

The formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plans are known as _____ systems. social routine control nonprogrammed classical

c

The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of _____. current ratio liquidity ratio leverage ratio activity ratio profit ratio

c

Which of the following describes stretch goals? Goals at one level that are not in sync with goals set at other levels of the organization Goals that subordinates set for themselves Goals that are specific and difficult but not out of reach Goals that are set low and are easy to achieve Goals set at an impossibly high level

c

Which of the following steps of the organizational change process includes identifying obstacles to change? Assessing the need for change Identifying the source of the problem Deciding on the change to make Implementing the change Evaluating the change

c

During the input stage, managers use __________ control procedures to anticipate problems before they occur. input conversion output feedforward feedback

d

MBO starts when top managers: determine subordinates' goals. review subordinates' progress toward meeting goals. resort to direct supervision. establish organizational objectives. link performance evaluations to rewards.

d

The first step managers must take to manage change effectively is to: evaluate the change. decide on the change to make. implement the change. assess the need for change. identify obstacles to change.

d

Which of the following is true of measuring actual performance? Managers can either evaluate output or behavior, never both. Outputs and behavior can be measured easily always. It is easy to measure outputs and behavior of complex, nonroutine activities. Outputs are easier to measure because they are more tangible and objective. Managers develop performance stands to measure behavior first and then outputs.

d

Which of the following is true of the control process? It is difficult to take corrective action when reasons for poor performance are identified. It is always easy to measure outputs and behavior. It is easy to measure outputs and behavior of complex, nonroutine activities. Realistic standards reduce the gap between actual performance and desired performance. Managers develop performance stands to measure behavior first and then outputs.

d

Which of the following steps of the control process involves goal setting? Measuring actual performance Comparing actual performance against chosen standards Evaluating the results of comparison Establishing the standards of performance Initiating corrective action

d

Which of the following can hurt the performance of an organization? Adopting realistic performance standards Setting stretch goals for employees Establishing operating budgets that regulate how managers and workers attain their goals Using output controls to motivate managers and employees at different levels Focussing on only one standard instead of a hundred different standards

e

Which of the following is true of revolutionary change? It is gradual It is incremental It is narrowly focused It is constant attempt to improve It is dramatic

e

Which of the following steps of the organizational change process includes benchmarking? Introducing and managing change Assessing the need for change Deciding on the change to make Implementing the change Evaluating the change

e

Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods? Behavioral control Concurrent control Bureaucratic control Feedforward control Feedback control

e

Why is return on investment (ROI) the most commonly used financial performance measure? It measures how far profits can decline before managers cannot meet interest changes. It measures how efficiently managers are collecting revenues from customers to pay expenses. It shows whether organizations can pay claims of short-term creditors without selling inventory. It measures how efficiently managers are turning inventory over. It allows managers of one organization to compare performance with that of other organizations.

e