Chapter 10 Quiz

According to the force-field theory

A wide variety of forces arise from the way an organization operates that make organizations resistant to change

Management by objectives (MOB) is a mechanism of

Behavior control

___ is control by means of a comprehensive system of rules and standard operating procedures (SOPS)

Bureaucratic control

Which of the following describes stretch goals?

Goals that are specific and difficult but not out of reach

Why is return on investment (ROI) the most commonly used financial performance measure

It allows managers of one organization to compare performance with that of other organizations

Which of the following is true about direct supervision?

It can make subordinates less eager to work

Which of the following is true about direct supervision?

It is an expensive form of behavior control

Which of the following is true about revolutionary change

It is dramatic

Which of the following is true about evolutionary change?

It is narrowly focused

Which of the following is true about clan control?

It serves a dual function of keeping organization members goal-directed while open to new opportunities

Which of the following is an important reason for subordinates to participate in goal setting?

It strengthens subordinates commitment to achieving goals and meeting budgets

Which of the following is true about the control process?

Managers can easily take corrective action when reasons for poor performance are identified

___ guide behavior and specify what employees are to do when they confront a problem that needs a solution

Rules and SOPs

After measuring and evaluating the manufacturing performance of a new product, a manager raised the performance standard for the next period of challenge. Which of the following would justify the manager's reason for raising the standard?

The manager wants to challenge the subordinates

Which of the following is true about bureaucratic control and standardization?

Too many rules can stop employees from thinking for themselves

What is an operating budget?

a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently

Which type of financial ratio measures how well the managers of L&B rentals, Inc. are converting the organization's assets into cash or sales?

activity ratios

When a company's operating profit is divided by its sales revenues, the financial measure is referred to as

an operating margin

The first step managers must take to manage change effectively is to

assess the need for change

The managers at Mt. Slide Ski Resort are comparing the number of annual passes they sold last year with the number of annual passes sold by other high-performing ski resorts. This is called

benchmarking

Which of the following controls leads to standardized behavior and standardized work outputs?

bureaucratic control

___ control is the control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations

clan

The manager of a pizza restaurant monitors the employee's behavior by counting the number of customers each employee serves and how much each customer spends. This is an example of

clan control

Once managers have measured actual performance, they should

compare actual performance to the standards

One of Carlos's work responsibilities is to check the inspection stations periodically to monitor the quality of the products during the production process. This is an example of

concurrent control

Which of the following types of controls helps monitor the quality of goods and services provided during the production process?

concurrent control

Which of the following types of controls helps monitor the quality of goods or services provided during the production process?

concurrent control

___ is the process by which managers monitor and regulate the efficiency and effectiveness of the workers in an organization

controlling

Which of the following steps of the organizational change process includes obstacles to change?

deciding on the change to make

Which of the following is a mechanism of behavior control

direct supervision

___ is the most likely to cause organizational costs to increase

direct supervision

MBO starts when top managers

establish overall organizational objectives

Which of the following is the first step of the control process?

establishing the standards of performance

Which of the following steps of the control process involves goal setting?

establishing the standards of performance

Which of the following steps of the organizational change process includes benchmarking?

evaluating the change

Which of the following types of change is gradual, incremental and narrowly focused?

evolutionary change

As fx manager of KIM Corp., Dwight is given an operating budget of $1 million for that financial year and is evaluated on the basis of the amount of goods produced based on that budget. Dwight's performance is evaluated on a(n)

expense budget approach

As regional manager of KIM Corp., Dwight, is given an operating budget of $1 million for that financial year and is evaluated on the basis of the amount of goods produced based on that budget. Dwight's performance is evaluated on a(n):

expense budget approach

An organization monitors the number of customer returns for each product model as a part of an attempt to recognize defective products. This is an example of

feedback control

Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods

feedback control

Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods?

feedback control

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:

feedforward

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 Consulting ensure that the wrong candidates are not picked for a particular job. This is an example of:

feedforward control

Which of the following can hurt the performance of an organization?

focusing on only one standard instead of a hundred different standards

According to Lewin's force-field theory, what must an organization do to change?

increase the forces for change and reduce resistance to change

The final step in the control process is to

initiate corrective action

Which of the following is true about evolutionary change?

it is narrowly focused

The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of

leverage ratio

Current ratio is a type of ___ financial measure

liquidity ratio

Which of the following financial ratios measures the ability of the organization to pay its short-term debts?

liquidity ratios

Managers for an e-commerce business use a formal system for evaluating subordinates' behavior by their ability to achieve specific goals. This is an example of

management by objectives

Which of the following provides a framework to monitor progress toward achieving goals

management by objectives

Which of the following provides a framework to monitor progress towards achieving goals?

management by objectives

Once managers have chosen the standards to evaluate performance, the next step in the control process is to:

measure actual performance

___ is the movement of an organization away from its present state toward some preferred future state to increase its efficiency and effectiveness

organizational change

___ is (are) the set of values, norms, and expectations of behavior which control the ways in which workers interact with one another within the organization

organizational culture

___ tends to be the first type of control that managers at all levels use to evaluate perfomance

output control

___ tends to be the first type of control that managers at all levels use to evaluate performance

output control

As the regional manager, Ted's performance is evaluated on the difference between the sales revenues generated by his region and the cost of making those goods and services. Ted is being evaluated using a(n) ________ approach

profit budget

The _____ shows whether an organization can pay claims of short-term creditors without selling inventory

quick ratio

The CEO of a large corporation mandates that new goals be implemented immediately. This is an example of

revolutionary change

The CEO of large corporation mandates that new goals be implemented immediately. This is an example of

revolutionary change

Which of the following types of change is rapid, dramatic, and broadly focused?

revolutionary change