Chapter 11

Which of the following is true of direct supervision? A. It is an expensive form of behavior control. B. It is the least potent form of behavior control. C. Direct supervision is preferred to output control. D. Close scrutiny motivates employees to make their own decisions. E. Personal control through direct supervision is feasible for all jobs.

A. It is an expensive form of behavior control.

Which of the following provides a framework to monitor progress toward achieving goals? A. Management by objectives B. Direct supervision C. Clan control D. Output control E. Top-down change

A. Management by objectives

Which of the following is true of the control process? A. Managers can easily take corrective action when reasons for poor performance are identified. B. Outputs and behavior can be measured easily always. C. It is easy to measure the outputs and behavior of complex, nonroutine activities. D. Managers should never revise performance standards to a lower level. E. Managers develop performance standards to measure behavior first and then outputs.

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

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

A. Quick ratio

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

A. Rules and SOPs

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. a profit budget approach. B. a revenue budget approach. C. a cash flow budget approach. D. a cost budget approach. E. an expense budget approach.

A. a profit budget approach.

Control by means of a comprehensive system of rules and standard operating procedures (SOPs) is known as: A. bureaucratic control. B. management by objective. C. output control. D. clan control. E. behavior control.

A. bureaucratic control.

The final step in the control process is to: A. initiate corrective action. B. measure actual performance. C. establish the standards of performance. D. compare actual performance to the standards. E. establish targets.

A. initiate corrective action.

Which of the following types of change is rapid, dramatic, and broadly focused? A. Social change B. Cultural change C. Structural change D. Revolutionary change E. Evolutionary change

D. Revolutionary change

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

D. assess the need for change.

The process by which managers monitor and regulate the efficiency and effectiveness of the workers in an organization is called _____. A. planning B. organizing C. leading D. controlling E. coordinating

D. controlling

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

D. establish organizational objectives.

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: A. feedforward control. B. concurrent control. C. clan control. D. feedback control. E. bureaucratic control.

D. feedback control.

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

D. feedforward

Which of the following types of control allows managers to anticipate problems before they arise? A. Feedforward control B. Concurrent control C. Feedback control D. Bureaucratic control E. Clan control

A. Feedforward control

Which of the following controls leads to standardized behavior and standardized work outputs? A. Output control B. Bureaucratic control C. Feedback control D. Feedforward control E. Clan control

B. Bureaucratic control

Which of the following types of controls helps monitor the quality of goods or services provided during the production process? A. Feedforward control B. Concurrent control C. Feedback control D. Bureaucratic control E. Clan control

B. Concurrent control

Which of the following is a mechanism of behavior control? A. Clan control B. Direct supervision C. Output control D. Feedback control E. Organizational change

B. Direct supervision

Which of the following cannot be measured easily? A. The creativity of a research engineer B. An employee's ability to meet deadlines C. The success of a product D. An employee's adherence to rules E. The money spent on organizational resources

A. The creativity of a research engineer

Which of the following can be inferred from calculating a company's operating margin? A. An organization's competitive advantage B. How efficiently an organization is using its resources C. Whether the organization has the resources available to meet the claims of short-term creditors D. How efficiently managers are turning inventory over E. How efficiently managers are collecting revenue from customers

B. How efficiently an organization is using its resources

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

B. It can demotivate subordinates.

Which of the following financial ratios measures the ability of the organization to pay its short-term debts? A. Leverage ratios B. Liquidity ratios C. Activity ratios D. Profit ratios E. Inventory turnover ratios

B. Liquidity ratios

The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations is called: A. output control. B. clan control. C. procedural control. D. feedback control. E. culture control.

B. clan control.

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

B. compare actual performance to the standards.

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: A. concurrent control. B. feedforward control. C. feedback control. D. bureaucratic control. E. clan control.

B. feedforward 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: A. concurrent control. B. feedforward control. C. feedback control. D. bureaucratic control. E. clan control.

B. feedforward control.

The set of values, norms, and expectations of behavior which control the ways in which workers interact with one another within the organization is known as: A. organizational goals. B. organizational culture. C. control procedures. D. SOPs. E. rule-based culture.

B. organizational culture.

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

C. Bottom-up change

Which of the following types of controls do managers use during the conversion stage to gain feedback on the conversion process? A. Feedforward control B. Bureaucratic control C. Concurrent control D. Feedback control E. Clan control

C. Concurrent control

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

C. Deciding on the change to make

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. A. social B. routine C. control D. nonprogrammed E. classical

C. control

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

C. leverage ratio

A formal system for evaluating subordinates' behavior by their ability to achieve specific goals is called: A. an SOP. B. operating standard. C. management by objectives. D. total quality management. E. clan control.

C. management by objectives.

Once managers have chosen the standards to evaluate performance, the next step in the control process is to: A. compare actual performance against chosen standards of performance. B. initiate corrective action if the chosen standard is not being achieved. C. measure actual performance. D. evaluate the results of comparison. E. revise performance standards.

C. measure actual performance.

Which type of financial ratio is computed by dividing the organization's present assets by its present liabilities? A. Inventory turnover ratio B. Days sales outstanding ratio C. Profit ratio D. Current Ratio E. Debt-to-assets ratio

D. Current Ratio

What is the most immediate and potent form of behavior control? A. SOPs B. An MBO system C. Rules D. Direct supervision E. Bureaucracy

D. Direct supervision

Which of the following is the first step of the control process? A. Measuring actual performance B. Comparing actual performance against chosen standards C. Evaluating the results of comparison D. Establishing the standards of performance E. Initiating corrective action

D. Establishing the standards of performance

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

D. Establishing the standards of performance

Which of the following is true of clan control? A. Clan control and organizational culture are independent of each other. B. The use of clan control has decreased in organizations over the past few years. C. It standardizes behavior and leads people to behave in predictable ways. D. It serves a dual function of keeping organizational members goal-directed while open to new opportunities. E. It cannot be used for many of the most significant organizational activities.

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

Which of the following financial measures is a result of dividing a company's operating profit by its sales revenues? A. Gross profit margin B. Return on investment C. Net profit D. Operating margin E. Operating costs

D. Operating margin

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

D. Outputs are easier to measure because they are more tangible and objective.

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

D. Realistic standards reduce the gap between actual performance and desired performance.

What is an operating budget? A. A measure of how much percentage profit a company is earning on sales B. The result of dividing a company's operating profit by sales revenues C. The amount an organization has left after all the costs of making the product and running the business have been deducted D. Specification of the functional goals that the managers of different functions need to achieve E. A blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently

E. A blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently

_____ allows managers to become personally involved with their subordinates and mentor them. A. Clan control B. An MBO system C. Bureaucratic control D. Output control E. Direct supervision

E. Direct supervision

Which of the following steps of the organizational change process includes benchmarking? A. Introducing and managing change B. Assessing the need for change C. Deciding on the change to make D. Implementing the change E. Evaluating the change

E. Evaluating the change

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

E. Feedback control

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

E. Focussing on only one standard instead of a hundred different standards

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

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

Which of the following is true of revolutionary change? A. It is gradual B. It is incremental C. It is narrowly focused D. It is constant attempt to improve E. It is dramatic

E. It is dramatic

_____ is the movement of an organization away from its present state toward some preferred future state to increase its efficiency and effectiveness. A. Clan control B. Concurrent control C. Direct supervision D. Bureaucratic control E. Organizational change

E. Organizational change

Which type of financial ratio measures how well the managers of an organization are creating value from the organization's assets? A. Leverage ratios B. Liquidity ratios C. Profit ratios D. Current ratios E. Activity ratios

E. Activity ratios

Which of the following types of change is gradual, incremental, and narrowly focused? A. Technological change B. Infrastructure change C. Structural change D. Revolutionary change E. Evolutionary change

E. Evolutionary change

Which of the following is true of evolutionary change? A. It is sudden. B. It is unexpected. C. It is rapid. D. It is dramatic. E. It is narrowly focused

E. It is narrowly focused