Chapter 16: Control Systems and Quality Management

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. T/F

True

The simplest definition of productivity is outputs divided by inputs. T/F

True

In recent years, productivity has been declining globally. T/F

True

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

Control allows one to maintain authority over employees.

The PDCA cycle is part of...

Deming management

When you grandstand and boast about your greatness, you are promoting yourself. T/F

False

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

False

A company that works to create a culture that encourages rank-and-file employees to make suggestions, question the status quo, and also measure employee growth, is developing which perspective of the balanced scorecard?

Innovation

Which of the following is NOT a characteristic of a successful control system?

It is inflexible

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

Lean Six Sigma

Dionne has been very careful to work with her team to finalize next year's goals. She has taken the process seriously and now wants to make sure that others do their part. She is insisting that all employees follow instructions fully and completely. How would you describe the management function that Dionne is now engaging in?

She is in the controlling function because she is concerned with seeing that the right things happen at the right time.

What is the last step in the control process?

Take Corrective action if necessary

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. T/F

True

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

human

A budget is a formal financial...

projection

The two core principles of TQM are

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

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. T/F

False

Control systems affect each other and thus must remain independent of each other. T/F

False

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. T/F

False

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

False