MAN-201 CHAP 8

The most immediate and potent form of behavior control is: A. direct supervision. B. MBO. C. clan control. D. bureaucratic control. E. socialization.

A. direct supervision.

Ben, the production manager of Pace Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Ben is: A. establishing the standards of performance. B. measuring the actual level of performance of employees. C. comparing the actual performance against chosen standards of performance. D. evaluating the result of the set standards. E. initiating corrective actions.

A. establishing the standards of performance.

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

A. evaluate the results and initiate corrective action.

The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) _____________ budget approach. A. expense B. profit C. operating profit D. cash flow E. revenue

A. expense

The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the _____________ ratio. A. leverage B. liquidity C. activity D. profit E. inventory turnover

A. leverage

The manager of Triks Burgers keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of Triks Burgers is utilizing _____________ control. A. output B. bureaucratic C. input D. MBO E. feedforward

A. output

From the information given below, calculate the organization's return on investment.Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income Before Taxes = $30,000; Total Expenses = $240,000 A. 50 percent B. 5 percent C. 10 percent D. 12.5 percent E. 15 percent

B. 5 percent

The set of values, norms, and expectations of behavior that control the ways in which workers interact with one another within the organization is known as ___________. A. bureaucratic culture B. organizational culture C. MBO D. feedback control E. feedforward control

B. organizational culture

The control system that managers use at the conversion stage of transforming raw materials into finished goods is _____________ control. A. feedforward B. bureaucratic C. concurrent D. feedback E. MBO

C. concurrent

From the information given below, calculate the organization's current ratio. Total Liabilities = $750,000; Current Liabilities = $220,000; Total Assets = $700,000; Current Assets = $176,000 A. 0.25 B. 0.93 C. 0.29 D. 0.80 E. 1.25

D. 0.80

The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the _____________ ratio. A. debt-to-assets B. quick C. current D. days sales outstanding E. profit

D. days sales outstanding

A worker at a motorcycle plant comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. Always on the lookout for ways to standardize procedures, managers instruct all employees to attach fuel injection systems the same way. If all workers followed the rule to the letter, every car would come off the assembly line with its fuel injection system attached in the new way and there would be no need to check exhaust pipes at the end of the line. The managers of the motorcycle plant are using ___________. A. bureaucratic control B. clan control C. management by objectives D. output control E. input control

A. bureaucratic control

Rules and SOPs are used to regulate the behavior of workers within the organization with a(n) _____________ system. A. bureaucratic control B. MBO C. feedback control D. feedforward control E. concurrent control

A. bureaucratic control

Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Hanover is utilizing _____________ control. A. feedforward B. concurrent C. feedback D. bureaucratic E. MBO

A. feedforward

The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ______________ control. A. feedforward B. concurrent C. feedback D. bureaucratic E. MBO

A. feedforward

A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager being evaluated using the _____________ budget approach. A. profit B. revenue C. cash flow D. cost E. expense

A. profit

The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the _____________ ratio. A. quick B. current C. days sales outstanding D. inventory turnover E. profit

A. quick

Organization change can be defined as: A. the movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness. B. the set of values and norms that control the way individuals in an organization interact with one another and work to achieve organizational goals. C. the process of comparing one company's performance with the performance of other, high-performing organizations. D. the control exerted on organizations by shared values, norms, standards of behavior, and expectations. E. the process in which employees of existing organizations who notice opportunities for product or service improvements are responsible for managing the development process.

A. the movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness.

In an adaptive culture, employees often receive rewards based on: A. their performance. B. union contracts. C. the length of their service with the company. D. their organizational commitment. E. random chance.

A. their performance.

The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is: A. measuring actual performance. B. comparing actual performance to the standards. C. establishing the standards of performance. D. initiating corrective action. E. measuring standards of performance.

B. comparing actual performance to the standards.

Beswick Widget Ltd., sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Beswick is using _____________ control. A. feedforward B. feedback C. MBO D. bureaucratic E. concurrent

B. feedback

Managers at Zeppel Construction Company set up a stringent job interview process by which management applicants are carefully screened at different levels of the organization before they are hired, attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization. By using this process, Zeppel is using _____________ control. A. concurrent B. feedforward C. feedback D. bureaucratic E. MBO

B. feedforward

The financial ratio that measures the ability of the organization to pay its short-term debts is the _____________ ratio. A. leverage B. liquidity C. activity D. profit E. Inventory turnover ratios

B. liquidity

The managers of Foodex, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Foodex are: A. establishing the standards of performance. B. measuring the actual level of performance of employees. C. comparing the actual performance against chosen standards of performance. D. evaluating the result of the set standards. E. initiating corrective actions.

B. measuring the actual level of performance of employees.

With management by objectives, the first thing established are ___________. A. evaluations B. organizational objectives C. management goals D. subordinate goals E. performance appraisals

B. organizational objectives

An organization's net income before taxes divided by the total assets of the organization is known as: A. gross profit margin. B. return on investment. C. the debt-to-assets ratio. D. days sales outstanding. E. the inventory turnover ratio.

B. return on investment.

When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) _____________ budget approach. A. profit B. revenue C. expense D. cash flow E. capital

B. revenue

When actions are performed by employees the same way time and time again and the outcomes of their work are predictable, employee behavior is: A. compromised. B. standardized. C. maximized. D. minimized. E. nullified.

B. standardized.

Action Explosives gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process. This is an example of _____________ control. A. concurrent B. feedforward C. feedback D. bureaucratic E. MBO

B. feedforward

When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) _____________ culture. A. networked B. inert C. adaptive D. bureaucratic E. fragmented

C. adaptive

The control that is imposed on workers within the organization by the shared values, norms, standards of behavior, and expectations is _____________ control. A. bureaucratic B. operating C. clan D. leverage E. liquidity

C. clan

Brandon, the manager of Flipflop Footwear, checked the weekly records and discovered that the number of shoes produced in one week by 20 employees was 250 against the set target of 220 shoes. With reference to the control process, Brandon is: A. establishing the standards of performance. B. measuring the actual level of performance of employees. C. comparing the actual performance against chosen standards of performance. D. evaluating the result of the set standards. E. initiating corrective actions.

C. comparing the actual performance against chosen standards of performance.

The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as _____________ systems. A. operating B. organizational C. control D. recurrent E. concurrent

C. control

When an organization has a culture that leads to values and norms that fail to motivate or inspire employees, which eventually leads to stagnation and often failure over time, that company has a(n) _____________ culture. A. adaptive B. mercenary C. inert D. communal E. bureaucratic

C. inert

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) _____________ ratio. A. activity B. leverage C. profit D. liquidity E. inventory turnover

C. profit

The ratio that is computed by dividing the difference between current assets and inventory by current liabilities is the _____________ ratio. A. inventory turnover B. days sales outstanding C. quick D. current E. debt-to-assets

C. quick

In assessing the need for organizational change, managers must: A. identify the obstacles to change that are found at the corporate, divisional, departmental, and individual levels of the organization. B. engage in planning how they are going to attain the organization's ideal future state. C. recognize that there is a problem and identify its source. D. implement change from the top down or from the bottom up. E. compare how well an organization is performing after the change with how well it was performing before.

C. recognize that there is a problem and identify its source.

The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ______________ budget approach. A. expense B. cash flow C. revenue D. profit E. operating profit

C. revenue

A mechanism of control utilized in organizational culture is ___________. A. direct supervision B. management by objectives C. socialization D. organizational goals E. operating budgets

C. socialization

When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services, this is an example of a(n) _____________ budget approach. A. revenue B. cash flow C. expense D. profit E. capital

C. expense

The manager of Inkman, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of _____________ control. A. bureaucratic B. feedforward C. output D. input E. MBO

C. output

Calculate the current ratio of the organization from the information given below. Sales = $200,000; Gross Profit = $40,000; Total Assets = $450,000; Current Assets = $250,000; Current Liabilities = $300,000 A. 0.44 B. 0.56 C. 0.67 D. 0.83 E. 1.2

D. 0.83

Calculate the return on investment from the information given below.Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000 A. 16.67 percent B. 15 percent C. 11.25 percent D. 12.5 percent E. 50 percent

D. 12.5 percent

The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is _____________ control. A. feedforward B. MBO C. feedback D. concurrent E. bureaucratic

D. concurrent

The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as ___________. A. planning B. organizing C. leading D. controlling E. coordinating

D. controlling

Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Brennan Manufacturing is using _____________ control. A. feedforward B. concurrent C. MBO D. feedback E. bureaucratic

D. feedback

Entrepreneurship is the: A. evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change. B. process of comparing one company's performance on specific dimensions with the performance of other, high-performing organizations. C. process in which employees of existing organizations who notice opportunities for product or service improvements are responsible for managing the development process. D. mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services. E. process whereby managers regulate how efficiently an organization and its members are performing the activities necessary to achieve organizational goals.

D. mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services.

The standard of performance that measures efficiency at the corporate level of the organization is known as: A. cost of goods sold. B. capital costs. C. net sales. D. operating costs. E. net income after taxes.

D. operating costs.

The process through which managers try to increase members' abilities to understand and appropriately respond to changing conditions is known as: A. clan control. B. inert system. C. socialization. D. organizational learning. E. bureaucratic control.

D. organizational learning.

The financial ratio that measures how well the managers of the organization are creating value from the organization's assets is the _____________ ratio. A. leverage B. liquidity C. profit D. current E. activity

E. activity

Management by objectives is a mechanism of control with ______________ organizational control systems. A. input B. clan C. organizational D. output E. behavior

E. behavior

The process of comparing one company's performance on specific dimensions with the performance of high-performing organizations, to decide how successful a change effort has been is known as: A. socialization. B. amalgamation. C. diversification. D. social facilitation. E. benchmarking.

E. benchmarking.

At the output stage, managers usually utilize _____________ control. A. MBO B. concurrent C. bureaucratic D. feedforward E. feedback

E. feedback

Danny, the manager of Wader Shoes, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Danny is: A. establishing the standards of performance. B. measuring the actual level of performance of employees. C. comparing the actual performance against chosen standards of performance. D. evaluating the result of the set standards. E. initiating corrective actions.

E. initiating corrective actions.

When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) _____________ budget approach. A. cash flow B. capital C. revenue D. expense E. profit

E. profit

The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is: A. gross profit margin. B. the debt-to-assets ratio. C. the days sales outstanding ratio. D. the inventory turnover ratio. E. return on investment.

E. return on investment.