Management Chapter 16

____________ is the use by management of real-world data, rather than fads and hunches, in making managerial decisions.

Evidence-based management

____________ is a formal verification of an organization's financial accounts and statements made by outside experts who are certified public accountants (CPAs).

External Audit

The six areas of organizational control are physical, human, physiological, financial, structural, and cultural.

False

True/False: Zero-based budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point.

False

_______ is monitoring performance to ensure that plans and day-to-day goals are being implemented and taking corrective action as needed.

Operational control

___________ is monitoring performance to ensure that operational plans (day-to-day goals) are being implemented and taking corrective action as needed.

Operational control

_________ is defined by the formula of outputs divided by inputs for a specified period of time.

Productivity

_________ is the practice of evaluating financial relationships between accounting numbers (i.e., ROA-return on assets) that are obtained from a company's financial statements to determine an organization's overall financial health.

Ratio analysis

___________ is a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes to no more than 3.4 defects per million.

Six Sigma

__________ meet to solve a special or one-time problem and then disbands after the problem is solved.

Special-purpose teams

________ involves monitoring performance to ensure that plans are at the divisional or departmental level are being implemented and that corrective action is taken as needed.

Tactical control

__________ is defined as a comprehensive approach--led by top management and supported throughout the organization--dedicated to continuous quality improvement, training, and customer satisfaction.

Total quality management

True/False: A balance sheet summarizes an organization's overall financial worth--that is, assets and liabilities--at a specific point in time.

True

True/False: Continuous improvement is defined as ongoing small, incremental improvement in all parts of an organization.

True

The __________ gives top management a fast but comprehensive view of the organization via four indicators: customer satisfaction; internal processes; innovation and improvement activities; and financial measures.

balance scorecard

Control is defined as monitoring __________, comparing it with goals, and taking corrective action as needed.

performance

A self-managed team is a group of workers who are given _________ activities such as planning, scheduling, monitoring, and staffing for their task domain.

administrative oversight of

Strategic control involves monitoring ________ to ensure that strategic plans are being implemented and taking corrective action as needed.

performance

After managers have compared employee performance to organizational standards, they must evaluate the results and initiate corrective action. This exemplifies the ________ step of the organizational control process.

fourth

A(n) ____________ summarizes an organization's financial results (revenues and expenses) over a specified period of time such as a quarter or a year.

income statement

Assets are the resources that an organization controls. Which of the following are examples of assets?

-Accounts receivable -Inventories -Cash

Which of the following are mechanisms that contribute to the success of a measurement-managed firm?

-Communication provides a clear message -Top executive agree on business strategy that is translated into measurable objectives -Better focus and alignment with strategic measures and individual performance

Which of the following are control challenges that a manager will need to deal with?

-Diversity -Sustainability -Competitive advantage

Which three of the following are the principal management levels of control?

-Operational -Strategic -Tactical

Which four of the following are TQM tools and techniques used for improving quality?

-Statistical process control -Reduced cycle time -Benchmarking -Six Sigma

Which four of the following are barriers to a successful control system?

-Too much emphasis on means instead of ends -Too little employee participation -Too much control -Overemphasis on paperwork

A financial statement is a summary of some aspect of an organization's financial status. Example of a financial statement might be _________.

-a balance sheet -an income statement

The Six areas of organizational control are:

-physical -human -informational -financial -structural -cultural

Rank the four steps of the control process from first (at the top) to last (at the bottom).

1.Establish standards 2.Measure performance 3.Compare performance to standards 4.Take corrective action, if necessary

________ are formal verifications of an organization's financial and operational systems.

Audits

_______ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

Control

________ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

Control

__________ is an approach to organizational control that is characterized by informal and organic structural arrangements and is the opposite of bureaucratic control.

Decentralized control

_____________ is a verification of an organization's financial accounts and statements by the organization's own professional staff

Internal audit

___________ budgeting is when you start over at each budget period to force each department to start from scratch and project their funding needs for the budget period.

Zero-based

A(n) __________ is a formal financial projection.

budget

Total quality management (TQM) is defined as comprehensive approach--led by top management and supported throughout the organization--dedicated to _________, training, and customer satisfaction.

continuous quality improvement

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

establish standards

Productivity is defined by the formula of outputs divided by ____________ for a specified period of time.

inputs

Deming management proposed ideas for making organizations more responsive, more democratic, and _______.

less wasteful

The four main __________ are planning, organizing, leading, and controlling.

management functions

The four most frequent barriers to effective measurement are _________: managers put too much trust in informal feedback systems; employees resist new measurement systems; and companies focus too much on measuring activities instead of results.

objectives are unclear

Halimax has recently been hired by numerous local governments to handle security at major sporting events. The hiring of Halimax as opposed to using local law enforcement is known as __________.

outsourcing

Statistical process control is a statistical technique that uses _______ from production runs to see if quality is being maintained within a standard range of acceptability.

periodic random samples

PDCA stands for the ___________ cycle for using observed data for continuous improvement of operations.

plan, do, check, and act

A budget is a formal financial __________.

projection

Using robots to paint products on a twenty-four-hour basis rather than humans who require downtime for personal breaks would result in ________.

reduced cycle time

The four perspectives supplied by a balanced scorecard are: how do we look to _________, how do our customers see us, what must we excel at, and can we continue to improve and create value?

shareholders

Benchmarking is a process by which a company compares its performance with __________.

that of high-performing organizations

A(n) ______ budget allows the allocation of resources to vary in proportion with various levels of activity.

variable

A(n) ________ budget allows the allocation of resources to vary in proportion with various levels of activity.

variable