Management chapter 8 part 1

profit

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 is being evaluated using the ________ budget approach.

socialization.

A mechanism of control utilized in organizational culture is

bureaucratic

Jae-Kyu, a worker at Chelsea Motor Scooters, comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car comes off the assembly line with its fuel injection system attached in the new way. The managers are using ________ control.

operating costs.

The standard of performance that measures efficiency at the corporate level of the organization is known as

comparing the actual performance against chosen standards of performance.

Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags. With reference to the control process, Charlene is

0.80

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

feedforward

Futura Fabricators 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.

feedforward

Managers at Foster and Zapp Construction 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, Foster and Zapp is using ________ control.

12.5 percent

Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000

quick ratio

The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity?

concurrent

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.

concurrent

The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control.

4

The current assets of Kaiser Investments are valued at $25 million and its current liabilities are at $6 million. If its inventory is worth $1 million, what is its quick ratio?

quick

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.

liquidity

The financial ratio that measures the ability of the organization to pay its short-term debts is the ________ ratio.

return on investment.

The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is

organizational culture.

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

by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them

The startup where Ha-Jin works, Affiniti, was recently acquired by Futurica, a huge multinational conglomerate. Everyone at Affiniti was severely stressed by the many changes that accompanied the transition. Many of Affiniti's managers were let go and replaced by people from Futurica. For almost a week, Ha-Jin was not even sure who her direct supervisor was. On top of everything else, Affiniti people were given a huge manual of Futurica's company policies that they had to memorize in less than a week. It was chaos, and several of Ha-Jin's colleagues ending up handing in their notices. How could Futurica's management have handled the transition more effectively?

profit

When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach.

deciding whether to take corrective action to meet the standard

Which of the following activities might a manager perform if he or she is at the final stage of the control process?

managing problems as they occur

Which of the following happens in the conversion stage?

Employees stop thinking for themselves.

Which of the following problem is most likely to occur when a company becomes overly bureaucratic?

feedforward

Windward Bank 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, Windward is utilizing ________ control.

organizational objectives.

With management by objectives, the first things established are

Output control

________ tends to be the first type of control that all managers use to evaluate performance.