MGMT Chapter 16

Araceli has a new manager who she suspects might be a micromanager. What signs should she watch for from him? A) He asks to be copied on everything regardless of what it is. B) He expects assignments to be done according to the directions given. C) He assumes that people are working their hours as noted on their time card. D) He has high employee retention and low attrition rates. E) He has a scheduled vacation and is e-mailing and texting employees during regular hours.

A) He asks to be copied on everything regardless of what it is.

Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to A) ISO 9000. B) restructuring. C) reduced cycle time. D) the RATER system. E) statistical process control.

A) ISO 9000.

Kimberli manages employees at Mountaintop Ski Resorts. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of ________ control. A) bureaucratic B) market C) decentralized D) autocratic E) functional

A) bureaucratic

Which kind of organization is most likely to try to exert too much control? A) bureaucratic B) market C) employee-driven D) decentralized E) matrix

A) bureaucratic

Which of the following is part of Deming's PDCA cycle? A) check B) direct C) apply D) process E) decide

A) check

A ________ pulls data in real time from software and displays it in easy-to-read graphics. A) dashboard B) strategy map C) balanced scorecard D) control chart E) budget

A) dashboard

How would innovation and learning be measured on the balanced scorecard? A) employee retention B) external audits C) decentralized controls D) personality tests E) strategic controls

A) employee retention

Evan accidentally quoted a customer a price for new flooring that was more than $1,000 less than the actual price. His manager had a choice of punishing Evan or providing him coaching and retraining on how to calculate the cost of flooring correctly. His manager chose to retrain Evan, using the control of A) feedforward. B) concurrent. C) feedback. D) evaluation. E) monitoring.

A) feedforward.

Managers can increase overall productivity by increasing the efficiency of all the following EXCEPT A) goals. B) energy. C) materials. D) labor. E) capital.

A) goals.

Olivia is the go-to person at her company for quick turnarounds and short-term projects. She stays focused and meets all deadlines. Even though she seems successful, which time management mistake may Olivia be making? A) ignoring the more important and difficult activities B) motivation and passion for her career C) career readiness D) competing priorities E) producing effective long-term results

A) ignoring the more important and difficult activities

A sales forecast is an example of an organizational control from the ________ area. A) informational B) physical C) human resources D) financial E) capital

A) informational

Enright Industrial Leasing has effective control processes, allowing its managers to discover ________ in bookkeeping right away, before a would-be embezzler could seriously affect its business. A) irregularities and errors B) a potential merger C) competence D) team problems E) tax breaks

A) irregularities and errors

Recruiters for Eastern Shore University were under extreme pressure to increase enrollment by 15 percent. As a result, they admitted many students who were marginally qualified and who performed poorly in classes. This is an example of which problem associated with control systems? A) overemphasis on means instead of ends B) overemphasis on paperwork C) overemphasis on one instead of multiple approaches D) too much control E) too little participation

A) overemphasis on means instead of ends

Before the fall term began, professors at Pinetops Community College were required to fill out numerous forms, including performance objectives, surveys, and lists of their summer contacts with prospective students. Many professors complained that their time would be better spent preparing for their courses. This situation is an example of which barrier to successful control? A) overemphasis on paperwork B) overemphasis on one instead of multiple approaches C) too much control D) overemphasis on means instead of ends E) too much flexibility

A) overemphasis on paperwork

According to Kaplan and Norton, ________ maps are "visual representations of a company's critical objectives and the crucial relationships among them that drive organizational performance." A) strategy B) positioning C) multidimensional D) customer E) graphic interface

A) strategy

Tre'quon's supervisor noticed that he was struggling with the computerized setup for production runs at his new job. The supervisor observed him while he tried it again and gave suggestions for improvement. The supervisor is doing which step of the control process? A) taking corrective action B) establishing standards C) comparing performance to standards D) measuring performance E) controlling productivity

A) taking corrective action

Dermot just learned that his company is closing, and all the employees will be laid off. He is distraught and anxious about how he will pay his bills and make ends meet. He is meeting with a head hunter later in the week. As Dermot prepares for the meeting, what should he say about his former company? A) "My time there was time wasted. They kept us so isolated that we never even met the clients." B) "I was able to learn from this experience. I now know what not to do in my next job." C) "I am so glad that job is over. I am surprised they were able to stay in business that long." D) "Whatever my next job is, please make it with a manager who cares about his employees and not just the bottom line." E) "Have you ever wished that you could just erase a line from your résumé? Well that is the line I would erase."

B) "I was able to learn from this experience. I now know what not to do in my next job."

Why is it important to control the supply chain? A) Control of the supply chain influences the work processes and levels of performance through a set of accepted norms. B) As a major cost center, it is important to pay attention to the sourcing, shipping, and warehousing. C) It is effective in ensuring that performance standards are being met. D) It increases employee commitment and workers taking responsibility for their performance. E) Controlling the supply chain means it can be used to monitor employees and assess job satisfaction, engagement, and leadership.

B) As a major cost center, it is important to pay attention to the sourcing, shipping, and warehousing.

When describing Deming's principles to a colleague, which of the following would you NOT discuss? A) Quality should be aimed at the needs of the consumer. B) Companies should determine which workers are to blame for problems. C) Improved quality leads to increased market share and employment. D) Quality can be improved on the basis of hard data. E) Companies should aim at improving the system.

B) Companies should determine which workers are to blame for problems.

________ perspective helps top management focus on what the organization must excel at to effectively meet its financial objectives and customers' expectations. A) Operational B) Internal business C) Customer D) Financial E) Innovation and learning

B) Internal business

Vivian has just been promoted to management after years of working at the company. She is very excited, but nervous to now be the boss of several of her colleagues. What would be good advice for her? A) Remind them you are now the boss and ask to be copied on everything. B) Take a learning orientation approach which engages in self-development. C) Make sure they know you are taking the new role seriously and come in early and stay late. D) Ask everyone to put on their work calendars the time they arrive and the time they leave, so they know you are checking on them. E) Stop by everyone's cubicles often and ask to see their work, so they know you are still part of the team.

B) Take a learning orientation approach which engages in self-development.

Roberta, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2 percent through additional training for her staff. She is engaged in A) organizing. B) controlling. C) measuring. D) leading. E) planning.

B) controlling.

Typically, operational control is accomplished through reports issued A) weekly. B) daily. C) monthly. D) annually. E) randomly.

B) daily.

Which of the following is NOT a perspective of the balanced scorecard? A) internal business B) external processes C) financial D) innovation and learning E) customer

B) external processes

Productivity equals A) labor, capital, energy, and materials, divided by goods and services produced. B) goods and services produced, divided by labor, capital, energy, and materials. C) labor, energy, and capital, divided by goods, services, and materials. D) goods and services and energy and materials, divided by labor and capital produced. E) energy and materials, divided by labor and capital.

B) goods and services produced, divided by labor, capital, energy, and materials.

A(n) ________ represents the profits or losses incurred by an organization. A) expense budget B) income statement C) ratio analysis D) capital expenditures budget E) balance sheet

B) income statement

All Round, a new virtual music store, is trying to compete with iTunes. One thing All Round did was count the number of products sold and units produced. Where are they in the control process? A) establishing standards B) measuring performance C) comparing performance D) taking corrective action E) making changes

B) measuring performance

Which of the following is NOT characteristic of an external audit? A) performed by CPAs B) primarily used when management suspects embezzlement C) performed by an independent organization D) verifies that generally accepted accounting principles have been followed E) verifies the accuracy and fairness of financial statements

B) primarily used when management suspects embezzlement

Standards are best measured when they are A) broad. B) quantifiable. C) narrow. D) efficient. E) ethical.

B) quantifiable.

A strategy map helps employees to feel engaged because it A) helps the employees calculate their productivity metric. B) shows how their work contributes to organizational effectiveness. C) explains the importance of their personal relationships with clients. D) influences the work process and levels of employee performance. E) aims to get increased employee commitment.

B) shows how their work contributes to organizational effectiveness.

Some managers use ________, which provides four indicators with which organizations can set goals and measure performance. A) a strategic map B) the balanced scorecard C) measurement management D) a strategic scorecard E) evidence-based management

B) the balanced scorecard

Why is it important for management to use a balanced scorecard? A) to help employees understand how their work contributes to the company's goals B) to view performance in several areas simultaneously C) to save companies in payroll costs D) to actually see the sequence of suppliers that contribute to a product E) to characterize informal structural arrangements

B) to view performance in several areas simultaneously

Throughout the last 60 years, the United States has had an interesting track record in regard to productivity. Recently productivity has been declining globally. Why? A) Because benchmarks are not being set or are being set too low. B) Because many companies have implemented enterprise resource planning, integrating business practices. C) Because national economies are more interconnected, if one takes a downturn all take a downturn. D) Because companies are more focused on engaging in self-development and organizational citizenship. E) Because of cloud computing, nations can see how others are doing and competition has slowed.

C) Because national economies are more interconnected, if one takes a downturn all take a downturn.

________ control is an approach to organizational control that is characterized by informal and organic structural arrangements. A) Relational B) Functional C) Decentralized D) Bureaucratic E) Market

C) Decentralized

Which of the following more closely aligns with a job versus a career? A) It belongs to you and lasts a lifetime. B) It can be managed and nurtured. C) It is temporary and in service of someone else. D) It can be created to fit your values and needs. E) There is no distinction, they are the same thing.

C) It is temporary and in service of someone else.

________ is the amount of acceptable deviation from a standard, determined when the standard was established. A) Span of exception B) Breadth control C) Range of variation D) Benchmark E) Zero-based control

C) Range of variation

Internal business processes influence all of the following EXCEPT A) productivity. B) quality. C) access. D) safety. E) efficiency.

C) access.

Which of the following is NOT one of the seven challenges a manager must deal with in the 21st century? A) sustainability B) ethical standards C) economic stagnation D) globalization E) diversity

C) economic stagnation

What is the dominant approach for budgeting used today? A) planning programming budgeting system B) zero-base budgeting C) incremental budgeting D) financial control cost systems E) expense contracting systems

C) incremental budgeting

Tactical control is performed mainly by A) the CEO. B) top managers. C) middle managers. D) first-level managers. E) team leaders.

C) middle managers.

Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ________ control. A) strategic B) functional C) operational D) tactical E) managerial

C) operational

TQM is a comprehensive approach dedicated to continuous A) measurement of quantifiable goals and quick corrections. B) product innovation and organizational learning, over fast cycles. C) quality improvement, training, and customer satisfaction. D) customer input into management strategy and decision making. E) focus on components of service success: tangibles, questions, and margins.

C) quality improvement, training, and customer satisfaction.

Which of the following best describes ERP systems? A) popular recruiting systems that help maximize diversity in the workplace B) comprehensive systems for identifying and measuring changes in productivity C) software information systems that integrate all aspects of business, helping managers stay on top of the latest developments D) training systems for employees that allow self-discovery and correction of weaknesses E) control systems in which managers are made aware of all deviations from standards

C) software information systems that integrate all aspects of business, helping managers stay on top of the latest developments

Janis is the CEO of Global Marketplace. She is reviewing the company's five-year plan and deciding if any corrective actions are needed. How would you describe her level of control? A) operational B) tactical C) strategic D) physical E) informational

C) strategic

________ is the process of instituting ongoing small, incremental improvements in all parts of an organization. A) MBO B) Reengineering C) Radical innovation D) Continuous improvement E) Productivity

D) Continuous improvement

________ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. A) Measuring B) Leading C) Organizing D) Controlling E) Planning

D) Controlling

Which of the following best defines Kaizen? A) ideas for making organizations more responsive, more democratic, and less wasteful B) a comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction C) a cycle using observed data for continuous improvement of operations D) a philosophy of small continuous improvement that seeks to involve everyone at every level of the organization E) a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes

D) a philosophy of small continuous improvement that seeks to involve everyone at every level of the organization

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives? A) external perspective B) customer perspective C) internal business perspective D) financial perspective E) innovation and learning perspective

D) financial perspective

A(n) ________ budget allocates increased or decreased funds to a department by using the last budget period as a reference point. A) standardized B) fixed C) ero-based D) incremental E) tactical

D) incremental

One characteristic of incremental budgeting is that it A) allows comparison using various units, like labor hours and dollars. B) is flexible toward changing environmental demands. C) allows easy comparison of different departments doing different activities. D) locks managers into stable spending arrangements. E) requires more time from managers than zero-based budgeting.

D) locks managers into stable spending arrangements.

Which of the following is a primary function of management? A) communicating B) globalizing C) cooperating D) organizing E) influencing

D) organizing

Anchor Resort and Casino requires its casino dealers to have licenses, observes them using closed-circuit TV, and requires detailed reports at the end of each shift. This organization has overcome the control system barrier of A) too much control. B) overemphasis on paperwork. C) overemphasis on means instead of ends. D) overemphasis on one instead of multiple approaches. E) too little participation.

D) overemphasis on one instead of multiple approaches.

TQM's two core principles are A) employee commitment and customer satisfaction. B) financial health and financial stability. C) management and leadership. D) people orientation and improvement orientation. E) radical innovation and continuous improvement.

D) people orientation and improvement orientation.

A successful organization can involve its employees in the control system in all of the following ways EXCEPT A) setting realistic performance results. B) emphasizing development and improvement. C) encouraging good communication and mutual participation. D) regulating its behavior. E) presenting data in understandable terms.

D) regulating its behavior.

At Fresh Bakery, Simon pulls six samples an hour from an assembly line to examine them for quality defects. If he finds any, he makes adjustments to various pieces of equipment in his area. Simon's job involves A) feed-forward control. B) benchmarking. C) reduced cycle time. D) statistical process control. E) strategic control.

D) statistical process control.

Charlotte is trying to measure her salon's productivity during the first quarter. For this period, she should divide ________ by the costs of her staff, loans, materials, and utility bills. A) the number of clients B) the average daily receipts C) her budgeted costs D) the total salon services and products sold E) her projected revenue

D) the total salon services and products sold

How is a control chart used? A) to compare measured performance against the standards established B) to show a significant deviation from standards C) to recognize and reinforce positive performance D) to establish the normal or desired performance with upper and lower limits E) to quantify the performance level for a given goal

D) to establish the normal or desired performance with upper and lower limits

At Hamilton Hardware, employees were asked how the quality of the company's customer service could best be measured, and management then implemented a survey system based on the feedback. The company has overcome which of the following barriers to success of control systems? A) overemphasis on one instead of multiple approaches B) overemphasis on paperwork C) overemphasis on means instead of ends D) too little employee participation E) too much control

D) too little employee participation

A(n) ________ budget is one that can be adjusted over time for changing environmental conditions. A) operating B) incremental C) zero-based D) variable E) cash

D) variable

Which of the following may be done as a corrective action in the control process? A) Establish standards. B) Renew standards. C) Compare performance to standards. D) Align processes with goals. E) Evaluate performance and take action.

E) Evaluate performance and take action.

King Power and Light has a goal of reducing its electric costs by installing solar panels on all of its building and supporting an increase of solar farms in the area. This will help to not only reduce company costs but also the costs passed down to its consumers. How would you describe King Power and Light's control system? A) It overemphasizes a means to an end. B) It seems like it will require a lot of paperwork. C) It will require new hires with new skill sets. D) It is setting a new standard that is behind the times. E) It is strategic and results oriented.

E) It is strategic and results oriented.

How is management using controls when they allow decision making at lower levels and encourage employees to work together in teams? A) They are adapting to change and uncertainty. B) They are discovering irregularities and errors. C) They are detecting opportunities and increasing innovation. D) They are providing performance feedback. E) They are decentralizing decision making.

E) They are decentralizing decision making.

Service firms are different from for-profit businesses in all of the following ways EXCEPT A) They cannot hold inventory. B) They develop personal relationships. C) They offer services that are highly perishable. D) They provide services on demand. E) They require controls at many different points.

E) They require controls at many different points.

Current assets, fixed assets, and liabilities are all part of an organization's A) cash flow statement. B) capital expenditures budget. C) income statement. D) expense budget. E) balance sheet.

E) balance sheet.

Which of the following is an example of a physical control? A) drug test B) sales forecast C) production schedule D) organizational chart E) car speedometer

E) car speedometer

Which of the following areas of control for organizations exerts informal control? A) structural B) human resources C) informational D) competitive E) cultural

E) cultural

Which of the following is a step in the control process? A) complete a job redesign B) evaluate opportunities C) compare work units to one another D) implement TQM E) establish standards

E) establish standards

A(n) ________ budget allocates resources on the basis of a single estimate of costs. A) unitary B) zero-based C) cash D) incremental E) fixed

E) fixed

Charmaine was required to take an Excel spreadsheet test as part of her application for an executive assistant position. This control is part of the ________ area. A) structural B) physical C) financial D) informational E) human resources

E) human resources

Which of the following is NOT a characteristic of a successful control system? A) strategic and results-oriented B) timely, accurate, and objective C) realistic, positive, and understandable D) flexible and encourages self-control E) inflexible to optimize control

E) inflexible to optimize control

Which of the following is NOT a belief measure on the balanced scorecard in relation to customers? A) customer acquisition B) market share C) response time D) percentage of bids won E) innovation

E) innovation

Colin was working on his budget. He had compiled his receipts, his employee's time sheets, the invoices he has sent to his suppliers and his bills that he owed others. He was now ready to assess his A) assets. B) income statement. C) external audit. D) fixed budget. E) liabilities.

E) liabilities.

Techniques for improving quality include all of the following EXCEPT A) Six Sigma. B) outsourcing. C) reduced cycle time. D) statistical process control. E) market share.

E) market share.

All of the following are reasons why performance falls significantly short of the standard EXCEPT A) unrealistic standards. B) changing conditions. C) insufficient resources. D) insufficient management attention. E) unawareness of performance drop.

E) unawareness of performance drop.

At Taylor Activewear, orders have significantly exceeded projections, and Macon, the operations director, has decided to hire for a third shift in the plant. Macon is clearly operating with the use of a(n) ________ budget. A) zero-based B) incremental C) cash D) fixed E) variable

E) variable