Module 18

Which type of system uses rules, standards, regulations, hierarchy, and legitimate authority to control the organization's performance?

Bureaucratic

_____ uses budgets, statistical reports, and performance appraisals to regulate behavior and results.

Bureaucratic control

Select all that apply At which levels do the basic principles behind market controls operate? (check all that apply)

Business unit level Individual level Corporate level

What type of control is based on mutual respect and individual responsibility?

Clan

Which type of control requires a culture where everyone understands management's values and expectations, and employees want to act accordingly?

Clan

______ control is often the best option when managers cultivate a work environment that encourages good behavior.

Clan

________ involves culture, shared values, beliefs, expectations, and trust. It works best when employees are empowered to make decisions.

Clan control

What is the term for a measure that steers individuals toward reaching a company's goals?

Control

Which management function monitors business activities so that when things go wrong, the problem can be corrected?

Control

_____ is any process that directs the activities of individuals toward the achievement of organizational goals.

Control

Select all that apply Which two management functions are referred to as twins?

Controlling Planning

Which of the following is NOT a sign that a company lacks controls?

Employees have agreed to accept too many standards.

Employees jobs have changed, the nature of management has changed, and the employment relationship has changed. In light of these facts, what concept has become a necessary part of control?

Empowerment

True or false: Control systems based on nothing but bureaucratic and market mechanisms are adequate for managing a modern workforce.

False

True or false: In order for empowerment to work, managers must give up control.

False

Select all that apply Which of the following characteristics describe an effective control system? (Select all that apply.)

It should be hard to sabotage or falsify the data being monitored. The system should encompass all elements that affect performance significantly. Standards should be objective.

Select all that apply Which of the following are Michael Hammer's seven deadly sins of performance measurement? (Check seven.)

Laziness Pettiness Inanity Provincialism Frivolity Vanity Narcissism

Select all that apply Why is it no longer sufficient to base control systems entirely on bureaucratic and market mechanisms? (Check all that apply.)

Managers do not necessarily know each job better than employees do. Employees' relationship to their work has changed. Employees' jobs have become more complex and intellectual.

Select all that apply Which of the following are characteristic of the most effective control systems? (Select all that apply)

Managers tell workers why the control system is important. Workers recognize their own shortcomings and correct them without supervision. Workers are given a critique of their performance on the job.

Which of the following is a type of control that relies on economic forces?

Market

______ control uses price, competition, and exchange relationships to regulate how projects are done within organizations.

Market

______ affect performance via economic forces and pricing mechanisms.

Market controls

Select all that apply Which two goals should an effective control system accomplish?

Minimizing dysfunctional behaviors Producing the most possible benefits

Control is referred to as a twin with which of the other management functions?

Planning

_____ sketches out where management expects to proceed in the future, and this creates a blueprint for control.

Planning

Select all that apply In which two ways do market controls affect pricing? (Check all that apply.)

Price helps to regulate productivity and performance. Price indicates how valuable the service or good is.

Which of the following is NOT one of Michael Hammer's seven deadly sins of performance measurement?

Profitability

Select all that apply A company uses a computer system for its sales team to keep track of their sales. This allows other departments within the company to see what they need to provide to the sales crew. For example, the marketing team can see which products may need additional marketing, and the production team can see which products are in demand. Which characteristics of an efficient control system is the company using?

Showing workers how other parts of the company function. Providing workers with data they need to make decisions.

Select all that apply Which of the following are signs that a company lacks controls? (Check all that apply)

The employees lack integrity. The organization has not set any standards of achievement. The business has no written policies.

_______ price is the amount one business unit charges for a good or service provided to another within the organization.

Transfer

True or false: Market controls such as transfer prices encourage employees to reduce costs and increase quality.

True

True or false: Organizations can use individual-level market controls to influence the wages employees expect to receive and the rate organizations are likely to pay.

True

Which guideline is useful for managing in an empowered world?

Use incentives to improve teamwork and responsiveness.

Select all that apply Which of the following are guidelines for managing in an empowered world? (Check all that apply)

Use real time controls Use clan control. Build on trust, not distrust.

Select all that apply Which elements should be included in the design of an effective control system?

Using more than one approach Using valid performance standards Making sure that employees will be willing to accept the system

Select all that apply Which features are necessary for an effective control system?

Valid performance standards Adequate information provided to employees Multiple approaches

Select all that apply During the design phase of a control system, which of the following questions should be considered? (Check all that apply)

Will it show workers how related parts of the organization function? Will it give people throughout the organization the right amount of information to make decisions? Will it give workers the information they need to make decisions?

The amount that business units within the same organization charge each other for goods and services is called

a transfer price

The most useful control systems are based on ______ performance standards.

accurate

A control system that features performance measures related to finance, customer satisfaction, business processes, and learning and growth is called a

balanced scorecard

A(n) _______ control system uses rules, standards, and regulations to guide performance.

bureaucratic

Although formal _____ control systems are the most pervasive and most widely taught, they are not always the most efficient or flexible.

bureaucratic

The type of control system that incorporates an organization's norms, values, shared goals, and trust is referred to as ______ control.

clan

When managers use shared values, norms, standards of behavior, and expectations to control individuals and groups in organizations, they are using ______ control.

clan

Select all that apply Which two of the following control systems tend to be the most flexible? (Check all that apply.)

clan market

Managers use ______ to obtain information about the business so that when things don't go as planned, the problem can be corrected.

control

The balanced scorecard includes elements of feedforward, concurrent, and ______ control.

feedback

Select all that apply A balanced scorecard comprises which of the following sets of performance measures? (Check all that apply.)

financial business processes learning and growth customer satisfaction

Market controls at the ______ level can be used to determine employee wages.

individual

The basic concepts that drive market controls function at the level of the corporation, the department, and the ______.

individual

A ______ control system uses prices, competition, and exchange relationships to regulate activities as though they were economic transactions.

market

Large, diversified firms use ______ to regulate independent business units.

market controls

Transfer prices and other ______ encourage managers to reduce costs and increase quality.

market controls

When business units make their own decisions and have their own power, managers can use ______ to ensure that performance meets the corporation's goals.

market controls

Effective control systems __________.

maximize benefits and minimize dysfunction

Providing employees with accessible information enables them to bring their own performance up to company standards. The use of ______ is one example of this control principle.

open-book management

Market controls affect price, which in turn affects productivity and ______.

performance

Control systems determine how resources will be distributed and used, and they make it easier to ______ the next phase of a project.

plan

Market control is based on the use of ______ to manage activities within organizations.

pricing and other economic factors

Which control system includes performance standards regarding finances, customers, business processes, and learning?

the balanced scorecard