Busi 310 Chapter 14

Select the definition of control.

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

A company is said to lack control when there is a(n) _____, that is the firm's expectations are not established in writing.

absence of policies

Select the relationship represented by the balance sheet.

assets = liabilities + stockholder's equity

A _____ refers to a control system combining four sets of performance measures: financial, customer, business process, and learning and growth.

balanced scorecard

The _____ budget is essential to every business.

cash

The _____ ratio indicates the company's ability to meet its long-term financial obligations.

debt-equity

______ has become a necessary part of a manager's control repertoire.

empowerment

____ control focuses on the use of information about results to correct deviations from the acceptable standard after they arise.

feedback

"Are you telling me that we have to write off over $1 million in revenue because our eastern division manager did not accrue it properly?" asked the CEO. His CFO replied, "Yes. I know that we are a start-up, still working on developing policies, rules, and procedures, but, in this case, the division manager had no processes in place to monitor the project's progress." The CEO concluded, "The _______________ has caused irreparable damage to our firm."

lack of controls

A(n) _______ is the level of expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed.

standard

________ behavior occurs when employees feel forced to attempt to "beat the system."

tactical

Select the true statement regarding managing in an empowered world.

Team performance and adding value to the customer should be emphasized

"My business relationship with the Midwest sales rep has really deteriorated. We used to cooperate; now we __________," said the manager of the Southwest region. "And I blame our new control system. Every month, managers across the entire enterprise get profit and loss statements for all divisions and business units. We look at one another's performance and are less likely to help one another when we know that our business unit or division may suffer a loss in profitability as a result. After all, promotions, salary increases, and bonus pools are tied to our profitability."

compete

"With the rollout of this new __________________, we will be able to get a much more accurate picture of how each division—and, in fact, each operations manager, each sales manager, and each sales professional—is performing. And we will be able to hold each manager and employee more accountable. As a result, do not be surprised when we receive a lot of resistance from across the organization," said Angie Summers, CFO of Blunt International.

comprehensive control system

While plans are being carried out, ________ control is taking place.

concurrent

"I think that we can manufacture 12,000 units next year," said Hector, factory manager for XY Enterprises. "But I will need to buy significantly more tons of raw material and more replacement parts." Jill, Operations Division Manager, replied, "Hector, I'm glad to hear that. You will need to include all of these physical units in your ___________ budget for next year."

cost

"Listen up," said, Dave Thoreson, dive team leader, as his team finished suiting up. "This is a hazardous dive. We've been properly trained and properly equipped with the necessary gear and tools to rescue the trapped cavers. Stay in physical contact with the divers in front of and behind you. After we complete the rescue, meet me to debrief what we did well and what we can improve." In this case, the proper training and equipment is an example of ____________ control.

feedforward

"The new phones are really high-tech, but they are also very complicated to use," said Belinda, administrative manager for Wellman Enterprises. "I will schedule several training workshops that the staff can attend, and I will teach them how to use the phones." The bureaucratic control that Belinda will use is _____________ control.

feedforward

Policies restricting workplace romantic involvement, tattoos and body art, and public disclosure of corporate information are examples of _____ control.

feedforward

Angered, Chet, an outside salesman for ABC Products, told his supervisor, "I received a memo from our accounting department that, effective immediately, all employees and their managers will receive a monthly report measuring each employee's days-in-office statistics. And over the next 12 months, the days-in-office metric is expected to increase by 50 percent to reduce our firm's travel costs. How can I do outside sales, when I am expected to spend more days inside the office?" Chet is expressing a view that his firm is committing the "deadly sin" of __________ by measuring days-in-office for outside sales people.

vanity