MAN3025.521S19QuizzesQuiz 6 (Ch. 18 & 11)

________ ratios measure how efficiently the firm is using its assets.

Activity

________ corrects the problem at once to get performance back on track

Immediate corrective action

A service profit chain is the service sequence from employees to customers to profit.

True

Job uncertainties and employee stress are factors that contribute to workplace violence

True

Most employees do their jobs well and never require disciplinary action.

True

Some control criteria, such as employee satisfaction, can be used for any management situation.

True

The Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial information.

True

The balanced scorecard approach evaluates organizational performance from more than just the financial perspective.

True

Two areas in which corporate governance is being reformed are the role of boards of directors and ________.

financial reporting

Clinical psychologists suggest that employee theft ________.

happens because people find ways to rationalize this behavior as correct

The Sarbanes-Oxley Act called for ________.

more disclosure and transparency of corporate financial information

Factors that have been found to be linked to workplace violence include ________.

B) employee stress

Which of the following is an example of a feedforward control measure used to control possible workplace violence?

Clearly communicate the security policies to employees.

________ refers to the process of monitoring, comparing, and correcting work performance.

Controlling

________ is the final step in the management process, which provides a critical link back to ________.

Controlling; planning

Controlling is the process of monitoring, comparing, and correcting work performance.

True

Deviations that exceed the acceptable range of variation become significant and need a manager's attention.

True

Embezzlement and fraudulent filing of expenses are examples of employee theft.

True

Managers engage in controlling activities to protect the organization and its assets.

True

Managers should do nothing if the variance observed from the standard is acceptable.

True

Managers tend to use more direct supervision and highly centralized decision making for control in less technologically advanced countries.

True

Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met.

True

The ________ approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.

balanced scorecard

Which of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?

balanced scorecard approach

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________.

basic corrective action

Mark recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation. Here, Mark is recommending ________.

basic corrective action

Charles interacts directly with the employees in the work area to identify problem areas. He works with various departments to obtain a holistic idea of the business. This type of direct supervision is an example of ________ control.

concurrent

Management by walking around is an example of ________ control

concurrent

The management control that takes place while a work activity is in progress is known as ________.

concurrent control

Ruth wants to analyze the organization's ability to meet its current debt obligations. Which of the following ratios is most helpful to Ruth in analyzing this?

current ratio

Mark wants to formulate a control process for the organization. What should be the first step in the control process?

determining the actual performance

Organizational ________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals.

effectiveness

) Raw, unanalyzed facts are called ________.

data

The comparing step in the control process determines ________.

the variation between actual performance and the standard

Experts have described employee work driven by TNC as a primary contributor to workplace violence. TNC refers to ________.

time, numbers, and crises

Barbara wants to take corrective measures to prevent future theft. Which of the following is a feedback tactic that Barbara could use to control theft?

use the services of professional investigators

Managers should use subjective measures when ________.

work activities cannot be expressed in quantifiable terms

Which of the following sources provides information which is comprehensive, formal, and easy to file and retrieve?

written reports

Which of the following observations best explains why the control function is important?

An effective control system facilitates employee empowerment.

________ is the search for the best practices among competitors or noncompetitors that lead to their superior performance.

Benchmarking

Activity ratios measure an organization's ability to meet its current debt obligations.

False

Basic corrective action corrects problems at once to get performance back on track.

False

Benchmarks for a company must be created based on the previous performance of the company.

False

Employers establish specific policies defining theft and fraud and discipline procedures. This is an example of a concurrent control measure to control employee theft.

False

Feedforward control is more popular and effective than the other forms of control.

False

Feedforward control takes place while a work activity is in progress.

False

Having a control system reduces the scope of employee empowerment and autonomy.

False

Managers should not consider the standards when measuring the actual performance of employees.

False

Productivity decreases when an organization raises the prices of its products.

False

Using corporate hotlines or other mechanisms for reporting and investigating workplace violence is an example of feedback control.

False

_______ is measured by the costs of acquiring and transforming organizational resources into outputs.

Input

________ is when a manager in the work area interacts directly with employees to maintain supervision.

Management by walking around

Frank believes organizational effectiveness is more important to the organization than organizational productivity. What could be the rationale behind this belief?

Organizational effectiveness is a measure of how well the organizational goals are met.

Ruth Moody works as a freelance financial consultant. She renders financial services to individuals and small businesses. Entropic Communications, Inc., a fabless semiconductor company, seeks her services to study the financial stability of their company. 80) Ruth identifies the firm's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?

Pay back part of its debts to improve the ratio.

Barbara consults a criminologist to identify the reasons for employee thefts. Which of the following is the most likely interpretation that the criminologist would present?

People have financial-based pressures which motivate them to steal.

Which of the following refers to the overall output of goods or services produced divided by the inputs needed to generate that output?

Productivity

Which of the following is one of the main advantages of using statistical reports as the source of information?

Statistical reports are effective for showing relationships.

Certain organizations conduct culture audits to find out which companies are the best to work for. What is the major benefit associated with these rankings?

The rankings indicate how well a company performs in comparison to others.

Frank, the new CEO for First Fidelity, is working hard to turn around the formerly successful real estate business. His goal is to make First Fidelity a leader in the industry. He understands the importance of improving organizational productivity in achieving his goals. Mark is keen to improve organizational performance and effectiveness. 75) The operations manager suggests a hike in the prices to improve productivity. However, Frank rules this option out. What could be the possible reason for this

The real estate business is characterized by intense competition.

Three employees were injured in shootings at the Premier Bear Factory located in Arizona. An employee about to lose his job opened fire to cause this debacle. Helen Gates, the factory manager, is looking for ways to control such incidents. 84) Which of the following is a feedforward control measure to prevent further occurrences?

employee assistance programs to help employees with behavioral problems

Fraudulent filing of expense reports is an example of ________.

employee theft

An organization communicates openly to its employees about violent incidences in the workplace and what's being done to handle them. This is an example of a ________ control strategy.

feedback

Charles discovers major flaws in the packaging department. He consults the production manager and formulates control measures to improve packaging. Here, Charles is using the ________ control.

feedback

Helen investigates the incident to take measures to control its effects. By doing this she is exerting ________ control over the incident.

feedback

An organization hires additional personnel as soon as they get a major contract. The organization is using ________ control

feedforward

Charles is the operations manager of a firm which operates as a leaf tobacco merchant and processor worldwide. Charles believes that the firm's productivity can be increased substantially from the current level. He wants to exert control to improve organizational performance and productivity. 77) Charles wants to prevent problems before their occurrence. Which of the following is the most desirable type of control to achieve this goal?

feedforward control

Which of the following is considered the most desirable type of control to prevent anticipated problems?

feedforward control

The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need to design organizational controls for ________.

global turmoil and disasters

The service profit chain is the service sequence from employees to customers to profit. According to this concept, the company's strategy and service delivery system determines ________.

how employees service customers

In order to increase the ratio of outputs to inputs, a manager would have to ________.

increase productivity

Which of the following is considered the easiest way to increase organizational productivity?

increasing the price of outputs

When data is analyzed and processed, it becomes ________.

information

Corporate governance ________.

is a system used to govern a corporation so that the interests of corporate owners are protected

Which of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt?

leverage ratios

Mark wants to use a tool which is easy to visualize and effective for showing relationships. Which of the following tools is best suited for this?

statistical reports

Managers could choose to do nothing when ________.

the difference between actual performance and standard performance is low and acceptable

The ________ ratios measure an organization's ability to meet its current debt obligations.

liquidity

Control techniques can be quite different for different countries. The differences are primarily in the ________.

measurement and corrective action steps of the control process

The first step in the control process is ________.

measuring actual performance

Which of the following management responsibilities determines if organizational goals are being achieved?

measuring firm performance

Which of the following sources usually provides filtered information which cannot be documented?

oral reports

Statco, Inc., is a statistical software company based in Columbia, TN. This publicly traded firm has grown in a systematic fashion over its 25-year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. The firm hires Mark Adams, an expert in control system design, to design a control system and offer suggestions to improve the firm's performance. 71) Which of the following is a key activity that the proposed control system should perform?

performance measurement

The control process assumes that ________.

performance standards are already in place

Which of the following sources of information for measuring performance has the disadvantage of being subject to personal biases, and is time consuming and obtrusive?

personal observations

Which of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?

profitability ratios