MGMT Exam 3 LS 14

A balanced scorecard comprises which of the following sets of performance measures?

- Business processes - Financial - Learning and growth - Customer Satisfaction

The six sigma approach is based on a statistical analysis of business processes that contribute to which goals?

- Decreased product defects - Decreased production costs - Customer satisfaction

Which of the following situations would be more likely to happen in a control system with open communication?

- Employees tell management when personal problems cause them to perform poorly at work. - Employees report faulty systems that are causing a drop in production.

Which three measures are included in a company's triple bottom line?

- Financial performance - Impact on employees and local communities - Environmental impact

Which of the following are characteristic of the most effective control systems?

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

Which two goals should an effective control system accomplish?

- Minimizing dysfunctional behaviors - Producing the most possible benefits

Which tools are often used to measure performance levels inside an organization?

- Personal observations - Oral reports - Written reports

Which of the following are steps in the budgetary control process?

- Take action - Establish expectancies - Perform budgetary operations

Which of the following characteristics describe an effective control system?

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

Which of the following are steps in the control process? (Check all that apply.)

- comparing performance to the standard - taking action to correct problems - setting performance standards - measuring performance

Which of the following are approaches to bureaucratic control? (Check all that apply.)

- concurrent control - feedforward control - feedback control

Which of the following are examples of issues in the workplace that can be avoided with feedforward controls in the form of policies? (Check all that apply.)

- public disclosure of corporate information - tattoos and body art - workplace romance

The first step of the budgetary control process involves ______.

- the broad plan for the company - budget approval and publication - estimating sales

Control systems are less objectionable to employees when

- they feature standards that are possible to achieve. - they do not control too much. - they feature useful standards of performance.

A production budget should include which of the following?

- types and capacities of machines - economic quantities to produce - available resources

Compared to other methods of managerial control, budgetary control is

- widely recognized. - commonly used.

Rank the following steps of the control process in order from first (at the top) to last (at the bottom).

1. Establish the standards of performance, goals, or targets against which performance is to be evaluated 2. Measure actual performance 3. Compare actual performance against chosen standards of performance 4. Initiate corrective action if the standard is not being achieved

______ allocates costs across business processes.

Activity-based costing

______ helps an organization recognize streams of activity and assign costs according to the time spent on particular activities.

Activity-based costing

During which stage of the process of transforming inputs into finished goods and services is feedforward control used?

Before operations begin

______ establishes relationships among feedforward control, concurrent control, and feedback control.

Budgetary control

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

Clan

After setting performance standards and measuring performance, what is the third step of the control cycle?

Comparing performance with the standard

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

Control

Which management function ensures that organizational activities are going as planned?

Controlling

What type of budget is used for departments such as human resources, which have expenses but no income?

Cost

Which type of budget is used for departments of an organization that generate expenses but no income?

Cost

Which type of control gives managers information about results to correct problems after they arise?

Feedback control

______ control occurs at the input stage and allows managers to look ahead to anticipate problems before they arise.

Feedforward

______ takes place before operations begin and allows managers to ensure that planned activities are carried out properly.

Feedforward control

______ should be conducted to measure the effectiveness and efficiency of an organization's systems.

Management audits

What is the second step in the control process?

Measuring performance

______ occurs when control systems prompt employees to follow the rules to an extreme that stifles creativity.

Rigid bureaucratic control

What type of budget includes data forecasting sales by month, sales area, and product?

Sales

What is the first step of a control system?

Set performance standards.

Which step in the control process measures performance?

Step 2

When is concurrent control used?

While plans are being carried out

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

accurate

A balance sheet shows the financial health of a company at a specific time and reports

assets, liabilities, and stockholder's equity.

The ______ summarizes the financial condition of a company at a specific time.

balance sheet

Two statements that summarize a company's financial condition are the profit and loss statement and

balance sheet.

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

balanced scorecard.

A _______ control system functions best when tasks are clearly defined and employees work independently.

bureaucratic

A(n) ______ control system detects and corrects significant variations, or discrepancies, in the results of planned activities.

bureaucratic

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

bureaucratic

When activities are not proceeding as planned, what management tool will identify and correct significant variations?

bureaucratic control system

____________ control includes directing, monitoring, and fine-tuning activities as they are performed.

concurrent

With the six sigma control process, the goal is zero ______.

defects

The concept of a triple bottom line allows companies to determine how ______ their business is.

environmentally sustainable

A tentative profit and loss statement can be used to

establish a performance goal.

A company has gathered and analyzed information about its performance. Supervisors use the results to help employees improve their work.. This is an example of ______ control.

feedback

Human resources policies against workplace romances are a type of ______ control.

feedforward

Managers conduct ______ audits to measure the effectiveness and efficiency of multiple systems within organizations.

internal and external

Placing too much emphasis on short-term income and profits instead of pursuing a longer-term strategy is known as ______.

management myopia

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

market

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

market

Effective control systems __________.

maximize benefits and minimize dysfunction

Allowing workers to correct their own shortcomings promotes self-control instead of close supervision. Which of the following incorporates this principle?

open-book management

In the third step of the control process, managers evaluate actual ____.

performance

Feedforward control is sometimes referred to as ______ control.

preliminary control

A ______ budget is typically stated in physical units.

production

An itemized financial statement of income and expenses is a(n) ______.

profit and loss statement

No matter how it is measured, performance data must be ______ to be of value to the organization.

reported promptly

If managers use too much ______, they can discourage employee innovation.

rigid control

Luvo is setting a ______ budget by reviewing forecasts of sales by month, sales area, and product.

sales

Step 1 of a typical control system involves ______ performance standards.

setting

Which of the following is the first major step in the control process?

setting performance standards

Fixating on ______ and profits while neglecting long-term strategy is known as management myopia.

short-term earnings

In the last step of the control process, managers take steps to correct ______.

significant deviations from the standard

The ______ effort requires that a company measure performance at each stage and reduce errors to fewer than 3.4 per million.

six sigma

In order to gain employee acceptance, ______.

standards should be achievable and supported by an emphasis on positive behavior

To be of value, the reporting of performance standards must be ______.

timely

The last step of the control process is ______.

to take action that will correct significant deviations

Performance data is commonly obtained from both ______ reports, in addition to personal observation.

written and oral

When organizations use the six sigma process, they are striving for a ______ environment.

zero-defect