Ch 11 Quiz BUSAD240

______ evaluates managers on the difference between the revenues generated by the sales of goods and services and the budgeted cost of making those goods and services.

A profit budget approach

Which of the following is an advantage of benchmarking? A. It helps organizations decide how successful a change effort has been. B. It helps measure how well managers have utilized organizational resources to be able to meet short-term obligations. C. It shows how well managers have created value from organizational assets. D. It reveals how efficiently managers have collected revenue from customers to pay expenses. E. It tells managers when a corporate reorganization might be necessary or when they should rethink their corporate-level strategies.

A. It helps organizations decide how successful a change effort has been.

Which of the following is a drawback of bureaucratic control? A. Overdependence on rules can slow down decision making. B. Discarding rules is easier than establishing them. C. Rules and SOPs increase the number of mishaps in an organization. D. Standardized behavior leads to standardized outputs. E. Rule and SOPs promote misunderstanding and the misuse of power.

A. Overdependence on rules can slow down decision making.

Which of the following is true of measuring actual performance? A. Measuring output and behavior at the same time is always easy. B. Behavior and output are harder to measure in nonroutine or complex organizational activities. C. In nonroutine activities, it is easier to measure behavior than output. D. Behaviors are easier to measure because they're more tangible and objective. E. The first kind of performance measures that managers tend to use are those that measure behaviors.

B. Behavior and output are harder to measure in nonroutine or complex organizational activities.

Which of the following is an advantage of bottom-up change? A. It can be used to implement changes quickly throughout the organization. B. It can co-opt resistance to change from employees. C. With the emphasis on making changes quickly, it is revolutionary in nature. D. It is effective in dealing with problems as they arise. E. It is likely to result in a radical shift in ways of doing things.

B. It can co-opt resistance to change from employees.

______ is an evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change.

Bottom-up change

______ is most useful when organizational activities are routine and well understood and when employees are making programmed decisions.

Bureaucratic control

Which control procedure is used at the conversion stage to obtain immediate feedback about how efficiently raw materials are being transformed into finished goods? A. Feedback control B. Feedforward control C. Concurrent control D. Clan control E. Market control

C. Concurrent control

Which of the following is true of the control process? A. Subordinates should decide on the standards of performance, goals, or targets of the organization. B. Corporate goals and divisional goals must function independent of each other. C. Focusing on just one standard and ignoring other standards can harm the organization. D. Higher standards always lead to higher performance. E. Setting standards for complex and nonroutine activities is relatively easy.

C. Focusing on just one standard and ignoring other standards can harm the organization.

Which of the following is true of the control process? A. Subordinates decide on the standards of performance, goals, or targets that are used to evaluate the entire organization. B. Corporate goals and divisional goals must function independent of each other. C. Performance standards selected at one level affect those at the other levels. D. The number of standards used to evaluate efficiency and quality should not exceed twenty. E. Managers must focus on just one standard and ignore other standards.

C. Performance standards selected at one level affect those at the other levels.

______ takes advantage of the power of organizational culture to serve a dual function of keeping organization members goal-directed while open to new opportunities.

Clan control

______ provide managers with information about how well the organizational strategy and structure are working.

Control systems

Which function of management involves monitoring the organization in order to determine if the organization is operating efficiently and effectively?

Controlling

Which control procedure should be used to provide information about customers' reactions to goods and services? A. Market control B. Concurrent control C. Bureaucratic control D. Clan control E. Feedback control

E. Feedback control

Which of the following can cause failure of an MBO(management by objectives) system? IA. ncreasing the number of complex jobs in an organization B. Linking reward systems to team performance C. Setting specific objectives for managers at each level D. Participation of subordinates in the objective-setting process E. Influence of personal bias or political objectives during evaluation

E. Influence of personal bias or political objectives during evaluation

Which of the following is true of comparing actual performance with standards? A. The first step in the control process is to evaluate actual performance. B. Behavior and output are harder to measure in nonroutine or complex organizational activities. C. It is easy to compare performance with standards for nonroutine activities. D. If performance is greater than the standard, performance can be improved by lowering standards. E. It is easy to take corrective action when the reasons for poor performance can be identified.

E. It is easy to take corrective action when the reasons for poor performance can be identified.

Which of the following is a reason why direct supervision is expensive? A. Team members under direct supervision start to pass the buck and avoid responsibility. B. As the complexity of the job increases, managers find it difficult to evaluate subordinates. C. Direct supervision demotivates employees. D. Direct supervision lacks a framework that sets rules and guidelines for managers to follow. E. Managers can effectively manage only a small group of employees.

E. Managers can effectively manage only a small group of employees.

How is the complexity of a job related to direct supervision?

It is more difficult to evaluate a subordinate who is performing a complex job.

Which of the following ratios measure the degree to which managers use debt or equity to finance ongoing operations?

Leverage ratios

______ is calculated by dividing a company's operating profit by sales revenues.

Operating margin

_____ is rapid, dramatic, and broadly focused.

Revolutionary change

Current assets divided by current liabilities is referred to as:

current ratio.

An organization's net income before taxes divided by its total assets is known as:

return on investment.

Too much ______ can reduce the level of learning taking place in an organization.

standardization

With ______ change, the emphasis is on making changes quickly and dealing with problems as they arise; it is revolutionary in nature.

top-down