Ch 14 Principles of Management

________ is a measure of how well an organization uses its assets. A) Activity B) Liquidity C) Asset D) Leverage

A) Activity

________ is a measure of an organization's ability to meet its current debt obligations. A) Liquidity B) Leverage C) Activity D) Profitability

A) Liquidity

Controlling compares ______ to see if goals are being achieved. A) actual performance to planned performance B) standard performance to ideal performance C) actual performance to competitors' performance D) planned performance to standard performance

A) actual performance to planned performance

In general, ________ that falls outside an acceptable range of variation must be dealt with by a manager. A) any deviation B) an underperformance C) an overperformance D) a small overperformance or a large underperformance

A) any deviation

Which kind of control takes place while the actual work is carried out? A) concurrent B) feedback C) reverse D) feedforward

A) concurrent

A major part of the controlling function of management is to _______ . A) correct performance problems. B) set standards. C) structure an organization. D) formulate strategies.

A) correct performance problems.

The value of the controlling function is seen in three specific areas: planning, _______, and _______. A) empowering employees, and protecting the workplace. B) protecting employees, and empowering the workplace. C) organizing, and leading. D) protecting employees, and protecting the workplace

A) empowering employees, and protecting the workplace.

Which kind of control takes place after the actual work has been carried out? A) feedback B) forward C) concurrent D) feedforward

A) feedback

A cell phone maker tests its new model with a sample audience when it is fully operational. What kind of control is this? A) feedback control B) feedforward control C) pre-market control D) concurrent control

A) feedback control

The management function of "control" ensures that ________ in an organization. A) goals are met B) goals are set C) plans are made D) plans are realistic

A) goals are met

One advantage of feedback control over other forms of control is that it lets managers focus on ________. A) how on-target their planning efforts were B) what is about to take place C) how effective their organizing efforts were D) the task as it is being carried out

A) how on-target their planning efforts were

Direct supervision as a basic means of control is much more common in ________ A) less technologically advanced countries B) more technologically advanced countries C) democracies D) small countries

A) less technologically advanced countries

The first step in the control process is to _______ . A) measure actual performance. B) compare a standard against the ideal. C) take action, D) compare performance against a standard.

A) measure actual performance

The more a control system helps an organization ________ , the more successful it is judged to be. A) meet its goals B) help employees achieve job satisfaction C) make a profit D) help employees be productive

A) meet its goals

An advantage of feedback control is that it improves ________. A) motivation B) employee-manager relations C) employee-employee relations D) productivity

A) motivation

Managers exert financial control on an organization using ________ analysis(ses). A) ratio and budget B) productivity and resource C) productivity D) activity

A) ratio and budget

A disadvantage of a statistical report is that it may leave out ______ measurements of performance. A) subjective B) positive C) objective D) negative

A) subjective

The third step in the control process is to ________. A) take action B) compare performance to a standard C) measure actual performance D) compare a standard against an ideal

A) take action

Immediate corrective action is designed ________. A) to get performance back on track B) to punish employees for poor performance C) to shake up an organization D) to get to the root cause of a problem

A) to get performance back on track

When might a manager be justified in revising a standard rather than taking corrective action to remedy a significant performance deviation? A) when the standard is unrealistic B) when performance falls far short of the standard C) when performance exceeds the standard D) when performance falls slightly short of the standard

A) when the standard is unrealistic

The most comprehensive form of performance measurement is ______. A) written report. B) oral report C) MBWA D) statistical report

A) written report.

Which statement about employee privacy is correct? A) Employers have a legal right to monitor on-the-job employee phone calls. B) Employers have no legal right to monitor on-the-job employee phone calls. C) Employers have the legal right to monitor all employee phone calls. D) Employers do not have the right to monitor any employee phone calls.

A) Employers have a legal right to monitor on-the-job employee phone calls.

Effective controlling can help managers who are afraid to delegate authority ______ . A) set their goals B) empower their employees C) minimize employee empowerment D) maximize risk

B) empower their employees

Effective managers always use these for performance standards during the control process: A) plans created during the planning process. B) goals created during the planning process. C) standards developed by performance experts. D) generic performance standards for the industry.

B) goals created during the planning process.

What managers choose to measure largely depends on an organization's _______ . A) structure. B) goals. C) leaders and leadership styles. D) reputation.

B) goals.

This kind of performance measurement method is fast and is a good platform for feedback, yet it can be private and scheduled for a single employee ahead of time. A) MBWA B) oral report C) written report D) statistical report

B) oral report

One advantage of MBWA is _______ . A) objectivity B) personal contact C) obtrusiveness D) perceptual biases

B) personal contact

When actual performance falls outside an acceptable range of variation, it is termed a(n) ________. A) large deviation B) significant deviation C) acceptable deviation D) insignificant deviation

B) significant deviation

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent. This is an example of _______. A) using data to confirm a budget B) using a budget for monitoring and controlling C) justifying expenses with a budget D) using a budget for planning

B) using a budget for monitoring and controlling

A Balanced Scorecard approach creates goals in four key performance areas and assesses ________. A) whether all four goals are met B) whether all four goals are met equally C) which goals are exceeded D) whether any of the four goals are met

B) whether all four goals are met equally

The control function of management helps managers protect and organization's ______ . A) good name B) reputation for honesty. C) assets. D) reputation

C) assets.

A household that cuts back on supermarket spending after going over budget on its food budget is using the budget as a(n) ________. A) leading tool B) planning tool C) controlling tool D) organizing tool

C) controlling tool

A state motor vehicle agency that is interested in serving the public might choose to measure _____ . A) total revenue. B) total customer served, rather than total revenue. C) customer wait time rather than total customers served. D) employee turnover rather than customer wait time.

C) customer wait time rather than total customers served.

In many cases, immediate corrective action rather than basic corrective action is taken by managers because they ________. A) want to be thorough B) don't understand the situation C) lack time D) lack information

C) lack time

In general, the greater the distance between the home office of a global company and its branch, the ________. A) less automated the controls B) less formalized the controls C) more formalized the controls D) more automated the controls

C) more formalized the controls

A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent. Which of the following is the most reasonable action for the company to take? A) revise the budget B) ignore the expenses as an aberration C) see what the expenses were for D) fire the people who were responsible for the expenses!

C) see what the expenses were for

When should a manager's course of action be to do nothing? A) when the standard is acceptable B) when the cause of the variation has been identified C) when the variance is acceptable D) when the standard is not acceptable

C) when the variance is acceptable

The second step in the control process is to _________ . A) compare a standard against an ideal. B) measure actual performance C)compare performance against a standard D)take action

C)compare performance against a standard

________ is a measure of how much debt an organization takes on to finance its assets (like making a car payment with a charge card). A) Liquidity B) Activity C) Profitability D) Leverage

D) Leverage

"MBWA" stands for _______ . A) Management by Written Action B) Management by Work Action C) Management by Work Area D) Management by Walking Around

D) Management by Walking Around

________ is a measure of how readily a company can use its assets to generate profits. A) Liquidity B) Leverage C) Activity D) Profitability

D) Profitability

When a company's scorecard is not balanced, it usually tends to overemphasize the area that ________. A) has to do with productivity B) contrasts most with its organizational style and philosophy C) involves customers D) best matches its organizational style and philosophy

D) best matches its organizational style and philosophy

Which kind of control takes place before the actual work is carried out? A) feedback B) recurrent C) concurrent D) feedforward

D) feedforward

Controlling is the ______ in the management process. A) most important step B) first step C) least impirtant step D) final step

D) final step

Which of the following performance measurement categories must be measured subjectively rather than in objective or quantifiable terms? A) efficiency B) absenteeism C) budget D) job satisfaction.

D) job satisfaction.

Which of the following would constitute basic corrective action for employees whose production has dropped? A) changing the pay scale B) taking away employee privileges C) changing how the work is carried out D) looking for causes of the production drop

D) looking for causes of the production drop

In the second step of the control process, actual performance can be considered acceptable as long as the performance does not fall ________. A) short of goals by more than 15 percent B) short of goals by more than 30 percent C) inside an acceptable range of variation D) outside an acceptable range of variation

D) outside an acceptable range of variation

This is the most informal form of performance measurement: A) statistical reports. B) oral reports. C) written reports. D) personal observation.

D) personal observation.

When a budget is formulated, it is being used as a(n) ________ tool. A) organizing B) leadership C) controlling D) planning

D) planning

A management information system (MIS) provides managers with ________ data. A)raw B)unanalyzed C)numerical D)analyzed and processed

D)analyzed and processed