Chapter 11 M&L

Management by objectives steps

1. specific goals are established at each level of the organization 2. Managers work with subordinates to determine performance goals. 3. managers and subordinates periodically review progress towards performance goals

Mashuk is a manager who is working with his subordinates to determine their goals for the upcoming year. What step of the MBO does this illustrate?

2

Which type of control attempts to control behavior by means of a comprehensive system of rules and standard operating procedures?

Bureaucratic control

Which of the following is not a way that managers can overcome resistance to change?

By making unilateral decisions

Quinn has been evaluating the results of the plan her company recently implemented. From her evaluation, she will propose a strategy to take any corrective actions necessary. What stage of the control process is this?

Four

Which of the following should be done when developing an output control system?

Implement output standards that do not cause managers to behave in inappropriate ways to achieve organizational goals.

Why is ROI the most commonly used financial measure?

It allows managers to compare their company's performance with that of other companies

Management by objectives involves a three-step process, starting with specific goals being established at each level of the organization. Which of the following comes next in the process?

Managers and their subordinates together determine the subordinates' goals.

What typically occurs in the second step of MBO?

Managers work with subordinates to determine performance goals.

Why is it important that goals be set appropriately?

So managers are motivated to accomplish them

Bureaucratic control is a type of behavioral control system that attempts to control behavior by means of which of the following?

Standard operating procedures comprehensive system of rules

Which of the following is/are examples of problems stemming from inside the organization?

Structural issues causing problems between departments

Which of the following are aspects of direct supervision?

Teaching subordinates that behaviors are appropriate and inappropriate Intervening to take corrective action as needed Monitoring and observing the behavior of subordinates

Which of the following best defines organizational change?

The movement of an organization away from its present state and toward some desired future state

Which of following best defines controlling?

The process of monitoring and regulating the performance of an organization and its members

Which of the following are two concerns that managers should consider when implementing an output control system?

The standards should not encourage inappropriate behavior in an attempt to achieve organizational goals. The standards should motivate managers at all levels.

Which of the following are caution to managers in a bureaucratic system?

Too much standardization can result in people not thinking for themselves. Since rules diminish flexibility, managers must cautiously avoid becoming too bureaucratic. Too much bureaucracy can slow decision making and stifle innovation.

Measures of how well managers create value using organizational assets are provided by ____ ratios.

activity

Which of the following ratios measure how well managers are creating value from organizational assets?

activity

In the four steps of the control process, managers in Step 2 measure

actual performance

Arrange in order the four steps in the organizational change process

assess the need for change decide on the change to make implement the change evaluate the change

Direct supervision, management by objectives, and rules and standard operating procedures are three mechanisms of ______ control.

behavior

Natalia could use ______ to improve organizational performance by providing examples of other organizations that excel in certain areas.

benchmarking

Which of the following can help an organization improve performance by providing examples of organizations that perform particularly well in specific areas?

benchmarking

Managers in a(n) ______ system should keep two things in mind: (1) because establishing rules is always easier than discarding them, managers must cautiously avoid becoming too overloaded with rules and (2) too much standardization can result in people not thinking for themselves.

bureaucratic

Research suggests that the best goals are:

challenging specific

In addition to organizational functioning, three organizational processes—communication, motivation, and leadership—are also affected by organizational ______.

change

Trish is trying to shift her company in a profound way to increase its efficiency and effectiveness. This is called organizational ______.

change

When assessing the need for ______, managers look at performance measures to detect the gap between desired and actual performance.

change

Juan is trying to shape his employees' attitudes by creating a strong office culture that is team-oriented, high-energy, and positive. He's hoping that creating such a culture will boost the morale, loyalty, and productivity of the company. What kind of control is Juan trying to use?

clan

When managers use shared values, norms, standards of behavior, and expectations to control individuals and groups in organizations, they are using ______ control.

clan

The four building blocks of ______ are superior efficiency, quality, responsiveness to customers, and innovation.

competitive advantage

Sofia is looking to implement a system that will employ formal target-setting, monitoring, and a way of receiving formal feedback. What kind of system is this?

control

Feedback systems which provide managers with information about how well the organizational strategy and structure are working are an example of ______.

control systems

Monitoring how organizational members are performing activities necessary to achieve organizational goals is called ______.

controlling

An organization's ___________ systems give it the "muscles" and "nerves" that allow managers to regulate and govern its activities.

culture

Which of the following are considered liquidity ratios?

current ratio quick ratio

A firm is highly leveraged if it uses more ______ than equity.

debt

After a manager has identified the need for change, the next step is to ______.

decide on the change to make

Frieda has identified the need for change in her company. Her next step is to ______.

decide the change to make

When implementing change during the third step in the change process, managers must:

decide whether the change will occur from the top-down or bottom-up introduce and manage change

In the third step of the organizational change process, managers must:

decide whether the change will occur from the top-down or bottom-up. introduce and manage change.

If managers monitor and observe the behavior of subordinates, teach subordinates which behaviors are appropriate and inappropriate, and intervene to take corrective action as needed, they are managing by ______.

direct supervision

Which of the following is not one of the main mechanisms that managers use to assess output or performance?

direct supervision

Examples of methods used by managers for behavior controls are:

direct supervision. management by objectives. bureaucratic control.

Craig's managerial team is contemplating major organizational changes. One of their primary concerns is that these changes will inevitably ______.

disrupt the status quo

The operating margin performance measure offers information about how ______.

efficiently an organization uses its resources

Which of the following are steps in the control process?

evaluate the result and initiate corrective actions measure actual performance establish standards of performance compare actual performance to chosen standards

Rob is trying to think of the two primary types of change. He knows revolutionary is one of them but can't think of the other. What is it?

evolutionary

True or false: Lewin's force-field theory states that managers must create resistance to facilitate change.

false

True or false: Management by objectives is participatory in that subordinates independently set their own goals and budgets without the direct input of supervisors.

false

True or false: Managers use financial measures, organizational goals, and operating budgets to assess employee attitudes.

false

True or false: Organizational change usually only affects planning and leading tasks.

false

True or false: The only three organizational processes not affected by organizational change are communication, motivation, and leadership.

false

True or false: Typically only individuals at the lower levels of an organization present obstacles to change.

false

It is critical for managers to realize the need for change during the ______ step of the change process.

first

Lewin's ______ theory suggests that there are two forces always at work and in opposition to one another in organizations, and that for change to occur, the forces for change must overcome the forces for resistance.

force field

The ______ step of the organizational control process is to evaluate the results and initiate corrective action.

fourth

After ______, the next step in developing an output control system is to establish operating budgets that regulate how managers and workers attain their goals.

goal setting

If Chris wants to incorporate management by objectives, he must provide a framework within which to evaluate subordinates' behavior and allow managers to monitor progress toward achieving specific organizational ______.

goals

When assessing the need for change, the organization must:

identify the source of the problem. recognize that there is a problem.

Control systems help monitor which of the following building blocks of competitive advantage?

innovation quality responsiveness to customers superior effiicency

Assume that the organizational structure is causing problems between the research and development team and the marketing team. This is an example of a(n) ______ problem.

internal

If the manager of a local retail store wants to assess how quickly the store is turning over inventory, the manager would calculate the:

inventory turnover

What ratio measures how quickly managers are turning over inventory so that excess inventory is not carried?

inventory turnover

Through the process of organizational ______, managers can increase employees' abilities to understand and appropriately respond to change.

learning

If a manager wants to assess the degree to which the organization uses debt or equity to finance operations, s/he would look at a debt-to-assets ratio and/or times-covered ratio. These are both which type of financial ratio?

leverage

A goal setting process in which managers and their subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate the extent to which the subordinate is achieving those goals is referred to as ______.

management by objectives

Suppose that Jen, the divisional manager, works with each of her direct subordinates to determine appropriate and feasible goals for them and to bargain over the budget that they will need to achieve their goals. This scenario exemplifies the participatory nature of ______.

management by objectives

The two functions of ______ are to provide a framework within which to evaluate subordinates' behavior and to allow managers to monitor progress toward achieving organizational goals.

management by objectives

Liquidity ratios measure how well managers have protected organizational resources to be able to ___.

meet short-term obligations

Return on investment is the organization's ______ divided by total assets.

net profit before taxes

MBO stands for management by ______.

objectives

During the second step of the change process, managers must identify ______.

obstacles or sources of resistance to change

After managers at each level have been given a target to achieve, the next step in developing an output control system is to establish ______ that regulate how managers and workers attain their goals.

operating budgets

Which of the following allows managers to assess whether or not their company is efficiently using its resources?

operating margin

Which of the following measures of financial performance divides total operating profit by sales revenue?

operating margin

When managers choose how to influence, shape, and regulate the activities of organizational divisions, functions, and employees to achieve the organization's mission and goals, they establish _______

organizational control

Samantha, the manager of a snowboard designing company, wants to increase employees' abilities to understand and appropriately respond to both internal and external changes. She can accomplish this through ______.

organizational learning

types of control systems

output control behavior control clan control

When Logan wants to identify whether or not there is a gap between desired and actual performance, he analyzes ______.

performance measures

Organizational change can affect ______ aspects of organizational functioning.

practically all

If Alex wants to assess how efficiently his managers are using the organization's resources to generate profits, he is likely to look at ______ ratios.

profit

ROI and operating margins are types of ______ ratios.

profit

Individuals tend to ______ change because it brings uncertainty and stress.

resist

Improved communication, empowered employees, and emphasis on shared goals are three ways that managers can overcome ______.

resistance

The most commonly used financial measure is ______ because it allows managers of one company to compare performance to that of another.

return on investment

What financial measure is the organization's net profit before taxes divided by total assets?

return on investment

Which of the following is a type of profit ratio?

return on investment operating margin

Although there are several types of change, generally they tend to fall into two broad categories: evolutionary change and ______ change.

revolutionary

Managers must identify obstacles or sources of resistance to change during the ______ step of the change process.

second

The ______ step in the control process is to measure actual performance.

second

Six months ago Shakira's company implemented a new plan to boost productivity. She is currently reviewing performance records to compare worker performance in the six months since the implementation. What stage of the control process is Shakira's company in?

stage 3

Which of the following are the building blocks of competitive advantage that control systems help monitor?

superior efficiency innovation quality responsiveness to customers

Obstacles to change are found at ______ levels of the organization.

the individual the departmental the divisional the corporate

controlling

the process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals

Change causes employee resistance because it disrupts the status quo and poses a(n) ______ to employees.

threat

Management by objectives typically has how many steps?

three

In ______ change, top managers implement change by using a fast, revolutionary approach to change. They identify the need for change, decide what to do, and then move quickly to implement the changes throughout the organization.

top-down

With _____ change, the emphasis is on making changes quickly and dealing with problems as they arise.

top-down

Brandon's company is undergoing a lot of change, which is making Brandon unhappy and resistant to these changes. Employees often feel like Brandon during major organizational change because it tends to bring ______.

uncertainty and stress

In the last step of the change process, managers:

use benchmarking. compare prechange and postchange performance.

When evaluating the change process, managers:

use benchmarking. compare prechange and postchange performance.