MGMT 371 Test 2
________ control is an approach to organizational control that is characterized by rules, regulations, and formal authority. Relational Market Bureaucratic Functional Decentralized
Bureaucratic Bureaucratic control is an apporach to organizational control that is characterized by the use of rules, regulations, and formal authority to guide performance.
Which of the following may be done as corrective action in the control process? Compare performance to standards. Align processes with goals. Renew standards. Establish standards. Evaluate performance and take action.
Evaluate performance and take action In the corrective action step, when performance falls short of the standard, managers should examine the reasons why and take appropriate action. Sometimes it may turn out the standards themselves were unrealistic, owing to changing conditions, in which case the standards need to be altered.
Conan, the district manager for Newk's, told store managers in Oxford that he needs their sales objectives for next year. A new manager, Valeria says that, "Our goal is to sell $500,000 in food next year." Conan later told Valeria that "Let me know how exactly how much of each type of food you plan on selling." Conan's request for a specific answer is an example of a ________. simplistic goal target date SMART goal general objective focal point
SMART goal Whenever possible, goals should be measurable, or quantifiable. Some goals such as those concerned with improving quality, are not precisely quantifiable. In that case, something on the order of "Improve the quality of customer relations by instituting 10 follow-up telephone calls every week" will do. You can certainly quantify how many follow-up phone calls were made.
Patricia, the manager of Prime Health Club, was telling her new trainer that "I have many decisions to make in a day, and as the club manager, during the course of a week, I have to give orders to most of the 35 employees. Then there is my budget and the club resources, which I oversee." Patricia's right to make decisions, give orders, and utilize resources is known as ________. responsibility work specialization authority delegation power
authority Authority refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.
James needs to review a financial statement for his organization in order to plan for the upcoming year. He wants to get an idea of the organization's current financial worth. Specifically, James needs to know how much inventory was on hand and how much equipment the organization owned. In order to obtain the correct information, which financial statement should James review? expense budget balance sheet income statement ratio analysis capital expenditures budget
balance sheet the balance sheet provides a picture of an organization's financial worth for a specific point in time. It summarizes an organization's overall financial worth--that is, assets and liabilities--at a specific point in time.
Joy manages Highlands Inn. One thing her employees are evaluated on is their contribution to continuous improvement. She notices she has received the same suggestion for continuous improvement from an employee multiple times because their performance in this area is evaluated on the number of suggestions only. This problem is typical of ________ control. bureaucratic market functional autocratic decentralized
bureaucratic Bureaucratic control may not be effective if people are looking for ways to stay out of trouble by simply following the rules, or if they try to beat the system by manipulating performance reports, or if they try to actively resist bureaucratic constraints.
MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO working as objectives ________ through the organization. cascade down become less refined and more generalized change significantly move outward into the community move upward
cascade down MBO works by cascading objectives down through the organization; that is, objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.
Important decisions made only by the top management team is focused power higher-management influence decentralized authority centralized authority upper authority
centralized authority centralized authority, important decisions are made by higher-level managers. pg. 244
The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by taking corrective action in two ways—namely by ________. receiving feedback, and, if needed, making new plans researching ways to plan better and increasing profits correcting deviations in the plan being carried out or improving future plans increasing organization synergy and diversity improving future plans, and, if needed, cutting costs
correcting deviations in the plan being carried out or improving future plans The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by taking corrective action in two ways—namely by correcting deviations in the plan being carried out or by improving future plans.
Which of the following areas of control for organizations exerts informal control? competitive human resources structural informational cultural
cultural The cultural area is an informal method of control. It influences the work process and levels of performance through the set of norms that develop as a result of the values and beliefs that constitute an organization's culture.
Illinois Tool Works has over 400 departments, which makes everything from welding equipment to nails to plastic rings. Each department has its own manager who runs it as if it were his own business--so long as it is outperforming everyone else in the particular market. This approach allows for increased employee commitment to their department and forces workers to take responsibility for the performance. Illinois Tool Works structure is best described as ______ decentralized employee-driven market matrix bureaucratic
decentralized decentralized control is an approach to organizational control that is characterized by informal and organic structural arrangements. This form of control aims to get increased employee commitment, using the corporate culture, group norms, and workers taking responsibility for their performance.
John works with his boss, Steve, to jointly set objectives for John's sales goals and develop an actionable plan for John to achieve these goals. They met each quarter to review John's performance and afterwards Steve appraises the performance and rewards John according to his performance. This situation is an example of ____________ developing a sustainable competitive advantage encouraging new ideas increasing organization diversity developing MBO provide direction and momentum
developing MBO MBO (management by objectives) is a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performances, and (4) the manager makes a performance appraisal and rewards the employee according to results.
The top management team of GargleTech are meeting for the week to examine long-term company goals and overall direction of the organization. As part of the initial discussion, the CEO expresses her concern over the economy. She also tells her managers to look closely at the external environment and to think about the future prior to making before making decisions. In this meeting, top managers of GargleTech are ________. doing strategic planning producing their code of ethics writing a belief statement doing management pledging developing their goals pact
doing strategic planning According to Figure 5.3, strategic planning includes long-term decisions about the overall direction of an organization. Managers need to pay attention to the environment outside the organization, be future oriented, and deal with uncertain and highly competitive conditions.
The balanced scorecard does not include which of the following perspectives? external processes innovation and learning financial customer internal business
external processes The balanced scorecard establishes (a) goals and (b) performance measures according to four "perspectives" or areas: financial, customer, internal business, and innovation and learning.
The structure of Shoe Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human resource departments. This is an example of a ________. centralized structure focused structure simple structure hollow structure functional structure
functional structure In a functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace structure, seen in all kinds of organizations, for-profit and nonprofit. (See Figure 8.7.)
If I say that I will save $500 dollars by the end of October in order to afford my vacation, this is a ________. goal vision supervisory objective norm business plan
goal A goal is a specific commitment to achieve a measurable result within a stated period of time.
Productivity equals ________. labor, capital, energy, and materials, divided by goods and services produced energy and materials, divided by labor and capital produced, divided by labor, capital, energy, and materials labor, energy, and capital, divided by goods, services, and materials goods and services and energy and materials, divided by labor and capital produced
goods and services produced, divided by labor, capital, energy, and materials Productivity is defined by the formula of outputs divided by inputs for a specified period of time. Outputs are all the goods and services produced. Inputs are not only labor but also capital, materials, and energy.
Which balanced scorecard perspective requires a commitment to progressive human resource practices and technology? customer perspective operational perspective internal business perspective innovation and learning perspective financial perspective
innovation and learning perspective Learning and growth of employees is the foundation for all other goals in the balanced scorecard. The idea here is that capable and motivated employees, who possess the resources and culture needed to get the job done, will provide higher quality products and services in a more efficient manner. Making this happen requires a commitment to invest in progressive HR practices and technology.
Andrew, the CEO at 3M, strives to always have a comprehensive view of the organization at all times by utilizing a balanced scorecard approach. One area that Andrew specifically focuses on is the internal processes which involve employee skills, productivity, and quality. Andrew regularly does a quick assessment of what his employees are doing to meet customer expectations in regards to delivery time, ease of ordering, etc. Andrews focus is best described as a _______ learning perspective internal business perspective innovation perspective strategy map approach evidenced based management
internal business perspective internal business perspective asks; "what must we excel at?" This part translates to what the company must do internally to meet its customers' expectations. Theses are business processes such as quality, employee skills, and productivity.
Research suggests that when writing out and achieving a person's biggest goals, it is important to ________. make a general plan, which embeds your intentions firmly in your memory make a concrete plan and break goals into manageable bites keep plans and goals private make a concrete plan and avoid social support avoid specific goals because it increases stress
make a concrete plan and break goals into manageable bites Research suggests the advice for writing out and achieving a person's biggest goals are to (1) make a concrete plan, (2) break your goals into manageable bites, (3) put something of value on the line, (4) bundle your temptations or rewards to your efforts, and (5) seek social support.
Sean sits down with his manager, Jeff, to set joint objectives for Sean to attain. Jeff suggests that Sean attend a week of leadership training at a specialized industry workshop during December. Sean agrees to the training because he feels is it help his achieve his personal goal of obtaining a management position. This situation is best described as setting ________ ways to increase organizational synergy financial objectives motivating objectives maintenance objectives personal development objectives
personal development objectives personal development objectives are one type of objectives used in MBO. The purpose is to express personal goals to be realized.
Larry meets with his employees every six months to sit down and make a blueprint for next year of the department. Together Larry and his employees write down what everyone needs to do in order to realize the goals of the organization. Larry is in the ________ steps of the planning/control cycle. termination organizing observation controlling planning
planning planning is defined as setting goals and deciding how to acheive them. Planning is coping with uncertainty by formulating future courses of action to achieve specified results
"This workplace does not condone sweating" is an example of a(n)______________ certified procedure policy rule procedure industry standard
policy a policy is a standing plan that outlines the general response to a designated problem or situation. A policy is a broad statement that gives managers a general idea about what is allowable for employees who use bad language, but gives no specifics.
Standards are best measured when they are ________. broad narrow ethical quantifiable efficient
quantifiable A control standard, or performance standard, or simply standard, is the desired performance level for a given goal. Standards may be narrow or broad, and they can be set for almost anything, although they are best measured when they can be made quantifiable.
UPS dictates that no package is allowed to be delivered before the driver scans the address label. This required action is known is a(n) ________. procedure norm rule policy industry standard
rule or procedure A rule is a standing plan that designates specific required action. Example" "No smoking is allowed anywhere in the building". This allows no room for interpretations
Alana, the children's department manager at Shoe Mart, has eight employees in her department, and all of them report directly to her. The eight employees who report directly to Alana are her ________. Selected Answer: Correct span of control Answers: hierarchy of authority area of responsibility span of direction management depth span of control
span of control The span of control, or span of management, refers to the number of people reporting directly to a given manager
At BakeRite Foods, Mickey pulls six samples each hour from their production line to examine them for quality defects. He measures each sample against the product standard. If he finds any deviations, he adjusts various pieces of equipment on the line until the variance disappears. Mickey's job involves ________. reduced cycle time benchmarking statistical process control feed-forward control strategic control
statistical process control Statistical process control uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability.
As a vice president, Gene keeps an eye on the performance of his division in relation to its competitors to ensure that it is on target for accomplishing its goals and, if not, taking corrective action. This is known as ________ control functional operational strategic managerial tactical
strategic strategic control is monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.
Dave works several computer repair shops across the Midwest as a sales manager. Dave has set a goal for his sales department of increasing foot traffic in all locations over the next three years in order to meet the long term goals of the organization. Dave has set a(n) ________. business plan strategic goal tactical goal management guideline operational goal
strategic goal tactical planning is done by middle management. The strategic goals are passed down to middle managers, who must determine what contributions their departments can make.
Which of the following is not a common characteristic of successful control systems? encouragement of self-control realistic strategic and results-oriented subjective flexible
subjective Successful control systems have a number of common characteristics: (1) They are strategic and results oriented. (2) They are timely, accurate, and objective. (3) They are realistic, positive, and understandable, and they encourage self-control. (4) They are flexible.
With SMART goals only a few goals should be chosen, and they should be results-oriented, that ________. keep employees happy align with the beliefs of the local community support the company's diversity plan support the organization's vision meet low cost goals
support the organization's vision or support the company's diversity plan A SMART goal is one that is Specific, Measurable, Attainable, Results-oriented, and has Target dates. Whenever possible, goals should be achievable. With SMART Goals only a few goals should be chosen—say, five for any work unit. And they should be results-oriented—they should support the organization's vision
Operational control is performed mainly by ________. top managers team leaders functional managers highest-level managers the CEO
team leaders operational control is done by first-line managers, unit managers, team leaders, and first-line supervisors.
In an organization, division of labor is ________. the common purpose which unifies employees a structure where employees report to no more than one manager the arrangement of having discrete parts of a task done by different people the coordination of individual efforts into a group or organization-wide effort an organizational structure with few or no levels of middle management
the arrangement of having discrete parts of a task done by different people Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people. With division of labor, an org can parcel out the entire complex work effort to be performed by specialists, resulting in greater efficiency.
Strategic, tactical, and operational are the ________. three levels of planning levels of diversity three levels of marketing phases of the environment strategic levels
three levels of planning The order of planning is strategic, tactical, then operational.
Bottlebush Bakery offers a relaxing environment to enjoy coffee, baked goods, and other menu items, has a poster that reads, "With our partners, we want our coffee and our customers to always be our core priority, by delivering our very best in all we do. We are performance driven, through the lens of humanity." This statement is Bottlebush's ________. code of ethics vision statement management pledge belief statement goals pact
vision statement A vision statement expresses what the org should become, where it wants to go strategically.
