MGT 3301 Ch 8

Jae-Kyu, a worker at Chelsea Motor Scooters, comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car comes off the assembly line with its fuel injection system attached in the new way. The managers are using ________ control. A) bureaucratic B) clan C) output D) input

A) bureaucratic

The aspects of organizational functioning that are affected by organizational change A) include organizational culture and strategies. B) include response to opportunities but not threats. C) exclude the human resource management system. D) exclude communication, motivation, and leadership.

A) include organizational culture and strategies.

The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the ________ ratio. A) leverage B) liquidity C) activity D) profit

A) leverage

From the information given below, calculate the organization's return on investment. Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income before Taxes = $30,000; Total Expenses = $240,000 A) 50 percent B) 5 percent C) 10 percent D) 12.5 percent

B) 5 percent

Which of the following stages in making organizational change includes deciding whether change will occur from the top down or from the bottom up? A) assess the need for change B) decide on the change to make C) implement the change D) evaluate the change

C) implement the change

The process through which managers try to increase members' abilities to understand and appropriately respond to changing conditions is known as A) norm enforcement. B) adaptive learning. C) organizational learning. D) clan control.

C) organizational learning.

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) ________ ratio. A) activity B) leverage C) profit D) liquidity

C) profit

A mechanism of control utilized in organizational culture is A) direct supervision. B) management by objectives. C) socialization. D) organizational goals.

C) socialization.

Management by objectives is a mechanism of control with ________ organizational control systems. A) input B) clan C) output D) behavior

D) behavior

The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the ________ ratio. A) debt-to-assets B) quick C) current D) days sales outstanding

D) days sales outstanding

The standard of performance that measures efficiency at the corporate level of the organization is known as A) cost of goods sold. B) capital costs. C) net sales. D) operating costs.

D) operating costs.

When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach. A) capital B) revenue C) expense D) profit

D) profit

Rules and SOPs are used to regulate the behavior of workers within the organization with a ________ control system. A) bureaucratic B) feedback C) feedforward D) concurrent

A) bureaucratic

Companies with an inert culture A) closely supervise their employees within a hierarchical system. B) develop long-term career paths for their employees. C) invest heavily in training and development of employees. D) encourage the development of supportive work attitudes and behaviors.

A) closely supervise their employees within a hierarchical system.

In an adaptive culture, employees often receive rewards based on their A) performance. B) commitment. C) seniority. D) popularity.

A) performance.

A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager is being evaluated using the ________ budget approach. A) profit B) revenue C) cost D) expense

A) profit

When an organization has a culture that leads to values and norms that fail to motivate or inspire employees, eventually leading to stagnation and often failure over time, that company has a(n) ________ culture. A) adaptive B) inert C) communal D) bureaucratic

B) inert

Rules and SOPs are of little use in telling a scientist how to discover something new. Thus, which of the following forms of control should not be applied to scientists? A) feedforward B) feedback C) bureaucratic D) concurrent

C) bureaucratic

At the output stage, managers usually utilize ________ control. A) MBO B) bureaucratic C) feedforward D) feedback

D) feedback

The most immediate and potent form of behavior control is A) direct supervision. B) clan control. C) bureaucratic control. D) socialization.

A) direct supervision.

The manager of East India Ice Cream Shop keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of East India is utilizing ________ control. A) output B) bureaucratic C) input D) MBO

A) output

The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the ________ ratio. A) quick B) current C) days sales outstanding D) profit

A) quick

Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a A) top-down approach to promote adaptive culture. B) bottom-up approach to promote adaptive culture. C) top-down approach to promote inert culture. D) bottom-up approach to promote inert culture.

A) top-down approach to promote adaptive culture.

Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags. With reference to the control process, Charlene is A) establishing the standards of performance. B) measuring the actual level of performance of employees. C) comparing the actual performance against chosen standards of performance. D) evaluating the result of the set standards.

C) comparing the actual performance against chosen standards of performance.

The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control. A) feedforward B) bureaucratic C) concurrent D) feedback

C) concurrent

The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems. A) operating B) organizational C) control D) recurrent

C) control

From the information given below, calculate the organization's current ratio. Total Liabilities = $750,000; Current Liabilities = $220,000; Total Assets = $700,000; Current Assets = $176,000 A) 0.65 B) 0.25 C) 0.70 D) 0.80

D) 0.80

The process of comparing one company's performance on specific dimensions with the performance of high-performing organizations to decide how successful a change effort has been is known as A) socialization. B) diversification. C) social facilitation. D) benchmarking.

D) benchmarking.

The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control. A) feedforward B) MBO C) feedback D) concurrent

D) concurrent

Which of the following stages in making organizational change includes benchmarking? A) assess the need for change B) decide on the change to make C) implement the change D) evaluate the change

D) evaluate the change

Gazelle Computers monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Gazelle is using ________ control. A) feedforward B) concurrent C) MBO D) feedback

D) feedback

The current assets of Kaiser Investments are valued at $25 million and its current liabilities are at $6 million. If its inventory is worth $1 million, what is its quick ratio? A) 4 B) 0.25 C) 0.14 D) 3.6

A) 4

Santiago has taken a new job as the general manager at Durwood Industries, which designs and manufactures custom cabinets. He is replacing Evan, who recently retired. Santiago has already set a company-wide goal of increasing efficiency and reducing waste. Unfortunately, Santiago has inherited a heavily bureaucratic work culture governed by byzantine rules. Evan mainly managed by actively overseeing his employees, but from the employee's lack of motivation, Santiago can tell that this approach is no longer working. Based on what you know about behavior control, what solution should Santiago implement to increase employee engagement and productivity? A) He should have floor managers and employees jointly set goals that describe what employees can personally do to reduce waste and then periodically check in with them to monitor their progress. B) He should require employees to turn in a report at the end of every week that details the number of cabinets they completed, the amount of materials they used, and how many pounds were thrown away. C) He should sits in on team meetings and encourage employees to vent their frustrations with Evan's way of doing things so that whatever Santiago implements looks good in contrast. D) Since team leaders and lower-level managers have so much responsibility, Santiago should resist asserting his authority and instead focus on keeping clients happy.

A) He should have floor managers and employees jointly set goals that describe what employees can personally do to reduce waste and then periodically check in with them to monitor their progress.

The sales of Audiophile, a manufacturer of home and professional audio systems, have been declining noticeably over the last several quarters. Muaad, the CEO, meets with several managers, including Bruno, the head of the customer service department, and Ilya, a customer response team leader. It is determined that, while the company's quality and innovation standards are being met and even exceeded, its customer service is not performing as well as it should be. Muaad decides to implement a goal of raising the quality of Audiophile's interactions with customers by their next quarterly meeting. Given what you know about the control process, what should the team at Audiophile do next? A) Muaad should meet with Bruno and Ilya to decide if a five-star rating scale is sufficient for measuring their progress and whether they need to reach a 4- or 4.5-star average. B) Bruno should evaluate the behaviors of customer service teams by having Ilya collect and report data measuring the specifics of customer interactions. C) After three months, Bruno should look at the results of the new actions undertaken by Ilya's team and decide whether they need further improvement. D) Over the next month, Ilya should track the number of customer interactions and record how quickly team members responded.

A) Muaad should meet with Bruno and Ilya to decide if a five-star rating scale is sufficient for measuring their progress and whether they need to reach a 4- or 4.5-star average.

The startup where Ha-Jin works, Affiniti, was recently acquired by Futurica, a huge multinational conglomerate. Everyone at Affiniti was severely stressed by the many changes that accompanied the transition. Many of Affiniti's managers were let go and replaced by people from Futurica. For almost a week, Ha-Jin was not even sure who her direct supervisor was. On top of everything else, Affiniti people were given a huge manual of Futurica's company policies that they had to memorize in less than a week. It was chaos, and several of Ha-Jin's colleagues ending up handing in their notices. How could Futurica's management have handled the transition more effectively? A) by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them B) by posting a chart in the conference room clearly comparing Futurica's performance with that of other high-performing organizations C) by moving quickly to implement all of the new policies as one and dealing with employee problems as they arise D) by making sure that all policy changes are treated like company secrets and discussed only by top Futurica managers

A) by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them

Which of the following activities might a manager perform if he or she is at the final stage of the control process? A) deciding whether to take corrective action to meet the standard B) restructuring the work process to increase efficiency C) developing a performance standard to measure behavior D) determining the factors that are affecting employee output

A) deciding whether to take corrective action to meet the standard

Members of which of the following groups may be considered intrapreneurs? A) employees of an organization who notice opportunities to develop new products B) employees of an organization who have worked across various industries C) managers who are responsible for two or more departments within a company D) managers who ensure interdepartmental transfer of skills

A) employees of an organization who notice opportunities to develop new products

Martel, the production manager of Firefly Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Martel A) establishes the standards of performance. B) measures the actual level of performance of employees. C) compares the actual performance against chosen standards of performance. D) evaluates the result of the set standards.

A) establishes the standards of performance.

The final step in the control process is A) evaluating results and initiating corrective action. B) measuring actual performance. C) comparing actual performance to the set standards. D) measuring the standards of performance.

A) evaluating results and initiating corrective action.

The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) ________ budget approach. A) expense B) profit C) cash flow D) revenue

A) expense

The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control. A) feedforward B) concurrent C) feedback D) bureaucratic

A) feedforward

Windward Bank set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Windward is utilizing ________ control. A) feedforward B) feedback C) bureaucratic D) MBO

A) feedforward

In which of the following situations do you think it would be most challenging for a manager to measure employee outputs or behavior? A) Workers in a clothing factory are doing hand-stitching on dresses. B) Graphic designers at a media company are designing logo prototypes. C) A clerk at a convenience store is recording inventory for the past month. D) The sales team at a real estate company is cold-calling prospective clients.

B) Graphic designers at a media company are designing logo prototypes.

Ysabel has just been hired in the advertising department at Ingenue, a cosmetics and skincare company. The environment at her new job could not be more different from her old one. At her old company, workers sat in closed-off cubicles or glassed-in offices, whereas Ingenue has fun decor and an open office plan. Managers have regular one-on-one meetings with employees to discuss career development and offer mentoring, and the company offers regular classes and workshops. The emphasis is on creativity and collaboration, and teams celebrate each other's accomplishments with spontaneous parties and excursions. What else is likely true about Ysabel's new job? A) Ysabel does not know much about company values because it is taken for granted that everyone knows what they are. B) The managers in the advertising department allow Ysabel and her co-workers to make certain decisions, such as angles for ad campaigns. C) The managers constantly talk about excellence, and Ysabel's team is expected to submit ad proposals that are more like finished products than rough drafts. D) It is expected that Ysabel's team will stay late and even come in on the weekends whenever the company releases a new lotion or other product.

B) The managers in the advertising department allow Ysabel and her co-workers to make certain decisions, such as angles for ad campaigns.

Top managers at Swirly Sweets, a candy manufacturer, consult with middle and first-line managers to revise their marketing strategy. This approach will lead to A) top-down changes that can be implemented quickly throughout the organization. B) bottom-up changes to minimize resistance from employees and uncertainty. C) bottom-up changes that can be implemented quickly throughout the organization. D) top-down changes to minimize resistance from employees and uncertainty.

B) bottom-up changes to minimize resistance from employees and uncertainty.

The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is A) measuring actual performance. B) comparing actual performance to the standards. C) initiating corrective action. D) measuring standards of performance.

B) comparing actual performance to the standards.

Constantinople Trading Co., a manufacturer of home decor goods, sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Constantinople is using ________ control. A) feedforward B) feedback C) MBO D) bureaucratic

B) feedback

Futura Fabricators gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process. This is an example of ________ control. A) concurrent B) feedforward C) feedback D) bureaucratic

B) feedforward

Managers at Foster and Zapp Construction set up a stringent job interview process by which management applicants are carefully screened at different levels of the organization before they are hired, attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization. By using this process, Foster and Zapp is using ________ control. A) concurrent B) feedforward C) feedback D) MBO

B) feedforward

The financial ratio that measures the ability of the organization to pay its short-term debts is the ________ ratio. A) leverage B) liquidity C) activity D) profit

B) liquidity

Which of the following happens in the conversion stage? A) anticipating possible problems B) managing problems as they occur C) dealing with problems that have arisen D) managing without correction of problems

B) managing problems as they occur

The managers of Sputnik Diner, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Sputnik are A) establishing the standards of performance. B) measuring the actual level of performance of employees. C) comparing the actual performance against chosen standards. D) evaluating the result of the set standards.

B) measuring the actual level of performance of employees.

The set of values, norms, and expectations of behavior that control the ways in which workers interact with one another within the organization is known as A) managerial objectives. B) organizational culture. C) clan control. D) adaptive culture.

B) organizational culture.

With management by objectives, the first things established are A) evaluations. B) organizational objectives. C) management goals. D) subordinate goals.

B) organizational objectives.

The manager of 24-7, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control. A) feedforward B) output C) input D) MBO

B) output

The ratio that is computed by dividing the difference between current assets and inventory by current liabilities is the ________ ratio. A) inventory turnover B) quick C) current D) debt-to-assets

B) quick

The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity? A) inventory turnover ratio B) quick ratio C) current ratio D) debt-to-assets ratio

B) quick ratio

An organization's net income before taxes divided by the total assets of the organization is known as A) gross profit margin. B) return on investment. C) the debt-to-assets ratio. D) days sales outstanding.

B) return on investment.

When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach. A) quality B) revenue C) operational D) fixed

B) revenue

When actions are performed by employees the same way time and time again and the outcomes of their work are predictable, employee behavior is A) generalized. B) standardized. C) maximized. D) minimized.

B) standardized.

Which of the following is true of an adaptive work culture? A) There is a strong emphasis on close supervision of workers. B) Employees are not rewarded on their performance. C) Cross-functional team structures are often used. D) The company sticks to tried and true methods of doing things.

C) Cross-functional team structures are often used.

________ tends to be the first type of control that all managers use to evaluate performance. A) Direct supervision B) Management by objectives C) Output control D) Bureaucratic control

C) Output control

What is a common reason that entrepreneurs often find managing difficult? A) They are too far from their companies to see the need for change. B) They are unwilling to share their vision with others. C) They have trouble delegating authority because of the risk involved. D) They are not good at communicating their ideas with others.

C) They have trouble delegating authority because of the risk involved.

TruLife Health Systems has opted for a top-down approach to changing how the company functions so that efficiency is increased. What is the change likely to entail? A) a fast or revolutionary approach involving managers at all levels B) a gradual or evolutionary approach involving only the top managers C) a fast or revolutionary approach involving only the top managers D) a gradual or evolutionary approach involving managers at all levels

C) a fast or revolutionary approach involving only the top managers

When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) ________ culture. A) dynamic B) bureaucratic C) adaptive D) normative

C) adaptive

The control that is imposed on workers within the organization by the shared values, norms, standards of behavior, and expectations is ________ control. A) bureaucratic B) operating C) clan D) leverage

C) clan

The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as A) organizing. B) leading. C) controlling. D) coordinating.

C) controlling.

In assessing the need for organizational change, managers must A) identify the obstacles to change at the corporate and individual levels. B) plan how they are going to attain the organization's ideal future state. C) recognize that there is a problem and identify its source. D) implement change from the top down or from the bottom up.

C) recognize that there is a problem and identify its source.

The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ________ budget approach. A) expense B) cash flow C) revenue D) profit

C) revenue

Jonah and Aubrey are the founders of Old Sarsaparilla, a manufacturer of novelty bottled sodas that use organic ingredients. After a couple of years of successfully marketing their products to local businesses, the company has attracted a slew of new investors and clients and has expanded into several of the surrounding states. As part of this expansion, they have hired a manager, Yusuf, to be responsible for the day-to-day business of the company. However, Aubrey questions all of Yusuf's decisions, wanting to remain involved in every aspect of the business. This has resulted in her being overextended and stressed most of the time. Caryl, Old Sarsaparilla's biggest investor and one of Aubrey's mentors, knows that Aubrey's creative, big-picture thinking is one of her most valuable traits. What should he suggest she do? A) become a co-manager with Yusuf, so that she feels her authority is still respected B) focus on building the kind of friendly organizational culture she envisions for the company C) take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla D) take management classes at the local university to develop her communication skills

C) take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla

Calculate the current ratio of the organization from the information given below. Sales = $200,000; Gross Profit = $40,000; Total Assets = $450,000; Current Assets = $250,000; Current Liabilities = $300,000 A) 0.44 B) 0.56 C) 0.67 D) 0.83

D) 0.83

Calculate the return on investment from the information given below. Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000 A) 16.67 percent B) 15 percent C) 11.25 percent D) 12.5 percent

D) 12.5 percent

Which of the following problem is most likely to occur when a company becomes overly bureaucratic? A) Employees eventually rebel against the rules. B) The company becomes less efficient over time. C) It leads to a toxic work culture and more turnover. D) Employees stop thinking for themselves.

D) Employees stop thinking for themselves.

Optique Cameras opts to take a bottom-up approach in order to draft a new attendance policy. What will the approach entail? A) a fast or revolutionary approach involving managers at all levels B) a gradual or evolutionary approach involving only the top managers C) a fast or revolutionary approach involving only the top managers D) a gradual or evolutionary approach involving managers at all levels

D) a gradual or evolutionary approach involving managers at all levels

The financial ratio that measures how well the managers of the organization are creating value from the organization's assets is the ________ ratio. A) leverage B) liquidity C) current D) activity

D) activity

Amir, the manager of Kaleidoscope Toys, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Amir is A) establishing the standards of performance. B) measuring the actual level of performance of employees. C) evaluating the result of the set standards. D) initiating corrective actions.

D) initiating corrective actions.

In companies that have an adaptive culture, employees are A) content to be told what to do during work hours. B) not motivated to perform beyond minimum requirements. C) closely supervised within a hierarchical authority. D) likely to have long-term career paths to follow.

D) likely to have long-term career paths to follow.

When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services, this is an example of a(n) ________ budget approach. A) revenue B) cash flow C) expense D) profit

D) profit

Entrepreneurship is the mobilization of resources to A) start a process that ends with the founding of a new business. B) compare two companies on specific dimensions. C) market an old product with a new twist. D) provide customers with new or improved goods and services.

D) provide customers with new or improved goods and services.

The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is A) gross profit margin. B) the debt-to-assets ratio. C) the inventory turnover ratio. D) return on investment.

D) return on investment.