Organizational Management Chapter 14

Which of the following situations would be more likely to happen in a control system with open communication?

Employees tell management when personal problems cause them to perform poorly at work. Employees report faulty systems that are causing a drop in production.

Which of the following are steps in the budgetary control process? (check all that apply)

Establish expectancies Perform budgetary operations Take action

Which tools are often used to measure performance levels inside an organization?

Personal observations Oral reports Written reports

Which two goals should an effective control system accomplish?

Producing the most possible benefits Minimizing dysfunctional behaviors

What is the first step of a control system?

Set performance standards

A production budget should include which of the following? (Check all that apply.)

available resources economic quantities to produce types and capacities of machines

A(n) ______ control system detects and corrects significant variations, or discrepancies, in the results of planned activities.`

bureaucratic

Although formal _____ control systems are the most pervasive and most widely taught, they are not always the most efficient or flexible.

bureaucratic

Human resources policies against workplace romances are a type of ______ control.

feedforward

Feedback control is used at the ______ stage of the process of transforming inputs into finished goods and services.

final

Allowing workers to correct their own shortcomings promotes self-control instead of close supervision. Which of the following incorporates this principle?

open-book management

Providing employees with accessible information enables them to bring their own performance up to company standards. The use of ______ is one example of this control principle.

open-book management

Which step in the control process measures performance?

step 2

A balance sheet itemizes which of the following? (Check all that apply.)

stockholders' equity assets liabilities

______ allocates costs across business processes.

Activity-based costing

______ helps an organization recognize streams of activity and assign costs according to the time spent on particular activities.

Activity-based costing

During which stage of the process of transforming inputs into finished goods and services is feedforward control used?

Before operations begin

______ establishes relationships among feedforward control, concurrent control, and feedback control.

Budgetary control

A(n) _______ control system uses rules, standards, and regulations to guide performance.

Bureaucratic

______ control systems are designed to measure progress toward set performance goals, and if necessary, to apply corrective measures to ensure that the firm's performance meets objectives.

Bureaucratic

__________is any process that directs the activities of individuals toward the achievement of organizational goals.

Control

Which management function ensures that organizational activities are going as planned?

Controlling

The six sigma approach is based on a statistical analysis of business processes that contribute to which goals?

Decreased production costs Decreased product defects Customer satisfaction

Which of the following are examples of issues in the workplace that can be avoided with feedforward controls in the form of policies? (Check all that apply.)

Tattoos and body art Workplace romance Public disclosure of corporate information

When is concurrent control used?

While plans are being carried out

The most useful control systems are based on ______ performance standards.

accurate

A balance sheet shows the financial health of a company at a specific time and reports

assets, liabilities, and stockholder's equity.

Two statements that summarize a company's financial condition are the profit and loss statement and

balance sheet.

control involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

clan

Which two of the following control systems tend to be the most flexible? (Check all that apply.)

clan market

Compared to other methods of managerial control, budgetary control is

commonly used. widely recognized.

Placing too much emphasis on short-term income and profits instead of pursuing a longer-term strategy is known as ______.

management myopia

In the third step of the control process, managers evaluate actual ____.

performance

A ______ budget is typically stated in physical units.

production

An itemized financial statement of income and expenses is a(n) ______.

profit and loss statement

What type of budget includes data forecasting sales by month, sales area, and product?

profit and loss statement

No matter how it is measured, performance data must be ______ to be of value to the organization.

reported promptly

The first step of the budgetary control process involves ______. (Check all that apply.)

the broad plan for the company estimating sales budget approval and publication

Control systems are less objectionable to employees when

they do not control too much. they feature useful standards of performance. they feature standards that are possible to achieve.

To be of value, the reporting of performance standards must be ______.

timely

__________ control includes directing, monitoring, and fine-tuning activities as they are performed.

Concurrent

Which three measures are included in a company's triple bottom line?

Financial performance Impact on employees and local communities Environmental impact

A company has gathered and analyzed information about its performance. Supervisors use the results to help employees improve their work.. This is an example of ______ control.

feedback

Which of the following are approaches to bureaucratic control? (Check all that apply.)

feedback control feedforward control concurrent control

Feedforward control is ______ oriented.

future

What type of control is based on mutual respect and individual responsibility?

Clan

Which of the following are examples of open communication?

Employees are willing to share bad news. Employees report deviation in production.

After managers monitor the workforce, they discuss their observations with each employee and help that individual improve performance. What is this type of control called?

Feedback

Which type of control gives managers information about results to correct problems after they arise?

Feedback control

______ control occurs at the input stage and allows managers to look ahead to anticipate problems before they arise.

Feedforward

______ takes place before operations begin and allows managers to ensure that planned activities are carried out properly.

Feedforward control

______ have developed as a means of evaluating the effectiveness and efficiency of various systems within an organization.

Management audits

______ should be conducted to measure the effectiveness and efficiency of an organization's systems.

Management audits

Which of the following are characteristic of the most effective control systems? (Select all that apply)

Managers tell workers why the control system is important. Workers are given a critique of their performance on the job. Workers recognize their own shortcomings and correct them without supervision.

Which of the following is a type of control that relies on economic forces?

Market

______ occurs when control systems prompt employees to follow the rules to an extreme that stifles creativity.

Rigid bureaucratic control

Which of the following characteristics describe an effective control system? (Select all that apply.)

The system should encompass all elements that affect performance significantly. It should be hard to sabotage or falsify the data being monitored. Standards should be objective.

A control system that features performance measures related to finance, customer satisfaction, business processes, and learning and growth is called a

balanced scorecard.

A balanced scorecard comprises which of the following sets of performance measures? (Check all that apply.)

customer satisfaction learning and growth business processes financial

With the six sigma control process, the goal is zero ______.

defects

The concept of a triple bottom line allows companies to determine how ______ their business is.

environmentally sustainable

A tentative profit and loss statement can be used to

establish a performance goal.

A ______ control system uses prices, competition, and exchange relationships to regulate activities as though they were economic transactions.

market

Effective control systems __________.

maximize benefits and minimize dysfunction

Which of the following are steps in the control process? (Check all that apply.)

measuring performance comparing performance to the standard taking action to correct problems setting performance standards

If managers use too much ______, they can discourage employee innovation.

rigid control

Luvo is setting a ______ budget by reviewing forecasts of sales by month, sales area, and product.

sales

Step 1 of a typical control system involves ______ performance standards.

setting

Fixating on ______ and profits while neglecting long-term strategy is known as management myopia.

short-term earnings

In the last step of the control process, managers take steps to correct ______.

significant deviations from the standard

The last step of the control process is ______.

to take action that will correct significant deviations

The ______ effort requires that a company measure performance at each stage and reduce errors to fewer than 3.4 per million.

six sigma

In order to gain employee acceptance, ______.

standards should be achievable and supported by an emphasis on positive behavior

______ affect performance via economic forces and pricing mechanisms.

Market controls

What is the second step in the control process?

Measuring performance

After setting performance standards and measuring performance, what is the third step of the control cycle?

Comparing performance with the standard

Rank the following steps of the control process in order from first (at the top) to last (at the bottom).

Establish the standards of performance, goals, or targets against which performance is to be evaluated. Measure actual performance Compare actual performance against chosen standards of performance Initiate corrective action if the standard is not being achieved

Performance data is commonly obtained from both ______ reports, in addition to personal observation.

written and oral

When organizations use the six sigma process, they are striving for a ______ environment.

zero-defect