Ch 11 Quiz

______ is an evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change.

Bottom-up change

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

Bureaucratic control

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

Return on investment ROI

Which of the following are caution to managers in a bureaucratic system? (Choose all that apply.)

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

Why is it important that goals be set appropriately?

So managers are motivated to accomplish them

Arrange in order the four steps in the organizational change process.

1. assess the need for change 2. Decide on the change to make 3. Implement the change 4.Evaluate the change

Bureaucratic control is a type of behavioral control system that attempts to control behavior by means of which of the following? (Choose all that apply.)

A comprehensive system of rules. Standard operating procedures.

______ evaluates managers on the difference between the revenues generated by the sales of goods and services and the budgeted cost of making those goods and services.

A profit budget approach

Which of the following is an advantage of benchmarking? A. It helps organizations decide how successful a change effort has been. B. It helps measure how well managers have utilized organizational resources to be able to meet short-term obligations. C. It shows how well managers have created value from organizational assets. D. It reveals how efficiently managers have collected revenue from customers to pay expenses. E. It tells managers when a corporate reorganization might be necessary or when they should rethink their corporate-level strategies.

A. It helps organizations decide how successful a change effort has been.

Which of the following is a drawback of bureaucratic control? A. Overdependence on rules can slow down decision making. B. Discarding rules is easier than establishing them. C. Rules and SOPs increase the number of mishaps in an organization. D. Standardized behavior leads to standardized outputs. E. Rule and SOPs promote misunderstanding and the misuse of power.

A. Overdependence on rules can slow down decision making.

Which of the following is true of measuring actual performance? A. Measuring output and behavior at the same time is always easy. B. Behavior and output are harder to measure in nonroutine or complex organizational activities. C. In nonroutine activities, it is easier to measure behavior than output. D. Behaviors are easier to measure because they're more tangible and objective. E. The first kind of performance measures that managers tend to use are those that measure behaviors.

B. Behavior and output are harder to measure in nonroutine or complex organizational activities.

Which of the following is an advantage of bottom-up change? A. It can be used to implement changes quickly throughout the organization. B. It can co-opt resistance to change from employees. C. With the emphasis on making changes quickly, it is revolutionary in nature. D. It is effective in dealing with problems as they arise. E. It is likely to result in a radical shift in ways of doing things.

B. It can co-opt resistance to change from employees.

A management control system that takes a comprehensive look at an organizations overall performance using four measures: financial, customer service, internal business process, and the organizations capability for strategic learning and growth. OR The structural model is a management control system that takes a comprehensive look at an organization's overall performance.

Balanced Scorecard

______ is most useful when organizational activities are routine and well understood and when employees are making programmed decisions.

Bureaucratic control

Which control procedure is used at the conversion stage to obtain immediate feedback about how efficiently raw materials are being transformed into finished goods? A. Feedback control B. Feedforward control C. Concurrent control D. Clan control E. Market control

C. Concurrent control

Which of the following is true of the control process? A. Subordinates should decide on the standards of performance, goals, or targets of the organization. B. Corporate goals and divisional goals must function independent of each other. C. Focusing on just one standard and ignoring other standards can harm the organization. D. Higher standards always lead to higher performance. E. Setting standards for complex and nonroutine activities is relatively easy.

C. Focusing on just one standard and ignoring other standards can harm the organization.

Which of the following is true of the control process? A. Subordinates decide on the standards of performance, goals, or targets that are used to evaluate the entire organization. B. Corporate goals and divisional goals must function independent of each other. C. Performance standards selected at one level affect those at the other levels. D. The number of standards used to evaluate efficiency and quality should not exceed twenty. E. Managers must focus on just one standard and ignore other standards.

C. Performance standards selected at one level affect those at the other levels.

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

______ takes advantage of the power of organizational culture to serve a dual function of keeping organization members goal-directed while open to new opportunities.

Clan control

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

______ provide managers with information about how well the organizational strategy and structure are working. OR An organization's systems give it the "muscles" and "nerves" that allow managers to regulate and govern its activities.

Control systems

Which function of management involves monitoring the organization in order to determine if the organization is operating efficiently and effectively?

Controlling

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

Direct supervision

Which control procedure should be used to provide information about customers' reactions to goods and services? A. Market control B. Concurrent control C. Bureaucratic control D. Clan control E. Feedback control

E. Feedback control

Which of the following can cause failure of an MBO(management by objectives) system? IA. ncreasing the number of complex jobs in an organization B. Linking reward systems to team performance C. Setting specific objectives for managers at each level D. Participation of subordinates in the objective-setting process E. Influence of personal bias or political objectives during evaluation

E. Influence of personal bias or political objectives during evaluation

Which of the following is true of comparing actual performance with standards? A. The first step in the control process is to evaluate actual performance. B. Behavior and output are harder to measure in nonroutine or complex organizational activities. C. It is easy to compare performance with standards for nonroutine activities. D. If performance is greater than the standard, performance can be improved by lowering standards. E. It is easy to take corrective action when the reasons for poor performance can be identified.

E. It is easy to take corrective action when the reasons for poor performance can be identified.

Which of the following is a reason why direct supervision is expensive? A. Team members under direct supervision start to pass the buck and avoid responsibility. B. As the complexity of the job increases, managers find it difficult to evaluate subordinates. C. Direct supervision demotivates employees. D. Direct supervision lacks a framework that sets rules and guidelines for managers to follow. E. Managers can effectively manage only a small group of employees.

E. Managers can effectively manage only a small group of employees.

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

How is the complexity of a job related to direct supervision?

It is more difficult to evaluate a subordinate who is performing a complex job.

Which of the following ratios measure the degree to which managers use debt or equity to finance ongoing operations?

Leverage ratios

___________________ theory suggests 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.

Lewin's force-field

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

Measure actual performance, Compare actual performance to chosen standards, Establish standards of performance, Evaluate the result and initiate corrective action

______ is calculated by dividing a company's operating profit by sales revenues.

Operating margin

Control systems help monitor which of the following building blocks of competitive advantage? (Choose all that apply.)

Quality, Superior efficiency, Responsiveness to customers, Innovation

_____ is rapid, dramatic, and broadly focused.

Revolutionary change

Which of the following are aspects of direct supervision? (Choose all that apply.)

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? (Choose all that apply.)

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

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

actual performance

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

behavior

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

Examples of methods used by managers for behavior controls are: (Choose all that apply.)

bureaucratic control. direct supervision. management by objectives.

Research suggests that the best goals are: (Choose all that apply.)

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

Managers need to reduce or manage resistance in order to facilitate ____________.

change.

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

clan

When evaluating the change process, managers: (Choose all that apply.)

compare prechange and postchange performance. use benchmarking.

Monitoring how organizational members are performing activities necessary to achieve organizational goals is called ______. OR Which function of management involves monitoring the organization in order to determine if the organization is operating efficiently and effectively?

controlling

Current assets divided by current liabilities is referred to as:

current ratio.

When developing an output control system, it is important to implement output standards that: (Choose all that apply.)

do not cause managers to behave in inappropriate ways to achieve organizational goals. motivate managers at all levels.

When the new game controller came out, customers soon went on the website to complain that it was difficult to operate because the buttons were too small. The engineers received this information and quickly released a new model with larger buttons. What type of control aided this decision?

feedback control

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

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: (Choose all that apply.)

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

In the third step of the organizational change process, managers must: (Choose all that apply.)

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

When implementing change during the third step in the change process, managers must: (choose all that apply)

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

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

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

net profit before taxes

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. OR ______________ are an example of an output control system. This type of budget lays out how managers intend to use allotted resources to efficiently achieve their organizational goals.

operating budgets

Communication, motivation, and leadership are affected by ___________ ___________.

organizational change.

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 _______ OR When managers establish the goals and standards of performance for employees to meet, they are completing the first step of the ____________ process.

organizational control

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

performance measures

Managers use financial measures, organizational goals, and operating budgets to assess __________.

performance or output

An organization's net income before taxes divided by its total assets is known as:

return on investment.

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

revolutionary

Too much ______ can reduce the level of learning taking place in an organization.

standardization

In the final step in the control process, managers

take appropriate action if needed.

With ______ change, the emphasis is on making changes quickly and dealing with problems as they arise; it is revolutionary in nature.

top-down

In the last step of the change process, managers: (Choose all that apply.)

use benchmarking. compare prechange and postchange performance.