Chapter 11 MP&W
operating budget
A budget that states how managers intend to use organizational resources to achieve organizational goals.
top-down change
A fast, revolutionary approach to change in which top managers identify what needs to be changed and then move quickly to implement the changes throughout the organization.
According to the force-field theory,
A wide variety of forces arise from the way an organization operates that make organizations resistant to change
What is an operating budget?
Blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently.
_______ control is the control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.
Clan
_____ control allows managers to get immediate feedback on how efficiently inputs are being transformed into outputs.
Concurrent
bureaucratic control
Control of behavior by means of a comprehensive system of rules and standard operating procedures.
_____ is the most likely to cause organizational costs to increase.
Direct supervision
MBO starts when top managers
Establish organizational objectives
control systems
Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization's strategy and structure are working.
Which of the following describes stretch goals?
Goals that are specific and difficult but not out of reach
Why is return on investment (ROI) the most commonly used financial performance measure?
It allows managers of one organization to compare performance with that of other organizations.
Which of the following is true about direct supervision?
It can make subordinates less eager to work.
Which of the following is true about clan control?
It serves a dual function of keeping organization members goal-directed while open to new opportunities.
organizational change
Movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
_____ tends to be the first type of control that managers at all levels use to evaluate performance.
Output control
Which of the following is true about the control process?
Realistic standards reduce the gap between actual performance and desired performance.
_____ guide behavior and specify what employees are to do when they confront a problem that needs a solution.
Rules and SOPs
clan control
The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.
Which of the following cannot be measured easily?
The creativity of a research engineer
After measuring and evaluating the manufacturing performance of a new product, a manager raised the performance standard for the next period of challenge. Which of the following would justify the manager's reason for raising the standard?
The manager wants to challenge the subordinates.
Which of the following is true about bureaucratic control and standardization?
Too many rules can stop employees from thinking for themselves
Which of the following is true about bureaucratic control and standardization?
Too many rules can stop employees from thinking for themselves.
When is an organization in a state of inertia?
When the forces are evenly balanced
Managerment By Ojectives(MBO)
a goal setting process in which a manager and each of his or her subordinates negatives specific goals and objectives for the subordinate to achieve and then periodically evaluate the extent to which the subordinate is achieving those goals
bottom-up processing
a gradual or evolutionary approach to change in which managers at all level work together to develop a detailed plan for change
Which of the following controls leads to standardized behavior and standardized work outputs?
bureaucratic control
Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods?
feedback control
When a company's operating profit is divided by its sales revenues, the financial measure is referred to as
an operating margin.
The managers at Mt. Slide Ski Resort are comparing the number of annual passes they sold last year with the number of annual passes sold by other high-performing ski resorts. This is called
benchmarking
evolutionary change
change that is gradual, incremental, and narrowly focused
revolutionary change
change that is rapid, dramatic, and broadly focused
The manager of a pizza restaurant monitors the employee's behavior by counting the number of customers each employee serves and how much each customer spends. This is an example of
clan control.
One of Carlos's work responsibilities is to check the inspection stations periodically to monitor the quality of the products during the production process. This is an example of
concurrent control
Which of the following types of controls do managers use during the conversion stage to gain feedback on the conversion process?
concurrent control
Which of the following types of controls helps monitor the quality of goods or services provided during the production process?
concurrent control
_______ systems are the formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plan.
control
feedforward control
control that allows managers to anticipate problems before they arise
concurrent control
control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise
feeback control
control that gives managers information about customers reactions to goods and services so corrective actions can be taken if necessary
_______ is the process by which managers monitor and regulate the efficiency and effectiveness of the workers in an organization.
controlling
Which type of financial ratio is computed by dividing the organization's present assets by its present liabilities?
current ratio
Martin becomes personally involved with his subordinates and guides them. This is an example of
direct supervision
What is the most instantaneous and powerful form of behavior control?
direct supervision
Which of the following steps of the organizational change process includes benchmarking?
evaluating the change
As regional manager of KIM Corp., Dwight is given an operating budget of $1 million for that financial year and is evaluated on the basis of the amount of goods produced based on that budget. Dwight's performance is evaluated on a(n)
expense budget approach
An organization monitors the number of customer returns for each product model as a part of an attempt to recognize defective products. This is an example of
feedback control
During the input stage, managers use __________ control procedures to anticipate problems before they occur.
feedforward
Which of the following types of control allows managers to anticipate problems before they arise?
feedforward control
RST Consulting screens job applicants by viewing their résumés electronically and using several interviews to select highly skilled people. By doing so, the managers at RST Consulting ensure that the wrong candidates are not picked for a particular job. This is an example of
feedforward control.
Which of the following can be inferred from calculating a company's operating margin?
how efficiently an organization is using its resources
Which of the following provides a framework to monitor progress toward achieving goals?
management by objectives
Once managers have chosen the standards to evaluate performance, the next step in the control process is to
measure actual performance.
As the regional manager, Ted's performance is evaluated on the difference between the sales revenues generated by his region and the cost of making those goods and services. Ted is being evaluated using a(n) ________ approach.
profit budget
The _____ shows whether an organization can pay claims of short-term creditors without selling inventory.
quick ratio
Which of the following types of change is rapid, dramatic, and broadly focused?
revolutionary change
Benchmarking
the process of comparing one company's performance on specific dimensions with the performance of high-performing organizations
