Principles of Management: Ch. 14 Quiz

A _____ refers to a control system combining four sets of performance measures: financial, customer, business process, and learning and growth. A. balanced scorecard B. concurrent control C. management audit D. feedforward control E. standard

A. balanced scorecard

The _____ budget is essential to every business. A. cash B. sales C. cost D. production E. operational

A. cash

Which approach to bureaucratic control is exemplified by the second option? A. feedback B. feedforward C. concurrent D. market E. clan

A. feedback

Which of the following is the first step in a typical control system? A. setting performance standards B. comparing performance against the standards C. taking action to correct problems D. revising standards E. measuring performance

A. setting performance standards

Employees often _____ as diversified companies are repeatedly bought and sold based on market controls. A. suffer B. benefit C. surrender D. grieve E. thrive

A. suffer

_____ increase the accuracy of performance data and make employees more accountable for their actions. A. Profitability ratios B. Bureaucratic controls C. Tactical behaviors D. Comprehensive control systems E. Expense reports

D. Comprehensive control systems

Which of the following statements is true of Six Sigma? A. The system was developed by General Electric. B. It is designed to choose the correct organizational process for a job. C. The lower the sigma number, the lower is the level of defects. D. It indicates how often defects in a process are likely to occur. E. It always improves the bottom line.

D. It indicates how often defects in a process are likely to occur.

_____ are intended to keep CEOs focused on the company's longer-term health. A. Market controls B. Balanced scorecards C. Market-based wages D. Transfer prices E. Transfer controls

B. Balanced scorecards

_____ budget sheet items over a long period of time uncovers important trends. A. Expanding B. Summarizing C. Enlarging D. Condensing E. Merging

B. Summarizing

_________ behavior occurs when employees feel forced to attempt to "beat the system." A. Rigidly bureaucratic B. Tactical C. Resisting D. Defensive E. Myopic

B. Tactical

Which of the following is true of managing in an empowered world? A. "High-flex" organizations are based on obedience. B. Team performance and adding value to the customer should be emphasized. C. Information must police decision making. D. Close supervision, checks, and balances are recommended. E. Emphasis should be put on managing by numbers.

B. Team performance and adding value to the customer should be emphasized.

A(n) _______ is a report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity. A. profit and loss statement B. balance sheet C. expense report D. income statement E. budget report

B. balance sheet

The _____ costing method allocates costs across business processes, and provides a more accurate picture of how costs should be charged to products and services. A. sales B. production C. activity-based D. capital E. operational

B. bureaucratic

The use of rules, regulations, and authority to guide performance is referred to as _____ control. A. clan B. bureaucratic C. market D. concurrent E. feedback

B. bureaucratic

_____ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results. A. Clan B. Market C. Bureaucratic D. Concurrent E. Feedforward

C. Bureaucratic

_______ is the level of expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed. A. Liability B. Balance sheet C. Standard D. Asset E. Audit

C. Standard

Which approach to bureaucratic control is described by the first option? A. feedback B. feedforward C. concurrent D. market E. clan

C. concurrent

Which of the following budgets is used for areas of the organization that incur expenses but no revenue? A. sales budget B. production budget C. cost budget D. cash budget E. master budget

C. cost budget

At Wodehouse Corp., a rule has been made instructing all assembly workers to arrive early for their shift in order to wear specialized gear because the products are very sensitive to external particles. These products are assembled in a controlled environment. This requirement reflects _____ control. A. feedback B. specialist C. feedforward D. operator E. concurrent

C. feedforward

At a town hall meeting, the CEO of a company spoke energetically about adopting cost-cutting measures due to the recent economic slump. However, a few days later, the employees found out that the CEO had gone on an exotic vacation using funds from the company. Which of the following is true about this company? A. Key data are not measured and reported in a timely manner. B. Reviews are not held periodically. C. Employees are unclear about what needs to be achieved. D. Senior managers set a bad example, implying a lack of control. E. The firm's expectations are not established in writing.

D. Senior managers set a bad example, implying a lack of control.

External audits are useful for preliminary control because they A. can assess what a company has done for itself. B. review a company's past, present, and future. C. can evaluate how a company has served its customers of its goods or services. D. can prevent problems from occurring. E. are more satisfying as operators benefit by having a more enriched job.

D. can prevent problems from occurring.

Policies restricting workplace romance, tattoos and body art, and public disclosure of corporate information are examples of _____ control. A. social B. feedback C. concurrent D. feedforward E. clan

D. feedforward

Which of the following is a use of external audits? A. evaluating financial stability B. evaluating production efficiency C. evaluating sales effectiveness D. identifying possible mergers or acquisitions E. identifying earnings potential

D. identifying possible mergers or acquisitions

A company enforced a rule that employees were required to submit their cell phones for safekeeping before entering their work bay. Employees followed the rule in order to avoid getting into trouble with the management. As a result, many of them missed important phone calls from their clients/customers. This scenario is an example of A. market control. B. management myopia. C. dysfunctional behavior. D. rigid bureaucratic behavior. E. resistance to control.

D. rigid bureaucratic behavior.

Which type of bureaucratic control takes place while plans are being carried out? A. feedback control B. specialist control C. preliminary control D. feedforward control E. concurrent control

E. concurrent control