Principles of Management Chapter 19
The quality guidelines at Riko Toys require close adherence to safety specifications. A group of 10 employees voluntarily meet each week to identify and solve problems that hinder the productivity and quality of their work. These employees are trained in statistical quality control, and they analyze the problems and refer them to the organizational level where actions can be taken to solve them. In the context of total quality management (TQM), the voluntary group of 10 employees is an example of a:
quality circle
quality partnering
quality control personnel work alongside others within a functional area identifying opportunities for quality improvements throughout the work process
In the context of financial control, the most common financial analysis focuses on the use of ________ , statistics that express the relationships between performance indicators such as profits and assets, sales, and inventory.
ratios
decentralized control
relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals
ISO 9000 standards
represent an international consensus of what constitutes effective quality management as outlined by the International Organization for Standardization
benchmarking
the continuous process of measuring products, services, and practices against the toughest competitors or those companies recognized as industry leaders to identify areas for improvement
Bradford, a restaurateur, meets his staff every morning to discuss daily plans, work-related problems, and their solutions. His employees have devised a unique method to deliver efficient and error-free service. Bradford gives his chefs full freedom to innovate and experiment with the dishes on the menu and shares customer feedback with them. In case of exceptional customer reviews, he rewards the entire staff with weekend outings. Which of the following approaches to organizational control does Bradford use at his restaurant?
the decentralized control approach
In the context of the changing philosophy of control, which of the following statements is a difference between the hierarchical and decentralized methods of organizational control?
the hierarchical method relies on task-related job descriptions, whereas the decentralized method relies on results-based job descriptions
In the context of the feedback control model, which of the following statements is true of the balanced scorecard management control system?
the simplicity of this system causes some managers to underestimate the time and commitment needed for the approach to become a truly useful management control system
Organizational control
the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance
In the context of budgetary control, an expense budget includes anticipated and actual expenses for each responsibility center and for the total organization.
true
Managers who consider efficiency extremely important do all except
welcome small improvements
total quality management (TQM)
an organization-wide effort to infuse quality into every activity in a company through continuous improvement
responsibility center
any organizational department or unit under the supervision of a single person who is responsible for its activity
Lucas uses a fitness tracker app on his smartphone to measure his calorie intake in a day and track the activities that help him burn calories through the day. His aim is to modify his lifestyle for better health and increased work productivity. In the context of managing quality and performance, Lucas's practice of voluntarily collecting and analyzing data about himself in order to improve is an example of:
auto-analytics
In the context of budgetary control, the _________ of an organization estimates receipts and expenditures of money on a daily or weekly basis to ensure that the organization has sufficient funds to meet its obligations.
cash budget
balanced scorecard
comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors
Advantages of electronic monitoring
cut expenses, increase sales, and decrease employee theft
Disadvantages of electronic monitoring
damage employee trust, create unhealthy levels of trust for employees, and hurt performance
Telematics
describes technologies that wirelessly transmit data from remote sensors and GPS devices to computers for analysis
This self-assessment indicates that organizations often face a clash between
efficiency and quality improvements
Four steps of feedback control mode
establish standards of performance, measure actual performance, compare performance to standards, and take corrective action
Minnie owns a furniture and home décor showroom. She has instructed her sales floor employees to always sort and arrange furniture as room displays. For example, living room merchandise should be arranged and decorated like a real room so that shoppers get a feel of the actual look. This rule is followed for arranging kitchen furniture, study furniture, and so on. This saves time and helps employees restore order and place items in their exact locations. In the context of managing quality and performance, Minnie's rule about furniture displays in her showroom is an example of:
establishing standards of performance
In the context of budgetary control, a responsibility center is defined as any organizational department or unit under the supervision of a team of 6 to 12 employees responsible for its activity.
false
balance sheet
financial statement that shows the firm's financial position with respect to assets and liabilities at a specific point in time
income statement
financial statement that summarizes the firm's financial performance for a given time interval, usually one year
Which of the following questions is not a reason for continuous improvement?
if a method is working well, why change it?
continuous improvement
implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis
hierarchical control
involves monitoring and influencing employe behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms
In the context of total quality management (TQM), which of the following statements is true of Six Sigma?
it emphasizes a disciplined and relentless pursuit of higher quality and lower costs
In the context of total quality management (TQM), which of the following statements is true of continuous improvement?
it is the implementation of a large number of small, incremental improvements in all areas of an organization on an ongoing basis
In the context of total quality management (TQM), which of the following statements is true of quality partnering?
it makes it possible to detect and address defects early in the product life cycle, when they can be corrected most easily
The management at Revelio Corporation wants its employees to actively participate in the achievement of the firm's goals. It wants them to appreciate the importance of financial efficiency for the firm's success as well as their own. The goal of the management is to train the employees to interpret the firm's financial data and to make them think like owners by giving them the same information owners have: what money is coming in and where it is going. In this scenario, Revelio Corporation is using _____.
open-book management
Esky Corporation, a chain of retail stores, monitors 10 performance indicators that are believed to be correlated with better quality service, including how quickly employees respond to queries, how well employees assist customers in shopping, whether purchases are delivered on time, and so forth. This monitoring of performance indicators by Esky Corporation is an example of:
organizational control
five steps for benchmarking process
plan, find, collect, analyze, and improve
budgetary control
process of setting targets and monitoring expenditures
quality circle
a group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work
six sigma
a highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts
Praque Inc., a machinery manufacturing firm, relies on suppliers to deliver raw materials on demand. John, the manager at Praque Inc., has set the following rules about the firm's operations: Materials should be purchased from only a preapproved set of vendors; a formal bidding method should be used for purchases above a fixed amount; and a thorough inventory count should be conducted at regular intervals and matched against the inventory list of the company. In the given scenario, John has set these rules to:
achieve organizational control