Quiz 8

Jae-Kyu, a worker at Chelsea Motor Scooters, comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car comes off the assembly line with its fuel injection system attached in the new way. The managers are using _________ control.

Bureaucratic

The most immediate and potent form of behavior control is:

Direct supervision

Amir, the manager of Kaleidoscope Toys, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Amir is:

Initiating corrective actions

The financial ratio that measures the ability of the organization to pay its short-term debts is the _________ ratio.

Liquidity

Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a:

Top-down approach to promote adaptive culture

The financial ratio that measures how well the managers of the organization are creating value from the organization's assets is the _________ ratio.

Activity

Rules and SOPs are of little use in telling a scientist how to discover something new. Thus, which of the following forms of control should not be applied to scientists?

Bureaucratic

Companies with an inert culture:

Closely supervise their employees within a hierarchical system

The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the _________ ratio.

Leverage

Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags. With reference to the control process, Charlene is:

Comparing the actual performance against chosen standards of performance

The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control.

Concurrent

The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems.

Control

The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as:

Controlling

The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the _________ ratio.

Days sales outstanding

Which of the following problem is most likely to occur when a company becomes overly bureaucratic?

Employees stop thinking for themselves

Martel, the production manager of Firefly Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Martel:

Establishes the standards of performance

The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) _________ budget approach.

Expense

Gazelle Computers monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Gazelle is using ________ control.

Feedback

Futura Fabricators gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process. This is an example of ________ control.

Feedforward

The managers of Galaxy Diner, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Galaxy are:

Measuring the actual level of performance of employees

The sales of Audiophile, a manufacturer of home and professional audio systems, have been declining noticeably over the last several quarters. Muaad, the CEO, meets with several managers, including Bruno, the head of the customer service department, and Ilya, a customer response team leader. It is determined that, while the company's quality and innovation standards are being met and even exceeded, its customer service is not performing as well as it should be. Muaad decides to implement a goal of raising the quality of Audiophile's interactions with customers by their next quarterly meeting. Given what you know about the control process, what should the team at Audiophile do next?

Muaad should meet with Bruno and Ilya to decide if a five-star rating scale is sufficient for measuring their progress and whether they need to reach a 4- or 4.5-star average

The set of values, norms, and expectations of behavior that control the ways in which workers interact with one another within the organization is known as:

Organizational culture

The manager of East India Ice Cream Shop keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of East India is utilizing ________ control.

Output

________ tends to be the first type of control that all managers use to evaluate performance.

Output control

The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) ________ ratio.

Profit

When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services, this is an example of a(n) _________ budget approach.

Profit

The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity?

Quick ratio

The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is:

Return on investment

The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ________ budget approach.

Revenue

When actions are performed by employees the same way time and time again and the outcomes of their work are predictable, employee behavior is:

Standardized