Week 7: Chapter 16 SmartBook

The purpose of ______ is to monitor performance and take corrective action as needed to ensure that objectives are met.

controlling

The costs required to produce the goods or services of the organization are known as ______.

expenses

Dicte has a small business making beaded jewelry. The costs of purchasing the beads, semi-precious stones, clasps, and other supplies used to make the jewelry and the rent on her store are the ______ of her business, whereas the assets resulting from the sale of her jewelry are the business's ______.

expenses; revenues

A(n) ______ is a formal verification of an organization's financial accounts and statements made by outside experts who are certified public accountants (CPAs).

external audit

A property manager for an office park is required to submit a monthly statement of income and expenses to the board of directors and report its performance to budget. This is an example of control in the ______ area.

financial

A company institutes a policy requiring all employees involved in a workplace accident to submit to a mandatory drug test. This is an example of a control in the ______ area.

human resources

The traditional form of budgeting that is currently the most commonly used approach is ______ budgeting.

incremental

The two core principles of TQM are ______ orientation and ______ orientation.

people; improvement

Since service industries do not produce a tangible product, often customer satisfaction may be a matter of ______.

perception

The ability of a product or service to meet customer needs refers to ______.

quality

Using robots to paint products on a 24-hour basis rather than using humans, who require downtime for personal breaks, would result in ______.

reduced cycle time

Assets resulting from the sale of goods and services are known as ______.

revenues

An office park installs security cameras in the parking lot to better ensure the safety of tenants and visitors. This is an example of the ______ area of control.

physical

What is the name of the orientation of making ongoing, small, incremental improvements in all products, services, functional areas and work processes of an organization?

Continuous improvement

Place the steps in the PDCA cycle in order, with the first step at the top and the final step at the bottom.

Plan desired Do implement Act on lessons learned Check or Observe what hppened

The four management functions are:

Planning Organizing Leading Controlling

A firm's ______ statement summarizes its financial results (revenues and expenses) over a specified period of time, such as a month, quarter or year.

income

Using the previous budget as a starting point and making adjustments to the funds allocated to each expense category is the budgeting approach known as ______ budgeting.

incremental

Samira receives a written report every six months detailing the production outputs of the warehouse. These reports demonstrate which step in the control process?

measure performance

The acceptable threshold for quality defects according to Six Sigma standards is 3.4 defects per ______ products or procedures.

million

How can time management apps such as Toggl and Hours help you increase productivity? (Choose every correct answer.)

They have tools for sharing tasks. They help you avoid distractions. They offer help with task management.

True or false: One roadblock that can keep TQM from delivering its intended benefits is the failure to develop a culture of continuous learning.

True

Which statement concerning U.S. productivity between the 1960s and 1995 is accurate?

U.S. productivity decreased over this period.

What are the components of total quality management (TQM)?

Use accurate standards to identify and eliminate problems. Make continuous improvement a priority. Listen to and learn from customers and employees. Get every employee involved

A summary of some aspect of an organization's financial status such as a balance sheet and an income statement is a ______.

financial statement

Which of the following are readily accessed technological resources for self-improvement? (Choose every correct answer.)

Apps for mobile devices Online classes Podcasts

Greg prepares a financial statement for his business, listing the company's current assets, fixed assets, and the debts that are owed to suppliers and lenders. What document is Greg preparing for his business?

Balance Sheet

Which report summarizes the overall financial worth of an organization, such as assets and liabilities, at a specific point in time?

Balance Sheet

What is the term for the set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action?

Best practices

Who would be responsible for an external audit of a firm's financial accounts and statements?

Certified public accountants (CPA)

Which philosophy proposed ideas for making organizations more responsive, more democratic, and less wasteful?

Deming management

Match the type of control (on the left) with its definition (on the right). Feedforward Concurrent Feedback

Feedforward - Focuses on preventing future problems Concurrent - Focuses on collecting performance information in real time Feedback - Focuses on collecting performance information after a task or project is complete

Which of the following are among the keys to managerial success?

Fine-tune your people skills. Treat people as if they matter, because they do. Learn how to develop leadership skills. Encourage self-discovery and be realistic.

Petra adjusts her management style based on the reaction of her employees to a project. She does not employ the same tactics every time. What approach to management is Petra using?

Flexibility

The ______ series extends the concept of ISO certification by identifying standards for environmental performance.

ISO 14000

Which of the following consists of quality-control procedures companies must install in all facets of their operations that can be audited by independent quality-control experts, or registrars?

ISO 9000

Which of the following is a principle of Deming management?

Improved quality leads to increased market share, prospects, and employment.

What are basic types of financial statements?

Income statement Balance Sheet

Which of the following statements are true concerning the management of individual productivity?

Individuals contribute to their productivity by applying their energy and motivation to work daily. Organizations contribute to individual productivity through the work environment they create. Managers contribute to individual productivity through their behavior.

From 1995 to 2000, productivity grew at an annual rate of 2.5 percent. Which one of the following factors is thought to have produced that growth?

Investment in information technology

Which method focuses on problem solving and the performance improvement—speed with excellence—of a well-defined product?

Lean Six Sigma

Which of the following are claims, or debts, by suppliers, lenders, and other nonowners of the organization against a company's assets?

Liabilities

What are recommended actions for managing your career?

Make every day count. Network with others in your profession. Stay informed.

Which level of management is typically responsible for tactical control?

Middle managers

Which of the following is an example of a physical area of control?

Monitoring the use of the conference room

Which type of control involves monitoring performance to ensure that short-term plans and daily goals are being achieved and taking corrective action as needed?

Operational control

What is defined as the subcontracting of services and operations to an outside vendor?

Outsourcing

Which of the following are common barriers to a successful control system?

Overemphasis on paperwork Too much control Too little employee participation in planning

Which of the following is an example of the human resources area of control?

Performance appraisals

Which of the following is a statistical analysis process that reduces defects in manufacturing and service-related processes and requires no more than 3.4 defects per million products or procedures?

Six Sigma

Marci rewarded her team with a bonus when she found that their performance exceeded the standards she had set. Which step of the control process does giving the reward represent?

Step four

Which type of control involves monitoring performance to ensure that plans at the divisional and/or departmental level are being implemented and taking corrective action as needed?

Tactical control

What are key inhibitors to implementing TQM successfully?

The failure to provide evidence supporting previous improvement activities The inability to develop a culture of quality

Who is generally responsible for an internal audit of the organization's financial accounts and statements?

The firm's own professional staff

What are characteristics of the production-run samples used for statistical process control?

They are taken periodically. They are chosen randomly.

Which of the following are characteristics of a successful control system?

Timely, accurate, and objective Strategic and results oriented Realistic, positive and understandable

Which of the following are reasons why control is needed in an organization?

To discover errors and irregularities To reduce costs and increase productivity To adapt to change and uncertainty To detect opportunities

Which approach is a comprehensive approach, led by top management and supported throughout the organization, and dedicated to continuous quality improvement, training, and customer satisfaction?

Total quality management

Which of the following best describes the cultural area of control?

Using organizational norms to influence performance

Nicole has enough money in her budget to allow her to hire temporary help for the holiday rush. What type of budget does this represent?

Variable

Assets not easily converted to cash, such as property, buildings, and equipment, are classified on a firm's balance sheet as ______ assets.

fixed

A web retailer has received several negative social media reviews over the past few weeks due to missed shipments of product. Which reason for why control is needed does this best demonstrate?

Discover irregularities and errors

Which level of management is typically responsible for strategic control?

Top managers

Overemphasis on one instead of multiple approaches, too much control, and too little employee participation are a few of the barriers to ______.

a successful control

Two ways for a company to guarantee quality of a product are quality control and quality ______.

assurance

Reduced cycle time is the direct result of ______.

decreasing the steps in a work process

Deming management proposed ideas for making organizations more responsive, more democratic, and ______.

less wasteful

Within the third step of the control process, ______ is a principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

management by exception

Practices that use artificial intelligence to reduce defects, shorten downtimes, and facilitate transitions are called ______ manufacturing.

smart

The level of control in which top managers monitor performance to ensure that plans are being implemented and take necessary corrective action is known as ______ control.

strategic

A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization is called a ______.

strategy map

One principle of Deming management is that quality should be aimed at ______.

the needs of the consumer

At the end of the year, Kavita compares each employee's performance to the standards that were set at the beginning of the year. Which step of the organizational control process does this exemplify?

third

The four components of ______ are to make continuous improvement a priority, get every employee involved, listen to and learn from customers and employees, and use accurate standards to identify and eliminate problems.

total quality management

True or false: In the service industry, customer satisfaction is often based on perception.

true

A successful control system is which of the following?

Realistic and positive

Which of the following assets would be categorized as current assets on a firm's balance sheet?

Accounts receivable Cash Treasury bills

Which of the following is a formal verification of an organization's financial and operational systems?

An audit

What increases productivity by using information systems to integrate virtually all aspects of a business?

Enterprise resource planning software systems

What type of systems are information systems used to integrate virtually all aspects of a business?

Enterprise resource planning software systems

Place the four steps of the control process in their typical order, from first (at the top) to last (at the bottom).

Established Standards Measure Performance Compare performance to standards Take corrective action, if necessary

True or false: Improvement orientation is based on the belief that performance gains are best achieved by replacing existing procedures.

False

True or false: The quality-control procedures outlined by ISO 9000 certification are based on the honor system that the company with the certification will carry out procedures as promised.

False (ISO 9000 certification consists of procedures that can be verified by independent quality-control experts.)

Sonja is a barista. Her manager has been hearing reports that Sonja's lattes taste like the milk is burned. Her manager talks to Sonja about these reports and shows her some tricks for steaming the milk to the correct temperature. This is an example of which type of control?

Feedback

Which level of management is typically responsible for operational control?

First-line managers

Which of the following statements concerning the ISO 14000 series is true?

It identifies standards for environmental performance.

What are assumptions made by continuous improvement orientation?

It is better to make small improvements all the time. It is less expensive to do something right the first time

What do critics fear may result from employee monitoring programs?

Loss of privacy

Match the management function with its description. Planning Organizing Leading Controlling

Planning - Setting goals and deciding how to achieve them Organizing - Arranging people, tasks, and resources to accomplish work Leading - Motivating people to achieve organizational goals Controlling - Monitoring performance, comparing it with goals, and taking corrective action as needed

Which of the following is an example of the informational area of control?

Production schedules

Which of the following represent potential actions that a manager may take in the fourth step of the control process? (Check all that apply.)

Recognize and reinforce positive performance Take action to correct negative performance Make no changes

A(n) ______ is a formal financial projection that states an organization's planned activities for a given period of time in quantitative terms.

budget

When managers control employee behavior by use of rules, regulations, and formal authority, they are exercising ______ control.

bureaucratic

The focus of total quality management (TQM) is ______, training, and customer satisfaction.

continuous quality improvement

When Jensen asked his boss, "How many books do we want to sell by November?" he was trying to establish a(n) ______.

control standard

Which management function is involved with monitoring performance, comparing it with goals, and taking corrective action as needed?

controlling

Halimax has recently been hired by numerous city governments to handle security at major sporting events. The hiring of Halimax rather than relying on the city police force is an example of ______.

outsourcing

Statistical process control is a statistical technique that uses ______ from production runs to see if quality is being maintained within a standard range of acceptability.

periodic random samples

A budget in which the allocation of resources fluctuates in proportion to different levels of activity during the budget period is known as a(n) ______ budget.

variable