Exam 19: Managing Quality and Performance

Under hierarchical control, employees are actively engaged and committed to their work.

An organization-wide commitment to infusing quality into every activity through continuous improvement defines Six Sigma.

A group of six to twelve volunteer employees who meet regularly to discuss and solve problems affecting their common work activities refers to a quality team.

At RWI Distilleries, rules and procedures are used only when necessary. Instead, shared goals and values guide employee behavior. RWI uses what type of organizational control?

_____ standards represent an international standard for quality management.

The implementation of total quality management involves the use of many techniques such as quality circles, benchmarking, Six Sigma principles, reduced cycle time, and continuous improvement.

A balance sheet budget is a budget that plans and reports investments in major assets to be depreciated over several years.

For control, this type of measure is an important part of achieving higher performance.

Bottom-up budgeting is a process in which lower level managers anticipate their department's resource needs and pass them up to top management for approval.

Net income divided by sales is the correct formula for calculating:

The system of governing an organization so that the interests of corporate owners are protected refers to corporate governance.

Which of the following is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs?

_____ provide the basic information used for financial control of an organization.

A budgeting process in which middle and lower-level managers set departmental budget targets in accordance with overall company revenues and expenditures specified by top management is called _____ budgeting.

The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis is referred to as _____.

_____ involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms.

The percentage representing what a company earned from its assets is called _____.

The conversion ratio is considered to be a(n) _____ ratio.

Although work processes can be controlled and regulated, it is impossible to control and regulate employee behavior.

A budgeting process in which lower-level managers budget their departments' resource needs and pass them up to top management for approval is called _____ budgeting.