Question 1

________ is when a manager in the work area interacts directly with employees to maintain supervision.

Accepted Answer

A)  Preventive maintenance 
B)  Management by walking around 
C)  Reactive control 
D)  Feedforward control

Question 2

The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need to design organizational controls for ________.

Accepted Answer

A)  cross-cultural differences 
B)  global turmoil and disasters 
C)  workplace privacy 
D)  workplace safety

Question 3

Managers should not consider the standards when measuring the actual performance of employees.

Accepted Answer

A) True 
 B)False

Question 4

Corporate governance ________.

Accepted Answer

A)  refers to executive governance practices in companies 
B)  is a system used to govern a corporation so that the interests of corporate owners are protected 
C)  is a term that refers to legal agreements made between two or more partner firms 
D)  refers to the negative influence of the corporation in society

Question 5

The balanced scorecard approach evaluates organizational performance from more than just the financial perspective.

Accepted Answer

A) True 
 B)False

Question 6

Charles discovers major flaws in the packaging department.He consults the production manager and formulates control measures to improve packaging.Here, Charles is using the ________ control.

Accepted Answer

A)  feedback 
B)  proactive 
C)  concurrent 
D)  feedforward

Question 7

The comparing step in the control process determines ________.

Accepted Answer

A)  a company's relative position in the industry in terms of the standards used 
B)  a company's relative position in the industry in terms of performance variances 
C)  the ideal standard to be used in measuring organizational performance 
D)  the variation between actual performance and the standard

Question 8

The operations manager suggests a hike in the prices to improve productivity.However, Frank rules this option out.What could be the possible reason for this?

Accepted Answer

A)  Product prices are not related to organizational productivity. 
B)  Selling price is negatively correlated to organizational productivity. 
C)  The real estate business is characterized by intense competition. 
D)  Such an action would lead to reduced employee satisfaction.

Question 9

Feedforward control takes place while a work activity is in progress.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is considered the most desirable type of control to prevent anticipated problems?

Accepted Answer

A)  feedforward control 
B)  concurrent control 
C)  feedback control 
D)  reactive control

Question 11

Organizational ________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals.

Accepted Answer

A)  productivity 
B)  effectiveness 
C)  efficiency 
D)  yield

Question 12

Control techniques can be quite different for different countries.The differences are primarily in the ________.

Accepted Answer

A)  types of tasks that employees perform in various countries 
B)  way employees respond to the controlling measures 
C)  strategic orientation of each technique 
D)  measurement and corrective action steps of the control process

Question 13

Charles interacts directly with the employees in the work area to identify problem areas.He works with various departments to obtain a holistic idea of the business.This type of direct supervision is an example of ________ control.

Accepted Answer

A)  proactive 
B)  concurrent 
C)  feedforward 
D)  feedback

Question 14

An organization hires additional personnel as soon as they get a major contract.The organization is using ________ control.

Accepted Answer

A)  feedforward 
B)  concurrent 
C)  feedback 
D)  management

Question 15

Managers tend to use more direct supervision and highly centralized decision making for control in less technologically advanced countries.

Accepted Answer

A) True 
 B)False

Question 16

Benchmarks for a company must be created based on the previous performance of the company.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?

Accepted Answer

A)  market value method 
B)  economic value method 
C)  balanced scorecard approach 
D)  information control approach

Question 18

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________.

Accepted Answer

A)  bureaucratic control 
B)  immediate corrective action 
C)  basic corrective action 
D)  concurrent control

Question 19

The service profit chain is the service sequence from employees to customers to profit.According to this concept, the company's strategy and service delivery system determines ________.

Accepted Answer

A)  the skill development of employees 
B)  how the firm performs in the short run 
C)  the employee satisfaction in the company 
D)  how employees service customers

Question 20

Barbara wants to take corrective measures to prevent future theft.Which of the following is a feedback tactic that Barbara could use to control theft?

Accepted Answer

A)  use the services of professional investigators 
B)  openly communicate the costs of stealing 
C)  use corporate hotlines for reporting incidences 
D)  educate and train employees about the policies

Exam 10: Managerial Controls

________ is when a manager in the work area interacts directly with employees to maintain supervision.

The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need to design organizational controls for ________.

Managers should not consider the standards when measuring the actual performance of employees.

Corporate governance ________.

The balanced scorecard approach evaluates organizational performance from more than just the financial perspective.

Charles discovers major flaws in the packaging department.He consults the production manager and formulates control measures to improve packaging.Here, Charles is using the ________ control.

The comparing step in the control process determines ________.

The operations manager suggests a hike in the prices to improve productivity.However, Frank rules this option out.What could be the possible reason for this?

Feedforward control takes place while a work activity is in progress.

Which of the following is considered the most desirable type of control to prevent anticipated problems?

Organizational ________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals.

Control techniques can be quite different for different countries.The differences are primarily in the ________.

Charles interacts directly with the employees in the work area to identify problem areas.He works with various departments to obtain a holistic idea of the business.This type of direct supervision is an example of ________ control.

An organization hires additional personnel as soon as they get a major contract.The organization is using ________ control.

Managers tend to use more direct supervision and highly centralized decision making for control in less technologically advanced countries.

Benchmarks for a company must be created based on the previous performance of the company.

Which of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________.

The service profit chain is the service sequence from employees to customers to profit.According to this concept, the company's strategy and service delivery system determines ________.

Barbara wants to take corrective measures to prevent future theft.Which of the following is a feedback tactic that Barbara could use to control theft?