Chapter 11

Front 1

T/F: The process by which managers monitor and regulate the organization in order to determine if the organization is operating efficiently and effectively is known as controlling.

Back 1

True

Front 2

T/F: Control is concerned with keeping employees motivated.

Back 2

True

Front 3

T/F: Control is simply just reacting to events after they have occurred.

Back 3

False

Front 4

T/F: Control helps managers build a competitive advantage.

Back 4

True

Front 5

T/F: Control helps managers respond more effectively to customers.

Back 5

True

Front 6

T/F: At the input stage, managers use feedback control to anticipate problems before they arise so problems do not occur later during the conversion process.

Back 6

False

Front 7

T/F: The first step in the control process is to evaluate the results in terms of the performance standards.

Back 7

False

Front 8

T/F: In practice, managers can only measure the actual outputs that result from the behavior of their members.

Back 8

Flase

Front 9

T/F: When an organization and its members perform nonroutine activities, it is more challenging for managers to measure outputs or behavior.

Back 9

True

Front 10

T/F: Behaviors are usually easier to measure than outputs because they are intangible and subjective.

Back 10

False

Front 11

T/F: Establishing targets and designing measurement systems are much more difficult for managers because the high level of uncertainty in the organizational environment means managers rarely know what might happen in the future.

Back 11

True

Front 12

T/F: Operating margin is calculated by dividing a company's operating profit by sales revenues.

Back 12

True

Front 13

T/F: An organization is said to be highly leveraged if it uses more debt than equity to finance its ongoing operations.

Back 13

True

Front 14

T/F: The "objectivity" of financial measures of performance is a main reason why managers use these ratios to measure the efficiency and effectiveness of their organizations.

Back 14

True

Front 15

T/F: If goals are set at an impossibly high level, managers might work only half-heartedly to achieve them because they are certain they will fail.

Back 15

True

Front 16

T/F: The least powerful form of behavior control is direct supervision of a subordinate by a manager.

Back 16

False

Front 17

T/F: When managers personally supervise subordinates, they lead by example and in this way can help subordinates develop and increase their own skill levels.

Back 17

True

Front 18

T/F: Management by objectives (MBO) is a formal system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets.

Back 18

True

Front 19

T/F: Bureaucratic control is control by means of a comprehensive system of rules and standard operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.

Back 19

True

Front 20

Which control procedures should be utilized at the output stage in order to provide information about customers' reactions to goods and services so corrective action can be taken if necessary?

Market control

Concurrent control

Bureaucratic control

Clan control

Feedback control

Back 20

Feedback Control

Front 21

At the corporate level, a standard of performance that measures efficiency is ______, the actual costs associated with producing goods and services, including all employee-related costs.

return on investment

operating profit

profits

operating costs

cost of goods sold

Back 21

Operating Costs

Front 22

The second step in the control process is to measure ______.

actual performance

input

output

behavior

quality

Back 22

Actual Performance

Front 23

______ evaluates managers on the difference between the revenues generated by the sales of goods and services and the budgeted cost of making those goods and services.

A profit budget approach

A cash flow budget approach

A revenue budget approach

An expense budget approach

A capital budget approach

Back 23

A Profit Budget

Front 24

______ control is most useful when organizational activities are routine and well understood and when employees are making programmed decisions.

Bureaucratic

Feedforward

Clan

Market

Feedback

Back 24

Bureaucratic

Front 25

With ______ change, the emphasis is on making changes quickly and dealing with problems as they arise; it is revolutionary in nature.

top-down

bottom-up

systemic

autocratic

restructuring

Back 25

top-down