Exam 13: Foundations of Control

Application of Designing a Control System Gina realizes her unit needs to make some changes in its control system. However, she is uncertain which will work best for her organization. They are just one unit among five. She could base her unit's performance on their distinct product, and turn her unit into a profit center and evaluate against the company total. She could also use more heavily the rules, policies, regulations, and procedures already in place. She has not strictly enforced many of the regulations established by the home office. Part of the reason for this is that her unit is fairly self- regulating. The work groups set their goals and insure those goals are attained. Little latitude is allowed for a worker who does not meet the group norms. -As the size of the organization and operating units in the company increase,

Application of Designing a Control System Gina realizes her unit needs to make some changes in its control system. However, she is uncertain which will work best for her organization. They are just one unit among five. She could base her unit's performance on their distinct product, and turn her unit into a profit center and evaluate against the company total. She could also use more heavily the rules, policies, regulations, and procedures already in place. She has not strictly enforced many of the regulations established by the home office. Part of the reason for this is that her unit is fairly self- regulating. The work groups set their goals and insure those goals are attained. Little latitude is allowed for a worker who does not meet the group norms. -Which of the following statements is correct?

Multinational organizations tend to rely on _____________controls.

The more important the activity and the more centralized the organization, the

The_____________ , the more managers will need feedback on the performance of their employees' decisions.

Describe of any three of the following characteristics of an effective control system.

When measured performance does not meet the set standard, the first thing employees are apt to attack is

Which of the following is not on the list of suggestions for achieving a supportive growth- oriented culture?

The major drawback of feedback control is that by the time the manager has the information, the problem has already occurred.

Application of Types of Control Sam has not been receiving the information that he needs from his current control system. By the time Sam receives the information, the activity has occurred and there is nothing that can be done. Direct supervision is used extensively on the floor now, so some activities have been changed before they became costly mistakes. But Sam would like to do better. He would like to fix things before they break and anticipate more of the problems that occur. -Sam is currently using which form of control?

Personal observation as a form of control measurement requires little time.

The key to an effective control system is to design one that

Which of the following is not a concurrent control measure for reducing employee theft and fraud?

Compare and contrast the three differing approaches to designing a control system.

Discuss the ethical dilemmas involved in monitoring employees on and off the job.

Application of Qualities of Effective Control Systems Jared has been hired to establish a control system for SRP Inc. Jared knows several decisions must be made before the control system can be implemented. Several contingencies must also be considered. One of the first decisions that must be made is where to place the controls and what needs to be controlled. Jared also knows the organization is relatively small and will be for some time, and that management intends to decentralize extensively. Furthermore, management has indicated that if- then guidelines are to be implemented. Jared looks forward to designing a system that will work well for the company for years to come. -Because Jared cannot control all activities, he should place the strategic control devices where those devices can call attention only to

Implementing the control process includes which of the following steps?

_____________is the approach to control that emphasizes the use of external market mechanisms such as price competition and market share.

In a large organization, which control recommendations should be made?

When a performance indicator cannot be stated in quantifiable terms, managers should look for and use subjective measures.