Exam 13: Foundations of Control

What is the dysfunctional side of controls?

When a manager discovers a variation between actual performance and the standard, managers should

In well- designed control systems, attention should be called only to the exceptions.

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. -The if- then guidelines refer to which of the following characteristics of control systems?

The most popular type of control is _____________ control.

If control standards are too high, they no longer motivate.

_____________is a control approach that emphasizes authority and relies heavily on administrative rules, policies, and procedures.

In less- advanced countries, direct supervision and highly centralized decision making are the basic means of control.

The last step in the control process is to

The most popular type of control relies on feedback.

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. -The first step deals with which of the following characteristics of effective control systems?

Historically, one of the major drawbacks of the_____________ has been the problem of documenting information for later reference.

Which of the following is not a characteristic of managerial control in less advanced countries?

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. -The control that is occurring on the floor is an example of

Having enough_____________ is a key challenge facing growing entrepreneurial ventures.

The type and extent of controls in an organization

A price control system is typically used in organizations that have clearly specified and distinct products and services, and considerable competition.

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. -What form of control would the home office prefer that Gina use?

The standards that management uses as specific performance indicators are developed in the _____________function.

Which of the following is not one of the characteristics of an effective control system?