Exam 13: Foundations of Control

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Which of the following methods of measurement reports only on key areas and may ignore important facts?

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Which of the following statements is false?

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An organization that hires additional personnel as soon as a major contract has been awarded is using which control system?

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When problems are corrected at once to get performance back on track,_____________ has been used.

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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. -If Gina looks at her unit as a profit center, which form of control will she be using?

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The higher one moves in the organization's hierarchy, the less one needs multiple sets of control criteria.

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When the entrepreneur hopes to cash in on the investment in the venture, it is called

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There are three different approaches to designing control systems. Which of the following is not one of these approaches?

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A control system that is difficult to understand can cause unnecessary mistakes, frustrate employees, and eventually be ignored.

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Planning must _____________control.

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Describe some of the issues faced by multinational corporations in adapting their control systems to deal with operations in foreign countries such as addressing 1)cultural differences and 2)in dealing with more versus less developed subsidiaries.

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Concurrent control implements controls before an activity begins.

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If organizational culture is open and supportive, controls should be

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Correcting any significant deviations is an important part of_____________ .

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_____________is a control approach often used in organizations in which teams are common and technology is changing rapidly.

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How must the entrepreneur control for growth?

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Managers should focus on places where variations from standards are most likely to occur or where variations would do the greatest harm.

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Which of the following statements is not true?

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The differences in organizational control systems of multinational corporations are primarily in the measurement and corrective action steps of the control process.

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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. -Controls should be implemented for

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