Exam 13: Foundations of Control

What is measured is often more critical than how it is measured.

There are three different approaches to designing control systems. Which of the following is used primarily in team- based, or less bureaucratic types of organizations?

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 Gina moves up the organizational hierarchy to higher positions and levels in the company, she finds that

What is the difference between immediate corrective action and basic corrective action?

How is controlling employee behavior different in foreign countries?

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 need for the standards of a control system to have a dual positive effect is termed

All of the following are characteristics of an effective control system except

Finding capital is a key challenge for an entrepreneur.

Direct supervision is the best- known form of _____________control.

A control approach where employee behaviors are regulated by shared values, norms, traditions, rituals, and other aspects of the organization's culture is known as

Mary's job is to compare each department's monthly budget to its actual expenditures. Mary is performing part of the_____________ function.

According to recent studies, employee theft and fraud are _____________resulting in an estimated loss of _____________to U.S. companies annually.

Bureaucratic control utilizes mechanisms such as price competition and market shares.

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

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 degree of centralization in Gina's company increases, there is a(n)

The best- known form of concurrent control is direct supervision.

Very large organizations will typically have highly formalized and impersonal feedforward and feedback controls.

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. -Any form of control that Gina chooses should ultimately help her to

List five contingency factors that will influence control systems.

A clan control system is frequently used in a company in which teams are widely used, like SAS Institute.