Question 1

What is control within the context of organizations?

Accepted Answer

Within the context of organizations,control involves regulation of activities and behaviors in order to conform to specifications or objectives.To control,in an organizational setting,means to adjust or bring about conformity to specifications or objectives that have been set.In this sense,then,the control responsibilities of managers are bound to restrict someone's freedom.A manager cannot control without restricting.However,whether this is good or bad depends on the consequences of the control and whose perspectives are being considered.Some amount of control in organizations is unavoidable.The very essence of organizations is that individuals give up total independence so that common goals and objectives may be accomplished.

Question 2

Arbery Fudge Company,Inc.engages in the production and marketing of fudge candy in the United States.The company believes in continuous improvement and constantly evaluates the effectiveness of the control strategies that the managers use.Which of the following situations would necessitate the use strategic control for evaluation?

Accepted Answer

A)  The organization wants to implement a system for formalizing reporting at various levels in an organization. 
B)  The organization has to perform a task in a relatively limited time frame to help one of its key distributors make use of an important opportunity. 
C)  The competition in the confectionery market has increased significantly in the recent past and management is planning to revamp its competitive approaches. 
D)  The organization has current liabilities greater than the current assets. The managers are analyzing the situation to make a decision on whether or not to increase liquidity. 
A)  The organization wants to implement a system for formalizing reporting at various levels in an organization. 
B)  The organization has to perform a task in a relatively limited time frame to help one of its key distributors make use of an important opportunity. 
C)  The competition in the confectionery market has increased significantly in the recent past and management is planning to revamp its competitive approaches. 
D)  The organization has current liabilities greater than the current assets. The managers are analyzing the situation to make a decision on whether or not to increase liquidity. C

Question 3

Department A shows an annual after-tax profit of $400,000 from invested assets of $12 million.Department B shows an annual after-tax profit of $400,000 from invested assets of $8 million.Which unit had the best financial performance?

Accepted Answer

A)  Department A performed the best. 
B)  Department B performed the best. 
C)  Both departments had the same financial performance. 
D)  Performance cannot be determined from these statistics. 
A)  Department A performed the best. 
B)  Department B performed the best. 
C)  Both departments had the same financial performance. 
D)  Performance cannot be determined from these statistics. B

Question 4

Which of the following is a reason for involving in decision making the people who are going to be affected by its results?

Accepted Answer

A)  The decision-making process will not be partial or biased toward anyone. 
B)  They will be more committed to meeting standards that they themselves have created. 
C)  The degree of difficulty will neither be too difficult nor too ambitious. 
D)  They will be more accepting of losses and failures if they are involved from the start. 
A)  The decision-making process will not be partial or biased toward anyone. 
B)  They will be more committed to meeting standards that they themselves have created. 
C)  The degree of difficulty will neither be too difficult nor too ambitious. 
D)  They will be more accepting of losses and failures if they are involved from the start.

Question 5

Companies that use "stage gate" control technology divide projects into several stages with gates between them.The gates act as comprehensive quality control checks that have to be passed before a gate will open.Managers measure performance at the end of each stage to decide whether the project should move forward.Which of the following is a drawback of this technology?

Accepted Answer

A)  gaining no up-front commitment to the performance measurement methods 
B)  Reviewing the project at each stage may lead to overanalysis and underperformance. 
C)  achieving low consensus between assessments about performance 
D)  Promising new projects might be killed too soon by overeager, stage gate keepers. 
A)  gaining no up-front commitment to the performance measurement methods 
B)  Reviewing the project at each stage may lead to overanalysis and underperformance. 
C)  achieving low consensus between assessments about performance 
D)  Promising new projects might be killed too soon by overeager, stage gate keepers.

Question 6

What should a manager do if differences between performance and standards are major but positive? Explain with an example.

Accepted Answer

Positive differences may provide valuabl

Question 7

No hard-and-fast boundaries separate strategic,operational,and tactical controls.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a corrective action that could be taken based on the outcomes of performance measurement?

Accepted Answer

A)  increase in training 
B)  increase in recognition 
C)  addition of a new product line 
D)  increase in production targets 
A)  increase in training 
B)  increase in recognition 
C)  addition of a new product line 
D)  increase in production targets

Question 9

Which type of control has the broadest organizational scope?

Accepted Answer

A)  diagnostic 
B)  operational 
C)  strategic 
D)  tactical 
A)  diagnostic 
B)  operational 
C)  strategic 
D)  tactical

Question 10

How is control related to flexibility in an organization?

Accepted Answer

For control to be effective,its procedur

Question 11

Proponents of the balanced scorecard approach to control assert that it ________.

Accepted Answer

A)  focuses on financial ratios and budgetary controls in order to improve profits 
B)  simplifies the design and implementation of control measures 
C)  takes a retroactive approach to designing organizational controls 
D)  links measures of organizational success more closely to strategic objectives 
A)  focuses on financial ratios and budgetary controls in order to improve profits 
B)  simplifies the design and implementation of control measures 
C)  takes a retroactive approach to designing organizational controls 
D)  links measures of organizational success more closely to strategic objectives

Question 12

The break-even point is the amount of a product that must be sold to cover a firm's fixed and variable costs.

Accepted Answer

A) True 
 B)False

Question 13

How can measurement of performance be facilitated?

Accepted Answer

A)  by imitating rival's methods 
B)  by setting concrete standards 
C)  by providing major incentives 
D)  by reducing hours of work 
A)  by imitating rival's methods 
B)  by setting concrete standards 
C)  by providing major incentives 
D)  by reducing hours of work

Question 14

Which of the following controls the quality,quantity,and characteristics of the inputs into the production process?

Accepted Answer

A)  precontrol 
B)  postcontrol 
C)  reactive control 
D)  concurrent control 
A)  precontrol 
B)  postcontrol 
C)  reactive control 
D)  concurrent control

Question 15

What is the benefit of having precontrol of operations?

Accepted Answer

A)  It controls the quality of the transformation process. 
B)  It provides immediate feedback for the production process. 
C)  It reduces the need for control at the later stages. 
D)  It ensures that the product is ready for the consumers. 
A)  It controls the quality of the transformation process. 
B)  It provides immediate feedback for the production process. 
C)  It reduces the need for control at the later stages. 
D)  It ensures that the product is ready for the consumers.

Question 16

Control can be thought of as a causal variable because ________.

Accepted Answer

A)  the results of control efforts cannot be negative or harmful for any organization 
B)  the results of control efforts can inform and improve the planning process of the organization 
C)  the results of control efforts dictate the structures of all other organizations within an industry. 
D)  the results of control efforts are in no way related to planning and organizing. 
A)  the results of control efforts cannot be negative or harmful for any organization 
B)  the results of control efforts can inform and improve the planning process of the organization 
C)  the results of control efforts dictate the structures of all other organizations within an industry. 
D)  the results of control efforts are in no way related to planning and organizing.

Question 17

A manager can control without restricting.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true about measuring performance?

Accepted Answer

A)  Usefulness of the information always justifies the cost of measurement. 
B)  Measurements of performance need not always be related to organizational goals. 
C)  Ease of measurement determines what is going to be measured. 
D)  Relevant indicators of progress toward goals justify the costs of measurement. 
A)  Usefulness of the information always justifies the cost of measurement. 
B)  Measurements of performance need not always be related to organizational goals. 
C)  Ease of measurement determines what is going to be measured. 
D)  Relevant indicators of progress toward goals justify the costs of measurement.

Question 19

Which of the following best defines "standard" in relation to establishing control?

Accepted Answer

A)  performance target 
B)  unbiased evaluation 
C)  parallel association 
D)  rival strategies 
A)  performance target 
B)  unbiased evaluation 
C)  parallel association 
D)  rival strategies

Question 20

Supervisory structure is a type of strategic control based on the organization's overall approach to utilizing its human resources.

Accepted Answer

A) True 
 B)False

What is control within the context of organizations?

Department A shows an annual after-tax profit of $400,000 from invested assets of $12 million.Department B shows an annual after-tax profit of $400,000 from invested assets of $8 million.Which unit had the best financial performance?

Which of the following is a reason for involving in decision making the people who are going to be affected by its results?

What should a manager do if differences between performance and standards are major but positive? Explain with an example.

No hard-and-fast boundaries separate strategic,operational,and tactical controls.

Which of the following is a corrective action that could be taken based on the outcomes of performance measurement?

Which type of control has the broadest organizational scope?

How is control related to flexibility in an organization?

Proponents of the balanced scorecard approach to control assert that it ________.

The break-even point is the amount of a product that must be sold to cover a firm's fixed and variable costs.

How can measurement of performance be facilitated?

Which of the following controls the quality,quantity,and characteristics of the inputs into the production process?

What is the benefit of having precontrol of operations?

Control can be thought of as a causal variable because ________.

A manager can control without restricting.

Which of the following statements is true about measuring performance?

Which of the following best defines "standard" in relation to establishing control?

Supervisory structure is a type of strategic control based on the organization's overall approach to utilizing its human resources.

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Planning

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Organizational Change and Development

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Exam 14: Control

What is control within the context of organizations?

Department A shows an annual after-tax profit of $400,000 from invested assets of $12 million.Department B shows an annual after-tax profit of $400,000 from invested assets of $8 million.Which unit had the best financial performance?

Which of the following is a reason for involving in decision making the people who are going to be affected by its results?

What should a manager do if differences between performance and standards are major but positive? Explain with an example.

No hard-and-fast boundaries separate strategic,operational,and tactical controls.

Which of the following is a corrective action that could be taken based on the outcomes of performance measurement?

Which type of control has the broadest organizational scope?

How is control related to flexibility in an organization?

Proponents of the balanced scorecard approach to control assert that it ________.

The break-even point is the amount of a product that must be sold to cover a firm's fixed and variable costs.

How can measurement of performance be facilitated?

Which of the following controls the quality,quantity,and characteristics of the inputs into the production process?

What is the benefit of having precontrol of operations?

Control can be thought of as a causal variable because ________.

A manager can control without restricting.

Which of the following statements is true about measuring performance?

Which of the following best defines "standard" in relation to establishing control?

Supervisory structure is a type of strategic control based on the organization's overall approach to utilizing its human resources.

The Nature of Management

Social Responsibility and Managerial Ethics

International Management and Globalization

Strategic Management

Planning

Organizational Structure and Design

Managing Diverse Human Resources

Leadership

Motivation

Groups and Teams

Communication and Negotiation

Individual and Group Decision Making

Operations Management

Organizational Change and Development

Filters