Exam 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

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Ratio analysis is the practice of evaluating financial ratios to determine an organization's financial health.

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Planning is seeing that the right things happen at the right time in the right way.

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When performance exceeds the standards set in the control systems, managers should give rewards.

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Which of the following is a mechanism that contributes to a measurement-managed company's success?

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Drug tests at hiring are an example of the physical area of organizational control.

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According to Kaplan and Norton, "_______ show the cause-and-effect links by which specific improvements create desired outcomes."

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TQM's two core principles are _____.

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Undue emphasis on reports can lead even to falsification of data.

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Strategy maps show the cause-and-effect links by which specific improvements create desired outcomes, such as objectives for revenue growth, targeted customer markets, the role of excellence and innovation in products.

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Jimmy's supervisor noticed that he was struggling with the computerized setup for production runs at his new job. The supervisor observed him while he tried it again and gave suggestions for improvement. The supervisor is doing which step of the control process?

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The RATER scale enables customers to rate the quality of service along five dimensions.

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Control systems cannot help managers anticipate, monitor, and react to environmental changes and uncertainties.

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The amount of acceptable deviation from a standard, determined when the standard was established, is called the _____.

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Michele manages employees at Maui Tours and Lodging. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of ______ control.

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Organizing is arranging tasks, people, and other resources to accomplish the work.

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One characteristic of incremental budgeting is that it _____.

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Internal process is one of the four indicators used in the balanced scorecard.

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Which of the following areas of control for organizations exerts informal control?

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Productivity is important because it determines whether the organization will make a profit or even survive.

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Performance measures can be obtained through oral reports.

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