Exam 11: Foundations of Control

Market control is an approach to control that emphasizes the use of external market mechanisms to establish the standards used in the control system.

Refer to the Scenario below to answer the questions that follow. Information Controls (Scenario) Computing Solutions,Inc.,is a high-tech consulting firm that focuses on helping companies to implement and adapt new technological developments in daily operations.Ted is the department head and needs to train John and Kelly,both project managers,on the proper applications of technological solutions for businesses. -Before beginning the training session,Ted informs both John and Kelly that a(n)________ system is used to provide management with needed information on a regular basis.

At the conclusion of the training session,Ted reminds John and Kelly that there is a policy that prohibits employee use of company computers for personal use.He explains that according to a recent Ipsos Reid poll,each Canadian employee spends an average of ________ hours per week online for personal reasons.

Refer to the Scenario below to answer the questions that follow. Financial Ratios (Scenario) Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna,the new vice president,had asked Jan to provide several calculations to help her gain an understanding of the company's financial shape.Jan realized that this was a great career opportunity--one that could make or break her reputation with the new vice president.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to review the required calculations. -Donna was also interested in predicting the company's ability to meet short-term obligations,which meant that Jan had to calculate a(n)________ ratio.

Organizations that have clearly specified and distinct products and services and considerable competition typically use ________ control.

Bureaucratic control uses mechanisms such as price competition and market share.

Refer to the Scenario below to answer the questions that follow. Types of Control (Scenario) Sam has not been receiving the information that he needs from his current control system.By the time Sam receives his reports,the activity has been completed and mistakes have already been made.Direct supervision is used extensively on the production floor now,so some activities are corrected before they become costly mistakes.But Sam would like to do better.Ideally,he would like to fix mistakes before they happen and anticipate more of the problems before they occur. -The type of control used on the production floor is ________ control.

Finally,as the hour dragged to midnight,Jan finished calculating the ________ ratios because Donna wanted to know how efficiently and effectively management is using its assets to generate profits.

A(n)________ system is used to provide management with needed information on a regular basis.

The major drawback of feedback control is that by the time the manager has the information,the problem has already occurred.

Although Husky Energy gives its managers some freedom to run their departments as they see fit,they must stay within their budgets and follow corporate guidelines.Husky uses ________ control.

Which of the following financial control measures adds a market dimension because it measures the stock market's estimate of the value of a firm's past and expected capital investment projects?

Studies have shown that ________ is a predictor of ________.

A management information system is defined as a system used to provide management with needed information on a regular basis.

Refer to the Scenario below to answer the questions that follow. Financial Ratios (Scenario) Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna,the new vice president,had asked Jan to provide several calculations to help her gain an understanding of the company's financial shape.Jan realized that this was a great career opportunity--one that could make or break her reputation with the new vice president.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to review the required calculations. -Donna also asked Jan to give her an idea of the profits that various products are generating.Therefore,Jan calculated the ________ ratio.

Refer to the Scenario below to answer the questions that follow. Types of Control (Scenario) Sam has not been receiving the information that he needs from his current control system.By the time Sam receives his reports,the activity has been completed and mistakes have already been made.Direct supervision is used extensively on the production floor now,so some activities are corrected before they become costly mistakes.But Sam would like to do better.Ideally,he would like to fix mistakes before they happen and anticipate more of the problems before they occur. -Sam wants controls that provide information on how effective his planning efforts have been.He would also like controls that can enhance employee motivation.To accomplish both,the best choice is ________ controls.

When the Canadian Curling Association (CCA)established a long-term financial reserve,which financial ratio was likely most important to the CCA?

Control is the process of monitoring activities to ensure that they are being accomplished as planned.

Bureaucratic control emphasizes adherence to organizational authority and relies primarily on unwritten social norms to control employee behaviour.

Comparing local and global organizations in terms of the steps of the control process,the differences between the two are the smallest in which step?