Deck 11: Controlling

Question 1

The four steps of the control process are: establish performance objectives and standards; measure actual performance; compare actual performance with objectives and standards; and __________.

A) reap the profits
B) continue as before
C) pay for the losses
D) take corrective action as needed
E) redefine the objectives

Answer 1

D

Question 2

The purpose of controlling is to:

A) develop a hierarchy of objectives for lower level managers.
B) coordinate resources and task performance.
C) make sure plans are fulfilled and that actual performance meets objectives.
D) define a plan of action for the organisation.
E) motivate employees to work overtime hours.

Answer 2

C

Question 3

Suppose that, in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was LESS than the standard, the manager should:

A) take no corrective action.
B) keep the information to himself or herself.
C) defer action until the next quarter's reports are in and a trend is established.
D) take corrective action.
E) take action to understand why.

Answer 3

D

Question 4

In using a relative approach to compare desired and actual performance, a manager will:

A) use present performance to set the standard.
B) use performance achievements of other people, work units or organisations to set the standard.
C) use standards set scientifically through such methods as time and motion studies.
D) use past performance as a benchmark.
E) use the organisation's objectives to set the standard.

Question 5

Suppose that, in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was GREATER than the standard, the manager should:

A) take corrective action to bring performance results in line with the standard.
B) take action to understand why actual results exceeded the standard.
C) keep the information to himself/herself.
D) take no corrective action.
E) defer action until the next quarter's reports are in and a trend is established.

Question 6

In using an engineering approach to compare desired and actual performance, a manager will:

A) use present performance to set the standard.
B) use the organisation's objectives to set the standard.
C) use performance achievements of other people, work units or organisations to set the standard.
D) use standards set scientifically through such methods as time and motion studies.
E) use past performance as a benchmark.

Question 7

A management exception known as the __________ occurs when actual performance is below standard.

A) expected end result
B) original assumption
C) intended course of action
D) problem situation
E) opportunity situation

Question 8

__________ standards measure effort in terms of the amount of work expended in task performance.

A) Personal performance
B) Critical performance
C) Input
D) Cybernetic
E) Output

Question 9

Which of the following is the definition of controlling found in the textbook?

A) Controlling is a process of measuring performance and taking action to ensure desired results.
B) Controlling is the monitoring of the fiscal results of managerial policies.
C) Controlling is the management process that separates the clever manager from the dim-witted manager.
D) Controlling refers to actions taken to reverse negative behavioural trends of employees.
E) Controlling is the set of actions that a manager takes to prevent inventory shrinkage.

Question 10

Which of the following is an accurate description of the control equation?

A) Need for action = performance expectations + performance deviations
B) Need for action = desired performance + actual performance
C) None of these is an accurate description of the control equation.
D) Need for action = performance expectations - performance deviations
E) Need for action = desired performance - actual performance

Question 11

The unwillingness or inability to measure the performance of people at work:

A) occurs when work team members are also close friends.
B) occurs only in companies with ineffective human resource management programs and policies.
C) is a common problem among administrators of research and development operations.
D) is a common management failure in measuring actual performance.
E) is something that happens only in small businesses.

Question 12

In using a historical approach for comparing desired and actual performance, a manager will:

A) use past performance as a benchmark.
B) use present performance to set the standard.
C) use standards set scientifically through such methods as time and motion studies.
D) use the organisation's objectives to set the standard.
E) use performance achievements of other people, work units or organisations to set the standard.

Question 13

The word 'control' must be used carefully because:

A) most employees resent managerial control.
B) controlling is an unethical managerial practice that must be concealed.
C) control is malicious
D) few managers actually know what it means.
E) the word has a negative connotation.

Question 14

Suppose that, in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found no deviation (that is, actual performance was EQUAL to the standard), the manager should:

A) take no corrective action.
B) take corrective action.
C) take action to understand why.
D) keep the information to himself or herself.
E) defer action until the next quarter's reports are in and a trend is established.

Question 15

Effective planning by managers helps accomplish which step in the control process?

A) Comparing actual performance with objectives and standards
B) Measuring actual performance
C) Evaluating the results of corrective action
D) Taking necessary corrective action
E) Establishing performance objectives and standards

Question 16

Controlling does all of the following EXCEPT:

A) secure adequate financing for the enterprise.
B) ensure that objectives and accomplishments of various subgroups of the organisation are consistent with each other.
C) make sure that overall direction is consistent with plans.
D) make sure organisation members act with propriety and respect for each other.
E) make sure employees comply with organisational policies.

Question 17

A(n) __________ is self-contained in its performance-monitoring and correction capabilities.

A) employee evaluation system
B) cybernetic control system
C) open control system
D) total quality system
E) financial control

Question 18

The four steps of the control process are: establish objectives and standards; __________; compare results with objectives and standards, and __________.

A) measure actual performance; continue as before
B) set new objectives; evaluate results
C) develop alternative systems; take corrective action as needed
D) revise unmet objectives; pay for the losses
E) measure actual performance; take corrective action as needed

Question 19

__________ measure performance results in terms of quantity, quality, cost or time of accomplished work.

A) Input standards
B) Time-card summaries
C) Annual reports
D) Inventories
E) Output standards

Question 20

The role of the controlling function in the management process is:

A) to inspire effort.
B) to ensure results.
C) to set direction.
D) to create structures.
E) All of the options listed

Question 21

In the control process, _________ must be accurate enough to identify significant difference between what is really taking place and what was originally planned.

A) exceptions
B) measurement
C) output standards
D) goals
E) input standards

Question 22

A concurrent control system focuses on:

A) work inputs.
B) work outputs.
C) work responsibilities.
D) work objectives.
E) work throughputs.

Question 23

Shift supervisors working alongside employees, constantly observing and intervening with immediate corrective action when something is not done properly, is an example of __________ control.

A) concurrent
B) feedforward
C) feedback
D) preliminary
E) unnecessary

Question 24

A feedback control system focuses on:

A) end results.
B) work responsibilities.
C) work objectives.
D) work throughputs.
E) work inputs.

Question 25

In comparing results with objectives and standards a manager uses ___________ comparison methods.

A) engineering
B) historical
C) relative
D) All of the options listed
E) None of the options listed

Question 26

Measuring performance and taking action to ensure desired results is the essence of the management function of:

A) productivity improvement.
B) planning.
C) organising.
D) controlling.
E) leading.

Question 27

When the control equation identifies a situation in which actual performance is less than desired performance, the situation is called:

A) a performance downfall.
B) substandard performance.
C) a managerial problem.
D) a losing situation.
E) a problem situation.

Question 28

Controls that focus on end results and provide information that can be used for future planning are called _________ controls.

A) end-result
B) feedback
C) steering
D) posterior
E) concurrent

Question 29

__________ controls are designed to anticipate potential problems and take preventive action to avoid their occurrence.

A) Prior
B) Feedback
C) Internal
D) Post action
E) Feedforward

Question 30

__________ is a planning technique which is also useful in control as it is a means of identifying best practices

A) Benchmarking
B) Management by exception
C) Progressive management control
D) Feedback control
E) Critical incident management

Question 31

The practice of giving priority attention to situations showing the greatest need for action is called:

A) management by opportunity.
B) management by situation.
C) management by exception.
D) management by objectives.
E) management by priority.

Question 32

A(n) __________ is a structured review of the lessons learned and results accomplished on a completed project, task force or special operation.

A) after-action review
B) plan of strategic operational lessons
C) project report
D) task force control chart
E) control system

Question 33

A management exception known as the __________ occurs when the need for action centres on discovering why desired performance was exceeded and what can be done to continue the higher level of performance in the future.

A) expected end result
B) opportunity situation
C) problem situation
D) original assumption
E) intended course of action

Question 34

The central question of __________control is: What can be done to improve things before we finish?

A) preliminary
B) postaction
C) concurrent
D) damage
E) feedback

Question 35

Control that flows through the organisation's hierarch of authority is called:

A) self-control.
B) clan control.
C) economic value added.
D) bureaucratic control.
E) market value added control.

Question 36

Which of the following statements accurately characterises the major types of managerial control systems?

A) Feedforward controls are also called steering controls.
B) Concurrent controls are also called post action controls.
C) Feedback controls are also called preliminary controls.
D) All of the options listed
E) None of the options listed

Question 37

A cost report showing budget overruns on a project completed during the prior month is an example of which type of control?

A) Preliminary control
B) Cost control
C) Managerial control
D) Steering control
E) Feedback control

Question 38

A manager who uses a formal administrative system to directly supervise the activities of subordinates is exercising __________ control.

A) internal
B) feedback
C) feedforward
D) external
E) cybernetic

Question 39

Procedures and policies regarding sexual harassment are designed to:

A) discourage dating in the workplace.
B) avoid lawsuits.
C) provide guidelines for elimination of any sexual improprieties and sexual pressures to individuals in the workplace.
D) promote safety in the workplace.
E) All of the options listed

Question 40

__________ ensures that directions and resources are right before the work begins.

A) Prior
B) Feedback
C) Feedforward
D) Internal
E) Post action

Question 41

Ensuring that all resources required to make a product are of highest quality is an example of:

A) feedforward.
B) feedback.
C) preliminary.
D) unnecessary.
E) concurrent controls.

Question 42

__________ control occurs through personal supervision and the use of formal administrative systems.

A) Feedback
B) Feedforward
C) External
D) Concurrent
E) Internal

Question 43

The central question of __________control is: 'What can be done to improve things before we finish?'

A) preliminary
B) postaction
C) feedback
D) concurrent
E) damage

Question 44

______________ is defined as influencing behaviour through reprimand.

A) Internal control
B) Discipline
C) Operant conditioning
D) Shaping
E) Behaviour modification

Question 45

The central question of __________control is: 'Now that we are finished, how well did we do?'

A) feedforward
B) feedback
C) preliminary
D) concurrent
E) damage

Question 46

The potential for internal or self-control is increased under all of the following conditions EXCEPT:

A) when there is a high degree of trust.
B) when people work in an organisation with a culture that restricts participation in decision making.
C) when managers give people the opportunity to take charge of their own job behaviour.
D) when people participate in setting performance objectives and standards.
E) when people are motivated to take charge of their own job behaviour.

Question 47

Which of the following is not a 'Hot Stove Rule'?

A) A reprimand should occur in a supportive setting.
B) A reprimand should be 'customised' to the employee's personality.
C) A reprimand should be directed toward someone's actions, not personality.
D) A reprimand should support realistic rules.
E) A reprimand should be immediate.

Question 48

A supervisor who verbally warns an employee the first time he is late for work, gives him a written reprimand the second time, and suspends him for one day without pay the third time, is using a system called:

A) positive punishment.
B) 'hot stove' discipline.
C) incremental discipline.
D) progressive discipline.
E) punishment by objectives.

Question 49

__________ is a structured process of regular communication in which a supervisor and subordinate or team member jointly set performance objectives for the subordinate or team member and review performance results that are obtained.

A) Objective setting and review (OSR)
B) Communication of expected outcomes (CEO)
C) Management by objectives (MBO)
D) Partnered goal analysis (PGA)
E) Performance management system (PMS)

Question 50

If a company begins to get positive publicity for its business practices, a competitive advantage may exist which is an example of:

A) green marketing.
B) sustainable control.
C) economic value added.
D) market control.
E) clan control.

Question 51

In addition to bureaucratic, clan and market control, comprehensive control is also provided by:

A) operations management.
B) employee discipline.
C) financial information.
D) employee remuneration and benefits.
E) All of the options listed

Question 52

__________ ties reprimands to the severity and frequency of the employee's infractions.

A) Positive punishment
B) Punishment by objectives
C) Regressive discipline
D) Incremental discipline
E) Progressive discipline

Question 53

When __________ is handled in a fair, consistent, and systematic way, it is a useful form of managerial control.

A) discipline
B) punishment by objectives
C) employee dismantlement
D) incremental role confinement
E) positive punishment

Question 54

Which of the following is NOT part of the traditional logic behind pay-for-performance in an incentive compensation program?

A) Pay very poorly for poor performance
B) Pay obscenely well for outstanding performance
C) Pay well for above-average performance
D) Pay poorly for average performance
E) Pay satisfactorily for average performance

Question 55

A hot stove burns and people should not touch a hot stove in order to avoid harm. Based on this notion, the 'hot stove rules' analogy of employee discipline indicates that a reprimand should:

A) occur in a supportive setting.
B) be directed toward someone's actions, not his or her personality.
C) be informative.
D) None of the options listed
E) All of the options listed

Question 56

In progressive discipline, the goal is always to achieve compliance with organisational expectations through the __________ reprimand possible.

A) most extreme
B) most socially acceptable
C) most noticeable
D) least noticeable
E) least extreme

Question 57

Bureaucratic control emphasises hierarchy and authority while clan control emphasises:

A) budgets and expense accounts.
B) behaviour and personality as set by society.
C) daily meetings.
D) keeping up with the competition.
E) norms and expectations set by the organisational culture.

Question 58

Internal control occurs when:

A) motivated individuals and groups are directly supervised.
B) motivated managers defend the organisation against outside competitive attacks.
C) managers take responsibility for the activities in their own departments.
D) computers are used to monitor performance inside the organisation.
E) motivated individuals and groups exercise self-discipline in fulfilling job requirements.

Question 59

An example of clan control in operation is when:

A) individuals in an organisation act, talk, behave and dress in similar manners.
B) the organisation downsizes people of similar gender and background.
C) the organisation begins to look like the federal government.
D) all the members of upper management vacation together.
E) All of the options listed

Question 60

A feedforward control system focuses on:

A) work objectives.
B) work throughputs.
C) work outputs.
D) work responsibilities.
E) work inputs.

Question 61

The following are some typical activities of a project that a Gantt chart would display, with the exception of:

A) completion date for employee reward system.
B) completion date for engineering design.
C) completion date for projected budgets.
D) completion date for research and development work.
E) completion date for prototype testing.

Question 62

The ability to earn revenues greater than costs describes:

A) leverage ratios.
B) times interest earned ratio.
C) asset management ratio.
D) profitability ratios.
E) quick ratio.

Question 63

Ordering a fixed number of items every time an inventory level falls to a predetermined point is called:

A) fixed quantity inventory.
B) break-even quantity.
C) quality control.
D) economic order quantity.
E) inventory control.

Question 64

A method of graphically displaying the scheduling of tasks required to complete a project is a(n):

A) spreadsheet.
B) AON diagram.
C) Gantt chart.
D) PERT network diagram.
E) critical path diagram.

Question 65

Balanced scorecards give top managers:

A) a fast, but comprehensive view of the business.
B) a very detailed view of financial performance.
C) a detailed plan for internal process improvement.
D) a detailed plan for innovation and learning.
E) a detailed plan for achieving good customer service results.

Question 66

The higher the better for this ratio:

A) debt ratio.
B) inventory run over ratio.
C) leverage ratio.
D) cost-benefit ratio.
E) inventory turnover.

Question 67

For control purposes, which of the following is NOT an important financial aspect of organisational performance?

A) The ability to earn more in returns than the cost of the debt
B) The ability to sell shares of the company's stock
C) The ability to generate cash to pay bills
D) The ability to earn revenues greater than costs
E) The ability to use resources efficiently and operate at minimum cost

Question 68

Organisational budgets are used as:

A) a tool to commit resources to projects or programs.
B) a control tool.
C) a tool to commit resources to activities.
D) a planning tool.
E) All of the options listed

Question 69

Which of the following statements provides an accurate description of financial ratios?

A) Liquidity ratios use information about current assets and current liabilities.
B) Asset management ratios focus on the relationship between profits and either average inventory or total assets.
C) Net margin and return on investment are useful leverage ratios.
D) Leverage ratios are helpful in assessing how well assets are employed in generating sales.
E) Inventory turnover is one method for determining the company's financial liquidity.

Question 70

The debt ratio is expressed as:

A) current assets divided by current liabilities.
B) sales minus liabilities.
C) total assets divided by total debts.
D) sales/total assets.
E) total debts divided by total assets.

Question 71

Trends in purchasing control include:

A) establishing supplier-purchaser relationships.
B) committing to a small number of suppliers.
C) leveraging buying power.
D) None of the options listed
E) All of the options listed

Question 72

Which control technique provides an information framework for historical comparisons within the firm and for external benchmarking relative to industry performance?

A) Balanced scorecard
B) Financial ratios
C) Capital budgeting
D) MBWA
E) Economic design

Question 73

When Jack Kilgore looked at his many job offers (he had an MBA from the University of Queensland and an engineering degree from RMIT), he looked at base pay and fringe benefits as the most important variables in choosing a company. This demonstrates that:

A) Jack is probably an especially greedy person.
B) bonus plans are ineffective as compensation.
C) Jack's motives are unusual.
D) engineers are more materially oriented than others.
E) pay and benefits are important in attracting and retaining highly qualified workers.

Question 74

The basic goal of inventory control is to:

A) make sure that an inventory is just the right size for the task at hand.
B) make sure the company has more than enough materials to perform all jobs.
C) make sure enough supplies are on hand to satisfy customers.
D) provide a tracking system for purchases and sales.
E) provide a written record of materials received and materials disbursed.

Question 75

The current ratio is known as a(n):

A) asset management ratio.
B) leverage ratio.
C) profitability ratio.
D) liquidity ratio.
E) economic ratio.

Question 76

Project management is responsible for all of the following EXCEPT:

A) delegating budgetary responsibility to the finance organisation.
B) overall supervision.
C) overall control of the project.
D) overall planning.
E) None of the options listed

Question 77

The lower the better for this ratio:

A) times interest earned.
B) total asset turnover.
C) debt ratio.
D) net margin.
E) current ratio.

Question 78

Which of the following is not a consideration in a progressive discipline system?

A) Past experience in dealing with the employee
B) Whether or not the employee is from a minority group
C) Frequency of occurrence
D) How long the problem lasts
E) Seriousness of the problem

Question 79

Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as:

A) timely inventory control (TIC).
B) just-in-time (JIT) scheduling.
C) scheduling an economic order (SEO).
D) management by objectives (MBO).
E) efficient production planning (EPP).

Question 80

Financial ratios provide all of the following EXCEPT:

A) a calculation of the breakeven quantity.
B) a means to track financial goals.
C) a framework for external benchmarking.
D) a means to set financial targets.
E) a framework for historical comparisons.