Deck 17: Managing Quality and Performance

Question 1

Budgetary control is not one of the most commonly used methods of managerial control in an organization.

Answer 1

False

Question 2

Managers recognize that relying exclusively on financial measures can result in short term, dysfunctional behaviour.

Answer 2

True

Question 3

The balanced scorecard is not an effective tool for measuring performance if it is linked to organizational strategy.

Answer 3

False

Question 4

A revenue budget lists forecasted and actual revenues of the organization.

Question 5

The balanced scorecard is perfect for every organization in every situation.

Question 6

The liquidity ratio does not indicate an organization's ability to meet its current debt obligations.

Question 7

Hierarchical control involves monitoring and influencing employee behaviour through extensive use of rules, policies, use of authority, documentation, reward system and other formal mechanisms.

Question 8

An important profitability ratio is the margin of profit on sales, which is calculated as net outgoings divided by sales.

Question 9

A feedback control model does not help managers meet strategic goals by regulating and monitoring an organizations' activities.

Question 10

Statistical measurement is an important part of achieving high performance.

Question 11

Effective management control involves subjective judgement and employee discussions.

Question 12

Most organizations do not use statistical controls to measure performance.

Question 13

Decentalized control is not based on values and assumptions that are almost opposite to those of hierarchical control.

Question 14

Organizational control refers to the systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets and standards of performance.

Question 15

Most organizations prepare formal reports of quantitative performance measures that management review daily, weekly or monthly.

Question 16

The balance sheet and income statement have no effect on financial control in an organization.

Question 17

The second step in the control process is comparing actual activities to performance standards.

Question 18

The feedback control model involves using feedback to determine whether performance meets established standards.

Question 19

A responsibility centre is any organization department or unit under the supervision of a single person who is responsible for its activities.

Question 20

The activity ratio measures internal performance with respect to key activities defined by management.

Question 21

ISO is a recognized universal international benchmark for quality management.

Question 22

Fresh Direct, a farm food producer, was successful in attracting customers initially, however, after a couple of orders, sales dropped significantly, due to ______.

A) high prices
B) slow deliveries
C) bad customer service
D) inconsistent quality
E) poor advertising

Question 23

A feedback control model helps managers reach ______ by monitoring and regulating and organization's activities, and using feedback to determine whether performance meets established standards.

A) departmental goals
B) strategic goals
C) individual goals
D) group goals

Question 24

Increased control is a symptom of many organizations moving towards the us of corporate governance as a management tool.

Question 25

Most companies have no problems identifying and defining non-financial measurements.

Question 26

Top management use budgets for the company as a whole and middle managers traditionally focus on the budget performance of their department, and the budgets they generally use are expense budgets, _______ budgets, cash budgets and capital budgets.

A) turnover
B) revenue
C) sales
D) customer retention
E) tax

Question 27

The balanced scorecard has four elements they are, ______, customers, internal business processes and learning and growth.

A) operational
B) financial
C) retention
D) employees

Question 28

A feedback control model helps managers meet strategic goals by monitoring an regulating an organizations' activities and using feedback to determine whether performance meets established standards.

Question 29

Organizational control refers to the ______________ to make them consistent with the expectations established in plans, targets and standards of performance.

A) systematic approach to undermining organizational activities
B) systematic process of regulating organizational activities
C) systematic attempt to reduce organizational activities
D) systematic approach to disrupting organizational activities

Question 30

Quality partnering involves assigning dedicated personnel within a particular functional area of the organization.

Question 31

TQM is an organization wide effort to infuse quality into every activity in the organization through continuous improvement.

Question 32

A quality circle is a group of 4 chosen employees who meet irregularly to discuss management control of operations.

Question 33

'Hubris syndrome' is an obsession to achieve at all costs with excessive self efficacy.

Question 34

The main financial statements in an organization are:

A) The balance sheet
B) Owners equity
C) Liabilities
D) Income statement
E) All of the above

Question 35

Managers must decide which ______, measurements and metrics are needed to monitor and control the organization effectively and set up systems for obtaining that information.

A) processes
B) standards
C) reports
D) information

Question 36

A balanced scorecard is a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes and the organization'a capacity for learning and growth.However, it excludes a _____ perspective.

A) management
B) employee
C) supplier
D) government

Question 37

The goal of open-book management is to get some individuals thinking and acting like a business owner.

Question 38

Power is more dispersed, but not based on knowledge and expertise as much as position with decentralized control.

Question 39

The relentless pursuit of higher quality and lower costs is Six Sigma.

Question 40

Benchmarking is a three step process in an organization.

Question 41

The common financial ratios are:

A) Liquidity
B) Activity
C) Profitability
D) Leverage
E) All of the above

Question 42

To evaluate and reward employees effectively for the achievement of _____, managers need clear standards that reflect activities that ________ to the organization's overall strategy in a significant way.
a.
standards
b.
reports
c.
contribute
d.
conform

Question 43

The balanced scorecard has four major perspectives, they are financial, _____, learning and growth and ______.
a.
internal business processes
b.
employees
c.
management
d.
customers

Question 44

A part of the Benson and Butlers empathy/achievement grid is:

A) High empathy / low achievement
B) High empathy / high achievement
C) Low empathy / low achievement
D) low empathy / high achievement
E) All of the above

Question 45

ISO9000 quality standards are now the most recognized quality standards for evaluating organizations on ______. ISO9000 is now a requirement to do business in many organizations.
a.
an international scale
b.
a local scale
c.
a departmental scale
d.
an individual basis

Question 46

Activity ratios measures ______ performance with respect to the key activities defined by management

A) external performance
B) internal performance
C) competitor performance
D) sales performance

Question 47

The financial performance perspective reflects a concern that the organization's activities ____________ short- and long-term financial performance.

Question 48

Deep Check
Zero-based budgeting is an established approach to planning and decision-making that requires managers to justify every _____ on a budget, it does not allow for ______ or accruals and applying a percentage uplift.
a.
line item
b.
payment
c.
tax receipt
d.
customer complaint
e.
prior budgets

Question 49

The current approach to organizational control is to take a _________ of company performance, integrating various dimensions of control that focus on markets and ______, as well as employees and financials.

Question 50

Decentralized control is supported in many organization by the use of ________ management techniques and principles.

A) closed-book
B) hierarchical
C) open-book
D) board

Question 51

Hierarchical control involves monitoring and influencing employees behaviour through extensive use of _____, policies, hierarchy of authority, written documentation, _______ and other ________.
a.
rules
b.
reward systems
c.
observation
d.
customer complaints
e.
formal mechanisms

Question 52

The balanced scorecard is an effective tool for managing and improving performance, but only if it is clearly linked to a well-defined ______ _______ and goals.

Question 53

Statistical measurement is an important part of achieving ______________

Question 54

TQM is an organization-wide effort to infuse ______ in an organization through continuous improvement.

A) control into every activity
B) and develop every activity
C) quality into every activity
D) management of every activity

Question 55

The income statement, sometimes called a ____________, summarizes the firm's financial performance for a given time interval, usually one year.

Question 56

Deep Check
EFQM is a self-assessment tool that grades elements of an organization, there are a number of areas that indicate how objectives may be met, they are:
a.
Leadership
b.
People
c.
Policy and strategy
d.
Partnership and resources
e.
Processes

Question 57

___________ control refers to the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets and standards of performance.

Question 58

The _______ in the control process is comparing actual activity to performance standards.

Question 59

The goal of open-book management is to have every employee _________ like a business person.

A) operating and working
B) searching
C) thinking and acting
D) selling

Question 60

A responsibility centre is any organizational department or unit under the supervision of a single person who is ______ for its activities.

Question 61

When managers read computer reports or walk through the plant, they identify whether actual performance meets, exceeds or falls short of _______.

Question 62

A budget that plans and reports investments in major assets to be depreciated over several years if called a _______.

Question 63

Assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process is referred to as _______ _______.

Question 64

The ______ ________ indicates an organization's ability to meet its current debt obligations.

Question 65

Many organizations are moving towards control from the top in terms of corporate _______.

Question 66

Customer service indicators measure information such as how customers view the organization through metrics such as customer retention and _____.

Question 67

Budgeting that is imposed from above is referred as ___________ budgeting.

Question 68

The TQM philosophy focuses on teamwork, increasing customer satisfaction and _______ ______.

Question 69

The income statement is also referred as the _____________ statement.

Question 70

A popular approach based on a decentralized control philosophy is _______ _______ _______, an organization-wide effort to infuse quality into every activity in a company through continuous improvement.

Question 71

Control that is typically relies more on cultural values, traditions, shared beliefs and trust to foster compliance is known as _____ _____.

Question 72

A popular approach to quality management and based on decentralized control is ____ _____ _____.

Question 73

Key activities as defined by management that measure internal performance is referred to as the ______ _____.

Question 74

Effective management control involves subjective judgment and employee discussion s, as well as subjective analysis of performance ________.

Question 75

Managers recognize that relying exclusively on financial measures can result in short-term, dysfunctional ________.

Question 76

Standards should be defined clearly and precisely so that employees know what they need to do and can determine if their activities are on ____

Question 77

The goal of open-book management is to get every employee thinking and acting like a _____ _____.

Question 78

Exercise, amount of sleep and the stress levels of knowledge workers have been shown to affect productivity, creativity and job ________.

Question 79

Business process indicators focus on production and operating ______.

Question 80

A manager needs to be able to evaluate financial reports that compare the organization's performance with earlier data or ____ ____.