Deck 11: Organizational Control and Change

Question 1

Clan control relies on values and norms to keep organization members goal-directed.

Answer 1

True
Explanation: One source of control increasingly being used by organizations is clan control, which takes advantage of the power of internalized values and norms to guide and constrain employee attitudes and behavior in ways that increase organizational performance.

Question 2

Which of the following types of control allows managers to anticipate problems before they arise?

A)feedforward control
B)concurrent control
C)feedback control
D)bureaucratic control
E)clan control

Answer 2

A
Explanation: Feedforward control is control that allows managers to anticipate problems before they arise.

Question 3

The more complex a job is, the more difficult it is for a manager to evaluate how well a subordinate is performing.

Answer 3

True
Explanation: The more complex a job is, the more difficult it is for a manager to evaluate how well a subordinate is performing.

Question 4

_______ is the process by which managers monitor and regulate the efficiency and effectiveness of the workers in an organization.

A)Planning
B)Organizing
C)Leading
D)Controlling
E)Coordinating

Question 5

Bureaucratic rules encourage people to think for themselves.

Question 6

Behavior control tends to be the first type of control that managers at all levels use to evaluate performance.

Question 7

Revolutionary change is gradual, incremental, and narrowly focused.

Question 8

The least powerful form of behavior control is direct supervision of a subordinate by a manager.

Question 9

The operating margin is calculated by dividing a company's operating profit by sales revenues.

Question 10

A control system must to be flexible in order to be effective.

Question 11

Behaviors are typically easier to measure than outputs because they are more tangible and objective.

Question 12

An organization is said to be highly leveraged if it uses more debt than equity to finance its ongoing operations.

Question 13

At the input stage, managers use feedback control to anticipate problems before they arise.

Question 14

It is more challenging for managers to measure outputs or behavior when an organization and its members perform nonroutine activities.

Question 15

Financial information provides managers with enough the information to measure the four building blocks of competitive advantage.

Question 16

During the input stage, managers use __________ control procedures to anticipate problems before they occur.

A)input
B)concurrent
C)output
D)feedforward
E)feedback

Question 17

In practice, managers can only measure the actual outputs that result from the behavior of their members.

Question 18

Control helps managers build competitive advantage.

Question 19

_______ systems are the formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plan.

A)Social
B)Routine
C)Control
D)Nonprogrammed
E)Classical

Question 20

RST Consulting screens job applicants by viewing their résumés electronically and using several interviews to select highly skilled people.By doing so, the managers at RST Consulting ensure that the wrong candidates are not picked for a particular job.This is an example of

A)concurrent control.
B)feedforward control.
C)feedback control.
D)bureaucratic control.
E)clan control.

Question 21

Which of the following financial ratios measures the ability of the organization to pay its short-term debts?

A)leverage ratios
B)liquidity ratios
C)activity ratios
D)profit ratios
E)inventory turnover ratios

Question 22

Which of the following cannot be measured easily?

A)the creativity of a research engineer
B)an employee's ability to meet deadlines
C)the success of a product
D)an employee's adherence to rules
E)the money spent on organizational resources

Question 23

Which type of financial ratio is computed by dividing the organization's present assets by its present liabilities?

A)inventory turnover ratio
B)days sales outstanding ratio
C)profit ratio
D)current ratio
E)debt-to-assets ratio

Question 24

Which of the following is true about the control process?

A)Managers can easily take corrective action when reasons for poor performance are identified.
B)Outputs and behavior can be measured easily always.
C)It is easy to measure the outputs and behavior of complex, nonroutine activities.
D)Managers should never revise performance standards to a lower level.
E)Managers develop performance standards to measure behavior first and then outputs.

Question 25

The final step in the control process is to

A)initiate corrective action.
B)measure actual performance.
C)establish the standards of performance.
D)compare actual performance to the standards.
E)establish targets.

Question 26

Which of the following types of controls do managers use during the conversion stage to gain feedback on the conversion process?

A)feedforward control
B)bureaucratic control
C)concurrent control
D)feedback control
E)clan control

Question 27

An organization monitors the number of customer returns for each product model as a part of an attempt to recognize defective products.This is an example of

A)feedforward control.
B)concurrent control.
C)clan control.
D)feedback control.
E)bureaucratic control.

Question 28

When a company's operating profit is divided by its sales revenues, the financial measure is referred to as

A)gross profit margin.
B)a return on investment.
C)a net profit.
D)an operating margin.
E)an operating cost.

Question 29

Starling Manufacturing Inc.has carefully set up strict specifications for raw materials that are sourced from suppliers.It follows a three-step approval process to select new suppliers and ensures that they are aware of raw material specifications.This is an example of ________ control.

A)concurrent
B)feedforward
C)feedback
D)bureaucratic
E)clan

Question 30

Why is return on investment (ROI) the most commonly used financial performance measure?

A)It measures how far profits can decline before managers cannot meet interest changes.
B)It measures how efficiently managers are collecting revenues from customers to pay expenses.
C)It shows whether organizations can pay claims of short-term creditors without selling inventory.
D)It measures how efficiently managers are turning inventory over.
E)It allows managers of one organization to compare performance with that of other organizations.

Question 31

Once managers have measured actual performance, they should

A)revise accepted standards.
B)compare actual performance to the standards.
C)establish the standards of performance.
D)initiate corrective action.
E)develop goals and objectives.

Question 32

Which of the following is true about measuring actual performance?

A)Managers can either evaluate output or behavior, never both.
B)Outputs and behavior can be measured easily always.
C)It is easy to measure outputs and behavior of complex, nonroutine activities.
D)Outputs are easier to measure because they are more tangible and objective.
E)Managers develop performance standards to measure behavior first and then outputs.

Question 33

Which of the following can be inferred from calculating a company's operating margin?

A)an organization's competitive advantage
B)how efficiently an organization is using its resources
C)whether the organization has the resources available to meet the claims of short-term creditors
D)how efficiently managers are turning inventory over
E)how efficiently managers are collecting revenue from customers

Question 34

Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods?

A)behavioral control
B)concurrent control
C)bureaucratic control
D)feedforward control
E)feedback control

Question 35

Once managers have chosen the standards to evaluate performance, the next step in the control process is to

A)compare actual performance against chosen standards of performance.
B)initiate corrective action if the chosen standard is not being achieved.
C)measure actual performance.
D)evaluate the results of comparison.
E)revise performance standards.

Question 36

Which of the following can hurt the performance of an organization?

A)adopting realistic performance standards
B)setting stretch goals for employees
C)establishing operating budgets that regulate how managers and workers attain their goals
D)using output controls to motivate managers and employees at different levels
E)focusing on only one standard instead of a hundred different standards

Question 37

Which of the following steps of the control process involves goal setting?

A)measuring actual performance
B)comparing actual performance against chosen standards
C)evaluating the results of comparison
D)establishing the standards of performance
E)initiating corrective action

Question 38

Which of the following is true about the control process?

A)It is difficult to take corrective action when reasons for poor performance are identified.
B)It is always easy to measure outputs and behavior.
C)It is easy to measure outputs and behavior of complex, nonroutine activities.
D)Realistic standards reduce the gap between actual performance and desired performance.
E)

Question 39

Which of the following is the first step of the control process?

A)measuring actual performance
B)comparing actual performance against chosen standards
C)evaluating the results of comparison
D)establishing the standards of performance
E)initiating corrective action

Question 40

Which of the following types of controls helps monitor the quality of goods or services provided during the production process?

A)feedforward control
B)concurrent control
C)feedback control
D)bureaucratic control
E)clan control

Question 41

_______ is control by means of a comprehensive system of rules and standard operating procedures (SOPs).

A)Bureaucratic control
B)Management by objective
C)Output control
D)Clan control
E)Behavior control

Question 42

Which of the following is an important reason for subordinates to participate in goal setting?

A)It strengthens subordinates' commitment to achieving goals and meeting budgets.
B)It centralizes the responsibility of setting goals and achieving those goals.
C)It enables direct supervision and close scrutiny of employees.
D)It enables complete evaluation of employees over relatively short periods.
E)It enables manages to set goals that are slightly above an employee's reach.

Question 43

Which of the following is true about bureaucratic control and standardization?

A)Reducing standardization can reduce the level of learning in an organization.
B)Bureaucratic control is not useful for routine, well-understood organizational activities.
C)Too many rules can stop employees from thinking for themselves.
D)Bureaucratic control leads to production of goods and services of inconsistent quality.
E)Rules and SOPs increase misunderstandings over responsibility and the use of power.

Question 44

As regional manager of KIM Corp., Dwight is given an operating budget of $1 million for that financial year and is evaluated on the basis of the amount of goods produced based on that budget.Dwight's performance is evaluated on a(n)

A)revenue budget approach.
B)cash flow budget approach.
C)expense budget approach.
D)profit budget approach.
E)capital budget approach.

Question 45

The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of

A)current ratio.
B)liquidity ratio.
C)leverage ratio.
D)activity ratio.
E)profit ratio.

Question 46

Which of the following is true about direct supervision?

A)It is an expensive form of behavior control.
B)It is the least potent form of behavior control.
C)Direct supervision is preferred to output control.
D)Close scrutiny motivates employees to make their own decisions.
E)Personal control through direct supervision is feasible for all jobs.

Question 47

_____ guide behavior and specify what employees are to do when they confront a problem that needs a solution.

A)Rules and SOPs
B)Output controls
C)Feedback controls
D)Evolutionary changes
E)Force-fields

Question 48

What is the most instantaneous and powerful form of behavior control?

A)SOPs
B)an MBO system
C)rules
D)direct supervision
E)bureaucracy

Question 49

Managers for an e-commerce business use a formal system for evaluating subordinates' behavior by their ability to achieve specific goals.This is an example of

A)an SOP.
B)an operating standard.
C)management by objectives.
D)total quality management.
E)clan control.

Question 50

Which of the following is true about direct supervision?

A)It is an inexpensive form of control.
B)It can make subordinates less eager to work.
C)It is the least potent form of behavior control.
D)It is feasible for complex jobs.
E)It is preferred over bureaucratic control.

Question 51

Martin becomes personally involved with his subordinates and guides them.This is an example of

A)clan control.
B)an MBO system.
C)bureaucratic control.
D)output control.
E)direct supervision.

Question 52

The _____ shows whether an organization can pay claims of short-term creditors without selling inventory.

A)quick ratio
B)current ratio
C)days sales outstanding ratio
D)inventory turnover ratio
E)profit ratio

Question 53

Which of the following controls leads to standardized behavior and standardized work outputs?

A)output control
B)bureaucratic control
C)feedback control
D)feedforward control
E)clan control

Question 54

MBO starts when top managers

A)determine subordinates' goals.
B)review subordinates' progress toward meeting goals.
C)resort to direct supervision.
D)establish overall organizational objectives.
E)link performance evaluations to rewards.

Question 55

Which of the following provides a framework to monitor progress toward achieving goals?

A)management by objectives
B)direct supervision
C)clan control
D)output control
E)top-down change

Question 56

What is an operating budget?

A)a measure of how much percentage profit a company is earning on sales
B)the result of dividing a company's operating profit by sales revenues
C)the amount an organization has left after all the costs of making the product and running the business have been deducted
D)specification of the functional goals that the managers of different functions need to achieve
E)a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently

Question 57

Which of the following is a mechanism of behavior control?

A)clan control
B)direct supervision
C)output control
D)feedback control
E)organizational change

Question 58

Which of the following describes stretch goals?

A)goals at one level that are not in sync with goals set at other levels of the organization
B)goals that subordinates set for themselves
C)goals that are specific and difficult but not out of reach
D)goals that are set low and are easy to achieve
E)goals set at an impossibly high level

Question 59

Which type of financial ratio measures how well the managers of L&B Rentals, Inc.are converting the organization's assets into cash or sales?

A)leverage ratios
B)liquidity ratios
C)profit ratios
D)current ratios
E)activity ratios

Question 60

As the regional manager, Ted's performance is evaluated on the difference between the sales revenues generated by his region and the cost of making those goods and services.Ted is being evaluated using a(n) ________ approach.

A)profit budget
B)revenue budget
C)cash flow budget
D)cost budget
E)expense budget

Question 61

Which of the following steps of the organizational change process includes benchmarking?

A)introducing and managing change
B)assessing the need for change
C)deciding on the change to make
D)implementing the change
E)evaluating the change

Question 62

Which of the following is true about clan control?

A)Clan control and organizational culture are independent of each other.
B)The use of clan control has decreased in organizations over the past few years.
C)It standardizes behavior and leads people to behave in predictable ways.
D)It serves a dual function of keeping organization members goal-directed while open to new opportunities.
E)It cannot be used for many of the most significant organizational activities.

Question 63

Current ratio (current assets divided by current liabilities) is a type of _____ financial measure.

A)profit ratio
B)operating ratio
C)liquidity ratio
D)leverage ratio
E)activity ratio

Question 64

Which of the following is true about evolutionary change?

A)It is sudden.
B)It is unexpected.
C)It is rapid.
D)It is dramatic.
E)It is narrowly focused.

Question 65

According to Lewin's force-field theory, what must an organization do to change?

A)increase the forces for change and resistance to change
B)decrease the forces for change and resistance to change
C)increase the forces for change and reduce resistance to change
D)increase resistance to change
E)decrease the forces for change

Question 66

Which of the following types of change is rapid, dramatic, and broadly focused?

A)social change
B)cultural change
C)structural change
D)revolutionary change
E)evolutionary change

Question 67

Which of the following steps of the organizational change process includes identifying obstacles to change?

A)assessing the need for change
B)identifying the source of the problem
C)deciding on the change to make
D)implementing the change
E)evaluating the change

Question 68

_____ control allows managers to get immediate feedback on how efficiently inputs are being transformed into outputs.

A)Clan
B)Bureaucratic
C)Feedforward
D)Feedback
E)Concurrent

Question 69

After measuring and evaluating the manufacturing performance of a new product, a manager raised the performance standard for the next period of challenge.Which of the following would justify the manager's reason for raising the standard?

A)The quality of the product did not meet standards.
B)The manager wants to challenge the subordinates.
C)The actual performance was lower than expected.
D)Performance standards were not reached.
E)Managers must constantly raise performance standards.

Question 70

The manager of a pizza restaurant monitors the employee's behavior by counting the number of customers each employee serves and how much each customer spends.This is an example of

A)feedback control.
B)bureaucratic control.
C)behavior control.
D)output control.
E)clan control.

Question 71

______ is(are) the set of values, norms, and expectations of behavior which control the ways in which workers interact with one another within the organization.

A)Organizational goals
B)Organizational culture
C)Control procedures
D)SOPs
E)Rule-based culture

Question 72

When is an organization in a state of inertia?

A)when it increases the forces for change
B)when it reduces resistance to change
C)when the forces are evenly balanced
D)when the two opposing forces increase together
E)when the two opposing forces decrease together

Question 73

_____ is the movement of an organization away from its present state toward some preferred future state to increase its efficiency and effectiveness.

A)Clan control
B)Concurrent control
C)Direct supervision
D)Bureaucratic control
E)Organizational change

Question 74

A(n) _________ change is a change that is gradual, in which managers at all levels work together to develop a detailed plan for change.

A)top-down
B)radical
C)bottom-up
D)stagnation
E)restructuring

Question 75

_______ control is the control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.

A)Output
B)Clan
C)Procedural
D)Feedback
E)Culture

Question 76

Which of the following types of change is gradual, incremental, and narrowly focused?

A)cultural change
B)infrastructural change
C)structural change
D)revolutionary change
E)evolutionary change

Question 77

One of Carlos's work responsibilities is to check the inspection stations periodically to monitor the quality of the products during the production process.This is an example of

A)concurrent control.
B)clan control.
C)feedback control.
D)feedforward control.
E)bureaucratic control.

Question 78

The first step managers must take to manage change effectively is to

A)evaluate the change.
B)decide on the change to make.
C)implement the change.
D)assess the need for change.
E)identify obstacles to change.

Question 79

Which of the following is true about revolutionary change?

A)It is gradual.
B)It is incremental.
C)It is narrowly focused.
D)It is a constant attempt to improve.
E)It is dramatic.

Question 80

According to the force-field theory,

A)a manager cannot evaluate the forces at work when observing the performance of workers such as doctors, research scientists, or engineers.
B)a wide variety of forces arise from the way an organization operates that make organizations resistant to change.
C)forces that support clan control are significantly different from the forces that form the foundation of organizational culture.
D)the forces of evolutionary change and revolutionary change are equal and complement each other.
E)an organization is in a state of inertia when it reduces the forces for change and increases resistance to change.