Deck 16: Evidence-Based Decision Making

Question 1

Some control criteria, such as employee satisfaction and retention, are applicable to any management situation.

Answer 1

True

Question 2

Statistical reports provide only limited information and may ignore important subjective factors.

Answer 2

True

Question 3

The criterion that determines the effectiveness of a control system is how well it reduces unnecessary costs.

Answer 3

False

Question 4

Managers should do nothing if the variance observed from the standard is acceptable.

Question 5

The control process is a two-step process that compares actual performance against a standard and then taking managerial action to correct deviations or inadequate standards.

Question 6

Managers should not consider the standards when measuring the actual performance of employees.

Question 7

When a performance indicator cannot be stated in quantifiable terms, managers should look for and use subjective measures.

Question 8

Organizational performance is also measure by the quantity and quality of employees' work efforts towards accomplishment of organizational goals.

Question 9

Controlling is the process of monitoring, comparing, and correcting work performance.

Question 10

One advantage of using oral reports to measure performance is that the information will be filtered.

Question 11

Most employees do their jobs well and never require disciplinary action.

Question 12

Basic corrective action corrects problems at once to get performance back on track.

Question 13

Deviations that exceed the acceptable range of variation become significant and need a manager's attention.

Question 14

Having a control system reduces the scope of employee empowerment and autonomy.

Question 15

Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met.

Question 16

Managers engage in controlling activities to protect the organization and its assets.

Question 17

Customer satisfaction with service provided can be considered an important performance indicator.

Question 18

Organization's ranking in its industry is a good measure of the company's performance.

Question 19

How we measure is probably more important to the control process than what we measure.

Question 20

In giving employees feedback on their performance, the only important topic for discussion is the employee's job and how it is carried out.

Question 21

When employers establish specific policies defining theft and fraud and discipline procedures, this is an example of a concurrent control measure to control employee theft.

Question 22

Concurrent control implements controls before an activity begins.

Question 23

Benchmarks for a company must be created based on the previous performance of the company.

Question 24

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

Question 25

Industrial security experts propose that most employees steal to challenge the strict controls in place in many companies.

Question 26

__________ is the process of monitoring activities to ensure that they are being accomplished as planned, and correcting any significant deviations.

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

Question 27

The balanced scorecard approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.

Question 28

Feedforward control takes place while a work activity is in progress.

Question 29

Budgets provide managers with quantitative standards against which to measure and compare resource consumption.

Question 30

When information is analyzed and processed, it becomes data.

Question 31

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

Question 32

In less technologically advanced countries, direct supervision and highly centralized decision-making are the basic means of control.

Question 33

Management by walking around is the best-known form of feedback control.

Question 34

A dashboard presents managers with a real-time interface to view data and to enable informed decisions.

Question 35

Profitability ratios measure how customer interactions generate profits.

Question 36

The purpose of the board of directors is to look out for interests of the managers and employees of the organization.

Question 37

An effective control system ensures that activities are completed in ways that __________.

A) motivate employees
B) maximize profits
C) lead to the attainment of organizational goals
D) minimize conflict
E) maximize production output

Question 38

Organizations control customer interactions through employee training.

Question 39

The system of organizational governance is in place to monitor and control organizational practices.

Question 40

Companies could use the services of professional investigators for concurrent control to reduce employee theft or fraud.

Question 41

Which of the following is an advantage of oral reports as a source of information for measuring performance?

A) easy to visualize
B) information is filtered
C) comprehensive
D) fast way to get information
E) ignores subjective factors

Question 42

__________ is (are) an effective information source for showing relationships but may ignore subjective factors.

A) Oral reports
B) Personal observation
C) Standardized tests
D) Written reports
E) Statistical reports

Question 43

Which common source of information for measuring performance is obtrusive, time consuming, and most subject to personal biases?

A) personal observation
B) statistical reports
C) financial reports
D) written reports
E) oral reports

Question 44

Which of the following observations is true of organizational controlling?

A) An effective control system facilitates employee empowerment.
B) Forming an organizational structure is a crucial control activity.
C) Human resource management is a subset of the controlling process.
D) Organizational strategies are formed during the controlling stage.
E) Control systems are not in place until the company has shown profit.

Question 45

Which of the following management responsibilities determines if organizational goals are being achieved?

A) designing the organization's structure
B) motivating employees
C) formulating business strategy
D) measuring firm performance
E) making profit year after year

Question 46

Managers should use subjective measures when ________.

A) work activities cannot be expressed in quantifiable terms
B) work activities are critical to the organization
C) organizational processes and activities are complex
D) immediate managerial action is required
E) organizational efficiency is in question

Question 47

Which information source used to measure performance has the disadvantages of being subject to personal bias and consuming a lot of time?

A) standardized tests
B) statistical reports
C) personal observation
D) written reports
E) oral reports

Question 48

The control process assumes that ________.

A) employees require clear directions from management
B) employees are under-qualified and require training
C) performance standards are already in place
D) employee monitoring costs are part and parcel of doing business
E) strategic plans are fixed

Question 49

__________ corrective action corrects problems at once to get performance back on track.

A) Basic
B) Remedial
C) Concurrent
D) Immediate
E) Applied

Question 50

What is the final step in the control process?

A) adjusting measurement standards
B) rewarding/punishing employee performance
C) benchmarking standards with a competitor
D) taking managerial action
E) reengineering the process

Question 51

The third and final step in the control process is __________.

A) setting standards
B) measuring actual performance
C) comparing actual performance with the standard
D) taking managerial action
E) determining the acceptable range of variation

Question 52

In the control process, when a manager cannot find a quantifiable performance indicator, he or she should __________.

A) not measure the factor
B) use the most appropriate objective indicator
C) use a subjective indicator
D) use an objective indicator but measure it several times to ensure reliability
E) ignore the control function all together

Question 53

__________ corrective action looks at how and why performance has deviated and then proceeds to correct the source of deviation.

A) Basic
B) Remedial
C) Intensive
D) Immediate
E) Applied

Question 54

The first step in the control process is __________.

A) developing standards
B) measuring actual performance
C) comparing performance against standards
D) taking managerial action
E) correcting actual performance

Question 55

__________ is (are) considered slow, easy to file and reference, and provide greater comprehensiveness and conciseness than oral reports.

A) Personal observation
B) Standardized tests
C) Statistical reports
D) Written reports
E) Word-of-mouth reports

Question 56

Which common source of information for measuring performance reports only on key areas and may ignore important facts?

A) personal observation
B) statistical reports
C) jury of opinion
D) written reports
E) oral reports

Question 57

Which information source used to measure performance provides information that is not filtered through others?

A) statistical reports
B) personal observation
C) standardized tests
D) written reports
E) oral reports

Question 58

In the control process, which step follows "measuring actual performance"?

A) establishing standards
B) obtaining employee input to performance gaps
C) comparing actual performance against a standard
D) logging actual performance
E) checking performance measurement for reliability

Question 59

Jaspreet's job is to compare each department's monthly budget to its actual expenditures. Jaspreet is performing part of the __________ function.

A) planning
B) organizing
C) budgeting
D) leading
E) controlling

Question 60

Which information source allows for feedback, is fast, but historically has a problem of being unable to document information for later reference?

A) oral reports
B) written reports
C) statistical reports
D) personal observation
E) standardized tests

Question 61

One advantage of __________ control is that it can enhance employee motivation.

A) feedback
B) concurrent
C) applied
D) progressive
E) feedforward

Question 62

If sales of "Cool Ranch"-flavoured Doritos chips are consistently higher than targets set by parent company Frito-Lay, which type of managerial action is most likely warranted?

A) take immediate corrective action
B) revise the standard
C) take basic corrective action
D) increase the range of variation
E) decrease the range of variation

Question 63

Managers need to provide their employees with _________ so that the employees know where they stand in terms of their work.

A) tools and equipment
B) feedback
C) task assignments
D) leadership
E) benchmarks

Question 64

In the control process, changing strategy is an example of what course of action?

A) doing nothing
B) following competitors
C) correcting actual performance
D) changing standards
E) determining standards

Question 65

Judy's job requires her to handle unexpected problems that always seem to require a quick decision. She seems to spend most of her "day putting out fires" by taking __________ corrective action.

A) timely
B) remedial
C) concurrent
D) applied
E) immediate

Question 66

The accumulated end results of all the organization's work processes and activities are called __________.

A) organizational performance
B) organizational planning
C) environmental scanning
D) scenario planning
E) feedback control

Question 67

Constantly "putting out fires" refers to which type of corrective action?

A) planned corrective action
B) strategic corrective action
C) timely corrective action
D) immediate corrective action
E) basic corrective action

Question 68

In order to increase the ratio of outputs to inputs, a manager would have to __________.

A) decrease the selling price
B) increase productivity
C) increase the cost of the input
D) hire additional employees
E) use additional materials

Question 69

The key to __________ control is taking managerial action before a problem occurs.

A) feedback
B) concurrent
C) timely
D) progressive
E) feedforward

Question 70

New Citi Bank monitors the length of time customers are kept on hold when they call into the bank for information. This is an example of a(n)_____________.

A) performance indicator
B) performance standard
C) customer relationship management
D) employee performance evaluation
E) feedback control

Question 71

__________ is measured by the sales revenue an organization receives when goods or services are sold.

A) Input
B) Output
C) Quality
D) Effectiveness
E) Efficiency

Question 72

George has been asked to investigate last month's production shortfall and correct the problem. This is the third shortfall this year, and this time George wants to get to the source of the problem and fix it for good. George will take __________ corrective action.

A) basic
B) remedial
C) concurrent
D) applied
E) timely

Question 73

Direct supervision is the best known form of __________ control.

A) feedback
B) concurrent
C) applied
D) progressive
E) feedforward

Question 74

A manufacturer of pesticides developed a training video to show customers how to handle the potentially dangerous products. They hoped this form of __________ control would reduce the risk of injury associated with their products.

A) feedback
B) concurrent
C) applied
D) progressive
E) feedforward

Question 75

Control that prevents anticipated problems is __________ control.

A) feedback
B) concurrent
C) disciplinary
D) progressive
E) feedforward

Question 76

__________ is the overall output of goods or services produced divided by the inputs needed to generate that output.

A) Factoring
B) Effectiveness
C) Performance correlation
D) Productivity
E) Feedback

Question 77

If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________.

A) bureaucratic control
B) immediate corrective action
C) basic corrective action
D) concurrent control
E) feedforward control

Question 78

__________ is measured by the costs of acquiring and transforming the organizational resources into the outputs.

A) Input
B) Quality
C) Effectiveness
D) Efficiency
E) Productivity

Question 79

_________ are the specific goals created during the planning process.

A) Operational tasks
B) Strategic plans
C) Benchmarks
D) Performance standards
E) Performance indicators

Question 80

Organizational __________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals.

A) effectiveness
B) productivity
C) analysis
D) performance
E) efficiency