Deck 18: Monitoring and Controlling

Question 1

Which one of the following sources of information for measuring performance is time consuming, obtrusive, and subject to personal biases?

A) oral reports
B) personal observations
C) statistical reports
D) written reports

Answer 1

B

Question 2

The first step in the control process is ________.

A) setting the desired standards
B) measuring actual performance
C) comparing performance against expectations
D) enforcing managerial control

Answer 2

B

Question 3

________ refers to the process of monitoring, comparing, and correcting work performance.

A) Controlling
B) Checking
C) Measuring
D) Verifying

Answer 3

A

Question 4

Which one of the following is an advantage of using statistical reports as the source of information?

A) Statistical reports can be used to obtain firsthand knowledge.
B) Unfiltered information can be obtained using statistical reports.
C) Statistical reports are effective for showing relationships.
D) Statistical reports provide unbiased information.

Question 5

Statco, Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired Mark Adams to design a control system and offer suggestions to improve the firm's performance. Which one of the following is a key activity that the proposed control system should perform?

A) organizational planning
B) organizational structuring
C) performance measurement
D) corporate governance

Question 6

Andrew prefers to get his performance data in the form of charts and graphs. Andrew prefers ________.

A) personal observations
B) statistical reports
C) oral reports
D) written reports

Question 7

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

Question 8

The control process assumes that ________.

A) feedback is the only way to improve performance
B) managers will be aware of the actions and activities of their employees
C) performance standards are already in place
D) employee monitoring costs are part and parcel of doing business

Question 9

Blanca nods as she watches her new employee as he executes the steps in making French fries. Her purpose is to make sure he follows the instructions exactly as given. Blanca is using ________.

A) personal observation
B) statistical reports
C) mentoring
D) nonverbal feedback

Question 10

Which one of the following sources usually provides filtered information which cannot be documented?

A) oral reports
B) personal observations
C) online reports
D) written reports

Question 11

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

Question 12

What are the major reasons why the control function is important to managers?

Question 13

Which one of the following observations best explains why the control function is important?

A) An effective control system includes employee empowerment.
B) An effective control system assures that the organization will meet or exceed its goals.
C) An effective control system is the only way managers know whether organizational goals are being met.
D) Organizational strategies are formed during the controlling stage.

Question 14

Which one of the following represents the controlling function?

A) The die cast machine operator adjusts the settings on the machine.
B) The shift supervisor checks the production schedule for the day.
C) The production manager schedules a new customer order.
D) The quality auditor selects one piece every 15 minutes from the batch of molded products and, using very precise gauges, measures key dimensions on the part.

Question 15

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

Question 16

Barry wants to use a tool that makes the data easy to visualize and is effective for showing relationships. Which one of the following tools is best suited for this?

A) personal observation
B) spreadsheets
C) written reports
D) statistical reports

Question 17

________ is the final step in the management process, which provides a critical link back to ________.

A) Organizing; planning
B) Planning; controlling
C) Controlling; planning
D) Leading; organizing

Question 18

Sometimes the French fries are rather pale, other times they are golden, sometimes they are quite dark. Anna cooks them according to how much time she has available between customers. The variation in appearance can be attributed to ________.

A) customer demand
B) the fact that there is no performance standard
C) differences in the potatoes
D) emphasis of quantity over quality

Question 19

Having a control system increases the scope of employee empowerment.

Question 20

Which one 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

Question 21

Which one of the following sources provides information which is comprehensive, formal, and easy to file and retrieve?

A) oral reports
B) personal observations
C) online reports
D) written reports

Question 22

The goal for the sales team at the auto dealership was to sell one new car per day every day of the month. In August the team sold 33 cars. What should management do?

A) Nothing. The deviation is insignificant.
B) Revise the goal. If the team sold more than the goal, obviously the goal is too low.
C) Wait. See if the performance is duplicated next month before taking any action.
D) Celebrate. Any achievement beyond the goal is deserving of a celebration.

Question 23

________ corrects the problem at once to get performance back on track.

A) Basic corrective action
B) Immediate corrective action
C) Verbal feedback
D) Disciplinary action

Question 24

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

Question 25

Brenda is always ready with a story to tell about performance in her area. Unfortunately, Brenda sometimes leaves out important facts and makes statements that cannot be corroborated. Brenda is delivering ________.

A) personal observations
B) statistical reports
C) oral reports
D) anecdotes

Question 26

Some control criteria, such as employee satisfaction, can be used for any management situation.

Question 27

Managers could choose to do nothing when ________.

A) an employee fails to attain the standard because of internal problems
B) the difference between actual performance and standard performance is low and acceptable
C) performance standards are acceptable, though the employees have not attained it
D) the variance observed from the expected performance is caused due to unrealistic standards

Question 28

At the end of every month, the accounting department submits a balance sheet, statement of profit and loss, and cash flow statement to the senior management team. These are all ________.

A) personal observations
B) statistical reports
C) oral reports
D) written reports

Question 29

For which of the following is a subjective measure most appropriate?

A) level of satisfaction of patient care in a hospital
B) degree of improvement in closing sales in a real estate brokerage
C) quality of a water supply
D) reduction of waste in a manufacturing process

Question 30

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

Question 31

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

Question 32

Mark recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation. Here, Mark is recommending ________.

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

Question 33

In a short essay, list and briefly explain the steps, processes, and best practices managers typically utilize in the control process. Provide examples where appropriate.

Question 34

"No, James, you must start the timer after you lower the French fry basket into the fryer, not before." This supervisor is using ________.

A) basic corrective action
B) disciplinary action
C) immediate corrective action
D) delayed corrective action

Question 35

If the variance between the standard and the actual result is in the organization's favor, managers do not need to do anything.

Question 36

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) feedback control
B) immediate corrective action
C) basic corrective action
D) concurrent control

Question 37

The comparing step in the control process determines ________.

A) a company's relative position in the industry in terms of the standards used
B) a company's relative position in the industry in terms of performance variances
C) the variation between actual performance and an external benchmark from a noncompetitor
D) the variation between actual performance and the standard

Question 38

Following a customer complaint, Bigly Mfg. formed a problem solving team to find out why the system was producing unacceptable parts and make a recommendation to fix it. This is an example of ________.

A) delayed corrective action
B) immediate corrective action
C) basic corrective action
D) preventive corrective action

Question 39

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) employee attitudes are at stake

Question 40

At the beginning of every shift, Cody records the amount of pizza sauce in inventory. At the end of every shift, he records the number of pizzas made and the amount of pizza sauce left in inventory. Why would he do this?

A) So he can determine if employees are taking sauce home.
B) So he can compare the quantity used with the budgeted amount.
C) So he will know how much pizza sauce to order.
D) So he will know how many customers visited his pizza parlor during his shift.

Question 41

If a manager wanted to increase the ratio of outputs to inputs, she should ________.

A) decrease the selling price
B) increase productivity
C) increase the quality of inputs
D) hire additional employees

Question 42

An organization hires additional personnel as soon as they get a major contract. The organization is using ________ control.

A) feedforward
B) concurrent
C) feedback
D) management

Question 43

The operations manager suggests a hike in the prices to improve productivity. However, the marketing manager rules this option out. What could be the possible reason for this?

A) Product prices are not related to organizational productivity.
B) Selling price is negatively correlated to organizational productivity.
C) The industry is characterized by intense competition.
D) Such an action would lead to reduced employee satisfaction.

Question 44

Productivity decreases when an organization raises the prices of its products.

Question 45

Which one of the following refers to the overall output of goods or services produced divided by the inputs needed to generate that output?

A) yield
B) efficiency
C) effectiveness
D) productivity

Question 46

Charles wants to prevent problems before their occurrence. Which one of the following is the most desirable type of control to achieve this goal?

A) proactive control
B) preventive control
C) feedforward control
D) feedback control

Question 47

Which one of the following best fits the definition of organizational performance which managers should control?

A) Mr. B's Pizzeria sold an average of 18 pizzas per hour on Saturday night.
B) The customer ordered the Victorian Rose interior décor.
C) Colin arrived 15 minutes early for his shift.
D) The shipment of parts arrived two days late.

Question 48

The management control that takes place while a work activity is in progress is known as ________ control.

A) immediate
B) concurrent
C) feedback
D) consistent

Question 49

Explain the importance of delivering employee performance feedback including the use of disciplinary action.

Question 50

Buchanan Welders cannot raise its prices in its highly competitive industry. Which one of the following is an option if Buchanan wants to increase its productivity?

A) introduce a lower-cost model
B) emphasize the importance of quality in its sales materials
C) Exceed customers' expectations with early deliveries
D) use less expensive inputs

Question 51

Which one of the following is considered the easiest way to increase organizational productivity?

A) increasing the price of outputs
B) increasing the price of inputs
C) hiring more employees
D) decreasing the value of the products

Question 52

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

A) Input
B) Quality
C) Profit
D) Leverage

Question 53

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

A) productivity
B) effectiveness
C) efficiency
D) yield

Question 54

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

Question 55

Festus believes organizational effectiveness is more important to the organization than organizational productivity. What could be the rationale behind this belief?

A) Organizational productivity is not a measure of organizational performance.
B) Organizational effectiveness is a measure of how well the organizational goals are met.
C) Organizational productivity is not directly related to organizational output.
D) Organizational effectiveness is a quantitative measure of the input-output relationship.

Question 56

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

Question 57

Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size is smaller than the print specification so it changes drill bits after 95,000 uses. Contours, Inc., is using ________ control.

A) preventive
B) predictive
C) feedforward
D) concurrent

Question 58

The plant superintendent wants to know the value of products per man hour. She is concerned with ________.

A) costs
B) waste
C) productivity
D) profits

Question 59

Disciplinary action is helpful to the organization because ________.

A) employees know what to do to correct their undesirable behavior
B) disciplined employees are less likely to leave the organization
C) the manager will monitor the disciplined employee more closely
D) after the first rule violation, problem employees are eliminated from the organization.

Question 60

Which one of the following is considered the most desirable type of control to prevent anticipated problems?

A) feedforward control
B) concurrent control
C) feedback control
D) management by walking around

Question 61

Which one of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?

A) market value method
B) triple bottom line method
C) balanced scorecard approach
D) information control approach

Question 62

________ is the search for the best practices among competitors or non-competitors that lead to their superior performance.

A) Factor analysis
B) Total quality management
C) Market positioning
D) Benchmarking

Question 63

When data is analyzed and processed, it becomes ________.

A) a system
B) information
C) fact
D) a structure

Question 64

Contours, Inc., quality auditors pull one part from the production line every 15 minutes. These parts are measured against the production print; any variation that is beyond acceptable levels is reported to the machine operators. Contours, Inc., is using ________ control.

A) feedforward
B) concurrent
C) feedback
D) concentric

Question 65

Raw, unanalyzed facts are called ________.

A) data
B) information
C) database
D) factoids

Question 66

The information provided by the customer who brings a product in for warranty work can be used for ________ control

A) feedforward
B) concurrent
C) preventive
D) feedback

Question 67

Every March, Bill, who owns and operates a small retail shop, takes a large box of receipts and invoices to his accountant so the accountant can file Bill's taxes in April. Only then does Bill know if his business has been profitable. Bill could benefit from a(n) ________.

A) concurrent control system
B) balanced scorecard system
C) inventory control system
D) management information system

Question 68

The ________ ratios measure an organization's ability to meet its current debt obligations.

A) activity
B) liquidity
C) leverage
D) profitability

Question 69

________ is when a manager in the work area interacts directly with employees to maintain supervision.

A) Preventive maintenance
B) Management by walking around
C) Proactive control
D) Feedforward control

Question 70

Contours, Inc., uses its budget for labor hours as a ________ tool.

A) preventive
B) concurrent
C) feedforward
D) feedback

Question 71

Donald discovers major flaws in the packaging department. He consults the production manager and formulates control measures to improve packaging. Here, Donald is using the ________ control.

A) feedback
B) reactive
C) concurrent
D) feedforward

Question 72

The launch went off without a hitch but the space capsule directed toward Neptune has veered off course. NASA sends signals to change the direction of flight to get it back on track. NASA is using ________ control.

A) feedback
B) concurrent
C) preventive
D) feedforward

Question 73

________ ratios measure how efficiently the firm is using its assets.

A) Liquidity
B) Leverage
C) Profitability
D) Activity

Question 74

Devon interacts directly with the employees in the work area to identify problem areas. He works with various departments to obtain a holistic idea of the business. This type of direct supervision is an example of ________ control.

A) proactive
B) preventive
C) direct supervision
D) feedback

Question 75

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

A) market value
B) balance sheet
C) balanced scorecard
D) income statement

Question 76

Ruth, a financial consultant, determines her client's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?

A) Increase the money supply by selling a part of its assets.
B) Pay back part of its debts to improve the ratio.
C) Maintain more current assets than current liabilities.
D) Reduce the sales to total assets ratio of the firm.

Question 77

Which one of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt?

A) liquidity ratios
B) leverage ratios
C) profitability
D) activity ratios

Question 78

Management by walking around is an example of ________ control.

A) feedback
B) concurrent
C) feedforward
D) reactive

Question 79

Elaine wants to analyze her company's ability to meet its current debt obligations. Which one of the following ratios is most helpful to Ruth in analyzing this?

A) inventory turnover ratio
B) return on investment ratio
C) current ratio
D) total asset turnover ratio

Question 80

Which one of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?

A) total asset turnover ratios
B) inventory turnover ratios
C) acid test ratio
D) return on investment