Business Management-Chapter 16

question

Feedforward control provides information about performance deficiencies by monitoring inputs, not outputs.
answer

True
question

____ controls should be used when it is necessary to standardize operating procedures and establish limits.
answer

Bureaucratic
question

Refer to Walgreens. When Walgreens’ managers changed how much inventory the company holds at a time, they were affecting the ____ perspective of the balance scorecard.
answer

internal
question

Imagine a manufacturer that has a 99 percent error-free production rate and decides it wants 100 percent error-free production. Its management needs to examine ____ to determine if the costs of increased controls outweigh the benefits of error-free production.
answer

regulation costs
question

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.
answer

listening to customers
question

In the traditional control systems used at most companies, ____ measures are used to assess performance.
answer

financial
question

Companies may determine standards by ____.
answer

benchmarking other companies
question

Refer to Interpublic. Why should Interpublic consider implementing the Balanced Scorecard?
answer

to minimize the chances of suboptimization
question

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.
answer

bureaucratic
question

Companies may determine standards by evaluating their capacity to enable goal achievement, by listening to customers, by observing competitors, or by benchmarking other companies.
answer

True
question

In the behavioral approach to managerial control, a company’s widely shared values and beliefs guide workers’ behavior and decisions.
answer

False
question

Concertive control produces less stress for workers than bureaucratic control.
answer

False
question

The Balanced Scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.
answer

False
question

Which of the following is NOT one of the four perspectives measured in the Balanced Scorecard approach to control?
answer

policies and procedures perspective
question

Refer to C Brewing. The brewmaster is in charge of which classical management function?
answer

controlling
question

Control loss occurs when behavior and work procedures merely meet minimally acceptable standards rather than exceeding those minimal standards.
answer

False
question

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.
answer

Benchmarking
question

A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access their Civil War collection. The librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating ____.
answer

suboptimization
question

Economic value added (EVA) is so important because it ____.
answer

makes managers at all levels pay much closer attention to how they run their segment of the business
question

Quality is typically defined and measured in three ways. They are ____.
answer

excellence, value, and conformance to expectations
question

Control loss usually has no effect on goal achievement.
answer

False
question

____ control is a method of gathering information about performance deficiencies before they occur.
answer

Feedforward
question

A sales manager requires each member of his sales force to make three calls per day on current customers, to call on two potential customers every week, and to sell a minimum of $10,000 worth of merchandise weekly. Which of the following control methods does this indicate the sales manager is using?
answer

Objective
question

Caterpillar announced plans to cut its production of construction equipment due to forecasted increases in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used ____ controls.
answer

feedforward
question

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.
answer

bureaucratic
question

____ should be used when it is difficult to create good measures of worker behavior and output and when organizational culture, values, and beliefs are strong.
answer

normative control
question

According to the text, which of the following levels produces the greatest minimization of waste?
answer

waste prevention and reduction
question

McDonald’s fast-food restaurants have a well-designed training program for all new employees. Each new employee is supposed to learn how to perform standardized tasks. Due to labor shortages in some areas, these new employees begin work as soon as they are hired and do not receive any off-the-job training. This nonconformity to standards creates ____.
answer

control loss
question

A company makes only one product. The company is carefully evaluating what it learned in becoming such a success to see if it could use the same strategy to expand internationally. Which perspective of the Balanced Scorecard is this manufacturer emphasizing?
answer

innovation and learning perspective
question

Refer to Walgreens. If you managed a pharmacy chain that was trying to compete with Walgreen’s, you should use ____ to determine ways to improve business efficiency
answer

benchmarking
question

Control is achieved when behavior and work procedures conform to set standards and that the company goals are accomplished.
answer

True
question

Ironically, ____ control may lead to even more pressure for workers to conform to expectations than ____ control.
answer

concertive; bureaucratic
question

Implementing controls is always worthwhile.
answer

false
question

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.
answer

listening to customers
question

One of the advantages the Balanced Scorecard has over traditional control processes that rely solely on financial measures is that it ____.
answer

minimizes the chances of suboptimization
question

____ control regulates workers’ actions and routines on the job, while ____ control measures the results of their efforts.
answer

Behavior; output
question

____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.
answer

Suboptimization
question

The basic control process of business begins with ____.
answer

the establishment of clear standards of performance
question

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.
answer

Benchmarking
question

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction.
answer

good housekeeping

Get instant access to
all materials

Become a Member