CHAPTER 16 MGMT

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Which of the following statements best describes economic value added (EVA)?
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e. It is the amount by which profits exceed the cost of capital in a given year.
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_____ is the extent to which it is possible to implement each step in the control process.
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e. Cybernetic feasibility
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_____ costs are the costs associated with implementing or monitoring control.
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b. Regulation
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_____ is a performance assessment in which companies identify which customers are leaving and the rate at which customers are leaving.
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b. Customer defection
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Which of the following is NOT a component of the cybernetic control process?
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The components of the cybernetic control process are set standards, measure performance, compare with standards, identify deviations, analyze deviations, and develop and implement program for corrective action.
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In many companies, bureaucratic control has evolved into _____ which is the use of perceivable measures of employee behavior or output to assess performance and influence behavior.
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In many companies, bureaucratic control has evolved into objective control, which is the use of observable measures of employee behavior or output to assess performance.
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NutriStar bakery has decided to downsize its staff to cut its overhead costs. This has been financially beneficial for the bakery. However, the reduction in the number of staff has adversely impact efficiency in the customer service section. Which of the following concepts is illustrated in the scenario?
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This scenario illustrates suboptimization. Suboptimization occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.
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_____ is a method of gathering information about performance deficiencies after they occur.
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Feedback control is a mechanism for gathering information about performance deficiencies after they occur.
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Which of the following is NOT one of the four perspectives measured in the balanced scorecard approach to control?
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The balanced scorecard is a measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning
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Which of the following is NOT a control method?
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The three basic control methods are feedback control, concurrent control, and feedforward control.
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_____ control is top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.
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Bureaucratic control is top-down control, in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.
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The basic control process of business begins with _____.
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The basic control process begins with the establishment of clear standards of performance.
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In the context of control measures, which of the following approaches to control monitors inputs rather than outputs?
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Feedforward control is a mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur.
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The _____ is the measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning.
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The balanced scorecard is the measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning.
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_____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.
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Suboptimization is performance improvement in one part of an organization but only at the expense of decreased performance in another part.
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Process modification, material/product substitution, and good housekeeping are the three strategies used for _____.
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The three strategies for waste prevention and reduction are: good housekeeping, material/product substitution, and process modification.
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_____ is the process of determining how well other companies (though not just competitors) perform business functions or tasks.
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Benchmarking is the process of determining how well other companies (though not just competitors) perform business functions or tasks.
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An accident at the Millwood oil refinery severely injured two workers. The company is conducting an investigation to understand what went wrong. After analyzing the information, the company intends to bring in new safety processes to prevent such accidents. The company used _____control.
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In the scenario, the Millwood oil refinery attempts to address the cause of the accident or performance deficiency. Feedback control is a mechanism for gathering information about performance deficiencies after they occur.
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_____ involves the regulation of workers’ behavior and decisions through work group values and beliefs.
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Concertive control the regulation of workers’ behavior and decisions through work group values and beliefs.
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_____ is the regulatory process of establishing standards to achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards.
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Control is a regulatory process of establishing standards to achieve organizational goals, comparing actual performance to the standards, and taking corrective action when necessary to restore performance to those standards.
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Everlast Motors Inc. recently returned a shipment of faulty locking devices to its supply partner, Maxwell Safe LLC. Upon hearing about the flawed equipment, a team at Maxwell starts gathering information about what went wrong. Maxwell Safe’s initiative is an example of _____.
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In the scenario, Maxwell Safe LLC. is using feedback control to see what performance deficiency could have caused the manufacture of their faulty locks. Feedback control is a mechanism for gathering information about performance deficiencies after they occur.
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The managers at Malar Inc. place a great amount of emphasis on the organizational rules and policies; adherence to these is of utmost importance to them. Employees who deviate from these rigid rules are often punished. The managers at Malar are most likely exercising _____.
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The managers at Malar Inc. are most likely exercising bureaucratic control. Bureaucratic control is defined as top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.
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Normative controls are created by:
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Normative controls are created in two ways; screening potential applicants based on their attitudes and values and letting managers and employees learn what they should and should not do by observing experienced employees and by listening to the stories they tell about the company.
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A regulatory body has recently reprimanded the Simston Company for not setting clear guidelines on factory emissions. In this case, the regulatory body wants the Simston Company to establish emission control _____.
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Standards are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.
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_____ is the situation in which behavior and work procedures do not conform to standards.
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Control loss occurs when behavior and work procedures do not conform to standards.

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