MAN3025 Exam 4 (Ch 16) – Flashcards

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question
Soo Jin was recently hired as a facilities director at Star Bottling. Which of the following should she do immediately as she tries to improve productivity? A. Use the established technology with which her employees are most familiar. B. Rotate all personnel so that each has an opportunity to try something new. C. Hire new employees such that they are similar to those already on the team. D. Immediately cut costs. E. Establish a system of measurement.
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E. Establish a system of measurement.
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Which of the following is a challenge a manager will deal with in the 21st century? A. Sustainability B. Employee revolts C. Economic instability D. Leadership vacuums E. Religious issues
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A. Sustainability
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Which of the following is a primary function of management? A. Communicating B. Organizing C. Cooperating D. Globalizing E. Influencing
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B. Organizing
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Productivity equals A. labor, capital, energy, and materials, divided by goods and services. B. goods and services and energy and materials, divided by labor and capital. C. labor, energy, and capital, divided by goods, services, and materials. D. goods and services, divided by labor, capital, energy, and materials. E. energy and materials, divided by labor and capital.
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D. goods and services, divided by labor, capital, energy, and materials.
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Managers can increase overall productivity by A. decreasing efficiency of capital. B. increasing energy. C. increasing the efficiency of materials. D. decreasing the efficiency of labor. E. decreasing outputs.
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C. increasing the efficiency of materials.
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Which of the following has been a primary source of productivity gains in the years 1995 to 2001? A. Reduced standards of living B. Recessionary spending C. Reemphasis on ethical business behaviors D. Enterprise resource planning software systems E. Reduced costs of raw materials through globalization
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D. Enterprise resource planning software systems
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______ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. A. Measuring B. Controlling C. Organizing D. Leading E. Planning
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B. Controlling
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Manuel, a manager, tracks monthly customer complaints and has been trying over the past six months to reduce them to a goal of less than 0.5%. He is engaged in A. controlling. B. organizing. C. measuring. D. leading. E. planning.
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A. controlling.
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Which of the following is NOT one of the reasons that control is needed in an organization? A. To adapt to change & uncertainty B. To eliminate the need for teamwork C. To detect opportunities D. To deal with complexity E. To decentralize decision making
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B. To eliminate the need for teamwork
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Ferris Insurance has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business. A. team problems B. a potential merger C. competence D. a tax break E. irregularities
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E. irregularities
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Which of the following is a step in the control process? A. Complete a job redesign B. Evaluate opportunities C. Establish standards D. Implement TQM E. Compare work units to one another
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C. Establish standards
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Standards are best measured when they are A. broad. B. efficient. C. narrow. D. quantifiable. E. green.
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D. quantifiable.
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Which of the following standards is the most difficult to measure directly? A. An increase in insurance policies sales month to month B. Stable material costs C. More effective teamwork D. 0.5% of products rejected for poor quality E. Reduced energy costs compared to the same month last year
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C. More effective teamwork
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The amount of acceptable deviation from a standard, determined when the standard was established, is called the A. span of exception. B. range of variation. C. breadth control. D. benchmark. E. zero-based control.
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B. range of variation.
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Which of the following may be done as corrective action in the control process? A. Evaluate performance B. Revise standards C. Compare performance to standards D. Align processes with goals E. Establish standards
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B. Revise standards
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Benny's supervisor noticed that he was struggling with the computerized set-up for production runs at his new job. The supervisor sat next to him while he tried it again and gave suggestions for improvement. The supervisor is doing which step of the control process? A. Compare performance to standards B. Establish standards C. Take corrective action D. Measure performance E. Control productivity
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C. Take corrective action
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At UPS, delivery ______ vary according to whether a route is urban, suburban, or rural in nature. A. RATER scales B. ratio analyses C. standards D. PDCA cycles E. strategy maps
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C. standards
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Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ______ control. A. strategic B. functional C. tactical D. operational E. managerial
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D. operational
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Tactical control is performed mainly by A. middle managers. B. top managers. C. the CEO. D. first level managers. E. team leaders.
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A. middle managers.
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Typically, strategic control is accomplished through reports issued A. daily. B. weekly. C. monthly. D. quarterly or less frequently. E. randomly.
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D. quarterly or less frequently.
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An organization might request more frequent strategic control reports than normal if the organization is A. affected by the news media. B. very large. C. formal in organizational structure. D. decentralized. E. operating in an uncertain environment
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E. operating in an uncertain environment.
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A sales forecast is an example of an organizational control from the ______ area. A. physical B. informational C. human resources D. financial E. capital
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B. informational
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Which of the following is one of the areas of control for organizations? A. External B. Decentralized C. Ethical D. Cultural E. Competitive
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D. Cultural
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Aurelia was required to take a word processing test as part of her application for an executive assistant position. This control is part of the ______ area. A. human resources B. physical C. financial D. informational E. structural
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A. human resources
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Which of the following is an example of an informational resource control? A. A personality test B. A delivery-tracking system C. A debt-repayment schedule D. A leadership survey E. A competition analysis
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E. A competition analysis
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______ control is an approach to organizational control that is characterized by informal and organic structural arrangements. A. Decentralized B. Functional C. Relational D. Bureaucratic E. Market
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A. Decentralized
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Which of the following is the best example of bureaucratic control? A. Southwest Airlines B. U.S. Army C. General Electric D. Levi Strauss E. Ritz Carlton
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B. U.S. Army
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Tanya manages employees at Anchorage Transport. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of ______ control. A. clan B. market C. decentralized D. bureaucratic E. functional
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D. bureaucratic
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Some managers use ______, which provides four indicators with which organizations can set goals and measure performance. A. the balanced scorecard B. a strategic map C. measurement management D. a strategic scorecard E. evidence-based management
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A. the balanced scorecard
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Which of the following is a perspective of the balanced scorecard? A. Internal weaknesses B. Innovation and learning C. External processes D. Stakeholder satisfaction E. Collaboration and teamwork
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B. Innovation and learning
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Examining how the organization looks to shareholders is part of which balanced scorecard perspectives? A. External perspective B. Customer perspective C. Financial perspective D. Internal business perspective E. Innovation & learning perspective
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C. Financial perspective
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Which balanced scorecard perspectives helps top management's judgment to be better linked to measures of employee actions at lower levels? A. External perspective B. Financial perspective C. Customer perspective D. Internal business perspective E. Innovation & learning perspective
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D. Internal business perspective
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According to Kaplan and Norton, "______ show the cause-and-effect links by which specific improvements create desired outcomes." A. Positioning maps B. Strategy maps C. Multi-dimensional maps D. Customer maps E. Graphical interface maps
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B. Strategy maps
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Which of the following is a mechanism that contributes to a measurement-managed company's success? A. Using mostly "soft" objectives that are not quantifiable B. Measuring activities of all types C. Developing the measurement systems without interference from employees D. Trusting in informal feedback systems E. Developing alignment between individual, unit, and strategic performance
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E. Developing alignment between individual, unit, and strategic performance
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Which of the following is a frequent barrier to effective measurement? A. Communication is bureaucratic. B. Top executives create the organization's strategy. C. The organizational culture overemphasizes teamwork. D. Employees resist new measurement systems. E. The organizational culture allows too much risk taking.
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D. Employees resist new measurement systems.
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A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n) A. standardized budget. B. incremental budget. C. zero-based budget. D. fixed budget. E. tactical budget.
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B. incremental budget.
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One characteristic of incremental budgeting is that it A. allows comparison between multiple units, like labor hours and dollars. B. is flexible to changing environmental demands. C. locks managers into stable spending arrangements. D. allows easy comparison of different departments doing different activities. E. requires more time from managers than zero-based budgeting.
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C. locks managers into stable spending arrangements.
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A budget that allocates resources on the basis of a single estimate of costs is called a(n) ______ budget. A. unitary B. zero-based C. cash D. fixed E. incremental
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D. fixed
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The type of budget that can be adjusted over time for changing environmental conditions is known as a(n) ______ budget. A. variable B. incremental C. zero-based D. operating E. cash
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A. variable
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At Aurora Fencing, orders have significantly exceeded projections, and Samraj, the operations director, has decided to hire for a third shift in the plant. Samraj is clearly operating with the use of a(n) ______ budget. A. zero-based B. incremental C. variable D. fixed E. cash
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C. variable
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A(n) ______ budget projects what an organization will create in goods and services, what financial resources are needed, and what income is expected. A. expense B. revenue C. cash D. operating E. cash flow
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D. operating
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Current assets, fixed assets, and liabilities are all part of an organization's A. capital expenditures budget. B. balance sheet. C. income statement. D. expense budget. E. cash flow statement.
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B. balance sheet.
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Profits or losses incurred by an organization are represented in its A. income statement. B. expense budget. C. ratio analysis. D. capital expenditures budget. E. balance sheet.
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A. income statement.
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______ ratios can help an organization to detect if it has obsolete or excessive inventory on hand. A. Return B. Liquidity C. Debt management D. Asset management E. Activity
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D. Asset management
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ROI is a(n) A. liquidity ratio. B. return ratio. C. cash ratio. D. asset management ratio. E. debt management ratio.
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B. return ratio.
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Which of the following is NOT a characteristic of an external audit? A. Primarily used when management suspects embezzlement B. Performed by CPAs C. Performed by an independent organization D. Verifies that generally accepted accounting principles have been followed E. Verifies the accuracy and fairness of financial statements
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A. Primarily used when management suspects embezzlement
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Which of the following is NOT a principle of Deming management? A. Quality should be aimed at the needs of the consumer. B. Companies should aim at improving the system. C. Improved quality leads to increased market share. D. Quality can be improved on the basis of hard data. E. Companies should determine which workers are to blame for problems.
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E. Companies should determine which workers are to blame for problems.
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Which of the following is part of Deming's PDCA cycle? A. Protect B. Drive C. Apply D. Check E. Decide
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D. Check
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TQM has two core principles: A. employee commitment and customer satisfaction. B. financial health and financial stability. C. people orientation and improvement orientation. D. management and leadership. E. radical innovation and continuous improvement.
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C. people orientation and improvement orientation.
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A team that meets temporarily to solve a particular problem is called a A. continuous improvement team. B. work group. C. self-managed team. D. special-purpose team. E. department.
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D. special-purpose team.
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The process of instituting ongoing small, incremental improvements in all parts of an organization is called A. MBO. B. reengineering. C. radical innovation. D. MBWA. E. continuous improvement.
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E. continuous improvement.
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Chablis Mechanical convened a team to help the organization determine a course of action in the wake of a forest fire that temporarily closed access to its mountain satellite office. This is an example of a A. cross-functional team. B. special-purpose team. C. JIT team. D. self-managed team. E. continuous improvement team.
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B. special-purpose team.
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Employees' knowledge, courtesy, and ability to convey trust and confidence make up which dimension of the RATER scale? A. Reliability B. Assurance C. Tangibles D. Empathy E. Responsiveness
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B. Assurance
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At Pittsburgh Packaging, Melanie pulls six samples an hour from the assembly line to examine them for quality defects. If she finds any, she makes adjustments to various pieces of equipment in her area. Melanie's job involves A. statistical process control. B. benchmarking. C. reduced cycle time. D. feedforward control. E. strategic control.
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A. statistical process control.
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Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to A. ISO 14000. B. restructuring. C. reduced cycle time. D. ISO 9000. E. statistical process control.
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D. ISO 9000.
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Which of the following is NOT a common characteristic of successful control systems? A. Results-oriented B. Realistic C. Encouragement of self-control D. Flexible E. Emphasis on punishment
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E. Emphasis on punishment
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Which kind of organization is most likely to try to exert too much control? A. Clan B. Market C. Bureaucratic D. Decentralized E. Matrix
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C. Bureaucratic
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Before the fall term began, the professors at Littleton University were required to complete a variety of documents, ranging from performance objectives to lists of summer contacts with prospective students. Many professors complained that they would rather spend the time getting ready for their courses. This is an example of which barrier to successful control? A. Overemphasis on one instead of multiple approaches B. Overemphasis on paperwork C. Overemphasis on means instead of ends D. Too much control E. Too much flexibility
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B. Overemphasis on paperwork
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At Bertram Development, employees were asked how the quality of its customer service could best be measured, and management then implemented a survey system based on the feedback. Bertram has overcome which of the following barriers to success of control systems? A. Overemphasis on one instead of multiple approaches B. Overemphasis on paperwork C. Overemphasis on means instead of ends D. Too much control E. Too little employee participation
answer
E. Too little employee participation
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Recruiters for Alperton University were under extreme pressure to meet their objective of a 10% increase in the size of the freshman class. As a result, they admitted many students that were not qualified and who failed to perform in classes. This is an example of which problem associated with control systems? A. Overemphasis on one instead of multiple approaches B. Overemphasis on paperwork C. Overemphasis on means instead of ends D. Too much control E. Too little participation
answer
C. Overemphasis on means instead of ends
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Grandview Casino & Resort requires its casino dealers to have licenses, observes them using closed circuit TV, and requires detailed reports at the end of each shift. This organization has overcome the control system barrier of A. overemphasis on one instead of multiple approaches. B. overemphasis on paperwork. C. overemphasis on means instead of ends. D. too much control. E. too little participation.
answer
A. overemphasis on one instead of multiple approaches.
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