MGMT Chapter 16 practice quiz – Flashcards

Which of the following statements best describes economic value added (EVA)? a. It is the amount that is required to be paid in order to implement a new control system. b. It is negative when company profits exceed the cost of capital in a given year. c. It is the amount by which one department of an organization benefitted at the cost of another. d. It is the total revenue that an organization makes in a given year. e. It is the amount by which profits exceed the cost of capital in a given year.

_____ is the extent to which it is possible to implement each step in the control process. a. Cybernetic feasibility b. Allocated quantity c. Reserve capacity d. Dimensional stability e. Strategic agility

_____ costs are the costs associated with implementing or monitoring control. a. Heuristic b. Benchmarked c. Retrieval d. Divestment e. Regulation

_____ is a performance assessment in which companies identify which customers are leaving and the rate at which customers are leaving. a. Customer defection b. Customer retention c. Customer acquisition d. Customer incentivization e. Customer satisfaction

Which of the following is NOT a component of the cybernetic control process? a. Analyze deviations b. Set corporate objectives c. Measure performance d. Develop and implement program for corrective action e. Compare with standards

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. a. self-control b. normative control c. objective control d. concertive control e. input control

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? a. Suboptimization b. Synergy c. Feedforward control d. Control gain e. Cybernetic feasibility

_____ is a method of gathering information about performance deficiencies after they occur. a. Concurrent control b. Preventive control c. Preemptive control d. Predictive control e. Feedback control

Which of the following is NOT one of the four perspectives measured in the balanced scorecard approach to control? a. The bureaucratic perspective b. The customer perspective c. The innovation and learning perspective d. The internal business perspective e. The financial perspective

Which of the following is NOT a control method? a. Feedback control b. Self-dealing c. Feedforward control d. Objective control e. Feedback loop analysis

_____ 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. a. Bureaucratic b. Objective c. Administrative d. Concertive e. Normative

The basic control process of business begins with _____. a. the establishment of clear standards of performance b. the comparison of actual performance to expected performance c. identifying the source of the performance-hampering problem d. the achievement of the organization's goals e. taking corrective action, if needed, to repair performance deficiencies

In the context of control measures, which of the following approaches to control monitors inputs rather than outputs? a. Production control b. Feedforward control c. Reactive control d. Simultaneous control e. Concurrent control

The _____ is the measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning. a. cash flow analysis b. SWOT analysis c. cognitive mapping d. financial ratio analysis e. balanced scorecard

_____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part. a. Optimization b. Process gain c. Organizational balance d. Synergy e. Suboptimization

Process modification, material/product substitution, and good housekeeping are the three strategies used for _____. a. waste incineration b. waste treatment and disposal c. waste prevention and reduction d. waste toxicity analysis e. waste reuse

_____ is the process of determining how well other companies (though not just competitors) perform business functions or tasks. a. Deskilling b. Downsizing c. Rebranding d. Divesting e. Benchmarking

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. a. predictive b. parallel c. concurrent d. presumptive e. feedback

_____ involves the regulation of workers' behavior and decisions through work group values and beliefs. a. Concertive control b. Input control c. Objective control d. Output control e. Normative control

_____ 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. a. Organization b. Coordination c. Planning d. Staffing e. Control

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 _____. a. concurrent control b. feedback control c. dynamic control d. predictive control e. synchronous control

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 _____. a. hands-off control b. self-control c. bureaucratic control d. democratic control e. objective control

Normative controls are created by: a. screening potential applicants based on their technical skills. b. placing minimal emphasis on rules and regulations. c. screening potential applicants based on their leadership skills. d. screening potential applicants based on their beliefs and attitudes. e. evaluating measurable employee outputs.

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 _____. a. standards b. measurements c. rules d. indicators e. benchmarks

_____ is the situation in which behavior and work procedures do not conform to standards. a. Control loss b. Cybernetic feasibility c. Process gain d. Restandardization e. Projection deviation