Deck 10: Managerial Controls

Question 1

How do control systems support delegating?

A)They enable greater task clarity.
B)They motivate employees.
C)They lead to greater managerial authority.
D)They enable effective feedback regarding employee performance.
E)All the above.

Answer 1

D

Question 2

'Controlling' assures that goals and plans are on target.

Answer 2

True

Question 3

Scenario-based questions: An Effective Control
Barry's, a popular family restaurant, decided they needed to implement a more effective control process.They were losing market share, their prices seemed uncompetitive with other restaurants and employee work standards were unpredictable and inconsistent.They needed some help with developing this process, so they called HyperJob, a management consulting firm, to assist them with this development.
Refer to An Effective Control (Scenario).Barry's management team learned that they need to use the process of ________ to monitor, compare and correct work performance.

A)planning
B)controlling
C)managing
D)leading
E)organising

Answer 3

B

Question 4

'Standards' are created during the ________ process.

A)leading
B)measuring
C)planning
D)controlling
E)organising

Question 5

'Leadership' is one of the functions of controlling.

Question 6

Controls provide a critical link back to what organisational function?

A)manufacturing design
B)directing
C)employee selection
D)organisational culture
E)planning

Question 7

In the control process, to what factor is actual performance compared in order to properly assess the situation?

A)desired standards
B)competitors' outcomes
C)last month's efforts
D)last year's performance
E)management opinion

Question 8

Of the following, which is NOT a reason why control systems are important?

A)Controlling activities provide the critical link back to planning.
B)Control mechanisms support employee empowerment.
C)Controls help protect the organisation against threats.
D)Controls guarantee goal attainment.
E)Controls provide a way to compare current status with goals and objectives.

Question 9

Managers should be involved in the control function even if things are going as planned.

Question 10

'Structure' is part of controlling.

Question 11

In a short essay, discuss the reasons that 'control' is important in the planning process.

Question 12

Standards are created during the 'organising process'.

Question 13

What managers should be involved in the control process?

A)all managers
B)upper management
C)systems managers
D)first-line managers
E)middle managers

Question 14

Which of the following terms is associated with the definition of 'control'?

A)communication
B)motivation
C)personality
D)high tech
E)monitoring

Question 15

Scenario-based questions: An Effective Control
Barry's, a popular family restaurant, decided they needed to implement a more effective control process.They were losing market share, their prices seemed uncompetitive with other restaurants and employee work standards were unpredictable and inconsistent.They needed some help with developing this process, so they called HyperJob, a management consulting firm, to assist them with this development.
Refer to An Effective Control (Scenario).The HyperJob consultant told Barry's management team that the control process was comprised of ALL BUT which of the following factors?

A)standards
B)comparisons
C)goals
D)action
E)measurements

Question 16

In reality, management is an ongoing process and controlling activities provide the critical link back to planning.

Question 17

'Measurements' are part of controlling.

Question 18

Which of the following activities is part of 'controlling'?

A)defining standards
B)setting objectives
C)developing an effective structure
D)diagnosing individual and group behaviour
E)detailing communication measures

Question 19

An effective control system will ensure that activities lead to attainment of the organisation's goals.

Question 20

'Objectives' are set as part of the controlling process.

Question 21

What source of information used to measure performance provides information that is NOT filtered through others?

A)statistical reports
B)oral reports
C)personal observation
D)standardised tests
E)written reports

Question 22

The first step in the control process is comparing actual performance against a standard.

Question 23

In the control process, which step follows 'measuring actual performance'?

A)comparing actual performance against a standard
B)logging actual performance
C)obtaining employee input to performance gaps
D)checking performance measurement for reliability
E)establishing standards

Question 24

Revising unrealistically high standards is one method of managerial action in the control process.

Question 25

The control process is a three-step process that includes unfreezing the system, changing the system and refreezing the system.

Question 26

Deviations that exceed the range of variation need the manager's attention.

Question 27

Personal observation is one method for measuring actual performance.

Question 28

According to the textbook, which of the following is the first step in control?

A)measuring actual performance
B)taking managerial action
C)comparing actual against the standard
D)changing the standard
E)measuring employee satisfaction

Question 29

What is the final step in the control process?

A)benchmarking standards with a competitor
B)rewarding/punishing employee performance
C)adjusting measurement standards
D)re-engineering the process
E)taking managerial action

Question 30

Of the following, which is NOT a common source of information used by managers to measure performance?

A)standardised tests
B)statistical reports
C)oral reports
D)personal observation
E)written reports

Question 31

________ is (are)an effective information source for showing relationships, but may ignore subjective factors.

A)Statistical reports
B)Oral reports
C)Management by walking around
D)Written reports
E)Personal observation

Question 32

The control process is essentially a continuous flow between measuring, comparing and managerial action.

Question 33

Doing nothing is NOT an acceptable managerial action in the control process.

Question 34

Basic corrective action is correcting an activity at once in order to get performance back on track.

Question 35

The 'range of variation' is the acceptable parameters of variance between actual performance and the ideal.

Question 36

All of the following control measures would come from statistical reports EXCEPT ________.

A)percentage of market held
B)average dollar per sale
C)salespersons' ability to put themselves in the customers' shoes
D)number of customer visits per salesperson
E)number of customer impressions per advertising medium

Question 37

Which of the following is the best way to allow for verbal and non-verbal feedback?

A)statistical reports
B)personal observation
C)oral reports
D)written reports
E)standardised tests

Question 38

To get first hand, intimate knowledge of actual work activities, managers might use ________.

A)oral reports
B)statistical reports
C)written reports
D)personal observation
E)media reports

Question 39

What information source used to measure performance has the disadvantages of being subject to personal bias and consuming a lot of time?

A)written reports
B)standardised tests
C)personal observation
D)statistical reports
E)oral reports

Question 40

What we measure tends to be more critical to the control process than how we measure.

Question 41

'Performance' is the end result of an activity.

Question 42

In the control process, if employees are constantly NOT meeting their sales quotas, what managerial action may be warranted?

A)take immediate corrective action
B)lower the standard
C)fire the employees
D)increase the range of variation
E)retrain the employees, but never lower the standard

Question 43

In the control process, what type of corrective action asks questions of 'why' and 'how' performance has deviated?

A)basic corrective action
B)planned corrective action
C)cognitive corrective action
D)strategic corrective action
E)immediate corrective action

Question 44

In a short essay, list and discuss the three separate and distinct steps in the control process.

Question 45

If the source of performance variation is unsatisfactory work, according to the textbook, which of the following is NOT considered a corrective action?

A)changing the payment structure
B)reprehending employees
C)disciplinary action
D)keeping the status quo
E)training programs

Question 46

________ is (are)considered slow, are easy to file and reference, and provide greater comprehensiveness and conciseness than oral reports.

A)Statistical reports
B)Written reports
C)Personal observation
D)Word-of-mouth reports
E)Standardised tests

Question 47

What type of information source allows for feedback and is fast, but historically has a problem of being unable to document information for later reference?

A)written reports
B)standardised tests
C)statistical reports
D)personal observation
E)oral reports

Question 48

Which of the following is an accurate statement concerning utilisation of different sources of information for performance measurement?

A)Managers should use as many as three different methods when possible.
B)Statistical reports are the single most effective method.
C)It is not advised to utilise oral reports and personal observation as dual methods.
D)In combination, personal observation and written reports are considered superior to other methods.
E)Managers use a combination of approaches because it increases the probability of getting reliable information.

Question 49

Scenario-based questions: An Effective Control
Barry's, a popular family restaurant, decided they needed to implement a more effective control process.They were losing market share, their prices seemed uncompetitive with other restaurants and employee work standards were unpredictable and inconsistent.They needed some help with developing this process, so they called HyperJob, a management-consulting firm, to assist them with this development.
Refer to An Effective Control (Scenario).Important to developing a good control process for Barry's was learning about ________, or acceptable parameters of variance between actual performance and the standard.

A)range of variation
B)range of deviation
C)objective tolerance
D)goal tolerance
E)tolerance range

Question 50

In a short essay, list the four common sources of information frequently used by managers to measure actual performance, including the advantages and disadvantages of each source of information.

Question 51

In the control process, if Bega was consistently selling more cheese than was predicted, what type of managerial action would be warranted?

A)decrease the range of variation
B)revise the standard
C)immediate corrective action
D)increase the range of variation
E)basic corrective action

Question 52

The ________ step determines the degree of variation between actual performance and the standard.

A)directing
B)objective
C)validity
D)reliability
E)comparing

Question 53

What guides managerial decisions in designing strategies and work activities and in coordinating the work of employees is how well the organisation meets its goals.

Question 54

In the control process, when a manager cannot find an objective and measurable performance indicator, he/she should ________.

A)use the most appropriate objective indicator
B)use an objective indicator, but measure it several times to ensure reliability
C)use a subjective indicator
D)ignore the control function all together
E)not measure the factor

Question 55

Which of the following is NOT an example of what can be measured in the control process?

A)personal observation
B)defects
C)absenteeism
D)employee satisfaction
E)turnover

Question 56

Regarding the control process, what is measured is ________ than how we measure it.

A)equally important
B)much less important
C)usually more important
D)less important
E)five times more important

Question 57

The most frequently used organisational performance measures include liquidity, profitability, leverage and activity ratios.

Question 58

What is the risk in taking immediate corrective action?

A)It lowers the standards.
B)It does not affect performance.
C)It is time-consuming.
D)It does not pinpoint and correct the causes of variance.
E)It prevents managers from perpetually 'putting out fires'.

Question 59

Scenario-based questions: An Effective Control
Barry's, a popular family restaurant, decided they needed to implement a more effective control process.They were losing market share, their prices seemed uncompetitive with other restaurants and employee work standards were unpredictable and inconsistent.They needed some help with developing this process, so they called HyperJob, a management-consulting firm, to assist them with this development.
Refer to An Effective Control (Scenario).Sometimes Barry's management discovered that they had set goals too high for their employees to reach and had to revise them, otherwise known as ________.

A)changing the goals
B)basic corrective action
C)changing the processes
D)changing the standard
E)immediate corrective action

Question 60

Scenario-based questions: An Effective Control
Barry's, a popular family restaurant, decided they needed to implement a more effective control process.They were losing market share, their prices seemed uncompetitive with other restaurants and employee work standards were unpredictable and inconsistent.They needed some help with developing this process, so they called HyperJob, a management-consulting firm, to assist them with this development.
Refer to An Effective Control (Scenario).Barry's found that they had to make some changes with fundamental processes.Learning about ________ or determining how and why performance has deviated and correcting the source of deviation was an important step.

A)basic corrective action
B)changing the goals
C)immediate corrective action
D)changing the standard
E)changing the processes

Question 61

Which of the following is NOT mentioned in the text as an important reason for measuring organisational performance?

A)increased ability to capture customer value
B)better asset management
C)impact on organisational reputation
D)higher debt/equity ratios
E)improved measures of organisational knowledge

Question 62

________ is a measure of how appropriate organisational goals are and how well an organisation is achieving those goals.

A)Situational effectiveness
B)Organisational effectiveness
C)Competitor analysis
D)Organisational strategy
E)Environmental scanning

Question 63

Which of the following is NOT part of the five-point bottom line?

A)economic prosperity
B)environmental sustainability
C)cultural harmony
D)social responsibility
E)spiritual validity

Question 64

________ management is the process of acquiring, managing, renewing and disposing of assets as needed.

A)Sales
B)Debt
C)Liability
D)Asset
E)Capital

Question 65

The most frequently used organisational performance measures include all of the following EXCEPT ________.

A)situational analysis
B)organisational productivity
C)organisational effectiveness
D)industry rankings
E)both A and C

Question 66

________ is the overall output of goods or services produced divided by the inputs needed to generate that output.

A)Factoring
B)Forfeiting
C)Correlation
D)Productivity
E)Output index

Question 67

Scenario-based questions: The Industry Leader
Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance.
Refer to The Industry Leader (Scenario).Beth, a senior staff member at the meeting, asked if there was any sort of correlation between an organisation's financial performance and its reputation.Frank replied that there is ________ correlation between the financial performance of an organisation and its reputation.

A)a weak
B)a strong negative
C)no
D)a strong positive
E)no relative

Question 68

The Fortune 500 companies are determined by ________.

A)answers of randomly selected employees
B)biggest listed enterprises
C)financial results
D)fastest-growing small and medium-size businesses
E)top 15 franchise companies based on an annual survey of franchisees

Question 69

Which of the following statements is NOT correct about organisational performance?

A)It compares actual performance to standards.
B)It guides managerial decisions in designing strategies.
C)It measures the appropriateness of organisational goals.
D)It measures how well the organisation is achieving its goals.
E)It is the bottom line for managers.

Question 70

Managers measure and control organisation performance because it leads to ________.

A)better asset management
B)improved organisation knowledge
C)better customer value
D)both A and B
E)A, B and C

Question 71

Scenario-based questions: The Industry Leader
Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance.
Refer to The Industry Leader (Scenario).In order to clarify the importance of measuring organisational performance, Frank stated that ________ management is the process of acquiring, managing, renewing and disposing of assets as needed.

A)liability
B)capital
C)asset
D)sales
E)debt

Question 72

The accumulated end results of all the organisation's work activities are called ________.

A)organisational performance
B)organisational planning
C)environmental scanning
D)goal attainment
E)scenario planning

Question 73

In order to increase the ratio of outputs to inputs, a manager would have to ________.

A)decrease the selling price
B)increase productivity
C)review the organisations goals
D)increase the cost of the input
E)hire additional employees

Question 74

Scenario-based questions: The Industry Leader
Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance.
Refer to The Industry Leader (Scenario).Before he begins his discussion, Frank defines ________ as the accumulated end results of all the organisation's work processes and activities.

A)environmental scanning
B)scenario planning
C)organisational performance
D)organisational planning
E)demographic planning

Question 75

Scenario-based questions: The Industry Leader
Frank, the new Managing Director for Cooper-Smith Real Estate, is working hard to turn around the formerly successful real estate business.His goal is to once again make Cooper-Smith a leader in the industry.Frank is currently at a meeting with senior staff and is informing them about measuring the company's performance.
Refer to The Industry Leader (Scenario).Bob, one of the senior managers, was confused as to why measuring organisational performance was important, as sales were increasing.Frank replied that it is important to measure and control organisational performance because it leads to all of the following EXCEPT ________.

A)a higher debt/equity ratio
B)improved measures of organisational knowledge
C)a positive impact on organisational reputation
D)better asset management
E)increased ability to capture customer value

Question 76

________ is a measure of how appropriate organisational goals are and how well an organisation is achieving those goals.

A)Operational analysis
B)Competitor analysis
C)Environmental scanning
D)Organisational effectiveness
E)Situational effectiveness

Question 77

The Australian Business Review Weekly: BRW 1000 Top Performing organisations are determined by ________.

A)customer service
B)employee satisfaction
C)biggest listed by revenue
D)product quality
E)fastest growing by revenue growth

Question 78

________ is measured by the sales revenue an organisation receives when goods or services are sold.

A)Input
B)Output
C)Surplus
D)Quality
E)Effectiveness

Question 79

The easiest way to increase the ratio of outputs to inputs would be to ________.

A)decrease the selling price of outputs
B)increase the selling price of outputs
C)decrease the amount of inputs
D)increase the cost of the input
E)hire additional employees

Question 80

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

A)Input
B)Variable costs
C)Quality
D)Effectiveness
E)Efficiency