Deck 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness

Question 1

Unlike the ISO 9000 series,the ISO 14000 series identifies standards for environmental performance.

Answer 1

True

Question 2

Except for in rare instances,employees at George's Pro Painting take responsibility for their own work and how it is done,rather than being governed by a rigid set of rules.George's Pro Painting is using decentralized control.

Answer 2

True

Question 3

Twice daily,factory workers at Mountain CopperWorks select random samples from the production runs and test them for quality,rejecting runs if too many samples fall outside a standard range of acceptability.These workers are engaged in statistical process control.

Answer 3

True

Question 4

Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point;only incremental changes in the budget request are reviewed.

Question 5

A balance sheet summarizes an organization's overall financial worth,or its assets and liabilities,at a specific point in time.

Question 6

Bureaucratic control is most appropriate for an organization in which the tasks are explicit and certain.

Question 7

GlobalSatellite,applying TQM,restructured its service call procedures and eliminated some steps involved so that employees can finish each call faster.Global Satellite is attempting to reduce cycle time.

Question 8

Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

Question 9

Which of the following is a primary function of management?

A)communicating
B)globalizing
C)cooperating
D)organizing
E)influencing

Question 10

Productivity equals

A)labor,capital,energy,and materials,divided by goods and services produced.
B)goods and services produced,divided by labor,capital,energy,and materials.
C)labor,energy,and capital,divided by goods,services,and materials.
D)goods and services and energy and materials,divided by labor and capital produced.
E)energy and materials,divided by labor and capital.

Question 11

An income statement summarizes an organization's financial results over a specified period of time,such as a quarter or a year.

Question 12

The control process begins with establishing standards.

Question 13

A principle of Deming management is that quality should be aimed at meeting the needs and expectations of the ultimate user.

Question 14

Which of the following is a one of the seven challenges a manager must deal with in the 21st century?

A)sustainability
B)ethical standards
C)economic stagnation
D)globalization
E)diversity

Question 15

Gina was recently promoted to facilities director at Wholesome Grains.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)Establish a system of measurement.
E)Cut costs.

Question 16

Productivity is defined by the formula of outputs divided by inputs for a specified period of time.

Question 17

Managers can increase overall productivity by increasing the efficiency of all the following except

A)goals.
B)energy.
C)materials.
D)labor.
E)capital.

Question 18

If a manager decreases the efficiency of labor and makes no improvements to the efficiency of capital,an increase in productivity will result.

Question 19

A variable budget can be adjusted over time to accommodate pertinent changes in the environment.

Question 20

Controls allow top management to decentralize decision making at lower levels within the organization.

Question 21

Which of the following is a step in the control process?

A)complete a job redesign
B)evaluate opportunities
C)compare work units to one another
D)implement TQM
E)establish standards

Question 22

Which of the following may be done as corrective action in the control process?

A)establish standards
B)renew standards
C)compare performance to standards
D)align processes with goals
E)evaluate performance and take action

Question 23

Smith Commercial Development has effective control processes,allowing its managers to discover ______ in bookkeeping right away,before a would-be embezzler could seriously affect its business.

A)irregularities and errors
B)a potential merger
C)competence
D)team problems
E)tax breaks

Question 24

A sales forecast is an example of an organizational control from the _____ area.

A)informational
B)physical
C)human resources
D)financial
E)capital

Question 25

All of the following are reasons why performance falls significantly short of the standard except

A)unrealistic standards.
B)changing conditions.
C)insufficient resources.
D)insufficient management attention.
E)unawareness of performance drop.

Question 26

At UPS,delivery ______ vary according to whether a route is urban,suburban,or rural in nature,because conditions vary in each type of route.

A)RATER scales
B)standards
C)ratio analyses
D)PDCA cycles
E)strategy maps

Question 27

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)operational
D)tactical
E)managerial

Question 28

Standards are best measured when they are

A)broad.
B)quantifiable.
C)narrow.
D)efficient.
E)ethical.

Question 29

Which of the following is an example of an informational resource control?

A)a competition analysis
B)a delivery-tracking system
C)a debt-repayment schedule
D)a leadership survey
E)a personality test

Question 30

Britta is trying to measure her salon's productivity during the first quarter.For this period,she should divide _______ by the costs of her staff,loans,materials,and utility bills.

A)the number of clients
B)the average daily receipts
C)her budgeted costs
D)the total salon services and products sold
E)her projected revenue

Question 31

Jimmy's supervisor noticed that he was struggling with the computerized setup for production runs at his new job.The supervisor observed him while he tried it again and gave suggestions for improvement.The supervisor is doing which step of the control process?

A)taking corrective action
B)establishing standards
C)comparing performance to standards
D)measuring performance
E)controlling productivity

Question 32

Which of the following is one of the reasons that control is needed in an organization?

A)to adapt to change and uncertainty
B)to detect opportunities
C)to eliminate the need for teamwork
D)to provide performance feedback
E)to decentralize decision making

Question 33

Which of the following is the best example of bureaucratic control?

A)Southwest Airlines
B)Ritz Carlton
C)Monica's Diner
D)Levi Strauss
E)U.S.Army

Question 34

Typically,operational control is accomplished through reports issued

A)weekly.
B)daily.
C)monthly.
D)annually.
E)randomly.

Question 35

_____ is the amount of acceptable deviation from a standard,determined when the standard was established.

A)Span of exception
B)Breadth control
C)Range of variation
D)Benchmark
E)Zero-based control

Question 36

Which of the following best describes ERP systems?

A)popular recruiting systems that help maximize diversity in the workplace
B)comprehensive systems for identifying and measuring changes in productivity
C)software information systems that integrate all aspects of business,helping managers stay on top of the latest developments
D)training systems for employees that allow self-discovery and correction of weaknesses
E)control systems in which managers are made aware of all deviations from standards

Question 37

______ is defined as establishing goals,monitoring performance,comparing it with goals,and taking corrective action as needed.

A)Measuring
B)Leading
C)Organizing
D)Controlling
E)Planning

Question 38

Kara 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)structural
B)physical
C)financial
D)informational
E)human resources

Question 39

Tactical control is performed mainly by

A)the CEO.
B)top managers.
C)middle managers.
D)first-level managers.
E)team leaders.

Question 40

Kim,a customer service manager,tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2 percent through additional training for her staff.She is engaged in

A)organizing.
B)controlling.
C)measuring.
D)leading.
E)planning.

Question 41

A _____ budget allocates resources on the basis of a single estimate of costs.

A)unitary
B)zero-based
C)cash
D)incremental
E)fixed or static

Question 42

One characteristic of incremental budgeting is that it

A)allows comparison using various units,like labor hours and dollars.
B)is flexible toward changing environmental demands.
C)allows easy comparison of different departments doing different activities.
D)locks managers into stable spending arrangements.
E)requires more time from managers than zero-based budgeting.

Question 43

Current assets,fixed assets,and liabilities are all part of an organization's

A)cash flow statement.
B)capital expenditures budget.
C)income statement.
D)expense budget.
E)balance sheet.

Question 44

TQM's two core principles are

A)employee commitment and customer satisfaction.
B)financial health and financial stability.
C)management and leadership.
D)people orientation and improvement orientation.
E)radical innovation and continuous improvement.

Question 45

At Polar Sportswear,orders have significantly exceeded projections,and Chris,the operations director,has decided to hire for a third shift in the plant.Chris is clearly operating with the use of a(n)______ budget.

A)zero-based
B)incremental
C)cash
D)fixed
E)variable

Question 46

Which balanced scorecard perspective helps top management focus on what the organization must excel at to effectively meet its financial objectives and customers' expectations?

A)operational perspective
B)internal business perspective
C)customer perspective
D)financial perspective
E)innovation and learning perspective

Question 47

According to Kaplan and Norton,_______ maps are "visual representations of a company's critical objectives and the crucial relationships among them that drive organizational performance."

A)strategy
B)positioning
C)multidimensional
D)customer
E)graphic interface

Question 48

Some managers use _____,which provides four indicators with which organizations can set goals and measure performance.

A)a strategic map
B)the balanced scorecard
C)measurement management
D)a strategic scorecard
E)evidence-based management

Question 49

Which of the following areas of control for organizations exerts informal control?

A)structural
B)human resources
C)informational
D)competitive
E)cultural

Question 50

A(n)________ budget that can be adjusted over time for changing environmental conditions.

A)operating
B)incremental
C)zero-based
D)variable or flexible
E)cash

Question 51

TQM is a comprehensive approach dedicated to continuous

A)measurement of quantifiable goals and quick corrections.
B)product innovation and organizational learning,over fast cycles.
C)quality improvement,training,and customer satisfaction.
D)customer input into management strategy and decision making.
E)focus on components of service success: tangibles,questions,and margins.

Question 52

Which of the following is part of Deming's PDCA cycle?

A)check
B)direct
C)apply
D)process
E)decide

Question 53

______ control is an approach to organizational control that is characterized by informal and organic structural arrangements.

A)Relational
B)Functional
C)Decentralized
D)Bureaucratic
E)Market

Question 54

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 determine which workers are to blame for problems.
C)Improved quality leads to increased market share and employment.
D)Quality can be improved on the basis of hard data.
E)Companies should aim at improving the system.

Question 55

Which of the following is not a perspective of the balanced scorecard?

A)internal business
B)external processes
C)financial
D)innovation and learning
E)customer

Question 56

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

A)external perspective
B)customer perspective
C)internal business perspective
D)financial perspective
E)innovation and learning perspective

Question 57

Michele manages employees at Maui Tours and Lodging.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)bureaucratic
B)market
C)decentralized
D)autocratic
E)functional

Question 58

A ______ budget allocates increased or decreased funds to a department by using the last budget period as a reference point.

A)standardized
B)fixed
C)zero-based
D)incremental
E)tactical

Question 59

Which of the following is not characteristic of an external audit?

A)performed by CPAs
B)primarily used when management suspects embezzlement
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

Question 60

A(n)_________ represents the profits or losses incurred by an organization.

A)expense budget
B)income statement
C)ratio analysis
D)capital expenditures budget
E)balance sheet

Question 61

At Phoenix Instruments,Claudia pulls six samples an hour from an assembly line to examine them for quality defects.If she finds any,she makes adjustments to various pieces of equipment in her area.Claudia's job involves

A)feed-forward control.
B)benchmarking.
C)reduced cycle time.
D)statistical process control.
E)strategic control.

Question 62

Which of the following is a characteristic of a successful control system?

A)strategic and results-oriented
B)timely,accurate,and objective
C)realistic,positive,and understandable
D)flexible and encourages self-control
E)inflexible to optimize control

Question 63

Recruiters for Mountainview College were under extreme pressure to increase an enrollment goal by 10 percent.As a result,they admitted many students who were marginally qualified and who performed poorly in classes.This is an example of which problem associated with control systems?

A)overemphasis on means instead of ends
B)overemphasis on paperwork
C)overemphasis on one instead of multiple approaches
D)too much control
E)too little participation

Question 64

Define these terms: financial statement,balance sheet,income statement,and audit.Explain the use of each.
Financial statement: a summary of some aspect of an organization's financial status.The information contained in financial statements is essential in helping managers maintain financial control over the organization.
Balance sheet: a summary of an organization's overall financial worth (assets and liabilities)at a specific point in time.This document helps managers understand how much their business is worth.
Income statement: a summary of an organization's financial results (revenues and expenses)over a specified period of time.This document helps managers determine the profit or loss over the specific period of time.

Question 65

Which of the following is not a purpose of a manager?

A)plan
B)organize
C)lead
D)control
E)increase globalization

Question 66

Before the fall term began,professors at Hillview College were required to fill out numerous forms,including performance objectives,surveys,and lists of their summer contacts with prospective students.Many professors complained that their time would be better spent preparing for their courses.This situation is an example of which barrier to successful control?

A)overemphasis on paperwork
B)overemphasis on one instead of multiple approaches
C)too much control
D)overemphasis on means instead of ends
E)too much flexibility

Question 67

Which of the following is not a financial control?

A)budgets
B)financial statements
C)income statement
D)audits
E)ISO 14000

Question 68

______ is the process of instituting ongoing small,incremental improvements in all parts of an organization.

A)MBO
B)Reengineering
C)Radical innovation
D)Continuous improvement
E)Productivity

Question 69

This question contains two parts;be sure to answer both.First,define productivity and explain why increasing productivity is important.Second,imagine that you are the manager of a large chain grocery store.Suggest at least three ways that you might improve productivity at the store.
Productivity is the ratio of outputs to inputs,or (goods + services)/(labor + capital + materials + energy).It is important to companies because it determines their profitability and survival.It is important to the nation because the higher productivity is,the more available goods and services are to us,and the higher our standard of living.Based on the definition,managers can raise productivity by making substitutions or by increasing the efficiency of any resource (labor,capital,materials,or energy).
Managers can also do the following to improve productivity:

Question 70

Harbor Casino and 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)too much control.
B)overemphasis on paperwork.
C)overemphasis on means instead of ends.
D)overemphasis on one instead of multiple approaches.
E)too little participation.

Question 71

Techniques for improving quality include all of the following except

A)Six Sigma.
B)outsourcing.
C)reduced cycle time.
D)statistical process control.
E)market share.

Question 72

At Panther Lighting Fixtures,employees were asked how the quality of the company's customer service could best be measured,and management then implemented a survey system based on the feedback.The company 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 little employee participation
E)too much control

Question 73

Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to

A)ISO
9000.
B)restructuring.
C)reduced cycle time.
D)the RATER system.
E)statistical process control.

Question 74

This question contains two parts;be sure to answer both.First,explain the two core principles of TQM and the assumptions underlying each.Second,suppose you are the commissioner of your local parks department.Your job is to ensure that your city,town,or county had open park spaces for the residents to enjoy.Apply each of the two core principles to your management of the parks department.
The two core principles are people and improvement orientations.
People orientation: Delivering customer value is most important;people will focus on quality if given empowerment;and TQM requires training,teamwork,and cross-functional efforts.
Improvement orientation: It's less expensive to do it right the first time;it's better to do small improvements all the time;accurate standards must be followed to eliminate small variations;and there must be strong commitment from top management.

Question 75

Which kind of organization is most likely to try to exert too much control?

A)bureaucratic
B)market
C)employee-driven
D)decentralized
E)matrix