Question 1

An online clothing retailer discovered that the majority of the returns it received were the result of incorrect sizing. The retailer then worked with the clothing manufacturing company to improve the accuracy of its sizing patterns. This demonstrates the use of ________ control.

Accepted Answer

Feedback control involves using information about past performance to make improvements. In this case, the retailer used information about returns due to incorrect sizing to work with the manufacturer to improve sizing accuracy.

Question 2

In order to anticipate problems before they arise, managers should develop a system for ________ control.

Accepted Answer

Feedforward control involves taking proactive measures to prevent problems before they occur by anticipating potential issues and implementing strategies to address them in advance.

Question 3

A comprehensive system of rules and SOPs encourages employees to think for themselves.

Accepted Answer

A comprehensive system of rules and SOPs typically provides specific guidelines and procedures, which can limit employees' ability to think independently and creatively.

Question 4

________ is the process by which managers monitor and regulate the efficiency and effectiveness of workers in performing activities necessary to achieve organizational goals.

Accepted Answer

Controlling is the management function that involves monitoring and regulating how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals.

Question 5

A coffee shop uses an online system to engage customers. After each transaction, customers receive a text asking them to rate their experience with either a smiley, neutral, or sad face emoji. This practice is an example of ________ control.

Accepted Answer

This practice is an example of feedback control, as it involves collecting information about customer experiences after the transaction has occurred to improve future service.

Question 6

In concert with quality management programs, ________ controls help monitor the quality of goods or services at each step in the production process to alert managers to problems.

Accepted Answer

Concurrent controls are designed to monitor and adjust processes in real-time, ensuring quality is maintained throughout the production process.

Question 7

A control system must to be flexible in order to be effective.

Accepted Answer

Flexibility in a control system allows it to adapt to changes and disturbances, ensuring it remains effective under varying conditions.

Question 8

Financial information provides managers with sufficient information to measure the four building blocks of competitive advantage.

Accepted Answer

Financial information alone does not provide a complete picture of competitive advantage, which also includes factors like customer satisfaction, innovation, and operational efficiency.

Question 9

Control helps managers build competitive advantage.

Accepted Answer

Control systems allow managers to monitor performance, ensure resources are used efficiently, and align operations with strategic goals, which can lead to a competitive advantage.

Question 10

Leverage ratios measure organizational performance based on how well managers borrow money or use equity to finance operations.

Accepted Answer

Leverage ratios assess how effectively a company uses borrowed funds (debt) and equity to finance its operations, indicating the level of financial risk and performance related to its capital structure.

Question 11

Art's organization just announced that, effective immediately, an entirely new product division will be formed, seeded with functional resources from each existing division. This is an example of evolutionary change.

Accepted Answer

This is an example of revolutionary change, as it involves a significant and rapid restructuring of the organization.

Question 12

A manufacturing company that produces bolts and washers decides to use a new steel supplier. The manufacturing company wants to ensure that the materials from the supplier are delivered on time and within the specifications needed to meet the manufacturing company's product goals. What form of control system could the manufacturing company implement to ensure its needs are met?

Accepted Answer

Feedforward control is a proactive approach that anticipates problems and ensures that inputs meet the necessary standards before the production process begins, which is suitable for ensuring timely and specification-compliant deliveries from a new supplier.

Question 13

In a highly programmed work environment, it is more challenging for managers to measure outputs or behavior.

Accepted Answer

In a highly programmed work environment, tasks and processes are standardized, making it easier for managers to measure outputs and behavior due to clear expectations and metrics.

Question 14

To ensure the right clerk is selected for an opening, a law firm reviews all résumés electronically and assesses candidates through several interviews. This is an example of ________ control.

Accepted Answer

Feedforward control involves taking proactive measures to ensure that the right conditions are in place before a process begins, such as reviewing résumés and conducting interviews to select the right candidate.

Question 15

Behaviors are generally easier to measure than outputs because they are more tangible and objective.

Accepted Answer

Behaviors are often subjective and can be difficult to measure consistently, whereas outputs are typically more tangible and quantifiable.

Question 16

During the conversion stage, managers use ________ control to recognize when problems are arising.

Accepted Answer

Concurrent control is used during the conversion stage to monitor ongoing activities and processes to ensure that problems are identified and addressed as they occur.

Question 17

________ systems are the formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plan.

Accepted Answer

Control systems are designed to monitor, evaluate, and provide feedback to ensure that an organization's strategy and structure are functioning as intended.

Question 18

When working with suppliers, TechCo provides detailed product specifications to help control the quality of inputs it will receive. This is an example of ________ control.

Accepted Answer

Feedforward control involves taking proactive measures to ensure quality by setting standards and specifications before the process begins, as TechCo does by providing detailed product specifications to suppliers.

Question 19

Clan control relies on values and norms to keep organization members goal-directed.

Accepted Answer

Clan control uses shared values, beliefs, and norms to guide behavior and align members with organizational goals.

Question 20

An organization is said to be highly leveraged if it uses more debt than equity to finance its ongoing operations.

Accepted Answer

A highly leveraged organization relies more on borrowed funds (debt) than on its own funds (equity) to finance its operations.

Quiz 11: Organizational Control and Change