Deck 12: Organizational Controls: People, processes, quality, and Results

Question 1

The Sarbanes-Oxley Act applies only to privately owned companies.

Answer 1

False

Question 2

Total Quality Management can only be implemented in manufacturing industries.

Answer 2

False

Question 3

The Lean Management approach focuses on manufacturing and logistics.

Answer 3

True

Question 4

The major goal of ISO 9000 is to improve environmental responsibility in an organization.

Question 5

A cash flow analysis is a snapshot of an organization's assets and liabilities at a given time.

Question 6

Six Sigma's primary focus is to improve an organization's ability to be creative and innovative.

Question 7

The human relations movement at the beginning of the 20th century emphasized production efficiency in the workplace.

Question 8

Mayo's Hawthorne studies proved that the level of lighting had a profound effect on worker productivity.

Question 9

CRM focuses on making sure that customers feel that their concerns are being heard and addressed.

Question 10

The first step in the control process is to compare performance to established standards and metrics.

Question 11

Frederick Taylor consulted workers on the most efficient way to carry out work.

Question 12

Beyond Budgeting focuses on decentralizing the decision-making process in an organization.

Question 13

Controls are used to monitor and regulate how well an organization meets its goals.

Question 14

The primary participants of corporate governance are the board of directors,management,and selected stakeholders.

Question 15

Mary Parker Follett stressed that managers should have "power with workers" not "power over workers."

Question 16

Objective control often relies on workers following SOPs.

Question 17

Bureaucratic control systems have been shown to encourage innovation.

Question 18

Feed-forward control anticipates problems before they occur.

Question 19

MBO encourages employees to participate in setting their own goals.

Question 20

Business Process Reengineering is an incremental approach to improving organizational performance.

Question 21

The Hawthorne studies were first designed to measure the relationship between productivity and ________.

A) management style
B) physical conditions
C) number of hours worked
D) employee IQ

Question 22

Mary Parker Follett was the first management researcher to place importance on ________.

A) efficiency
B) effectiveness
C) employee empowerment
D) employee rewards

Question 23

Bureaucratic control systems typically lack ________.

A) a common value system
B) informal social rules
C) ID cards
D) innovation

Question 24

One of Frederick W.Taylor's key ideas was to ________.

A) break down work tasks into discrete actions
B) consider work tasks as a whole rather than as discrete actions
C) focus on the skill of the worker
D) make sure that workers got adequate breaks from their labor

Question 25

Which of the following is the most hierarchical type of control system?

A) bureaucratic
B) normative
C) output
D) behavior

Question 26

The practice of scientific management is focused on ________.

A) customer relations
B) efficiency
C) ethics
D) employee motivation

Question 27

The Hawthorne studies found that workers were more productive if they were ________.

A) well paid
B) made to feel special
C) pressured by peers
D) threatened with punishment

Question 28

Karl Marx claimed that workers found their work meaningless because they ________.

A) were not motivated to excel
B) were poorly paid and worked long hours
C) were not organized
D) had no control over their situation

Question 29

Mary Parker Follett felt that power in an organization should be given out according to a person's ________.

A) seniority
B) position in the organization
C) knowledge and ability
D) interpersonal skill

Question 30

Which slogan is the best fit for Frederick W.Taylor's research?

A) Efficiency has its limits.
B) The customer is always right.
C) Efficiency above all else.
D) Empower the worker.

Question 31

Bureaucratic control systems focus on ________.

A) creativity and innovation
B) rules and standards
C) empowering employees
D) self-directed employees

Question 32

Frederick W.Taylor was primarily concerned with ________.

A) worker morale
B) efficiency
C) profit
D) worker motivation

Question 33

Which type of control system does NOT focus on observables?

A) bureaucratic
B) normative
C) behavior
D) output

Question 34

According to the book,the best types of controls focus on ________.

A) quality, employees, and ethics
B) customers, process, and profits
C) people, process, and results
D) process, people, and profits

Question 35

Mary Parker Follett thought that ________ were best equipped to solve problems.

A) experts
B) managers
C) the people who have the most skill and intelligence
D) the people who are closest to the problem

Question 36

Employees tend to perform best in a ________ work culture.

A) strict
B) resonant
C) lenient
D) command-and-control

Question 37

Frederick W.Taylor's approach to management was scientific because it used techniques that were ________.

A) based on observation and experimentation
B) based on physical laws
C) developed in laboratories
D) based on time and motion

Question 38

Command-and-control approaches to management work best in ________ situations.

A) life-threatening
B) informal
C) low-pressure
D) self-directed

Question 39

The Hawthorne studies established the importance of the ________.

A) relationship between workers and their peers
B) relationship between managers and employees
C) need for discipline in the workplace
D) need for clear goals for both workers and managers

Question 40

Mary Parker Follett suggested that command-and-control approaches to management were ________.

A) ineffective in life-threatening situations
B) more effective than resonant approaches
C) effective across all industries
D) less effective than resonant approaches

Question 41

Which kind of accounting control itemizes revenue and expenses?

A) budget
B) cash flow analysis
C) profit and loss statement
D) balance sheet

Question 42

The kaizen principle of Total Quality Management focuses on ________.

A) customer relationships
B) cultural norms
C) continuous process improvement
D) financial accountability

Question 43

Output control relies on ________ to keep employees motivated.

A) coercion
B) incentives and rewards
C) punishment
D) motivation rules

Question 44

A knowledge management system falls under which of Simons' levers of control?

A) boundary systems
B) belief systems
C) diagnostic control systems
D) interactive control systems

Question 45

Behavior control relies on ________ to control employees.

A) organizational norms
B) SOPs
C) the employee's own self-control
D) rewards and punishment

Question 46

Which of the following is a qualitative metric for an employee at a manufacturing firm?

A) complete two products each hour
B) take no more than six minutes to assemble one component
C) provide products that have excellent fit and finish
D) make fewer than eight mistakes per week

Question 47

Which type of control attempts to anticipate problems before they occur?

A) feedback
B) feed-forward
C) concurrent
D) recurrent

Question 48

Sarbanes-Oxley focuses on ________.

A) environmental protection
B) business ethics
C) workplace safety
D) quality measures

Question 49

Which kind of accounting control provides a snapshot of an organization's assets and liabilities at a given time?

A) budget
B) cash flow analysis
C) profit and loss statement
D) balance sheet

Question 50

CRM focuses on ________.

A) maximizing the number of transactions per unit of time
B) maximizing customer loyalty
C) minimizing product defects
D) having the lowest prices in the market

Question 51

Measures that define quality and efficiency criteria are called ________.

A) controls and levers
B) commands and controls
C) standards and metrics
D) feedback mechanisms

Question 52

Which of the following does a government agency typically NOT control?

A) product pricing
B) employee rights
C) whether a product is "certified organic"
D) safety in the workplace

Question 53

The Sarbanes-Oxley Act established new standards for all of the following EXCEPT:

A) executive pay.
B) accounting.
C) company board responsibilities.
D) manager responsibilities.

Question 54

Bureaucratic control systems achieve organizational outcomes by focusing on ________.

A) SOPs
B) inputs
C) morale
D) work conditions

Question 55

Which type of control provides corrective action in "real time?"

A) feedback
B) feed-forward
C) concurrent
D) recurrent

Question 56

Which of the following is NOT one of Simons' levers of control systems?

A) boundary systems
B) process improvement systems
C) diagnostic control systems
D) interactive control systems

Question 57

Which type of control system focuses on using organizational values to guide employee behavior?

A) bureaucratic
B) output
C) normative
D) behavioral

Question 58

Which type of control enables a company to stay "ahead of the game"?

A) concurrent
B) feed-forward
C) normative
D) output

Question 59

Opponents of Sarbanes-Oxley claim that it ________.

A) increases the likelihood of accounting scandals
B) decreases executive pay
C) decreases America's competitive edge
D) decreases America's world image

Question 60

A company's board of directors usually includes ________.

A) only present employees of the company
B) some individuals who are not employed by the company
C) only people who wrote the corporate charter
D) executives of the company only

Question 61

Pam is preparing her company's annual review process.This year,she has decided to gather information from each employee's supervisor,colleagues,and even some client contacts.What type of review is Pam planning?

A) peer-to-peer
B) 360-degree
C) supportive
D) balanced scorecard

Question 62

Gloria has just been named CEO of a struggling athletic shoe company.Some employees are excited for the future.Others are nervous because Gloria favors a fundamental rethinking of the company's business.Gloria is clearly an advocate of ________.

A) Six Sigma
B) kaizen
C) BPR
D) TQM

Question 63

Suki's dress pattern business has grown quickly.She meets with advisors to plan the company's next phase,and tells them she's likely to use the Beyond Budgeting control system.One thing that attracted Suki to the system is that it focuses on ________.

A) tightly controlling employees
B) eliminating redundancy
C) empowering employees
D) centralizing decision making

Question 64

Which of the following is NOT related to business process reengineering?

A) radical changes
B) customer focus
C) systems redesign
D) incremental approach

Question 65

Annie dreads this time of year.She has to anticipate her department's needs for the next six months and allocate financial resources to cover them.What type of financial control is Annie preparing?

A) cash flow analysis
B) budget
C) balance sheet
D) profit and loss statement

Question 66

What are the primary goals of Six Sigma?

A) reduce costs and increase profits
B) reduce costs and improve customer relationships
C) increase profits and empower employees
D) increase sustainability and increase profits

Question 67

Juan believes that managing a business comes down to one simple thing: transforming inputs into outputs.Which term best describes Juan's philosophy?

A) customer relations management
B) scientific management
C) operations management
D) management by objectives

Question 68

When Kai was laid off from her job,part of her felt relieved to be free of such a tightly controlled,top-down environment.One of her criteria for considering new employers will be organizations that promote a strong culture of empowering employees.Clearly Kai responds best to ________.

A) levers of control
B) behavior control
C) output control
D) normative control

Question 69

Which of the following is NOT one of the adaptability principles of the Beyond Budgeting model?

A) reward teams for successes
B) make strategy an inclusive process
C) rethink the core business
D) use resources as needed

Question 70

Kamal has reviewed the monthly reports for his drug manufacturing facility.The group missed production targets on all but three days.Tomorrow he will gather employees to share strategies to exceed the targets next month.The meeting is which step in the control process?

A) creating standards and metrics
B) measuring performance
C) taking corrective action
D) comparing performance to standards

Question 71

Why does a command-and-control approach to management work well in the military but not in a traditional business?

A) Command-and-control works well only in close-knit organizations.
B) Command-and-control works most effectively in life-threatening situations.
C) Command-and-control works best when employees are highly empowered.
D) Command-and-control works well only in informal organizations.

Question 72

As an internal consultant in her company,Marianne employs a specific sequence of quality management methods to help departments reduce their costs.What is Marianne implementing?

A) Total Quality Management
B) ISO 9001
C) Lean Management
D) Six Sigma

Question 73

Pham is a stickler for accountability,so he truly enjoys his job.He travels around the country doing formal reviews of companies to ensure that they have accurately managed and reported processes according to established guidelines.What does Pham do for work?

A) conduct audits
B) prepare performance appraisals
C) develop standards and metrics
D) prepare cash flow analyses

Question 74

Mike is planning to expand his business and invest in several new Taco Giant trucks.To qualify for a loan,the bank wants to know the net income of Mike's business.What kind of document should Mike provide?

A) cash flow analysis
B) balance sheet
C) profit and loss statement
D) budget

Question 75

Vito believes his pizzeria can gain competitive advantage by offering the fastest delivery in town.After researching delivery-time benchmarks,he has asked his drivers to track the amount of time between receiving an order and delivering it for the next month.What step of the control process is Vito currently implementing?

A) creating standards and metrics
B) measuring performance
C) comparing performance to standards
D) taking corrective action

Question 76

Which of the following is NOT key to Total Quality Management?

A) customer focus
B) large-scale redesign
C) incremental improvement
D) employee involvement

Question 77

Which of the following is focused on environmental concerns?

A) lean management
B) TQM
C) ISO 9000
D) ISO 14000

Question 78

As a highly-paid business consultant,Carlos tells his clients that they should strive for improvement measured in multiples not fractions.What approach does Carlos likely recommend to his clients?

A) Total Quality Management
B) scientific management
C) Six Sigma
D) Business Process Reengineering

Question 79

Which of the following encourages employees to set their own performance goals?

A) MBO
B) TQM
C) CRM
D) lean management

Question 80

This week Tomas is conducting a series of quality circles at work.He will lead employees in discussions to explore process-based solutions for quality problems.What control approach is Tomas using?

A) Total Quality Management
B) Business Process Reengineering
C) Six Sigma
D) Lean Management