Question 1

A company is said to lack control when there is a(n) ________, that is the firm's expectations are not established in writing.
A) inadequacy of ethics in the culture
B) "shoot the messenger" management
C) lax top management
D) absence of policies
E) lack of periodic reviews

Accepted Answer

Absence of policies means that there are no written guidelines or expectations for employees to follow, thus indicating a lack of control in the company.

Question 2

________ control is based on the norms, values, shared goals, and trust among group members.
A) Clan
B) Feedback
C) Concurrent
D) Feedforward
E) Market

Accepted Answer

Clan control is the type of control that relies on shared values, norms, and trust among group members. It is particularly effective in organizations that have a strong culture, where employees share similar values and beliefs. In such environments, employees are more likely to act in ways that are consistent with the organization's goals and values, which serves as a form of control. Unlike market control, clan control is not based on competition or financial incentives but on the intrinsic motivation of individuals to be part of a group with shared values and beliefs. Therefore, the best choice for this question is A) Clan.

Question 3

Clan control is necessary when members of an organization lack common values, goals, and trust.

Accepted Answer

Clan control is most effective when members of an organization share common values, goals, and trust, as it relies on shared norms and culture to guide behavior rather than formal rules and procedures.

Question 4

Bureaucratic control
A) does not assume that the interests of the organization and individuals naturally diverge.
B) is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.
C) involves the use of pricing mechanisms and exchange relationships to regulate activities within organizations.
D) is based on interpersonal processes of organization culture, leadership, and groups and teams.
E) is the use of rules, standards, regulations, hierarchy, and legitimate authority to guide performance.

Accepted Answer

Bureaucratic control is based on the use of rules, standards, regulations, hierarchy, and legitimate authority to guide performance. This approach assumes that employees may not necessarily share the values, expectations, and goals of the organization and therefore require a clear structure and system of control to ensure compliance and accountability. It is not based on interpersonal processes, pricing mechanisms, or assumptions of shared interests.

Question 5

Market control
A) does not assume that the interests of the organization and individuals naturally diverge.
B) is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.
C) includes such items as budgets, statistical reports, and performance appraisals.
D) uses prices, competition, and exchange relationships to regulate activities.
E) is the use of rules, standards, regulations, hierarchy and legitimate authority to guide performance.

Accepted Answer

Market control is the use of prices, competition, and exchange relationships to regulate activities. This method is often used in the private sector to control and influence the behavior of individuals and organizations in the market. It does not assume any shared values or interests between the organization and employees, and it relies on market forces to regulate performance. Budgets, statistical reports, and performance appraisals are tools used in other forms of control, such as bureaucratic or clan control.

Question 6

Glynnis, an employee, received an e-mail from an angry client about a certain product. Although it was not Glynnis's fault, she hesitated to report it to her manager because she knew that she would be blamed for it and could even be fired. In this case, which of the following is true of Glynnis's company?
A) The firm's expectations are not established in writing.
B) Employees are unclear about what needs to be achieved.
C) "Shoot the messenger" management exists, implying a lack of control.
D) Reviews are not held periodically.
E) Key data are not measured and reported in a timely manner.

Accepted Answer

The fact that Glynnis is hesitant to report the issue to her manager because she fears being blamed and fired suggests that there is a "shoot the messenger" management culture in the company, where employees are blamed for problems instead of focusing on solutions.

Question 7

Effective managers make sure that activities are going as planned with the help of control.

Accepted Answer

Control is an important function of management that involves monitoring and ensuring that activities are being carried out as planned. Effective managers use control mechanisms to ensure that the organization is moving towards its goals and objectives.

Question 8

At a town hall meeting, the CEO of a company spoke energetically about adopting cost-cutting measures due to the recent economic slump. However, a few days later, the employees found out that the CEO had gone on an exotic vacation using funds from the company. Which of the following is true about this company?
A) Key data are not measured and reported in a timely manner.
B) Reviews are not held periodically.
C) Employees are unclear about what needs to be achieved.
D) Senior managers set a bad example, implying a lack of control.
E) The firm's expectations are not established in writing.

Accepted Answer

The CEO's actions demonstrate a lack of control and a poor example set by senior management. This suggests that the company may have an issue with setting and enforcing ethical guidelines and standards.

Question 9

Controlling by profit and loss is most commonly used for the entire enterprise and, in the case of a diversified corporation, its divisions.

Accepted Answer

Controlling by profit and loss is commonly used for both the entire enterprise and its divisions, especially in the case of a diversified corporation.

Question 10

During challenging times when resources are limited and budgets need to be stretched, ________ control becomes crucial for survival.
A) individual
B) managerial
C) consumer
D) customer
E) stakeholder

Accepted Answer

Managerial control involves monitoring and managing resources, expenses, and budgets. It is crucial during challenging times to ensure survival of a business. Individual, consumer, customer, and stakeholder control may also be important, but they do not address the overall management and allocation of resources within an organization.

Question 11

Control and ________ have been called the Siamese twins of management.
A) planning
B) organizing
C) leading
D) directing
E) empowerment

Accepted Answer

Control and planning are often seen as two sides of the same coin in the management world. Planning sets out the goals and objectives for a project or organization, while control measures progress toward meeting those goals. Therefore, control and planning are closely linked and often considered essential to effective management.

Question 12

________ lay(s) out a framework for the future and provide(s) a blueprint for control.
A) Planning
B) Control systems
C) Creativity
D) Enhancing quality
E) Communication strategies

Accepted Answer

Planning is the process of developing a framework for the future, which includes setting goals and objectives, identifying resources and constraints, and outlining the steps necessary to achieve success. This framework provides a blueprint for control, as it establishes a roadmap for decision-making and helps ensure that actions are aligned with the overall strategy. Control systems are also important for ensuring that plans are carried out effectively and that progress is monitored and evaluated. However, planning lays the groundwork for effective control.

Question 13

Marv thought, "I'm not surprised that the corporate office canceled our funding. Costs had spiraled upward, and unanticipated technical problems had cropped up. We just didn't keep our eye on the ball, even though we had a great plan and sound strategies. Fundamentally, we lacked an effective means of control to ensure that
A) our marketing strategies were reflective of the old product."
B) employees took steps to solve problems."
C) the plans were carried out."
D) management was creative."
E) communication was clear."

Accepted Answer

The passage states that the team had a great plan and sound strategies, but lacked an effective means of control to ensure that the plans were carried out. Choice C directly addresses this issue. The other choices may be important factors, but the passage specifically focuses on the lack of effective control.

Question 14

Allowing people to initiate their own corrective action encourages self-control and reduces the need for outside supervision.

Accepted Answer

Allowing individuals to take responsibility and initiative for their own actions and making necessary corrections fosters a sense of self-control and accountability. This can lead to a reduction in the need for external supervisory intervention.

Question 15

"Are you telling me that we have to write off over $1 million in revenue because our eastern division manager did not accrue it properly?" asked the CEO. His CFO replied, "Yes. I know that we are a start-up, still working on developing policies, rules, and procedures, but, in this case, the division manager had no processes in place to monitor the project's progress." The CEO concluded, "The ________ has caused irreparable damage to our firm."
A) firm's expectations
B) lack of controls
C) agreed-upon standards
D) market control approach
E) bureaucratic control approach

Accepted Answer

The statement "the division manager had no processes in place to monitor the project's progress" indicates a lack of controls. Therefore, option B is the best choice, as it directly addresses the issue at hand.

Question 16

Empowering employees to make decisions implies giving up control.

Accepted Answer

Empowering employees to make decisions does not necessarily mean giving up control; it involves sharing responsibility and enabling employees to contribute to decision-making while still maintaining oversight and guidance.

Question 17

________ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results.
A) Clan
B) Market
C) Bureaucratic
D) Concurrent
E) Feedforward

Accepted Answer

Bureaucratic control uses formal rules, procedures, and policies to regulate behaviors and outcomes, including budgets, statistical reports, and performance appraisals. Clan control relies on shared values and social norms to regulate behavior, market control uses market competition and pricing mechanisms to regulate behavior, concurrent control involves real-time monitoring and adjustment of activities, and feedforward control involves anticipating future problems or opportunities and taking proactive measures to prevent or capitalize on them.

Question 18

________ control is the use of rules, regulations, and authority to guide performance.
A) Clan
B) Bureaucratic
C) Market
D) Concurrent
E) Feedback

Accepted Answer

Bureaucratic control relies on formalized rules and authority structures to guide performance. This type of control is common in highly structured organizations, such as government agencies or large corporations with multi-layered hierarchies. Clan control, on the other hand, is based on shared values and informal relationships, while market control relies on market forces to guide performance. Concurrent control involves monitoring and adjusting ongoing activities, while feedback control involves using information from past performance to guide future actions.

Question 19

The chief financial officer (CFO) upholds conflicting interests and provides unofficial sanction to the final budget.

Accepted Answer

The CFO's role is to manage the company's finances and provide accurate financial information, not to uphold conflicting interests or unofficially sanction budgets. Their responsibility is to ensure the budget aligns with the company's financial goals and compliances.

Question 20

Select the definition of control.
A) Control refers to the expected performance for a given goal.
B) Control is any process that directs the activities of individuals toward the achievement of organizational goals.
C) Control is people's perceived likelihood that their efforts will enable them to attain their performance goals.
D) Control is the process of giving people additional tasks to do at the same time to alleviate boredom.
E) Control is the process of applying a consequence that increases the likelihood of a person repeating the behavior that led to it.

Accepted Answer

Control in organizational and management contexts refers to processes and systems that are put in place to guide activities and efforts of individuals and groups towards the achievement of the organization's goals. This includes mechanisms to monitor, evaluate, and correct actions as necessary.

Quiz 14: Managerial Control

A company is said to lack control when there is a(n) ________, that is the firm's expectations are not established in writing.

________ control is based on the norms, values, shared goals, and trust among group members.

Clan control is necessary when members of an organization lack common values, goals, and trust.

Bureaucratic control

Market control

Effective managers make sure that activities are going as planned with the help of control.

Controlling by profit and loss is most commonly used for the entire enterprise and, in the case of a diversified corporation, its divisions.

During challenging times when resources are limited and budgets need to be stretched, ________ control becomes crucial for survival.

Control and ________ have been called the Siamese twins of management.

________ lay(s) out a framework for the future and provide(s) a blueprint for control.

Allowing people to initiate their own corrective action encourages self-control and reduces the need for outside supervision.

Empowering employees to make decisions implies giving up control.

________ control includes items such as budgets, statistical reports, and performance appraisals to regulate behavior and results.

________ control is the use of rules, regulations, and authority to guide performance.

The chief financial officer (CFO) upholds conflicting interests and provides unofficial sanction to the final budget.

Select the definition of control.