Question 1

Frank believes organizational effectiveness is more important to the organization than organizational productivity.What could be the rationale behind this belief?

Accepted Answer

Organizational effectiveness refers to how well an organization meets its goals and objectives, which is a direct measure of the organization's success. On the other hand, organizational productivity only measures the quantity of output produced by the organization, without taking into consideration the quality or the effectiveness of the output. Therefore, Frank's belief that organizational effectiveness is more important to the organization than organizational productivity is valid because organizational effectiveness is a better indicator of the organization's ability to achieve its objectives.

Question 2

An organization communicates openly to its employees about violent incidences in the workplace and what's being done to handle them.This is an example of a ________ control strategy.

Accepted Answer

Feedback control strategy involves communicating and addressing issues after they have occurred, which aligns with the organization's actions of informing employees about past violent incidents and the measures taken to address them.

Question 3

Corporate governance ________.

Accepted Answer

Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. Its aim is to balance the interests of the company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community, and to ensure that the company is managed in the best interests of all stakeholders. Therefore, choice B is the most appropriate answer as it correctly defines corporate governance.

Question 4

Which of the following is an example of a feedforward control measure used to control possible workplace violence?

Accepted Answer

Feedforward control measures are proactive measures taken to prevent workplace violence from occurring. Clearly communicating security policies to employees is a feedforward control measure as it sets expectations of appropriate behavior and consequences for violating those expectations. The other options, B, C, and D, are examples of corrective or reactive control measures that address workplace violence after it has occurred.

Question 5

Experts have described employee work driven by TNC as a primary contributor to workplace violence.TNC refers to ________.

Accepted Answer

TNC stands for time, numbers, and crises, which are factors that can contribute to stress and potentially lead to workplace violence.

Question 6

Two areas in which corporate governance is being reformed are the role of boards of directors and ________.

Accepted Answer

Financial reporting is a key area of corporate governance reform, focusing on transparency and accuracy in financial disclosures to protect investors and stakeholders.

Question 7

Mark wants to formulate a control process for the organization.What should be the first step in the control process?

Accepted Answer

The answer of Mark wants to formulate a control process...

Question 8

Charles interacts directly with the employees in the work area to identify problem areas.He works with various departments to obtain a holistic idea of the business.This type of direct supervision is an example of ________ control.

Accepted Answer

Concurrent control involves real-time monitoring and supervision of activities as they occur, allowing for immediate adjustments and problem-solving.

Question 9

Charles discovers major flaws in the packaging department.He consults the production manager and formulates control measures to improve packaging.Here, Charles is using the ________ control.

Accepted Answer

The answer of Charles discovers major flaws in the packaging...

Question 10

Factors that have been found to be linked to workplace violence include ________.

Accepted Answer

Employee stress has been found to be linked to workplace violence, while factors such as caffeine intake, poor diet, and personal hygiene have not been found to have a significant connection.

Question 11

The service profit chain is the service sequence from employees to customers to profit.According to this concept, the company's strategy and service delivery system determines ________.

Accepted Answer

The service profit chain focuses on how the company's strategy and service system affect the service delivery from employees to customers, ultimately leading to profits. Therefore, the correct choice is how employees service customers (option D). The skill development of employees (option A) is related to employee training and development programs, which are important for effective service delivery but are not the primary focus of the service profit chain. Likewise, employee satisfaction (option C) is an important factor in delivering quality services but is not the main focus of the service profit chain. Finally, how the company performs in the short run (option B) is important but not the main focus of the service profit chain.

Question 12

Mark wants to use a tool which is easy to visualize and effective for showing relationships.Which of the following tools is best suited for this?

Accepted Answer

Statistical reports are the best choice for Mark as they utilize graphs, charts and other visuals to effectively show relationships between data and make it easy to visualize. Personal observations or oral/written reports may not incorporate such visuals and may not be as effective in showing relationships between data.

Question 13

Fraudulent filing of expense reports is an example of ________.

Accepted Answer

Fraudulent filing of expense reports is a form of employee theft where an employee steals money from the company by falsely claiming expenses that were never incurred or inflating the amount of expenses.

Question 14

The operations manager suggests a hike in the prices to improve productivity.However, Frank rules this option out.What could be the possible reason for this?

Accepted Answer

The answer of The operations manager suggests a hike in...

Question 15

Charles wants to prevent problems before their occurrence.Which of the following is the most desirable type of control to achieve this goal?

Accepted Answer

Feedforward control focuses on anticipating and preventing problems before they occur, compared to reactive control, which addresses problems after they have occurred. Therefore, feedforward control is the most desirable type of control to achieve Charles' goal of preventing problems before their occurrence.

Question 16

The Sarbanes-Oxley Act called for ________.

Accepted Answer

The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act, was enacted in response to financial scandals such as Enron and WorldCom, and aimed to increase the transparency and disclosure of corporate financial information to protect investors and the public from financial fraud.

Question 17

Which of the following is a key activity that the proposed control system should perform?

Accepted Answer

The key activity that the proposed control system should perform is performance measurement. This involves monitoring and measuring organizational performance against set goals and objectives. While organizational planning, organizational structuring, and strategic planning are important activities, they are not specific to the control system's function.

Question 18

Ruth identifies the firm's leverage ratio to be very high.What suggestion could Ruth give to help the firm reduce its leverage ratio?

Accepted Answer

The best suggestion for reducing a high leverage ratio is to pay back part of the debts. This will decrease the amount of debt the company has in relation to their assets, which will in turn lower the leverage ratio. Increasing the money supply or reducing the sales to total assets ratio may not necessarily have an impact on the leverage ratio, and maintaining more current assets than current liabilities may not be feasible or desirable for the company's overall financial health.

Question 19

Mark recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation.Here, Mark is recommending ________.

Accepted Answer

Mark is recommending basic corrective action, which involves identifying the source of deviation and correcting it to bring performance back within an acceptable range. Bureaucratic control involves a strict adherence to rules and regulations, which is not mentioned in the scenario. Immediate corrective action involves a quick response to a deviation as soon as it occurs, which is not explicitly suggested by Mark's recommendation. Concurrent control involves monitoring performance in real-time, which is also not explicitly suggested by Mark's recommendation.

Question 20

Clinical psychologists suggest that employee theft ________.

Accepted Answer

Clinical psychologists suggest that employee theft happens because people find ways to rationalize this behavior as correct. This rationalization could be due to a sense of entitlement, a perceived lack of fairness or rewards, or simply a belief that the company owes them something. Poor management-labor relations or cultural problems in society may contribute to creating an environment where theft is more likely to occur, but the primary explanation is the rationalization of the behavior by the employee. Choice A and B are not the best choices as they only provide a partial explanation, and choice D is not a correct explanation for employee theft.

Quiz 10: Managerial Controls