Question 1

Hanover Insurance sets up a management information system (MIS)that gives its regional managers information about changes in the task environment that may affect the organization at some future time.Which of the following control systems is being used by Hanover Insurance?
A) Feedforward control
B) Concurrent control
C) Feedback control
D) Bureaucratic control
E) MBO control

Accepted Answer

Managers use feedforward control to anticipate problems before they arise so that problems do not occur later. The development of management information systems promotes feedforward control that gives managers timely information about changes in the task and general environments that may impact their organization later on.

Question 2

Brandon,the manager of Flipflop Footwear,checked the weekly records and discovered that the number of shoes produced in one week by 20 employees was 250 against the set target of 220 shoes.With reference to the control process,Brandon is:
A) establishing the standards of performance.
B) measuring the actual level of performance of employees.
C) comparing the actual performance against chosen standards of performance.
D) evaluating the result of the set standards.
E) initiating corrective actions.

Accepted Answer

After measuring the actual level of performance of employees, the next step of the control process is to compare the actual performance against chosen standards of performance.

Question 3

What type of control do managers use at the output stage?
A) MBO control
B) Concurrent control
C) Bureaucratic control
D) Feedforward control
E) Feedback control

Accepted Answer

At the output stage, managers use feedback control to provide information about customers' reactions to goods and services so that corrective action can be taken if necessary.

Question 4

Entrepreneurship ends once a new business has been founded.

Accepted Answer

Entrepreneurship does not just end once a new business is founded. Entrepreneurship carries on inside an organization over time, and many people throughout an organization take responsibility for developing innovative goods and services.

Question 5

Ben,the production manager of Pace Shoes,sets a production target of 220 shoes to be distributed among 20 employees in a week.In the context of the control process,Ben is:
A) establishing the standards of performance.
B) measuring the actual level of performance of employees.
C) comparing the actual performance against chosen standards of performance.
D) evaluating the result of the set standards.
E) initiating corrective actions.

Accepted Answer

At step 1 in the control process, managers decide on the standards of performance, goals, or targets that they will use in the future to evaluate the performance of the entire organization or part of it.

Question 6

The managers of Foodex,a fast food restaurant,record outputs on a daily basis by counting how many customers their employees serve,the time each transaction takes,and how much money each customer spends every day.With reference to the control process,the managers of Foodex are:
A) establishing the standards of performance.
B) measuring the actual level of performance of employees.
C) comparing the actual performance against chosen standards of performance.
D) evaluating the result of the set standards.
E) initiating corrective actions.

Accepted Answer

Once managers have decided which standards or targets they will use to evaluate performance, the next step in the control process is to measure actual performance. In practice, managers can measure or evaluate two things: (1) the actual outputs that result from the behavior of their members and (2) the behaviors themselves.

Question 7

Danny,the manager of Wader Shoes,installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month.With regard to the control process,Danny is:
A) establishing the standards of performance.
B) measuring the actual level of performance of employees.
C) comparing the actual performance against chosen standards of performance.
D) evaluating the result of the set standards.
E) initiating corrective actions.

Accepted Answer

If managers find out that the level of performance is unacceptable, they must try to change how work activities are performed to solve the problem.

Question 8

Which type of control do managers typically use in the input stage of the process of transforming raw materials into finished goods?
A) Feedforward control
B) Concurrent control
C) Feedback control
D) Bureaucratic control
E) MBO control

Accepted Answer

At the input stage, managers use feedforward control to anticipate problems before they arise so that problems do not occur later, during the conversion process.

Question 9

Managers at Zeppel Construction Company set up a stringent job interview process by which applicants are carefully screened at different levels of the organization before they are hired,attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization.Which of the following control systems is being used by Zeppel?
A) Concurrent control
B) Feedforward control
C) Feedback control
D) Bureaucratic control
E) MBO control

Accepted Answer

Managers can use feedforward control while screening job applicants, often by viewing their résumés electronically, and using several interviews to select the most highly skilled people, which can lessen the chance that they will hire people who lack the necessary skills or experience to perform effectively.

Question 10

Which of the following is the process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals?
A) Planning
B) Organizing
C) Leading
D) Controlling
E) Coordinating

Accepted Answer

Controlling is the process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals. Controlling helps managers monitor and evaluate whether the organization's strategy and structure are working as intended, how they could be improved, and how they might be changed if they are not working.

Question 11

Action Explosives gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process.Which of the following control systems is being used by Action Explosives?
A) Concurrent control
B) Feedforward control
C) Feedback control
D) Bureaucratic control
E) MBO control

Accepted Answer

Feedforward control is used to anticipate problems before they arise so problems do not occur later during the conversion process.

Question 12

The standard of performance that measures efficiency at the corporate level of the organization is known as:
A) cost of goods sold.
B) capital costs.
C) net sales.
D) operating costs.
E) net income after taxes.

Accepted Answer

At the corporate level, a standard of performance that measures efficiency is operating costs, the actual costs associated with producing goods and services, including all employee-related costs.

Question 13

Which of the following types of control systems do managers use at the conversion stage of transforming raw materials into finished goods?
A) Feedforward control
B) Bureaucratic control
C) Concurrent control
D) Feedback control
E) MBO control

Accepted Answer

At the conversion stage, concurrent control gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise.

Question 14

The final step in the control process is to:
A) evaluate the results and initiate corrective action.
B) measure actual performance.
C) establish the standards of performance.
D) compare actual performance to the standards.
E) measure the standards of performance.

Accepted Answer

The final step in the control process is to evaluate the results and bring about change as appropriate.

Question 15

Intrapreneurs engage in entrepreneurship within an existing company.

Accepted Answer

Employees of existing organizations who notice opportunities for product or service improvements and are responsible for managing the development process are known as intrapreneurs. Intrapreneurs engage in entrepreneurship within an existing company.

Question 16

Identify the control system MOST likely to be used in a garment plant to solve problems like substandard inputs,broken machine parts,or a worker's skill deficiency to produce a particular type of garment.
A) Feedforward control
B) MBO control
C) Feedback control
D) Concurrent control
E) Bureaucratic control

Accepted Answer

At the conversion stage, concurrent control gives managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise, be it a defective batch of inputs, a machine that is out of alignment, or a worker who lacks the skills necessary to perform a task efficiently.

Question 17

Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products.Which of the following control systems is being used by Brennan Manufacturing?
A) Feedforward control
B) Concurrent control
C) MBO control
D) Feedback control
E) Bureaucratic control

Accepted Answer

At the output stage, managers use feedback control to provide information about customers' reactions to goods and services so that corrective action can be taken if necessary. A feedback control system that monitors the number of customer returns alerts managers when defective products are being produced.

Question 18

At which of the step of the control process do managers evaluate whether the actual performance of the organization differs significantly from the standards of performance being used to assess the performance of the organization?
A) Measure actual performance
B) Compare actual performance to the standards
C) Establish the standards of performance
D) Initiate corrective action
E) Measure standards of performance

Accepted Answer

Step 3 of the control process compares actual performance against chosen standards of performance. Managers evaluate whether, and to what extent, the performance of the organization deviates from the set standards of performance.

Question 19

Which of the following are formal target-setting,monitoring,evaluation,and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively?
A) Operating systems
B) Organizational systems
C) Control systems
D) Recurrent systems
E) Concurrent systems

Accepted Answer

Control systems are formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively. Effective control systems alert managers when something is going wrong and give them time to respond to opportunities and threats.

Question 20

Beswick Widget Ltd.sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales.Which of the following control systems is being used by Beswick Widget Ltd.?
A) Feedforward control
B) Feedback control
C) MBO control
D) Bureaucratic control
E) Concurrent control

Accepted Answer

Beswick is attempting to learn about changes in customers' tastes so that they can increase or decrease production of products as necessary. Thus, this is feedback control. Feedback control is used to provide information about customers' reactions to goods and services so corrective action can be taken if necessary.

Quiz 8: Control, Change, and Entrepreneurship

Hanover Insurance sets up a management information system (MIS) that gives its regional managers information about changes in the task environment that may affect the organization at some future time.Which of the following control systems is being used by Hanover Insurance?

Brandon,the manager of Flipflop Footwear,checked the weekly records and discovered that the number of shoes produced in one week by 20 employees was 250 against the set target of 220 shoes.With reference to the control process,Brandon is:

What type of control do managers use at the output stage?

Entrepreneurship ends once a new business has been founded.

Ben,the production manager of Pace Shoes,sets a production target of 220 shoes to be distributed among 20 employees in a week.In the context of the control process,Ben is:

The managers of Foodex,a fast food restaurant,record outputs on a daily basis by counting how many customers their employees serve,the time each transaction takes,and how much money each customer spends every day.With reference to the control process,the managers of Foodex are:

Danny,the manager of Wader Shoes,installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month.With regard to the control process,Danny is:

Which type of control do managers typically use in the input stage of the process of transforming raw materials into finished goods?

Which of the following is the process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals?

The standard of performance that measures efficiency at the corporate level of the organization is known as:

Which of the following types of control systems do managers use at the conversion stage of transforming raw materials into finished goods?

The final step in the control process is to:

Intrapreneurs engage in entrepreneurship within an existing company.

Identify the control system MOST likely to be used in a garment plant to solve problems like substandard inputs,broken machine parts,or a worker's skill deficiency to produce a particular type of garment.

Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products.Which of the following control systems is being used by Brennan Manufacturing?

At which of the step of the control process do managers evaluate whether the actual performance of the organization differs significantly from the standards of performance being used to assess the performance of the organization?

Which of the following are formal target-setting,monitoring,evaluation,and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively?

Beswick Widget Ltd.sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales.Which of the following control systems is being used by Beswick Widget Ltd.?