Question 1

Empowering employees to make decisions implies giving up control.

Accepted Answer

False

Question 2

A company is said to lack control when there is an) _____, that is the firm's expectations are not established.
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

The absence of policies means that guidelines and expectations for the company's employees are not established, resulting in a lack of control. This can lead to confusion and inconsistency in decision-making and behavior.

Question 3

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 indeed most commonly used for the entire enterprise and its divisions, particularly in a diversified corporation that has multiple business units.

Question 4

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

Accepted Answer

Control is defined as any process that directs the activities of individuals toward the achievement of organizational goals.

Question 5

Budgetary control is the process of finding out what's being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences.

Accepted Answer

Budgetary control involves monitoring and comparing actual results with budgeted data to ensure that goals are achieved and any variances are addressed accordingly.

Question 6

Six sigma companies have a high level of product or service defects.

Accepted Answer

Six sigma is a methodology focused on reducing the number of defects in processes and products to a level of 3.4 defects per million opportunities. Therefore, six sigma companies have a very low level of product or service defects.

Question 7

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 for their own behavior and actions fosters a sense of accountability and empowerment. By allowing individuals to initiate their own corrective action, they are given the opportunity to reflect on their behavior and make necessary changes without the need for constant oversight or external intervention. This can promote self-control and reduce the likelihood of future behavioral issues.

Question 8

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

Accepted Answer

The principle of exception states that managers should focus on significant deviations from expected results, not on performance that meets or closely approximates expectations.

Question 9

Which of the following statements is true of market control?
A) It does not assume that the interests of the organization and individuals naturally diverge.
B) It is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.
C) It includes such items as budgets, statistical reports, and performance appraisals.
D) It is most effective where tangible output can be identified.
E) It works best where tasks are certain and workers are independent.

Accepted Answer

The answer of Which of the following statements is true...

Question 10

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

Senior managers are responsible for setting an example for the employees to follow. By going on an exotic vacation, the CEO has set a bad example and has implied a lack of control. This can lead to a decrease in morale and motivation among employees.

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

_____ 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, policies, and procedures to regulate behavior and results. Budgets, statistical reports, and performance appraisals are all examples of formal control mechanisms used in bureaucratic control. Clan control relies on social norms and values to regulate behavior, market control relies on market forces such as competition, and concurrent and feedforward control are more focused on preventing problems before they occur, rather than regulating behavior and results after the fact.

Question 13

Clan control works best where tasks are certain and workers are independent.

Accepted Answer

Clan control is most effective in environments where tasks are uncertain and workers are interdependent, as it relies on shared values and norms to guide behavior.

Question 14

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

Accepted Answer

Effective managers use control to ensure that activities are proceeding as planned and to make any necessary adjustments to reach the desired outcomes.

Question 15

Matilda, an employee, received an e-mail from an angry client about a certain product. Although it was not Matilda'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 Matilda'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

Matilda's fear of reporting a problem due to the possibility of being blamed or fired indicates a "shoot the messenger" management style, where employees are afraid to report issues or mistakes because of the repercussions they may face. This suggests a lack of control within the company.

Question 16

The chief financial officer CFO) needs to be more concerned with details than with recommending adjustments when needed.

Accepted Answer

The CFO needs to be both concerned with details and capable of recommending adjustments when needed based on their analysis of financial data. This is a key aspect of their job as a strategic financial leader within an organization.

Question 17

The use of rules, regulations, and authority to guide performance is referred to as _____ control.
A) clan
B) bureaucratic
C) market
D) concurrent
E) feedback

Accepted Answer

Bureaucratic control is characterized by the use of formal rules, procedures, and authority to guide behavior and performance. This type of control is often used in highly structured organizations where there are clear hierarchies and formalized procedures for decision-making and communication. Clan control, on the other hand, relies on shared values and norms to guide behavior, while market control involves the use of market mechanisms such as pricing and competition to regulate performance. Concurrent control involves monitoring and adjusting ongoing activities, while feedback control involves using information about past performance to guide future actions.

Question 18

________ 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 based on the cultural values, shared goals, and trust among group members. It emphasizes the shared responsibility of all members to maintain a positive and productive work environment. This control system is most effective in organizations where the work is complex, the environment is uncertain, and communication is informal. Feedback control relies on performance data to evaluate and correct deviations from standards. Concurrent control involves monitoring and adjusting ongoing activities to ensure they are on track. Feedforward control is designed to prevent problems before they occur by anticipating potential difficulties and taking corrective action before they become actual problems. Market control is based on the principles of supply and demand and relies on competition among groups or individuals to promote efficiency and effectiveness.

Question 19

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

Accepted Answer

Relying exclusively on financial ratios is not effective as they only provide a limited view of a company's performance and financial health. Other factors such as industry trends, market conditions, and qualitative analysis are also important to consider. Using a variety of methods and sources to evaluate a company's performance is more effective than relying solely on financial ratios.

Question 20

Which of the following statements is true of bureaucratic control?
A) It does not assume that the interests of the organization and individuals naturally diverge.
B) It is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them.
C) It involves the use of pricing mechanisms and exchange relationships to regulate activities within organizations.
D) It is based on interpersonal processes of organization culture, leadership, and groups and teams.
E) It works best where tasks are certain and workers are independent.

Accepted Answer

Bureaucratic control is most effective in environments where tasks are certain and workers operate independently, as it relies on formal rules and procedures to manage behavior.

Quiz 14: Managerial Control

Empowering employees to make decisions implies giving up control.

A company is said to lack control when there is an) _____, that is the firm's expectations are not established.

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

Which of the following is a definition of control?

Budgetary control is the process of finding out what's being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences.

Six sigma companies have a high level of product or service defects.

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

With the principle of exception, the manager is concerned with performance that equals or closely approximates the expected results.

Which of the following statements is true of market control?

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

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

Clan control works best where tasks are certain and workers are independent.

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

The chief financial officer CFO) needs to be more concerned with details than with recommending adjustments when needed.

The use of rules, regulations, and authority to guide performance is referred to as _____ control.

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

Relying exclusively on financial ratios is effective because they provide performance standards and indicators of what has occurred.

Which of the following statements is true of bureaucratic control?