Question 1

There are no laws that govern the behaviour of top executives.

Accepted Answer

There are laws and regulations that govern the behaviour of top executives, such as insider trading laws, antitrust laws, and labour laws. Additionally, companies may have their own codes of conduct and ethical guidelines that executives are expected to follow.

Question 2

Clan control represents the power of collective identity.

Accepted Answer

Clan control is based on the idea of a collective identity, where individuals within the group share common values, beliefs, and traditions. The power of the clan comes from the strength of this collective identity, which can be used to control behavior and maintain social order within the community. This concept is based on the belief that people are more likely to comply with the norms and values of their group than they are to comply with outside influences.

Question 3

Bureaucratic control influences behaviour through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision.

Accepted Answer

Bureaucratic control relies on formal rules and regulations to govern behaviour and decision-making, including the use of authority, policies, procedures, job descriptions, budgets, and day-to-day supervision. These tools of control are meant to ensure that individuals and organizations behave in a consistent and predictable manner, aligning with the goals and objectives of the bureaucratic system.

Question 4

The goal of the policies and procedures regarding sexual harassment is to make sure that members behave toward one another respectfully and in ways that offer no suggestion of sexual pressures or improprieties in the workplace.

Accepted Answer

The statement is true. The policies and procedures regarding sexual harassment are put into place to ensure a workplace free of sexual harassment and inappropriate behavior.

Question 5

Budgets do not provide points of control. They are merely estimates of expenses.

Accepted Answer

Budgets do provide points of control as they set targets and guidelines for spending and allow for tracking actual expenses against those targets. They are more than just estimates of expenses.

Question 6

The best example of laws governing the behaviour of top executives is the Tavares-Moxley Act of 2004.

Accepted Answer

The Tavares-Moxley Act does not exist. There are various laws that govern the behavior of top executives, such as the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Question 7

The Sarbanes-Oxley Act was passed in response to major corporate failures regarding the accuracy of reported financial information, such as with Enron and WorldCom, that raised serious questions regarding top management behaviour and the accuracy of financial reports provided by the firms.

Accepted Answer

The Sarbanes-Oxley Act was indeed passed in response to major corporate failures and concerns regarding the accuracy of financial reporting, particularly with Enron and WorldCom.

Question 8

A CEO and a CFO may be put in jail and pay personal fines if they misstate their company's financial records.

Accepted Answer

This is true as misstating financial records is considered a form of securities fraud and can result in criminal charges being brought against the executives responsible.

Question 9

Clan control flows through an organization's hierarchy of authority.

Accepted Answer

Clan control is based on shared values, norms, traditions, and other cultural aspects of an organization, rather than through a formal hierarchy of authority.

Question 10

Under Sarbanes-Oxley, chief executives and chief financial officers must sign off on financial reports and certify their accuracy under penalty of jail and/or personal fines.

Accepted Answer

This statement is true. Under Sarbanes-Oxley, the CEO and CFO are required to certify the accuracy of financial reports and are subject to penalties, including jail time and personal fines, for any false statements or misrepresentations.

Question 11

Organizations typically operate within the limitations set by the budget.

Accepted Answer

Organizations are generally constrained by financial limits and work within the parameters of their budget to achieve their objectives.

Question 12

The bureaucratic control system influences behaviour through norms and expectations set by the organizational culture.

Accepted Answer

The bureaucratic control system influences behavior through a formal set of rules and procedures, not through norms and expectations set by the organizational culture.

Question 13

The potential for self-control is increased when people have a clear sense of organizational mission, know their performance goals, have the necessary resources to do their jobs well, treat each other with respect and consideration, and work in a participative organizational culture.

Accepted Answer

Having a clear sense of organizational mission, performance goals, necessary resources, respectful and considerate workplace interactions, and a participative organizational culture can all contribute to an individual's ability to exercise self-control.

Question 14

Market control is essentially the influence of market competition on the behaviour or organizations and their members.

Accepted Answer

Market control refers to the pressure and influence that market competition places on the behavior and decision-making of organizations and their members. This can include factors such as pricing, product quality, marketing strategies, and more.

Question 15

The best example of a law which governs the behaviour of top executives is the Sarbanes-Oxley Act.

Accepted Answer

The Sarbanes-Oxley Act was passed in response to accounting scandals, such as the Enron scandal, and aims to protect investors by ensuring accurate financial reporting and disclosure by public companies. It includes provisions for top executives, such as requiring CEOs and CFOs to certify the accuracy of financial statements and imposing penalties for fraudulent activity.

Question 16

Clan control influences behaviour through norms and expectations set by the organizational culture.

Accepted Answer

Clan control, as a type of organizational control, relies on creating a positive and supportive culture that sets norms and values for behaviour within the organization. This can influence how employees behave and conduct themselves in their work, encouraging them to align with the shared values and goals of the organization.

Question 17

The Sarbanes-Oxley (SOX) Act that establishes procedures to regulate financial reporting and governance in publicly traded companies was passed in response to major corporate failures such as WorldCom and Enron.

Accepted Answer

The Sarbanes-Oxley (SOX) Act was passed in response to major corporate failures such as WorldCom and Enron, and it established procedures to regulate financial reporting and governance in publicly traded companies.

Question 18

The Sarbanes-Oxley Act establishes procedures to regulate financial reporting and governance in publicly traded corporations.

Accepted Answer

The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act, was passed in 2002 and sets standards for financial reporting and corporate governance for publicly traded companies in the US.

Question 19

There are laws that govern the behaviour of top executives.

Accepted Answer

Yes, there are various laws and regulations that govern the behavior of top executives, such as corporate governance laws, insider trading laws, and employment laws.

Question 20

Control that flows through the organizations hierarchy of authority is called Autocratic control.

Accepted Answer

Control that flows through the organization's hierarchy of authority is called bureaucratic control, not autocratic control. Autocratic control refers to a leadership style where decision-making is centralized in the hands of a single leader.

Quiz 9: Control Processes and Systems