Ch15 Controlling Processes – Test Bank | 11th Ed

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Fundamentals of Management, 11e (Robbins)

Chapter 15 Controlling Work and Organizational Processes

1) The control management function ensures that ________ in an organization.

A) goals are set

B) goals are met

C) plans are made

D) plans are realistic

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Concept

2) A major part of the controlling function of management is to ________.

A) formulate strategies

B) set goals

C) correct performance problems

D) structure an organization

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Concept

3) The more a control system helps an organization ________, the more successful it is judged to be.

A) meet government guidelines

B) help employees achieve job satisfaction

C) meet its goals

D) increase sales

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

4) A well-run company that has well-thought-out plans, motivated and productive workers, and an efficient organizational structure ________.

A) always attains its goals

B) may not always attain its goals

C) rarely attains its goals

D) has no reason to monitor its performance

Diff: 3

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

5) The value of the controlling function is seen in three specific areas: planning, ________.

A) organizing, and leading

B) protecting employees, and empowering the workplace

C) protecting employees, and protecting the workplace

D) empowering employees, and protecting the workplace

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

6) Controlling is the ________ in the management process.

A) first step

B) final step

C) most important step

D) least important step

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

7) Controlling compares ________ to see if goals are being achieved.

A) planned performance to standard performance

B) standard performance to ideal performance

C) actual performance to competitor performance

D) actual performance to planned performance

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

8) Effective controlling can help managers ________.

A) empower their employees

B) set their goals

C) maximize risk

D) minimize employee empowerment

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

9) The controlling function helps managers protect an organization's ________.

A) reputation for honesty

B) assets

C) position in the community

D) good name

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

10) Control is the process of monitoring and evaluating activities to ensure that they are being accomplished as planned.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

11) The criterion that determines the effectiveness of a control system is how well it reduces unnecessary costs.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

12) Control is the managerial function that allows managers to determine whether organizational goals were met.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

13) The value of the control function lies in three areas: planning, organizing, and motivating.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

14) An effective control system can help managers delegate authority to employees with confidence.

Diff: 3

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

15) The control function is not intended to protect the organization from threats.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

16) Motivation and leadership are two primary parts of the controlling function.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

17) Controlling provides a critical link back to planning that compares actual outcomes to planned outcomes.

Diff: 2

AACSB: Analytical thinking

LO: 15.1: Explain the nature and importance of control.

Question Category: Analytical

18) In a short essay, define and describe the management function of control.

If the actual performance measures up favorably to the standards, managers do little or nothing to change the course of action. If performance fails to fall within acceptable standards, managers take corrective action to make sure tasks are performed satisfactorily. The effectiveness of control is seen in goals. The better the control function is, the more likely that organizational goals will be successfully met.

Diff: 3

AACSB: Written and oral communication

LO: 15.1: Explain the nature and importance of control.

Question Category: Critical thinking

19) The first step in the control process is to ________.

A) take action

B) measure actual performance

C) compare performance against a standard

D) compare a standard against an ideal

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

20) Managers always use these for performance standards during the control process.

A) goals created during the planning process

B) employee opinions

C) performance standards for the industry

D) standards developed by performance experts

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

21) A manager measuring actual performance is like a teacher ________.

A) composing a test

B) grading a test

C) helping a student study for a test

D) making an assignment

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

22) ________ are the most informal form of performance measurement.

A) Oral reports

B) Written reports

C) Statistical reports

D) Personal observations

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

23) MBWA stands for management by ________.

A) work area

B) work action

C) written action

D) walking around

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Concept

24) An advantage of management by walking around is ________.

A) perceptual biases

B) obtrusiveness

C) personal contact

D) objectivity

Diff: 1

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Concept

25) For a baseball player, a statistical report would feature such things as ________.

A) a newspaper profile of the player

B) batting average and slugging percentage

C) filmed highlights of great plays

D) scouting reports on the player

Diff: 1

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

26) A disadvantage of a statistical report is that it may leave out ________ measurements of performance.

A) subjective

B) objective

C) positive

D) negative

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

27) A(n) ________ format would be most likely to include graphs, tables, and computer outputs.

A) oral report

B) statistical report

C) MBWA

D) written report

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

28) ________ performance measurement method is fast and is a good platform for feedback, yet it can be private and scheduled for a single employee ahead of time.

A) A written report

B) The MBWA

C) An oral report

D) A statistical report

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

29) Of the options given, the most comprehensive form of performance measurement is this.

A) MBWA

B) oral report

C) graphs

D) written report

Diff: 2

AACSB: Reflective thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

30) Stefan has a recording of a one-on-one meeting with his boss. This represents ________.

A) a statistical report

B) an oral report

C) MBWA

D) a written report

Diff: 3

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

31) Jesus' assigned work section consists of three work groups who were assessed by this method of performance measurement and were informally judged to be "creative, innovative, hard-working, and fun-loving."

A) MBWA

B) written report

C) statistical report

D) oral report

Diff: 3

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

32) The ________ forms of performance measurement provide the best and most immediate forms of feedback.

A) oral report and written report

B) written report and statistical report

C) MBWA and oral report

D) statistical report and MBWA

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

33) What managers choose to measure is largely determined by ________.

A) what an organization wants to do well

B) the organization's structure

C) the company's image

D) the leaders and leadership style of those in the organization

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

34) A car company that puts more effort into measuring quality than total units sold most likely wants to excel at ________.

A) customer satisfaction

B) efficiency

C) employee satisfaction

D) cost per unit

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

35) A software company that puts almost all of its performance measurement effort into measuring the total number of units that the company and its competitors sell most likely wants to excel at ________.

A) efficiency

B) market share

C) cost per unit

D) labor per unit

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

36) A state motor vehicles agency that is tasked with serving the public might choose to measure ________.

A) total revenue rather than customer wait time

B) total customers rather than total revenue

C) customer wait time rather than total customers

D) employee turnover rather than customer wait time

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

37) Which one of the following performance measurement categories must be measured subjectively rather than in objective or quantifiable terms?

A) budget

B) absenteeism

C) efficiency

D) job satisfaction

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

38) The second step in the control process is to ________.

A) compare a standard against an ideal

B) measure actual performance

C) compare performance against a standard

D) take action

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

39) To carry out the second step of the control process, managers at an electric shaver company need to compare the number of actual shavers sold to ________.

A) a competitor's sales totals

B) planning goals for sales totals

C) sales totals from last year

D) the number of possible shaver customers

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

40) In the second step of the control process, actual performance can be considered acceptable as long as the performance doesn't fall ________.

A) short of goals by more than 15 percent

B) short of goals by more than 30 percent

C) inside an acceptable range of variation

D) outside an acceptable range of variation

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

41) In general, ________ that falls outside an acceptable range of variation must be dealt with by a manager.

A) an overperformance

B) an underperformance

C) any deviation

D) a small overperformance or a large underperformance

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

42) The third step in the control process is to ________.

A) measure actual performance

B) compare a standard against an ideal

C) take action

D) compare performance to a standard

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

43) When actual performance falls outside an acceptable range of variation, it is termed a(n) ________.

A) significant deviation

B) insignificant deviation

C) acceptable deviation

D) large deviation

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

44) When should a manager's course of action be to do nothing?

A) when the cause of the variation has been identified

B) when the standard is acceptable

C) when the standard is not acceptable

D) when the variance is acceptable

Diff: 1

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

45) Actual performance falls short of planned goals, yet a manager takes no action. Assuming this manager is a reasonable person and is not mistaken, what is the most likely cause of his inaction?

A) He does not trust the data.

B) He does not consider the deviation significant.

C) He does not trust the goals that were set.

D) He does not believe in corrective action.

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

46) Which one of the following is NOT a recognized possible course of action for managers to take when actual performance falls outside an acceptable range of variation?

A) take corrective action

B) change the standards

C) editing the performance data

D) do nothing

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

47) If a manager of a tennis store sees sales totals for a particular racquet significantly exceeding goals and deviating from acceptable range of variation, she might ________.

A) do nothing since sales exceeded goals

B) run a sale on the racquet

C) run a sale on other products

D) inquire about ordering more racquets

Diff: 3

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

48) After an extended period of unseasonably warm and sunny weather, revenue at an indoor tennis club are down sharply during the month of November, but are in line with what managers expected for the month. The best strategy for the club manager is to ________.

A) do nothing

B) run a sale on hourly rates

C) raise hourly rates to increase revenue

D) change her monthly goals for December

Diff: 3

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

49) Due to recent construction of an upscale housing community near a tennis club, customer use has skyrocketed during the year and the club is operating at all-time high levels, far beyond the goals set the previous year. The best strategy for the manager is to ________.

A) do nothing

B) run a sale to increase customers

C) advertise supplemental services

D) change goals for the following year

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

50) Immediate corrective action is designed ________.

A) to get to the root cause of a problem

B) to get performance back on track

C) to shake up an organization

D) to punish employees for poor performance

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

51) For addressing the hardships accompanying unemployment, ________ is an example of immediate corrective action.

A) a job training program

B) temporary assistance to needy families

C) a task force to see why jobs were lost

D) a job placement agency

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

52) For addressing unemployment, ________ is an example of basic corrective action.

A) a task force to see why jobs were lost

B) SNAP

C) unemployment compensation

D) a job training program

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

53) In many cases, immediate corrective action rather than basic corrective action is taken by managers because the manager may ________.

A) want to be thorough

B) lack time

C) lack information

D) not understand the situation

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

54) Which one of the following would constitute basic corrective action for employees whose production has dropped?

A) changing the pay scale

B) taking away employee privileges

C) looking for causes of the production drop

D) changing how the work is carried out

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

55) A law firm manager finds that one lawyer who consistently outperforms other lawyers at the firm is threatening to leave. Which immediate corrective action should the manager take?

A) none

B) offer a bonus

C) disciplinary action

D) a study to see why she outperforms others

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

56) A law firm manager finds that the firm loses too many of its civil cases while it wins an inordinately high number of its criminal cases. Which basic corrective action can the manager take?

A) pay criminal lawyers more

B) pay civil lawyers less

C) analyze civil and criminal cases

D) fire civil lawyers

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

57) When might a manager be justified in revising a standard rather than taking corrective action to remedy a significant performance deviation?

A) when performance exceeds the standard

B) when performance falls slightly short of the standard

C) when performance falls far short of the standard

D) when the standard is unrealistic

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

58) A professor gives a new test to an otherwise typical class and finds that only 10 percent of the students earn grades of C or above. What is the most appropriate and fair response?

A) do nothing

B) revise the grading curve downward

C) revise the grading curve upward

D) revise the test itself

Diff: 3

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

59) All of the following are dangers of revising production goals downward EXCEPT ________.

A) it destroys incentive to work harder

B) it increases incentive to work harder

C) it gives employees an excuse to be less productive

D) it gives employees something to blame for their lack of effort

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

60) The control process is a two-step process that measures and compares.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

61) The development or identification of objectives or standards must precede the control process.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

62) Personal observation as a form of control measurement requires little time.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

63) MBWA can pick up attitudes and factual omissions that other forms of measurement miss.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

64) In the past, a major drawback of an oral report was that there was no way to store the information in the report for later reference.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

65) What is measured in the control process is often less critical than how it is measured.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

66) Some control criteria, such as employee satisfaction and absenteeism, are applicable to almost any management situation.

Diff: 1

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

67) A gap between actual performance and planned goals that falls within an acceptable range of variation usually requires managerial action.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

68) Henry Ford basing his assembly line on practices he viewed in Chicago slaughterhouses is an example of benchmarking.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

69) A single business cannot experience both underperformance and overperformance at the same time.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

70) Immediate corrective action might include changing the way employees are paid for their work.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

71) Basic corrective action focuses on identifying the cause of a performance deviation.

Diff: 2

AACSB: Analytical thinking

LO: 15.2: Describe the three steps in the control process.

Question Category: Analytical

72) An example of revising a standard is a teacher who changes a grading scale because students do poorly on an exam.

Diff: 2

AACSB: Application of knowledge

LO: 15.2: Describe the three steps in the control process.

Question Category: Application

73) In a short essay, explain why what managers choose to measure can be more important than how they measure in the control process.

However, the sales totals may not tell the whole story. If premium coffee in the geographical area is a rapidly expanding market, the sales of all premium coffees would be expected to be rising. It is possible that the company is actually losing market share to a competitor even as its total sales rise impressively.

Thus, in this case, deciding what to measure—market share as opposed to total sales—may make a huge difference in how the company evaluates its performance. If it measures total sales, it sees its performance as good. If it measures market share, it may see its performance as worrisome.

Diff: 3

AACSB: Written and oral communication

LO: 15.2: Describe the three steps in the control process.

Question Category: Critical thinking

74) In a short essay, describe the first step in the control process.

Diff: 3

AACSB: Written and oral communication

LO: 15.2: Describe the three steps in the control process.

Question Category: Critical thinking

75) In a short essay, describe the second step in the control process.

Variation between actual performance and the prespecified standard is to be expected. How much variation is acceptable is what managers must determine by identifying an acceptable range of variation. Performance outside this range is deemed unacceptable and merits a response or corrective action of some type. Performance within the acceptable range of variation typically requires no action at all on a manager's part.

Diff: 3

AACSB: Written and oral communication

LO: 15.2: Describe the three steps in the control process.

Question Category: Critical thinking

76) In a short essay, describe the third step in the control process.

Managers choose to do nothing when performance measures up favorably to standards. Managers choose corrective action when performance does not measure up. Examples of corrective actions might include changing strategy, structure, compensation plans, or training programs; redesigning jobs; and firing employees.

Revising standards is an appropriate response if the variance was the result of unrealistic, erroneous, or unreasonable expectations. Standards can be faulty, especially when the situation changes. During boom times, managers sometimes adjust standards up. During times of trouble, such as recessions, managers may revise standards downward.

Diff: 3

AACSB: Written and oral communication

LO: 15.2: Describe the three steps in the control process.

Question Category: Critical thinking

77) In a short essay, explain how managers determine what a significant deviation is.

A manager of a gelato store, for example, might look at monthly sales totals and see that hazelnut gelato performed well below its goal. The manager might greet this finding in more than one way. She might decide to terminate the sale of this flavor and move on to develop a new flavor. She might decide that hazelnut simply needs more time and exposure to the public and its sales will pick up, eliciting a "sit tight" and do nothing response. Or, she might decide that hazelnut simply needs some extra promotion to increase sales—posters, free samples, special prices, etc.

The point of the preceding shows that the interpretation of performance data lies entirely in the eye of the manager who is observing it. One person's acceptable deviation might be another person's unacceptable deviation.

Diff: 3

AACSB: Written and oral communication

LO: 15.2: Describe the three steps in the control process.

Question Category: Critical thinking

78) In a short essay, explain the difference between immediate corrective action and basic corrective action.

Basic corrective action goes beyond fixing the problem at hand and attempts to find—and correct—the underlying causes of the problem. For example, there might be a number of reasons why a building project gets behind schedule: not enough labor, having to wait for materials, conflicts in scheduling, inefficient workers or supervision, and so on. Getting to the bottom of the situation can save managers time, trouble, and money. For example, rather than hire (expensive) extra carpenters on a building project, a manager might learn that he simply needs to schedule the current workers better and the problem will be solved.

Diff: 3

AACSB: Written and oral communication

LO: 15.2: Describe the three steps in the control process.

Question Category: Critical thinking

79) Which kind of control takes place before the actual work is carried out?

A) feedback

B) concurrent

C) recurrent

D) feedforward

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

80) A cell phone maker tests its new model with a sample audience when it is fully operational. What kind of control is this?

A) pre-market control

B) feedback control

C) concurrent control

D) feedforward control

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

81) Which kind of control takes place while the actual work is carried out?

A) feedback

B) concurrent

C) reverse

D) feedforward

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

82) Direct supervision of employees is a form of ________ control.

A) concurrent

B) ineffective

C) feedback

D) feedforward

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

83) An action show producer has a read-through of a half-written show in which actors, writers, producers, and the director are free to make comments and changes before the show is filmed. What kind of control is being used?

A) feedback control

B) concurrent control

C) spontaneous control

D) feedforward control

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

84) A fast-food restaurant is querying prospective customers about the features they would like to see in a new panini sandwich. What kind of control is being used?

A) concurrent control

B) feedback control

C) feedforward control

D) anticipation control

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

85) Which kind of control takes place after the actual work has been carried out?

A) feedback

B) forward

C) feedforward

D) concurrent

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

86) A basketball coach showing players how to position themselves on the court during practice is carrying out ________, a form of concurrent control.

A) unstructured supervision

B) direct supervision

C) indirect supervision

D) feedback supervision

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

87) One advantage of feedback control over other forms of control is that it lets managers focus on ________.

A) what is about to take place

B) how on target their planning efforts were

C) how effective their organizing efforts were

D) the task as it is being carried out

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

88) When feedback control shows that planning goals and actual performance were dramatically different, the most likely conclusion is that ________.

A) planning was not on target

B) performance measurements were unreliable

C) planning was on target

D) goals do not need to be changed

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

89) An advantage of feedback control is that it improves ________.

A) motivation

B) productivity

C) groupthink

D) employee-employee relations

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

90) Managers exert financial control on an organization using ________ analysis.

A) activity

B) productivity

C) ratio and budget

D) productivity and resource

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

91) ________ is a measure of an organization's ability to meet its current debt obligations.

A) Leverage

B) Activity

C) Liquidity

D) Profitability

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

92) ________ is a measure of an organization's ability to efficiently use its assets.

A) Profitability

B) Activity

C) Leverage

D) Liquidity

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

93) ________ is a measure of an organization's use of debt to finance its assets.

A) Profitability

B) Liquidity

C) Activity

D) Leverage

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

94) ________ is a measure of how readily a company can use its assets to generate profits.

A) Profitability

B) Leverage

C) Liquidity

D) Activity

Diff: 1

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

95) A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent. This is an example of ________.

A) using a budget for planning

B) using data to confirm a budget

C) justifying expenses with a budget

D) using a budget for monitoring and controlling

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

96) A company looks at its expenses and finds that its payments to freelancers increased significantly over the past few months, exceeding the budget by 25 percent. Which one of the following is the most reasonable action for the company to take?

A) revise the budget

B) fire the people who were responsible for the expenses

C) ignore the expenses as an aberration

D) see what the expenses were for

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

97) A company looks at its expenses and finds that its electricity costs have increased, exceeding the budget by 20 percent. If true, which one of the following would be most likely to require immediate action on the part of the company?

A) The price per kilowatt hour for electricity has gone up by 25 percent.

B) The price per kilowatt hour has gone up by 15 percent.

C) The price per kilowatt hour for electricity has gone down by five percent.

D) The price per kilowatt hour has stayed steady.

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

98) When a budget is formulated, it is being used as a(n) ________ tool.

A) organizing

B) controlling

C) planning

D) leadership

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

99) When a budget is used for controlling, it provides ________ against which resource consumption can be compared.

A) quantitative standards

B) qualitative standards

C) flexible standards

D) nonnumerical standards

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

100) A household that cuts back on supermarket spending after going over budget on its food expenses is using the budget as a(n) ________.

A) planning tool

B) controlling tool

C) organizing tool

D) leading tool

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

101) A family that is using a computer program to create a formal household budget is using the budget as a(n) ________.

A) planning tool

B) controlling tool

C) organizing tool

D) leading tool

Diff: 2

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

102) A management information system (MIS) provides managers with ________ data.

A) analyzed and processed

B) raw

C) unanalyzed

D) numerical

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

103) All of the following are important in efforts to protect information in an organization EXCEPT ________.

A) firewalls

B) encryption

C) search engines

D) data backups

Diff: 1

AACSB: Information technology

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

104) A balanced scorecard approach creates goals in four key performance areas and assesses ________.

A) whether the majority of them are met

B) whether all four goals are met

C) whether financial goals exceed the other goals

D) which goals are exceeded

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

105) The key to feedforward controls is taking action while the problem is occurring.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

106) A spellchecker that corrects words as you type in a word processing program is an example of feedforward control.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

107) Direct supervision is the best-known form of concurrent control.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

108) A GPS app that tells you that you are making a wrong turn is an example of concurrent control.

Diff: 3

AACSB: Application of knowledge

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Application

109) A major advantage of feedforward control is that it increases employee motivation.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

110) The major drawback of feedback control is that by the time the manager has the information, the problem has already occurred.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

111) Liquidity compares the total amount of debt a company has to its total assets.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

112) The acid test compares the difference between current assets and inventories to current liabilities.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

113) Return on investment compares net profit after taxes to total sales.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

114) Profitability ratios are a traditional way for a company to measure success.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

115) Budgets can be effective tools for both planning and controlling.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

116) A management information system (MIS) focuses on providing managers with the raw data that pertains to the organization.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

117) Firewalls, data backup, and encryption help prevent security breaches in organizations.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

118) A balanced scorecard with respect to organizational performance includes areas that are customer-oriented and growth-oriented, not financially-oriented.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

119) A scorecard with respect to organizational performance should always focus on all four performance areas equally.

Diff: 2

AACSB: Analytical thinking

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Analytical

120) In a short essay, describe feedforward control and give an example of its use.

An example of feedforward control occurs when sports venues ban the sale of alcohol during certain events that are likely to result in fighting or similar incidents. By eliminating a factor that always exacerbates and is sometimes the primary cause of violence ahead of time, managers avoid the trouble that violence brings.

Diff: 3

AACSB: Written and oral communication

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Critical thinking

121) In a short essay, describe concurrent control and give an example of its use.

Diff: 3

AACSB: Written and oral communication

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Critical thinking

122) In a short essay, describe feedback control and give an example of its use.

Any performance measurement for a company is an example of feedback control. Plans are made and standards are set. Those standards are compared to actual sales totals. If sales totals and standards generally agree, managers consider their plans accurate and their performance successful. If standards and totals do not agree, managers can take action to remedy the situation.

Diff: 3

AACSB: Written and oral communication

LO: 15.3: Discuss the types of controls organizations and managers use.

Question Category: Critical thinking

123) In which country would highly centralized decision making be more likely to be prevalent?

A) Mexico

B) Scotland

C) Japan

D) Australia

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

124) Direct supervision as a basic means of control is much more common in ________.

A) small countries

B) democracies

C) more technologically advanced countries

D) less technologically advanced countries

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

125) When comparing Mexico to Scotland, you would expect Scottish workers to have ________.

A) lower labor cost per worker

B) higher labor cost per worker

C) more satisfaction

D) worse working conditions

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

126) Which statement about employee privacy is correct?

A) Employers have a legal right to monitor on-the-job employee phone calls.

B) Employers have no legal right to monitor on-the-job employee phone calls.

C) Employers have the legal right to monitor all employee phone calls.

D) Employers do not have the right to monitor any employee phone calls.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

127) Which one of the following employer practices is NOT legal?

A) reading employee email

B) monitoring employees in a bathroom

C) tracking an employee's whereabouts in the workplace

D) monitoring an employee's personal home computer

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

128) Of the following choices, ________ is the most common reason for companies firing employees.

A) misuse of office phones

B) inappropriate computer use

C) watching online video

D) leaking company secrets

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

129) Monitoring ________ has proved to be very helpful in establishing culpability in sexual harassment cases.

A) phone calls

B) emails

C) employee whereabouts

D) Internet use

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

130) What fraction of U.S. employees do personal website surfing every day?

A) less than one-quarter

B) slightly less than half

C) more than half

D) almost all

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

131) Annual losses from organizational theft and fraud amount to about ________ per worker.

A) $500

B) $2,500

C) $4,500

D) $6,000

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

132) An effective feedforward strategy for dealing with employee theft is ________.

A) screen workers before they are hired

B) openly state the real costs of stealing

C) have managers set good examples

D) hire professional investigators

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

133) An effective concurrent strategy for dealing with employee theft of supplies and equipment is ________.

A) establish theft policies

B) redesign all control measures

C) "lock-out" options on electronic devices

D) video surveillance

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

134) All of the following are common rationalizations that workers use to justify workplace theft EXCEPT ________.

A) "Everyone does it."

B) "They'll never miss it."

C) "I deserve this."

D) "I owe money from gambling."

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

135) In any given week, at least ________ workers are attacked by coworkers or former coworkers and seriously injured in the United States.

A) 1 percent of all

B) 10

C) 25

D) 100

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

136) Workplace violence is most likely to occur in ________.

A) open organic workplaces

B) functional workplaces

C) dysfunctional workplaces

D) both functional or dysfunctional workplaces—violence shows no pattern

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

137) Management of a global company often relies on highly formalized reports as controls for distant operations.

Diff: 2

AACSB: Analytical thinking

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

138) Control measures in two different locations in different parts of the world are always comparable.

Diff: 1

AACSB: Diverse and multicultural work environments

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

139) Employers have the legal right to read personal email of employees if it is sent on a company computer.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

140) Employee theft amounts to less than $450 annually per worker in the United States.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

141) Workplace violence, in all its many forms, affects around 250,000 U.S. workers each year.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

142) A rigid, militaristic, high-pressure workplace that includes intimidation is likely to be a dysfunctional work environment.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 15.4: Discuss contemporary issues in control.

Question Category: Analytical

143) In a short essay, explain how global companies compare to domestic companies with respect to controlling workers.

Diff: 3

AACSB: Written and oral communication

LO: 15.4: Discuss contemporary issues in control.

Question Category: Critical thinking

144) In a short essay, describe workplace privacy concerns for managers today. What are managers doing to control this issue?

Recreational on-the-job Web surfing is thought to cost billions of dollars in lost work productivity annually, and employers have a right to try to minimize those losses. Employers also monitor employee email to provide unambiguous evidence for discrimination and sexual harassment cases. Finally, companies monitor computer use to ensure that company secrets aren't being leaked either deliberately or inadvertently.

Although employees may think that it's unfair for a company to monitor their work electronically, the courts have ruled that since the computer belongs to the company, managers have a right to view everything on it. Because of all of the serious issues listed above, many companies are developing and enforcing workplace monitoring policies. There should be a balance between management's need to know and the effect employee monitoring may have on employee morale.

Diff: 3

AACSB: Written and oral communication

LO: 15.4: Discuss contemporary issues in control.

Question Category: Critical thinking

145) In a short essay, explain why employers feel the need to monitor employee behavior.

Diff: 3

AACSB: Written and oral communication

LO: 15.4: Discuss contemporary issues in control.

Question Category: Critical thinking

146) In a short essay, describe one feedforward, one concurrent, and one feedback method for controlling employee theft.

Diff: 3

AACSB: Written and oral communication

LO: 15.4: Discuss contemporary issues in control.

Question Category: Critical thinking