Ch8 Full Test Bank Control, Change, and Entrepreneurship - Contemporary Management 8e Answer Key and Test Bank by Gareth Jones. DOCX document preview.
Essentials of Contemporary Management, 8e (Jones)
Chapter 8 Control, Change, and Entrepreneurship
1) Using the controlling function, managers monitor and evaluate the organization's strategy to evaluate whether it is working as intended.
Difficulty: 1 Easy
Topic: Control Systems
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
2) Managers use feedforward control to anticipate problems.
Difficulty: 1 Easy
Topic: Feedforward Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
3) The first step in the control process is to evaluate results in terms of performance standards.
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
4) Standard operating procedures are mechanisms for clan control.
Difficulty: 1 Easy
Topic: Clan Control
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
5) The inventory turnover ratio is an example of the activity ratio of an organization.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
6) Output control procedures are used at every management level of an organization.
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
7) Control by means of a comprehensive system of rules and standard operating procedures that shape and regulate the behavior of divisions, functions, and individuals is known as bureaucratic control.
Difficulty: 1 Easy
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
8) Adaptive cultures are those whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective.
Difficulty: 1 Easy
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
9) Managers use benchmarking to compare one employee's productivity to that of another employee.
Difficulty: 1 Easy
Topic: Benchmarking
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
10) A person who works for a company and works to create new or improved products for that company is an example of an intrapreneur.
Difficulty: 1 Easy
Topic: Intrapreneur
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
11) 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 is known as
A) organizing.
B) leading.
C) controlling.
D) coordinating.
Difficulty: 1 Easy
Topic: Control Systems
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
12) The 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 are known as ________ systems.
A) operating
B) organizational
C) control
D) recurrent
Difficulty: 1 Easy
Topic: Control Systems
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
13) The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control.
A) feedforward
B) concurrent
C) feedback
D) bureaucratic
Difficulty: 1 Easy
Topic: Feedforward Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
14) Futura Fabricators 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. This is an example of ________ control.
A) concurrent
B) feedforward
C) feedback
D) bureaucratic
Difficulty: 2 Medium
Topic: Feedforward Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
15) Managers at Foster and Zapp Construction set up a stringent job interview process by which management 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. By using this process, Foster and Zapp is using ________ control.
A) concurrent
B) feedforward
C) feedback
D) MBO
Difficulty: 2 Medium
Topic: Feedforward Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
16) Windward Bank set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Windward is utilizing ________ control.
A) feedforward
B) feedback
C) bureaucratic
D) MBO
Difficulty: 2 Medium
Topic: Feedforward Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
17) The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control.
A) feedforward
B) bureaucratic
C) concurrent
D) feedback
Difficulty: 1 Easy
Topic: Concurrent Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
18) The control system that is typically 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 is ________ control.
A) feedforward
B) MBO
C) feedback
D) concurrent
Difficulty: 3 Hard
Topic: Concurrent Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) At the output stage, managers usually utilize ________ control.
A) MBO
B) bureaucratic
C) feedforward
D) feedback
Difficulty: 1 Easy
Topic: Feedback Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
20) Gazelle Computers monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Gazelle is using ________ control.
A) feedforward
B) concurrent
C) MBO
D) feedback
Difficulty: 2 Medium
Topic: Feedback Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
21) Constantinople Trading Co., a manufacturer of home decor goods, 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. With this system, Constantinople is using ________ control.
A) feedforward
B) feedback
C) MBO
D) bureaucratic
Difficulty: 2 Medium
Topic: Feedback Control
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
22) Martel, the production manager of Firefly Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Martel
A) establishes the standards of performance.
B) measures the actual level of performance of employees.
C) compares the actual performance against chosen standards of performance.
D) evaluates the result of the set standards.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
23) The managers of Sputnik Diner, 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 Sputnik are
A) establishing the standards of performance.
B) measuring the actual level of performance of employees.
C) comparing the actual performance against chosen standards.
D) evaluating the result of the set standards.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
24) 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.
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
25) The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is
A) measuring actual performance.
B) comparing actual performance to the standards.
C) initiating corrective action.
D) measuring standards of performance.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
26) Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags. With reference to the control process, Charlene 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.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
27) The final step in the control process is
A) evaluating results and initiating corrective action.
B) measuring actual performance.
C) comparing actual performance to the set standards.
D) measuring the standards of performance.
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
28) Amir, the manager of Kaleidoscope Toys, 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, Amir is
A) establishing the standards of performance.
B) measuring the actual level of performance of employees.
C) evaluating the result of the set standards.
D) initiating corrective actions.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
29) In which of the following situations do you think it would be most challenging for a manager to measure employee outputs or behavior?
A) Workers in a clothing factory are doing hand-stitching on dresses.
B) Graphic designers at a media company are designing logo prototypes.
C) A clerk at a convenience store is recording inventory for the past month.
D) The sales team at a real estate company is cold-calling prospective clients.
Difficulty: 3 Hard
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
30) Which of the following activities might a manager perform if he or she is at the final stage of the control process?
A) deciding whether to take corrective action to meet the standard
B) restructuring the work process to increase efficiency
C) developing a performance standard to measure behavior
D) determining the factors that are affecting employee output
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
31) The sales of Audiophile, a manufacturer of home and professional audio systems, have been declining noticeably over the last several quarters. Muaad, the CEO, meets with several managers, including Bruno, the head of the customer service department, and Ilya, a customer response team leader. It is determined that, while the company's quality and innovation standards are being met and even exceeded, its customer service is not performing as well as it should be. Muaad decides to implement a goal of raising the quality of Audiophile's interactions with customers by their next quarterly meeting. Given what you know about the control process, what should the team at Audiophile do next?
A) Muaad should meet with Bruno and Ilya to decide if a five-star rating scale is sufficient for measuring their progress and whether they need to reach a 4- or 4.5-star average.
B) Bruno should evaluate the behaviors of customer service teams by having Ilya collect and report data measuring the specifics of customer interactions.
C) After three months, Bruno should look at the results of the new actions undertaken by Ilya's team and decide whether they need further improvement.
D) Over the next month, Ilya should track the number of customer interactions and record how quickly team members responded.
Difficulty: 3 Hard
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
32) The manager of East India Ice Cream Shop keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of East India is utilizing ________ control.
A) output
B) bureaucratic
C) input
D) MBO
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) The manager of 24-7, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control.
A) feedforward
B) output
C) input
D) MBO
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
34) The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) ________ ratio.
A) activity
B) leverage
C) profit
D) liquidity
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
35) The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is
A) gross profit margin.
B) the debt-to-assets ratio.
C) the inventory turnover ratio.
D) return on investment.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
36) An organization's net income before taxes divided by the total assets of the organization is known as
A) gross profit margin.
B) return on investment.
C) the debt-to-assets ratio.
D) days sales outstanding.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
37) The financial ratio that measures the ability of the organization to pay its short-term debts is the ________ ratio.
A) leverage
B) liquidity
C) activity
D) profit
Difficulty: 2 Medium
Topic: Current Ratio
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
38) The ratio that is computed by dividing the difference between current assets and inventory by current liabilities is the ________ ratio.
A) inventory turnover
B) quick
C) current
D) debt-to-assets
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
39) The current assets of Kaiser Investments are valued at $25 million and its current liabilities are at $6 million. If its inventory is worth $1 million, what is its quick ratio?
A) 4
B) 0.25
C) 0.14
D) 3.6
Difficulty: 3 Hard
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
40) The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity?
A) inventory turnover ratio
B) quick ratio
C) current ratio
D) debt-to-assets ratio
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
41) The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the ________ ratio.
A) quick
B) current
C) days sales outstanding
D) profit
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
42) From the information given below, calculate the organization's return on investment.
Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income before Taxes = $30,000; Total Expenses = $240,000
A) 50 percent
B) 5 percent
C) 10 percent
D) 12.5 percent
Difficulty: 3 Hard
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) Calculate the return on investment from the information given below.
Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000
A) 16.67 percent
B) 15 percent
C) 11.25 percent
D) 12.5 percent
Difficulty: 3 Hard
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) Calculate the current ratio of the organization from the information given below.
Sales = $200,000; Gross Profit = $40,000; Total Assets = $450,000; Current Assets = $250,000; Current Liabilities = $300,000
A) 0.44
B) 0.56
C) 0.67
D) 0.83
Difficulty: 3 Hard
Topic: Current Ratio
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) From the information given below, calculate the organization's current ratio.
Total Liabilities = $750,000; Current Liabilities = $220,000; Total Assets = $700,000; Current Assets = $176,000
A) 0.65
B) 0.25
C) 0.70
D) 0.80
Difficulty: 3 Hard
Topic: Current Ratio
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the ________ ratio.
A) leverage
B) liquidity
C) activity
D) profit
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
47) The financial ratio that measures how well the managers of the organization are creating value from the organization's assets is the ________ ratio.
A) leverage
B) liquidity
C) current
D) activity
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
48) The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the ________ ratio.
A) debt-to-assets
B) quick
C) current
D) days sales outstanding
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
49) The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) ________ budget approach.
A) expense
B) profit
C) cash flow
D) revenue
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
50) The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ________ budget approach.
A) expense
B) cash flow
C) revenue
D) profit
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
51) When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach.
A) quality
B) revenue
C) operational
D) fixed
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
52) When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services, this is an example of a(n) ________ budget approach.
A) revenue
B) cash flow
C) expense
D) profit
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
53) A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager is being evaluated using the ________ budget approach.
A) profit
B) revenue
C) cost
D) expense
Difficulty: 1 Easy
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
54) When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach.
A) capital
B) revenue
C) expense
D) profit
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
55) A mechanism of control utilized in organizational culture is
A) direct supervision.
B) management by objectives.
C) socialization.
D) organizational goals.
Difficulty: 1 Easy
Topic: Organizational Culture
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
56) Management by objectives is a mechanism of control with ________ organizational control systems.
A) input
B) clan
C) output
D) behavior
Difficulty: 1 Easy
Topic: Management by Objectives (MBO)
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
57) The most immediate and potent form of behavior control is
A) direct supervision.
B) clan control.
C) bureaucratic control.
D) socialization.
Difficulty: 1 Easy
Topic: Control Process Steps
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
58) With management by objectives, the first things established are
A) evaluations.
B) organizational objectives.
C) management goals.
D) subordinate goals.
Difficulty: 2 Medium
Topic: Management by Objectives (MBO)
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
59) Rules and SOPs are used to regulate the behavior of workers within the organization with a ________ control system.
A) bureaucratic
B) feedback
C) feedforward
D) concurrent
Difficulty: 1 Easy
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
60) Rules and SOPs are of little use in telling a scientist how to discover something new. Thus, which of the following forms of control should not be applied to scientists?
A) feedforward
B) feedback
C) bureaucratic
D) concurrent
Difficulty: 2 Medium
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
61) When actions are performed by employees the same way time and time again and the outcomes of their work are predictable, employee behavior is
A) generalized.
B) standardized.
C) maximized.
D) minimized.
Difficulty: 1 Easy
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
62) Jae-Kyu, a worker at Chelsea Motor Scooters, comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car comes off the assembly line with its fuel injection system attached in the new way. The managers are using ________ control.
A) bureaucratic
B) clan
C) output
D) input
Difficulty: 3 Hard
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
63) ________ tends to be the first type of control that all managers use to evaluate performance.
A) Direct supervision
B) Management by objectives
C) Output control
D) Bureaucratic control
Difficulty: 2 Medium
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
64) Which of the following problem is most likely to occur when a company becomes overly bureaucratic?
A) Employees eventually rebel against the rules.
B) The company becomes less efficient over time.
C) It leads to a toxic work culture and more turnover.
D) Employees stop thinking for themselves.
Difficulty: 2 Medium
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
65) Santiago has taken a new job as the general manager at Durwood Industries, which designs and manufactures custom cabinets. He is replacing Evan, who recently retired. Santiago has already set a company-wide goal of increasing efficiency and reducing waste. Unfortunately, Santiago has inherited a heavily bureaucratic work culture governed by byzantine rules. Evan mainly managed by actively overseeing his employees, but from the employee's lack of motivation, Santiago can tell that this approach is no longer working. Based on what you know about behavior control, what solution should Santiago implement to increase employee engagement and productivity?
A) He should have floor managers and employees jointly set goals that describe what employees can personally do to reduce waste and then periodically check in with them to monitor their progress.
B) He should require employees to turn in a report at the end of every week that details the number of cabinets they completed, the amount of materials they used, and how many pounds were thrown away.
C) He should sits in on team meetings and encourage employees to vent their frustrations with Evan's way of doing things so that whatever Santiago implements looks good in contrast.
D) Since team leaders and lower-level managers have so much responsibility, Santiago should resist asserting his authority and instead focus on keeping clients happy.
Difficulty: 3 Hard
Topic: Management by Objectives (MBO)
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) The set of values, norms, and expectations of behavior that control the ways in which workers interact with one another within the organization is known as
A) managerial objectives.
B) organizational culture.
C) clan control.
D) adaptive culture.
Difficulty: 1 Easy
Topic: Organizational Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
67) The control that is imposed on workers within the organization by the shared values, norms, standards of behavior, and expectations is ________ control.
A) bureaucratic
B) operating
C) clan
D) leverage
Difficulty: 1 Easy
Topic: Clan Control
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
68) When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) ________ culture.
A) dynamic
B) bureaucratic
C) adaptive
D) normative
Difficulty: 1 Easy
Topic: Organizational Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
69) Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a
A) top-down approach to promote adaptive culture.
B) bottom-up approach to promote adaptive culture.
C) top-down approach to promote inert culture.
D) bottom-up approach to promote inert culture.
Difficulty: 2 Medium
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
70) When an organization has a culture that leads to values and norms that fail to motivate or inspire employees, eventually leading to stagnation and often failure over time, that company has a(n) ________ culture.
A) adaptive
B) inert
C) communal
D) bureaucratic
Difficulty: 1 Easy
Topic: Organizational Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
71) Companies with an inert culture
A) closely supervise their employees within a hierarchical system.
B) develop long-term career paths for their employees.
C) invest heavily in training and development of employees.
D) encourage the development of supportive work attitudes and behaviors.
Difficulty: 1 Easy
Topic: Organizational Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
72) In companies that have an adaptive culture, employees are
A) content to be told what to do during work hours.
B) not motivated to perform beyond minimum requirements.
C) closely supervised within a hierarchical authority.
D) likely to have long-term career paths to follow.
Difficulty: 1 Easy
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
73) Which of the following is true of an adaptive work culture?
A) There is a strong emphasis on close supervision of workers.
B) Employees are not rewarded on their performance.
C) Cross-functional team structures are often used.
D) The company sticks to tried and true methods of doing things.
Difficulty: 1 Easy
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
74) In an adaptive culture, employees often receive rewards based on their
A) performance.
B) commitment.
C) seniority.
D) popularity.
Difficulty: 2 Medium
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
75) Ysabel has just been hired in the advertising department at Ingenue, a cosmetics and skincare company. The environment at her new job could not be more different from her old one. At her old company, workers sat in closed-off cubicles or glassed-in offices, whereas Ingenue has fun decor and an open office plan. Managers have regular one-on-one meetings with employees to discuss career development and offer mentoring, and the company offers regular classes and workshops. The emphasis is on creativity and collaboration, and teams celebrate each other's accomplishments with spontaneous parties and excursions. What else is likely true about Ysabel's new job?
A) Ysabel does not know much about company values because it is taken for granted that everyone knows what they are.
B) The managers in the advertising department allow Ysabel and her co-workers to make certain decisions, such as angles for ad campaigns.
C) The managers constantly talk about excellence, and Ysabel's team is expected to submit ad proposals that are more like finished products than rough drafts.
D) It is expected that Ysabel's team will stay late and even come in on the weekends whenever the company releases a new lotion or other product.
Difficulty: 3 Hard
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
76) The aspects of organizational functioning that are affected by organizational change
A) include organizational culture and strategies.
B) include response to opportunities but not threats.
C) exclude the human resource management system.
D) exclude communication, motivation, and leadership.
Difficulty: 2 Medium
Topic: Organizational Culture
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
77) Which of the following stages in making organizational change includes benchmarking?
A) assess the need for change
B) decide on the change to make
C) implement the change
D) evaluate the change
Difficulty: 2 Medium
Topic: Benchmarking
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
78) Which of the following stages in making organizational change includes deciding whether change will occur from the top down or from the bottom up?
A) assess the need for change
B) decide on the change to make
C) implement the change
D) evaluate the change
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
79) Which of the following happens in the conversion stage?
A) anticipating possible problems
B) managing problems as they occur
C) dealing with problems that have arisen
D) managing without correction of problems
Difficulty: 2 Medium
Topic: Concurrent Control
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
80) The process through which managers try to increase members' abilities to understand and appropriately respond to changing conditions is known as
A) norm enforcement.
B) adaptive learning.
C) organizational learning.
D) clan control.
Difficulty: 1 Easy
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
81) In assessing the need for organizational change, managers must
A) identify the obstacles to change at the corporate and individual levels.
B) plan how they are going to attain the organization's ideal future state.
C) recognize that there is a problem and identify its source.
D) implement change from the top down or from the bottom up.
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
82) The process of comparing one company's performance on specific dimensions with the performance of high-performing organizations to decide how successful a change effort has been is known as
A) socialization.
B) diversification.
C) social facilitation.
D) benchmarking.
Difficulty: 1 Easy
Topic: Benchmarking
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
83) TruLife Health Systems has opted for a top-down approach to changing how the company functions so that efficiency is increased. What is the change likely to entail?
A) a fast or revolutionary approach involving managers at all levels
B) a gradual or evolutionary approach involving only the top managers
C) a fast or revolutionary approach involving only the top managers
D) a gradual or evolutionary approach involving managers at all levels
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
84) Optique Cameras opts to take a bottom-up approach in order to draft a new attendance policy. What will the approach entail?
A) a fast or revolutionary approach involving managers at all levels
B) a gradual or evolutionary approach involving only the top managers
C) a fast or revolutionary approach involving only the top managers
D) a gradual or evolutionary approach involving managers at all levels
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
85) Top managers at Swirly Sweets, a candy manufacturer, consult with middle and first-line managers to revise their marketing strategy. This approach will lead to
A) top-down changes that can be implemented quickly throughout the organization.
B) bottom-up changes to minimize resistance from employees and uncertainty.
C) bottom-up changes that can be implemented quickly throughout the organization.
D) top-down changes to minimize resistance from employees and uncertainty.
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
86) The startup where Ha-Jin works, Affiniti, was recently acquired by Futurica, a huge multinational conglomerate. Everyone at Affiniti was severely stressed by the many changes that accompanied the transition. Many of Affiniti's managers were let go and replaced by people from Futurica. For almost a week, Ha-Jin was not even sure who her direct supervisor was. On top of everything else, Affiniti people were given a huge manual of Futurica's company policies that they had to memorize in less than a week. It was chaos, and several of Ha-Jin's colleagues ending up handing in their notices. How could Futurica's management have handled the transition more effectively?
A) by introducing new policies gradually and encouraging Ha-Jin and her co-workers to help take charge of implementing them
B) by posting a chart in the conference room clearly comparing Futurica's performance with that of other high-performing organizations
C) by moving quickly to implement all of the new policies as one and dealing with employee problems as they arise
D) by making sure that all policy changes are treated like company secrets and discussed only by top Futurica managers
Difficulty: 3 Hard
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
87) Entrepreneurship is the mobilization of resources to
A) start a process that ends with the founding of a new business.
B) compare two companies on specific dimensions.
C) market an old product with a new twist.
D) provide customers with new or improved goods and services.
Difficulty: 2 Medium
Topic: Entrepreneurship
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
88) Members of which of the following groups may be considered intrapreneurs?
A) employees of an organization who notice opportunities to develop new products
B) employees of an organization who have worked across various industries
C) managers who are responsible for two or more departments within a company
D) managers who ensure interdepartmental transfer of skills
Difficulty: 2 Medium
Topic: Intrapreneur
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
89) What is a common reason that entrepreneurs often find managing difficult?
A) They are too far from their companies to see the need for change.
B) They are unwilling to share their vision with others.
C) They have trouble delegating authority because of the risk involved.
D) They are not good at communicating their ideas with others.
Difficulty: 2 Medium
Topic: Intrapreneur
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
90) Jonah and Aubrey are the founders of Old Sarsaparilla, a manufacturer of novelty bottled sodas that use organic ingredients. After a couple of years of successfully marketing their products to local businesses, the company has attracted a slew of new investors and clients and has expanded into several of the surrounding states. As part of this expansion, they have hired a manager, Yusuf, to be responsible for the day-to-day business of the company. However, Aubrey questions all of Yusuf's decisions, wanting to remain involved in every aspect of the business. This has resulted in her being overextended and stressed most of the time. Caryl, Old Sarsaparilla's biggest investor and one of Aubrey's mentors, knows that Aubrey's creative, big-picture thinking is one of her most valuable traits. What should he suggest she do?
A) become a co-manager with Yusuf, so that she feels her authority is still respected
B) focus on building the kind of friendly organizational culture she envisions for the company
C) take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla
D) take management classes at the local university to develop her communication skills
Difficulty: 3 Hard
Topic: Entrepreneurship
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Apply
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
91) Define control systems, and list the three characteristics of an effective control system.
- It is flexible enough to allow managers to respond as necessary to unexpected events.
- It provides accurate information about organizational performance.
- It gives managers information in a timely manner because making decisions on the basis of outdated information is a recipe for failure.
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
92) Describe how managers use feedforward control.
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-01 Define organizational control, and explain how it increases organizational effectiveness.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
93) Discuss how managers evaluate the results of the control process and the corrective measures they can take if the standard is not being achieved.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
94) Managers typically use three primary measures to assess the output performance of their organizations. Write a brief note on these three types of measures.
- Financial measures of performance: Top managers are most concerned with overall organizational performance and use various financial measures to evaluate it. The most common are profit ratios, liquidity ratios, leverage ratios, and activity ratios.
- Organizational goals: Once top managers consult with lower-level managers and set the organization's overall goals, they establish performance standards for the divisions and functions. These standards specify for divisional and functional managers the level at which their units must perform if the organization is to achieve its overall goals.
- Operating budgets: Once managers at each level have been given a target to achieve, the next step in developing an output control system is to establish operating budgets that regulate how managers and workers attain their goals. An operating budget is a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently. Typically managers at one level allocate to subordinate managers a specific amount of resources to produce goods and services. Once they have been given a budget, these lower-level managers must decide how to allocate money for different organizational activities. They are then evaluated for their ability to stay within the budget and to make the best use of available resources.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
95) The top managers of an organization typically use a variety of financial indicators to assess the performance of their organizations. Discuss the four major types of financial measures.
Profit ratios measure how efficiently managers are using the organization's resources to generate profits. Return on investment (ROI), an organization's net income before taxes divided by its total assets, is the most commonly used financial performance measure because it allows managers of one organization to compare performance with that of other organizations. ROI lets managers assess an organization's competitive advantage. Operating margin is calculated by dividing a company's operating profit (the amount it has left after all the costs of making the product and running the business have been deducted) by sales revenues. This measure tells managers how efficiently an organization is using its resources.
Liquidity ratios measure how well managers have protected organizational resources to be able to meet short-term obligations. The current ratio (current assets divided by current liabilities) tells managers whether they have the resources available to meet the claims of short-term creditors. The quick ratio shows whether they can pay these claims without selling inventory.
Leverage ratios, such as the debt-to-assets ratio and the times-covered ratio, measure the degree to which managers use debt (borrow money) or equity (issue new shares) to finance ongoing operations. An organization is highly leveraged if it uses more debt than equity. Debt can be risky when net income or profit fails to cover the interest on the debt.
Activity ratios show how well managers are creating value from organizational assets. Inventory turnover measures how efficiently managers are turning inventory over so excess inventory is not carried. Days sales outstanding reveals how efficiently managers are collecting revenue from customers to pay expenses.
Difficulty: 2 Medium
Topic: Control Process Steps
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
96) Behavior control is one way managers attempt to motivate workers. Discuss three ways managers could use behavior control with subordinates.
- Direct supervision: The most immediate and potent form of behavior control is direct supervision by managers who actively monitor and observe the behavior of their subordinates, teach subordinates the behaviors that are appropriate and inappropriate, and intervene to take corrective action as needed.
- Management by objectives: To provide a framework within which to evaluate subordinates' behavior and, in particular, to allow managers to monitor progress toward achieving goals, many organizations implement some version of management by objectives. Management by objectives (MBO) is a formal system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets. MBO involves three specific steps:
- established at each level of the organization.
- Managers and their subordinates together determine the subordinates' goals.
- Managers and their subordinates periodically review the subordinates' progress toward meeting goals.
- Bureaucratic control: When direct supervision is too expensive and management by objectives is inappropriate, managers might turn to another mechanism to shape and motivate employee behavior: bureaucratic control. Bureaucratic control is control by means of a comprehensive system of rules and standard operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
97) Direct supervision is one of the best ways for managers to monitor the behavior of subordinates, but this method of behavior control can create problems with subordinates. Discuss the problems that can occur for managers when working with subordinates.
- Expenses increase because a manager can personally manage only a relatively small number of subordinates effectively, so more managers need to be employed.
- Direct supervision can demotivate subordinates. This occurs if employees feel they are under such close scrutiny that they are not free to make their own decisions or if they feel they are not being evaluated in an accurate and impartial way.
- For many jobs, personal control through direct supervision is simply not feasible. The more complex a job is, the more difficult it is for a manager to evaluate how well a subordinate is performing.
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
98) Management by objectives (MBO) is one way that managers can evaluate the performance of subordinates. Discuss the steps involved in using this technique.
1. Specific goals and objectives are established at each level of the organization: MBO starts when top managers establish overall organizational objectives. Then objective setting cascades down throughout the organization as managers at the divisional and functional levels set their goals to achieve corporate objectives. Finally, first-level managers and employees jointly set goals that will contribute to achieving functional objectives. Managers and their subordinates together determine the subordinates' goals: An important characteristic of MBO is its participatory nature.
2. Managers at every level sit down with each of the subordinate managers who report directly to them, and together they determine appropriate and feasible goals for the subordinate and bargain over the budget that the subordinate will need to achieve his or her goals. The participation of subordinates in the objective-setting process is a way of strengthening their commitment to achieving their goals and meeting their budgets. Participating in goal setting enables subordinates to tell managers what they think they can realistically achieve.
3. Managers and their subordinates periodically review the subordinates' progress toward meeting goals: Once specific objectives have been agreed on for managers at each level, managers are accountable for meeting those objectives. Periodically they sit down with their subordinates to evaluate their progress. Normally, salary raises and promotions are linked to the goal-setting process, and managers who achieve their goals receive greater rewards than those who fall short.
Difficulty: 2 Medium
Topic: Control Systems
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
99) Discuss the reasons why it is important for managers to be sensitive about the way they use bureaucratic control.
Difficulty: 2 Medium
Topic: Bureaucratic Control
Learning Objective: 08-04 Identify the main behavior controls, and discuss their advantages and disadvantages as a means of managing and motivating employees.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
100) How does organizational culture help managers exert control over subordinates?
Difficulty: 2 Medium
Topic: Organizational Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
101) Define adaptive culture and inert culture. Which is better for an organization and why? Give at least two examples of what organizations with each of these do to develop their cultures.
Adaptive cultures are better because they are not only able to motivate and control employees, but they have values and norms that help an organization to build momentum and to grow and change as needed to achieve their goals and be effective. Organizations with strong adaptive cultures invest in their employees. They demonstrate their commitment to their members by emphasizing the long-term nature of the employment relationship and trying to avoid layoffs. These companies develop long-term career paths for their employees and invest heavily in training and development to increase employees' value to the organization. In these ways, terminal and instrumental values pertaining to the worth of human resources encourage the development of supportive work attitudes and behaviors. In adaptive cultures, employees often receive rewards linked directly to their performance and to the performance of the company as a whole. Moreover, an adaptive culture develops an emphasis on entrepreneurship and respect for the employee and allows the use of organizational structures that empower employees to make decisions and motivate them to succeed. Many creative organizations, such as software companies, are adaptive.
Some organizations, however, develop cultures with values that do not include protecting and increasing the worth of their human resources as a major goal. Their employment practices are based on short-term employment according to the needs of the organization and on minimal investment in employees who perform simple, routine tasks. Moreover, employees are not often rewarded based on their performance and thus have little incentive to improve their skills or otherwise invest in the organization to help it to achieve goals. If a company has an inert culture, poor working relationships frequently develop between the organization and its employees, and instrumental values of noncooperation, laziness, and loafing and work norms of output restriction are common. In an inert culture, employees are content to be told what to do and have little incentive or motivation to perform beyond minimum work requirements. In these cultures, the emphasis is on close supervision and hierarchical authority, which result in a culture that makes it difficult to adapt to a changing environment. Fast food restaurants often have inert cultures.
Difficulty: 3 Hard
Topic: Adaptive Culture
Learning Objective: 08-05 Explain how organizational culture or clan control creates an effective organizational architecture.
Bloom's: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
102) Discuss the need to balance two opposing forces in the control process that influences the way organizations change.
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
103) Identify and discuss the two activities that are important for assessing the need for change in an organization.
Difficulty: 2 Medium
Topic: Organizational Change
Learning Objective: 08-06 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
104) Define entrepreneurs and intrapreneurs, and discuss the relationship between them.
Difficulty: 2 Medium
Topic: Entrepreneurship
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
105) Discuss the challenges sometimes encountered by founding entrepreneurs and the skills needed to address these challenges.
Difficulty: 2 Medium
Topic: Entrepreneurship
Learning Objective: 08-07 Understand the role of entrepreneurship in the control and change process.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Document Information
Connected Book
Contemporary Management 8e Answer Key and Test Bank
By Gareth Jones