Deck 8: Using Information Technology for Control and Coordination

Question 1

Six Sigma is based on a methodology referred to as ____, which provides a structured way for organizations to approach and solve problems.

A) DMAIC
B) data warehousing
C) EIS
D) benchmarking

Answer 1

A

Question 2

The ____ is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors.

A) benchmarking
B) balanced scorecard
C) management control system
D) Six Sigma

Answer 2

B

Question 3

____ is typically concerned with well-defined problems about operational issues and past events.

A) Top management
B) First-line management
C) Employees
D) Middle-management

Answer 3

B

Question 4

Which of the following is an interactive information system that is designed to help managers at all levels make decisions through integrated databases in which a series of "what if" questions can be posed?

A) Decision support systems
B) Transaction processing systems
C) Management information systems
D) Enterprise resource planning

Question 5

____ is a highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts.

A) Benchmarking
B) Balanced scorecard
C) Knowledge management
D) Six Sigma

Question 6

Which of the following is not a management control system?

A) Statistical reports
B) Quality control system
C) Discipline policies
D) Reward system

Question 7

____ software uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant.

A) Data warehousing
B) Data mining
C) Analytical
D) Decision support system

Question 8

The systems that automate the organization's routine, day-to-day business transactions such as data from sales or purchases from suppliers are called:

A) transaction processing systems.
B) automated analysis systems.
C) inventory control systems.
D) decision support systems.

Question 9

Which of the following provides mid-level managers with reports that summarize data and support day-to-day decision making?

A) Executive information systems
B) Decision support systems
C) Information reporting systems
D) Feedback control systems

Question 10

The evolution of organizational applications of information technology move from first-line to the top as follows:

A) business resource, networking, transaction processing systems.
B) management information systems, business resource and operations.
C) operations, decision making and control, and adding strategic value.
D) work flow redesign, transaction processing systems, decision support systems.

Question 11

The initial applications of information technology by organizations were in the area of:

A) decision support systems.
B) transaction processing systems.
C) management information systems.
D) enterprise resource planning.

Question 12

____ refers to the high-tech analysis of a company's data in order to make better strategic decisions.

A) Data warehousing
B) Data mining
C) Transaction processing
D) Business intelligence

Question 13

The use of huge databases that combine all of a company's data and allow users to access the data directly, create reports, and obtain responses to what-if questions is referred to as:

A) data mining.
B) data processing.
C) transaction processing systems.
D) data warehousing.

Question 14

Which of the following is not a step of a simplified feedback control model?

A) Take corrective action as needed
B) Establish standards of performance
C) Measure actual performance and compare to standards
D) Set organizational mission and vision

Question 15

Which of the following is a software program that presents key business information in graphical, easy-to-interpret form and alerts managers to any deviations or unusual patterns in the data?

A) Executive dashboard
B) Transaction processing system
C) Executive information system
D) Information reporting system

Question 16

____ is typically based on software that can convert large amounts of complex data into pertinent information and provide that information to top managers in a timely fashion.

A) DSS
B) EIS
C) Information reporting system
D) TPS

Question 17

____ are defined as the formal routines, reports, and procedures that use information to maintain or alter patterns in organization activities.

A) Management control systems
B) MIS
C) DSS
D) TPS

Question 18

____ specify standards for employee participation, teamwork, and problem solving.

A) Budgets
B) Quality control systems
C) Reward systems
D) Statistical reports

Question 19

The process of continually measuring products, services, and practices against tough competitors or other organizations recognized as industry leaders is referred to as:

A) balanced scorecard.
B) benchmarking.
C) Six Sigma.
D) ERP.

Question 20

What is the highest level of application of use of information technology?

A) Internal control for profitability
B) External application for new business forms
C) Adding strategic value
D) Networking

Question 21

The impact of information technology on organization design includes:

A) larger size.
B) more decentralized organization structures.
C) technology is a substitute for professional staff, thereby decreasing the need for them.
D) decreased levels of employee participation.

Question 22

The form of corporate networking which is a private internal network that uses the infrastructure of the World Wide Web, but is not accessible to the public is called the:

A) WebNet.
B) Intranet.
C) InterWeb.
D) CorpNet.

Question 23

____ measure such things as how customers view the organization, as well as customer retention and satisfaction.

A) Customer service indicators
B) Business process indicators
C) Financial indicators
D) Retention indicators

Question 24

With a modular structure, most activities are:

A) outsourced.
B) eliminated.
C) performed by in-house professionals.
D) simplified.

Question 25

Codified knowledge management includes:

A) investing time at meetings in the sharing of stories and learning of histories.
B) a strong "feel" for the corporate culture.
C) development of a electronic document system that codifies, stores, disseminates, and allows reuse of knowledge.
D) channeling individual expertise to provide creative advice on problem solving.

Question 26

______ focus on production and operating statistics, such as order fulfillment or cost per order.

A) Employee performance
B) Financial indicators
C) Customer service indicators
D) Business process indicators

Question 27

____ provides a visual representation of the key drivers of an organization's success and shows how specific outcomes in each area are linked.

A) Enterprise resource planning
B) A feedback control model
C) A strategy map
D) A customer relationship management model

Question 28

The ____ helps managers focus on the key strategic measures that define the success of a particular organization over time and communicate them clearly through the organization.

A) networking
B) data warehousing
C) EDI
D) balanced scorecard

Question 29

____ can create a level of cooperation not previously imaginable if managers approach the practice with an attitude of trust and partnership.

A) Enterprise integration
B) Networking
C) Knowledge management
D) TPS

Question 30

The _____ shows a firm's financial position with respect to assets and liabilities at a specific point in time.

A) profit and loss statement
B) balance sheet
C) budget
D) income statement

Question 31

____ is the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known.

A) ERP
B) Six Sigma
C) Knowledge management
D) Benchmarking

Question 32

A(n) _____ system is a computer-based system that provides information and support for managerial decision making. It is supported by the organization's transaction processing systems and by organizational and external databases.

A) management information
B) executive information
C) decision support
D) feedback control

Question 33

____ is based on monitoring and rewarding results, and managers might pay little attention to how those results are obtained.

A) Outcome control
B) Behavior control
C) Feedback control
D) Management control

Question 34

At Enterprise Rent-a-Car, a computerized system keeps track of the 1.4 million transactions the company logs every hour. The system can provide front-line employees with up-to-the-minute information on car availability and other data, enabling them to provide exceptional customer service. The system at enterprise is a _____ system.

A) decision support
B) management information
C) transaction processing
D) enterprise resource planning

Question 35

_____ control is based on manager observation of employee actions to see whether the individual follows desired procedures and performs tasks as instructed.

A) Outcome
B) Behavior
C) Financial
D) Knowledge

Question 36

Which of the following provides an unprecedented peer-to-peer communication channel, where people interact in an online community, sharing personal data and photos, producing and sharing all sorts of information and opinions?

A) Extranets
B) Wikis
C) Blogs
D) Social networking sites

Question 37

An important aspect of integrated enterprise is:

A) Six Sigma.
B) networking.
C) supply chain management.
D) the intranet.

Question 38

All of the following are basic strategies for setting up an Internet operation except:

A) in-house divisions.
B) strategic partnerships.
C) spin-off companies.
D) franchising.

Question 39

Which of the following is not a perspective of the balanced scorecard?

A) Financial performance
B) Employee performance
C) Customer service
D) Quality control

Question 40

Access to management information systems and executive information systems are typically controlled by placing them on the:

A) Internet.
B) individual PCs of authorized managers.
C) intranet.
D) extranet.

Question 41

_____ knowledge is formal, systemic knowledge that can be articulated, written down, and passed on to others in documents, rules, or general instructions.

A) Expert
B) Tacit
C) Codified
D) Resource

Question 42

_____ can be defined as any business that takes place by digital processes over a computer network rather than in physical space.

A) The integrated enterprise
B) Social media
C) E-business
D) The Bricks and mortar

Question 43

The balanced scorecard is an information system used for making decisions.

Question 44

Managers use quality control systems to train employees in quality control methods, set targets for employee participation, establish benchmarking guidelines, and assign and measure Six Sigma goals.

Question 45

Six Sigma is a comprehensive management control system that balances traditional financial measures with operations measures relating to a company's critical success factors.

Question 46

The statistical report is typically used to set targets for the organization's expenditures for the year and then report actual costs on a monthly or quarterly basis.

Question 47

Information reporting systems are designed for non-managerial and non-supervisory personnel to have access to basic information on the status of product orders.

Question 48

The purpose of data warehousing is to combine all of a company's data and allows users to access the data directly, create reports, and obtain responses to what-if questions.

Question 49

Data mining software is designed to print out data from the government sector, particularly from census reports.

Question 50

Do people get to work on time? Do they stay focused on their tasks or spend a lot of time socializing with colleagues? Do they dress appropriately for the job? These are questions that a manager interested in _____ control would ask.

A) behavior
B) outcome
C) financial
D) information

Question 51

Management information systems facilitate rapid and effective decision making.

Question 52

The MIS is supported by the organization's transaction processing systems and by organizational databases.

Question 53

Effective control systems involve the use of feedback to determine whether organizational performance meets established standards to help the organization attain its goals.

Question 54

Transaction processing systems facilitates decision making at the highest levels of management.

Question 55

EIS collects data from transactions such as sales, purchases from suppliers, and inventory changes and stores them in a database.

Question 56

The formal routines, reports, and procedures that use information to maintain or alter patterns in organization activities are referred to as the balanced scorecard.

Question 57

Managers use periodic statistical reports to evaluate and monitor nonfinancial performance, such as customer satisfaction, employee performance, or rate of staff turnover.

Question 58

The first step of the feedback control model is to set strategic goals.

Question 59

A(n) _____ is a running web log that allows an individual to post opinions and ideas about work projects and processes.

A) extranet
B) social network
C) wiki-tiki
D) blog

Question 60

The four systems of a management control system form an overall management control system that provides top management with control information about resource inputs, process efficiency, and output. This information allows them to create new strategies.

Question 61

The information reporting system is the most common form of management information system.

Question 62

Knowledge management can serve as the backbone for an entire organization by integrating and optimizing all the various business processes across the entire firm.

Question 63

With a network structure, most activities are outsourced, so that different companies perform the various functions needed by the organization.

Question 64

Explain the evolution of organizational applications of information technology.

Question 65

An important aspect of the EIS is supply chain, which means managing the sequence of suppliers and purchasers covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.

Question 66

What is the information reporting system? Give one example.

Question 67

Compare executive information system and decision support system.

Question 68

The profit and loss statement is typically used to set targets for the organization's expenditures for the year and then report actual costs on a monthly or quarterly basis.

Question 69

Tacit knowledge is formal, systematic knowledge that can be written down and passed on to others.

Question 70

A strategy map provides a visual representation of the key drivers of an organization's success and shows how specific outcomes in each area are linked.

Question 71

One effect of IT on organization design is overall growth in size from the hiring of technical personnel.

Question 72

Discuss transaction processing systems and give an example of how a company utilizes the system.

Question 73

The initial applications of information technology by organizations was in the area of decision support systems.

Question 74

Approaches of explicit knowledge management include the use of dialogue and communities of practice.

Question 75

An executive dashboard is sometimes called a business performance dashboard.

Question 76

The components of the scorecard are designed in an integrative manner so that they reinforce one another and link short-term actions with long-term strategic goals.

Question 77

Enterprise resource planning can integrate key management processes by integrating order processing, product design, purchasing, inventory, distribution, and other areas of organizational activity.

Question 78

Today, most companies with intranets have moved their management information systems, executive information systems, and so forth over to the intranet so they can easily be accessed by anyone who needs them.

Question 79

The Results-Only Work Environment program at Best Buy provides an illustration of outcome control carried to the extreme.

Question 80

An extranet is an external communication system that uses the Internet and is shared by two or more organizations.