Deck 11: Management Decision and Control

Question 1

Larger organizations typically emphasize decentralized decision-making in their international operations.

Answer 1

False

Question 2

In Japan, what should be done is called honne, while what one really feels, which may be quite different is tatemae.

Answer 2

False

Question 3

In Germany, managers place a greater emphasis on managing subordinates than on productivity and product quality.

Answer 3

False

Question 4

A common form of direct control is visits by top executives to overseas affiliates or subsidiaries.

Question 5

TQM uses employee empowerment which encourages individuals and teams to generate and implement ideas for improving quality.

Question 6

As a TQM technique, rewards and recognition tend to be effective universally.

Question 7

Decision making and controlling are two vital and often interlinked functions of international management.

Question 8

When local managers are inexperienced or not highly effective, decision making tends to be decentralized.

Question 9

A legal system called codetermination requires workers and their managers to participate in the discussion of major decisions.

Question 10

ISO 9000 certification is becoming a necessary prerequisite to doing business in the EU.

Question 11

Top-level managers depend heavily on staff managers to handle much of the decision-making by decentralizing to their level.

Question 12

The process of giving individuals and teams the resources, information and authority they need to develop ideas and effectively implement them is referred to as reengineering.

Question 13

A quality control circle is a group of workers who meet on a regular basis to discuss ways of improving the quality of work.

Question 14

An assessment center is an evaluation tool that is used to evaluate employees.

Question 15

Direct controls are particularly important in international management because of the great expense associated with indirect methods.

Question 16

The method of choosing a course of action among alternatives is referred to as decision-making.

Question 17

Direct controls use reports and other written forms of communication to control operations.

Question 18

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on profit and return on investment.

Question 19

Surprisingly one of the least common approaches to personnel performance evaluation is the periodic appraisal of work performance.

Question 20

The Japanese make heavy use of a decision-making process called ringisei or decision making by consensus.

Question 21

An organizational strategy and the accompanying techniques that result in the delivery of high-quality products or services to customers is referred to as:

A)Total quality management
B)Just-in-time management
C)Reengineering
D)ISO 9000

Question 22

The following factors encourage the use of centralized decision-making except:

A)Large company size
B)Large capital investment
C)Heterogeneous product lines
D)High degree of technology

Question 23

Identify the statement which accurately depicts difference between French and Danish managers in their approach to the decision-making process.

A)French managers do not spend as much time analyzing alternatives to optimize production
B)Danes do not emphasize control in operations
C)French managers are less emotionally responsive and tend to take a straightforward approach
D)Danes present each opportunity with a sense of creativity and logic

Question 24

The following factors encourage the use of decentralized decision-making except:

A)Small company size
B)Relatively low importance to MNC
C)High degree of technology
D)Stable environment

Question 25

The decision-making process called ringisei is generally used by the

A)Germans
B)Chinese
C)Japanese
D)Italians

Question 26

The process of choosing a course of action among alternative is referred to as:

A)Supervision
B)Directing
C)Decision-making
D)Controlling

Question 27

Which of the following factors encourages the use of centralized decision-making?

A)Small company size
B)Small capital investment
C)Relatively low importance to the MNC
D)Highly competitive environment

Question 28

Kaizen is a Japanese term that means:

A)Employee empowerment
B)Continuous improvement
C)Quality comes first
D)Teamwork

Question 29

If centralized decision-making is in place, the most important decisions are made at the:

A)Top management level
B)Middle management level
C)Level of self-managed work teams
D)Operational personnel

Question 30

In Japan, what should be done is called _____, while what one really feels, which may be quite different is _____.

A)Tatemae; honne
B)Honne; ringisei
C)Honne; tatemae
D)Ringisei; tatemae

Question 31

In domestic situations, when competition increases, management will:

A)Integrate product or service lines
B)Centralize authority
C)Decentralize authority
D)Diversify product and service lines

Question 32

When the subsidiary is selling new products in growing markets, _____ decision making is more likely.

A)External
B)Decentralized
C)Centralized
D)Neutralized

Question 33

A legal system that requires workers and their managers to discuss major decisions is referred to as:

A)Employee empowerment
B)Reengineering
C)Holistic management
D)Codetermination

Question 34

The process of giving individuals and teams the resources, information and authority they need to develop ideas and effectively implement them is referred to as:

A)Total quality management
B)Reengineering
C)Empowerment
D)Kaizen

Question 35

Areas that are examined by the ISO 9000 certification team include all of the following except:

A)Design (product or service specifications)
B)Process control (instruction for manufacturing or service functions)
C)Purchasing service (e.g., instructions for conducting after-sales service)
D)Environmental management standards

Question 36

ISO 9000 refers to the International Standards Organization (ISO) certification to ensure:

A)Quality products and services
B)On-time delivery
C)Safety standards
D)Compliance with worldwide workplace equality standards

Question 37

According to the text, one of the primary areas where TQM is having a big impact is:

A)Human resources management
B)Manufacturing
C)Marketing
D)Finance

Question 38

If decentralized decision-making is in place, decisions are:

A)Made at the top management level
B)Made at the middle management level
C)Delegated to operating personnel
D)Contracted to external consultants

Question 39

Although a number of approaches to decision-making are used around the world, the overall trend currently is toward:

A)Decentralization
B)Team-based decision-making
C)Centralization
D)Decision-making by consensus

Question 40

The more sophisticated the level of technology, the greater the use of _____ decision-making.

A)Participative
B)Centralized
C)Decentralized
D)Team-based

Question 41

Controls that involve face-to-face or personal meetings to monitor operations are

A)Direct
B)Indirect
C)Parallel
D)Circular

Question 42

This certification is becoming a necessary prerequisite to doing business in the EU and also is increasingly used as a screening criterion for bidding on contracts or getting business in the United States and other parts of the world.

A)ISO 10006
B)ISO 9000
C)ISO 14000
D)ISO 19011

Question 43

The internal control process differs from the external control in that the internal control:

A)Encourages harmony, responsiveness and sensibility
B)Focuses on the self, function, one's own group and one's own organization
C)Proves to be comfortable with waves, shifts and cycles, which are regarded as "natural"
D)Has a flexible attitude, willing to compromise and keep the peace

Question 44

Controls that use reports and other written forms of communication to control operations are:

A)Cultural
B)Parallel
C)Indirect
D)Direct

Question 45

The following are common problems that MNCs face in attempting to control their overseas operations except:

A)The objectives of the foreign operation and the corporate objectives are similar
B)The objectives of joint-venture partners and corporate management conflict
C)Amount of experience and competence in planning are widely diverse among foreign CEOs
D)Basic philosophic conflicts exist about objectives and policies of foreign operations, largely because of cultural differences between home and host-country managers

Question 46

Controls that are generally used by MNCs to monitor performance on a monthly basis are:

A)Direct
B)Indirect
C)External
D)Internal

Question 47

MNCs generally use direct controls to monitor performance on a:

A)Semi-annual basis
B)Monthly basis
C)Bi-monthly basis
D)Quarterly basis

Question 48

The amount remaining after all expenses are deducted from total revenues is referred to as:

A)Remuneration
B)Profit
C)Returns
D)Proceeds

Question 49

Two common ways of looking at how MNCs control operations are:

A)Determining whether the organization uses accounting or strategic controls and by choosing whether the enterprise uses simple or complex controls
B)By looking at the ways in which the organization uses hierarchical and bureaucratic controls and by looking at the ways in which the organization uses external or internal controls
C)Choosing whether the enterprise uses simple or complex controls and by determining whether the organization uses financial or strategic controls
D)Determining whether the enterprise chooses to use internal or external control and by looking at the ways in which the organization uses direct and indirect controls

Question 50

The process of evaluating results in relation to plans or objectives and deciding what action, if any, to take is referred to as:

A)Directing
B)Decision-making
C)Supervising
D)Controlling

Question 51

The external control process differs from the internal control in that the external control:

A)Encourages harmony, responsiveness and sensibility
B)Focuses on self, function, one's own group and one's own organization
C)Proves to be uncomfortable when the environment seems out of control or changeable
D)Has a dominating attitude bordering on aggressiveness toward the environment

Question 52

General Motor's decision to close some of its U.S.factories and to establish production operations on a worldwide basis is a strategic move aiming to:

A)Reduce costs
B)Increase quality
C)Attack competition
D)Diversify risks

Question 53

MNCs based in the United States tend to use fairly _____ decision-making in managing their overseas operations.

A)Decentralized
B)Participative
C)Team-based
D)Centralized

Question 54

Which of the following is not a form of direct control?

A)Visits by top executives to overseas affiliates or subsidiaries
B)The staffing practices of MNCs
C)The organizational structure of MNCs
D)The use of financial ratios that provide insights into the unit's financial health

Question 55

International managers use a _____ to establish performance standards of operations.

A)Control approach
B)Strategic approach
C)Organizing approach
D)Objective standard

Question 56

According to the work of Horovitz, all of the following are common characteristics of British control except:

A)Operating units had a large amount of marketing autonomy
B)Control was used more for general guidance than for surveillance
C)Financial reports were simple and lightly emphasized
D)Top management tended to focus attention on major problem areas and did not get involved in specific, detailed matters of control

Question 57

The use of monthly operating reports that are sent to the home office is a common example of:

A)Direct control
B)Indirect control
C)External control
D)Cultural control

Question 58

Visits by top executives to overseas affiliates or subsidiaries is a common form of:

A)Indirect control
B)External control
C)Cultural control
D)Direct control

Question 59

In comparing the control mechanisms used by U.S.and European firms, it has been found that U.S.firms make greater use of _____ control, while European firms rely more heavily on _____ control.

A)Output, behavioral
B)Bureaucratic, participative
C)Behavioral, output
D)Participative, bureaucratic

Question 60

The following are accurate representation of the differences in control measures used by European and American managers except:

A)Americans tend to control operations through reports and other objective, performance related data
B)Socio-emotional control systems are preferred by European firms
C)American managers like task-oriented control
D)European firms are more centralized than American firms

Question 61

Explain the relevance of TQM in decision making and controlling processes.

Question 62

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on:

A)Profits and assets
B)Assets and return on investment
C)Profit and return on investment
D)Assets and owners' equity

Question 63

Return on investment (ROI) is measured by dividing:

A)Profit by assets
B)Revenues by profit
C)Expenses by revenues
D)Profit by expenses

Question 64

The most common types of performance measures used for control purposes include the following except:

A)Financial performance
B)Quality performance
C)International monetary performance
D)Personnel performance

Question 65

According to the text, the amount of _____ directly relates to how well or how poorly a unit is judged to perform.

A)Revenue
B)Expense
C)Asset
D)Profit

Question 66

A typical assessment center would involve simulation exercises that would include the following except:

A)In-basket exercises
B)Oral communications of a business plan
C)Business decision exercises
D)Preparation of a business plan

Question 67

Describe the differences between direct controls and indirect controls? Provide an example of each type of control for the management of a MNC.

Question 68

A group of workers who meet on a regular basis to discuss ways of improving the quality of work is a:

A)Task force
B)Committee
C)Self-managed team
D)Quality control circle

Question 69

The philosophy, "Anything worth doing in the area of quality is worth overdoing." is the management attitude of the

A)French
B)Danish
C)Japanese
D)Americans

Question 70

A(n) _____ is an evaluation tool that is used to identify individuals with the potential to be selected or promoted to higher-level positions.

A)Behavior evaluation center
B)Employment suitability center
C)Assessment center
D)Employment testing center

Question 71

What are the main factors that help influence whether decision-making will be centralized or decentralized?

Question 72

The use of quality circles is a TQM technique associated with the control function which was popularized by the:

A)Japanese
B)Germans
C)French
D)Chinese

Question 73

Discuss the decision-making philosophies and practices of the French and Danish managers.

Question 74

The Japanese method of training workers for all jobs on the line, even though they eventually are assigned to a single workstation is known as:

A)Training overkill
B)Taguchi method
C)Kaizen
D)Ringisei

Question 75

Discuss the relevance of the various performance measures that are used for control purposes.