Deck 16: Control

Question 1

The Balanced Scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.

Answer 1

False
The Balanced Scorecard approach to control emphasizes measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning.

Question 2

Benchmarking is the process of setting corporate norms.

Answer 2

False
Benchmarking is the process of determining other companies' standards.

Question 3

Sometimes the costs of control exceed its benefits.

Answer 3

True

Question 4

In the behavioral approach to managerial control, a company's widely shared values and beliefs guide workers' behavior and decisions.

Question 5

Cybernetic feasibility refers to the extent to which it is possible to implement each step in the control process.

Question 6

When self-control is used, leaders and managers provide workers with clear boundaries within which they may guide and control their own goals and behaviors.

Question 7

Control is achieved when behavior and work procedures conform to set standards and that the company goals are accomplished.

Question 8

Feedforward control provides information about performance deficiencies by monitoring inputs, not outputs.

Question 9

The Balanced Scorecard method of control minimizes the chance of suboptimization.

Question 10

While the bureaucratic control model is designed to make companies more efficient, effective, and fair, it frequently has the opposite effect.

Question 11

Control loss usually has no effect on goal achievement.

Question 12

The control process begins when managers set goals.

Question 13

The objective control approach to managerial control manifests itself as either behavior control or output control.

Question 14

Concurrent control seeks to prevent or minimize performance deficiencies before they occur.

Question 15

Control loss occurs when behavior and work procedures merely meet minimally acceptable standards rather than exceeding those minimal standards.

Question 16

Concertive control produces less stress for workers than bureaucratic control.

Question 17

Companies may determine standards by evaluating their capacity to enable goal achievement, by listening to customers, by observing competitors, or by benchmarking other companies.

Question 18

Implementing controls is always worthwhile.

Question 19

Control is an intermittent activity that requires periodic attention from managers once or twice a month.

Question 20

Feedback control is a mechanism for gathering information about performance deficiencies before they occur.

Question 21

The only dimension needed to measure quality is conformance to expectations.

Question 22

Budgets are used to project costs and revenues, to prioritize and control spending, and to ensure that expenses don't exceed available funds and revenues.

Question 23

The three basic control methods are ____.

A) feedback control, feedforward control, and symmetry control
B) balance control, vertical control, and symmetry control
C) concurrent control, feedback control, and feedforward control
D) feedforward control, presumptive control, and stasis control
E) stasis control, feedback control, and simultaneous control

Question 24

A manufacturer of automatic locking devices shipped 20,000 devices to a car manufacturer that was unable to use them because of a design flaw. If the manufacturer of the devices waited until the parts were returned before determining why it created unusable component parts, it would be using ____ control.

A) feedforward
B) feedback
C) balanced
D) dynamic
E) concurrent

Question 25

In October 2005, Cadbury Schweppes losses caused it to scale back its financial projections for the remainder of the year. These financial projections were ____ for the beverage company.

A) autonomous measurements
B) standards
C) value ratios
D) dependence measurements
E) performance charts

Question 26

One significant advantage of economic value added (EVA) is that it clearly states what specific actions managers should or should not take in order to improve financial performance.

Question 27

____ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

A) Standards
B) Potentials
C) Autonomous goals
D) Degrees of centralization
E) Resource goals

Question 28

Control is a(n) ____ process.

A) standardized, periodic, and cybernetic
B) flexible, intermittent, and automated
C) standardized, periodic, and robotic
D) continuous, flexible, and automated
E) continuous, dynamic, and cybernetic

Question 29

Control is a cybernetic process because it ____.

A) has a feedback loop
B) is an intermittent process
C) is the first management function
D) uses automated benchmarks
E) can be a completely automated process

Question 30

The term excessive value appropriated (EVA) refers to the amount by which profits (after expenses) exceed the cost of capital in a given year.

Question 31

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.

A) evaluating the standard's capacity to enable goal achievement
B) benchmarking competitors
C) listening to customers
D) outsourcing
E) value communications

Question 32

The basic control process of business begins with ____.

A) either benchmarking or keystoning
B) the establishment of clear standards of performance
C) the comparison of actual performance to expected performance
D) problem identification
E) determining what corrective action will be if actual performance does not equal or exceed expected performance

Question 33

When Marriott decided to improve the quality of service offered to customers, it asked special corporate guests to comment on the good and bad issues of their stay and also to tell what the competition is doing that is better than Marriott. The Marriott acted accordingly. In other words, it used ____.

A) benchmarking
B) data decentralization
C) information processing
D) mirroring
E) comparative criterion

Question 34

A report calling for a company to set clear targets to improve fuel economy and to cut factory emissions would want the company to establish emission control ____.

A) autonomous measurements
B) standards
C) value ratios
D) dependence measurements
E) performance predictors

Question 35

Customer satisfaction surveys are an accurate and effective way to answer the Balanced Scorecard question: "How do customers see us?"

Question 36

____ is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards.

A) Implementation
B) Goal-setting
C) Control
D) Suboptimization
E) Benchmarking

Question 37

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.

A) Benchmarking
B) Data decentralization
C) Information processing
D) Mirroring
E) Comparative criterion

Question 38

The objective of the company that manufactures liqueur is to grow its international business. To determine its success, it compares its current export sales to 1998, the first year it had double digit growth in exports. For this company, the 1998 exporting data provide a(n) ____.

A) autonomous measurement
B) standard
C) value ratio
D) dependence measurement
E) performance predictor

Question 39

The three levels of waste minimization are waste disposal, waste reduction, and recycling.

Question 40

Companies may determine standards by ____.

A) benchmarking other companies
B) implementing vertical loading
C) using outsourcing
D) taking corrective action
E) doing all of these

Question 41

A sales manager requires each member of his sales force to make three calls per day on current customers, to call on two potential customers every week, and to sell a minimum of $10,000 worth of merchandise weekly. Which of the following control methods does this indicate the sales manager is using?

A) normative
B) market-oriented
C) industrial betterment
D) objective
E) administrative

Question 42

A car manufacturer ordered 20,000 window assemblies from a supplier. To make sure the assemblies were made to specifications, the supplier of the window assemblies shipped a sample to the car manufacturer for testing. This is an example of ____ control.

A) feedback
B) contiguous
C) suboptimal
D) feedforward
E) synergistic

Question 43

____ control is a method of gathering information about performance deficiencies after they occur.

A) Feedback
B) Stasis
C) Concurrent
D) Feedforward
E) Preemptive

Question 44

Imagine a manufacturer that has a 99 percent error-free production rate and decides it wants 100 percent error-free production. Its management needs to examine ____ to determine if the costs of increased controls outweigh the benefits of error-free production.

A) cybernetic costs
B) benchmarks
C) financial ratios
D) regulation costs
E) feedback loops

Question 45

____ control is a method of gathering information about performance deficiencies before they occur.

A) Feedback
B) Stasis
C) Preemptive
D) Feedforward
E) Concurrent

Question 46

McDonald's fast-food restaurants have a well-designed training program for all new employees. Each new employee is supposed to learn how to perform standardized tasks. Due to labor shortages in some areas, these new employees begin work as soon as they are hired and do not receive any off-the-job training. This nonconformity to standards creates ____.

A) ambiguous group norms
B) motivational grapevines
C) negative benchmarks
D) control loss
E) monitoring valences

Question 47

____ control is a method of gathering information about performance deficiencies as they occur.

A) Feedback
B) Simultaneous
C) Concurrent
D) Feedforward
E) Stasis

Question 48

Caterpillar announced plans to cut its production of construction equipment due to forecasted increases in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used ____ controls.

A) feedforward
B) feedback
C) concurrent
D) stasis
E) goal-based

Question 49

Which of the following is a method managers can use to achieve control in their organizations?

A) bureaucratic
B) self-control
C) concertive
D) normative
E) all of these

Question 50

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.

A) behavior
B) bureaucratic
C) subjective
D) normative
E) output

Question 51

An accident at a U.S. refinery killed two workers. By gathering information about how the men died in order to prevent a recurrence, the company used ____ control.

A) concertive
B) normative
C) feedback
D) concurrent
E) bureaucratic

Question 52

____ is the extent to which it is possible to implement each step in the control process.

A) Control feasibility
B) Cybernetic feasibility
C) A quasi-control assessment
D) A Balanced Scorecard assessment
E) Information management

Question 53

Which approach to control monitors inputs rather than outputs?

A) feedforward control
B) feedback control
C) concurrent control
D) stasis control
E) all of these

Question 54

Companies that rely on bureaucratic control tend to ____.

A) have no contingency plans
B) rely on group norms rather than formalized rules and regulations
C) value their human resources above all others
D) be extremely responsive to their customers' needs
E) be highly resistant to change

Question 55

When the local fast-food restaurant manager caught one of her employees giving free food to his friends, she fired him on the spot. When another employee stayed late after work one night to help a woman start her car, the manager rewarded him. What type of control did the restaurant manager use in these two instances?

A) bureaucratic
B) objective
C) self-control
D) autocratic
E) connotative

Question 56

____ control is top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

A) Bureaucratic
B) Normative
C) Concertive
D) Objective
E) Administrative

Question 57

Which of the following factors can help managers determine whether more or different control is worthwhile?

A) regulation costs
B) customer flows
C) channelization
D) synergy
E) subordinate empathy

Question 58

According to the text, which of the following factors can help managers to determine whether more control is possible?

A) task downsizing
B) cybernetic feasibility
C) outsourcing
D) channelization
E) synergistic intelligence

Question 59

The two types of objective controls managers use are ____.

A) output and input
B) administrative and participative
C) self-control and organizational control
D) autonomous and individualized
E) behavior and output

Question 60

____ costs are the costs associated with implementing or monitoring control.

A) Cybernetic
B) Heuristic
C) Regulation
D) Benchmarked
E) Targeted

Question 61

Instead of individual sales people calling on its business customers, Cedartree Tech uses sales teams. The sales team is given complete responsibility for developing long-term partnering relationships with each customer. What kind of control would the company's sales managers most likely approve?

A) human resources control
B) participative control
C) self-control
D) administrative control
E) concertive control

Question 62

____ control is associated with autonomous work groups.

A) Objective
B) Normative
C) Behavior
D) Concertive
E) Output

Question 63

____ control regulates workers' actions and routines on the job, while ____ control measures the results of their efforts.

A) Input; behavior
B) Motivation; output
C) Concertive; normative
D) Behavior; output
E) Input; output

Question 64

Normative controls should be used when ____.

A) cause-and-effect relationships are clear
B) workers have been taught self-control skills
C) responsibility for task accomplishment is given to autonomous work groups
D) it is necessary to standardize all operations
E) organizational culture, values, and beliefs are strong

Question 65

A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access their Civil War collection. The librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating ____.

A) suboptimization
B) control loss
C) cybernetic infeasibility
D) feedforward control
E) sacrificing

Question 66

____ should be used when it is difficult to create good measures of worker behavior and output and when organizational culture, values, and beliefs are strong.

A) Bureaucratic control
B) Normative control
C) Concertive control
D) Self-control
E) Input control

Question 67

When implementing the financial perspective, managers would use ____.

A) financial ratios
B) customer defections
C) employee turnover
D) value analyses
E) competitive audits

Question 68

Which of the following statements about normative control is true?

A) Normative control tends to create an organization that is highly resistant to change.
B) With normative control, managers focus on work behavior or outputs.
C) Normative control leads to an emphasis on very selective hiring.
D) Normative control arises when companies give autonomous work groups complete responsibility for task completion.
E) None of these statements about normative control is true.

Question 69

Ironically, ____ control may lead to even more pressure for workers to conform to expectations than ____ control.

A) concertive; normative
B) normative; concertive
C) bureaucratic; concertive
D) concertive; bureaucratic
E) behavior; concertive

Question 70

A manager has instructed Ralph and his fellow workers to develop a daily theme such as patience, empathy, and kindness. Each day, the workers are to try to emphasize the theme as they work with customers, suppliers, and each other. What kind of a control system is Ralph's manager using?

A) self-control
B) human resources control
C) non-administrative control
D) output control
E) bureaucratic control

Question 71

The Balanced Scorecard approach to control ____.

A) forces managers at each level of the company to set specific goals and measure performance in each of four areas
B) places greatest priority on the most important aspect of control, the financial perspective
C) maximizes the chances of suboptimization
D) only looks at factors within a company's controllable environment
E) has no real advantages over traditional control techniques

Question 72

____ is a control method that encourages managers to look beyond traditional measures to evaluate four different perspectives on company performance.

A) Optimization
B) Customer churn
C) Balanced Scorecard
D) Customer defection
E) Financial ratio analysis

Question 73

Which of the following statements about the Balanced Scorecard approach to control is true?

A) The customer perspective is the most important in the control process.
B) The company's analysis of its controllable environment is most important to the company's success.
C) The innovation and learning perspective is the most important in the control process.
D) The company's analysis of its noncontrollable environment is most important to the company's success.
E) All of the perspectives examined by the Balanced Scorecard approach are of equal importance to a company's success.

Question 74

In the traditional control systems used at most companies, ____ measures are used to assess performance.

A) financial
B) customer
C) value/quality
D) quality/profit
E) optimization

Question 75

Marriott's top management decided that there was need for a serious effort to "put democracy back in the company" and make employees feel "involved in the success of the company." Employees asked special corporate guests to comment on the good and bad issues of their stay and also to tell what the competition is doing that is better than Marriott. Then the employees acted accordingly. Marriott adopted ____ control.

A) autonomous
B) concertive
C) normative
D) control
E) focus

Question 76

Which of the following is NOT one of the four perspectives measured in the Balanced Scorecard approach to control?

A) financial perspective
B) policies and procedures perspective
C) customer perspective
D) internal business perspective
E) innovation and learning perspective

Question 77

A provider of computer technical support that is using the Balanced Scorecard approach to control would look at ____.

A) the percentage of its employees that have received training during the last year
B) customer defections
C) its cash flow
D) percentage of computer owners that requested support more than five times in a month
E) all of these and more

Question 78

One of the advantages the Balanced Scorecard has over traditional control processes that rely solely on financial measures is that it ____.

A) encourages control delegation
B) eliminates problems with regulation costs
C) minimizes the chances of suboptimization
D) allows companies to determine the ideal control methods
E) creates functional independence

Question 79

____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.

A) Suboptimization
B) Control loss
C) Cybernetic infeasibility
D) Feedforward control
E) sacrificing

Question 80

____ controls should be used when it is necessary to standardize operating procedures and establish limits.

A) Bureaucratic
B) Normative
C) Concertive
D) Input
E) Output