Question 1

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.

Accepted Answer

The evolution of organizational applications of information technology move from first-line operations (transaction processing systems), to decision making and control (management information systems), and then adding strategic value (business resource and operations). Therefore, option C best represents this progression. Option A includes networking, which is not a specific application, and option B includes decision making and operations but misses out on strategic value. Option D includes work flow redesign, which may be relevant but is not necessarily a key factor in this evolution.

Question 2

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

Accepted Answer

DMAIC stands for Define, Measure, Analyze, Improve, and Control. This approach is the foundation of Six Sigma methodology and provides a structured way for organizations to approach and solve problems. The five steps of DMAIC help organizations to identify the root cause of problems, measure the impact of those problems, and make data-driven decisions to improve processes and reduce defects. The other options listed (B, C, and D) are not directly related to Six Sigma methodology.

Question 3

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.

Accepted Answer

The use of such huge databases is referred to as data warehousing. This technology involves collecting, managing, and analyzing data from multiple sources in order to support better decision-making processes. The data can be used for a variety of purposes, from identifying patterns and trends to predicting future outcomes. Data warehousing is especially useful for larger organizations that have numerous departments and systems generating data on a regular basis.

Question 4

____ 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

Accepted Answer

The standard of no more than 3.4 defects per million parts is a key characteristic of the Six Sigma approach to quality management. Six Sigma is a highly structured and data-driven method of identifying and eliminating defects in processes, with the goal of achieving near-perfect levels of quality. Benchmarking, balanced scorecard, and knowledge management are all related to quality management, but they do not specifically address the goal of achieving Six Sigma levels of quality.

Question 5

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

Accepted Answer

Decision support systems are designed to assist managers in making decisions through interactive databases that can answer "what if" scenarios. Transaction processing systems are focused on processing transactions, management information systems provide reports, and enterprise resource planning systems integrate all major business processes.

Question 6

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.

Accepted Answer

The initial applications of information technology by organizations were focused on improving transaction processing, such as automating repetitive tasks like payroll and inventory management. Decision support systems, management information systems, and enterprise resource planning came later as technology advanced and businesses sought to further improve efficiency and decision-making abilities.

Question 7

Which of the following is not a management control system?
A) Statistical reports
B) Quality control system
C) Discipline policies
D) Reward system

Accepted Answer

Discipline policies are not typically considered a management control system; they are more related to human resource management and maintaining workplace order.

Question 8

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

Accepted Answer

Information reporting systems provide mid-level managers with reports that summarize data and support day-to-day decision making. Executive information systems are designed for top-level executives, while decision support systems provide more in-depth analysis for strategic decision making. Feedback control systems are used for monitoring and adjusting performance.

Question 9

____ 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

Accepted Answer

First-line management is responsible for the day-to-day operations of the organization and is typically concerned with solving immediate problems about operational issues and past events. They are responsible for overseeing the work of employees and ensuring that tasks are completed efficiently and effectively. Top management, on the other hand, has a more strategic focus and is concerned with setting overall direction and goals for the organization. Middle-management serves as a link between top management and first-line management, often focusing on coordinating resources and implementing strategies. Employees are responsible for carrying out the tasks assigned to them by their managers.

Question 10

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.

Accepted Answer

Benchmarking is the process of comparing products, services, and practices with those of other organizations recognized as industry leaders, with the aim of identifying areas for improvement and achieving a competitive advantage. Balanced scorecard is a performance management tool, Six Sigma is a data-driven quality improvement methodology, and ERP (Enterprise Resource Planning) is a software system used for managing business processes.

Question 11

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

Accepted Answer

The balanced scorecard is specifically designed to balance financial measures with operational measures that relate to a company's critical success factors, making it the correct choice. While benchmarking, management control systems, and Six Sigma may all be part of a company's overall performance management strategy, they are not comprehensive management control systems that balance financial and operational measures in the same way as the balanced scorecard.

Question 12

____ 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

Accepted Answer

Management control systems are specifically designed to use information to maintain or change activities within an organization. MIS, DSS, and TPS are all types of systems that can be used within a management control system, but they are not the system itself.

Question 13

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.

Accepted Answer

Transaction processing systems (TPS) are designed to automate routine business operations such as collecting, storing, modifying, and retrieving data associated with sales, purchases, and inventory. They are the backbone of any organization's information system and play a crucial role in maintaining the accuracy and consistency of data. Automated analysis systems, inventory control systems, and decision support systems are different types of information systems with different functions and objectives.

Question 14

____ 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

Accepted Answer

The system described in the question is an Executive Information System (EIS), which is designed to provide top managers with high-level summaries and analyses of complex data in a timely manner. A Decision Support System (DSS) can also provide similar functionality, but is typically more focused on providing strategic decision-making support to managers. Information Reporting Systems and Transaction Processing Systems (TPS) are not designed to provide complex data analysis and strategic decision-making support.

Question 15

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

Accepted Answer

Setting the organizational mission and vision is not part of the simplified feedback control model. The other three steps (establishing standards, measuring actual performance, and taking corrective action) are.

Question 16

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

Accepted Answer

Adding strategic value involves using information technology to enhance business processes, develop innovative products and services, and create new business models that can transform industries. This is typically seen as the highest level of application of IT, as it requires a deep understanding of the organization's goals and a strong alignment between IT and business strategies. Internal control for profitability and networking are important but are considered lower-level applications, while external application for new business forms may or may not involve strategic value depending on the specific context.

Question 17

____ 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

Accepted Answer

Data mining is the software that uses decision-making processes to search raw data for patterns and relationships that may be significant. Data warehousing is the process of collecting, storing, and managing data from various sources, but it does not involve decision-making processes to search for patterns. Analytical software is used to analyze and interpret data, but it does not involve decision-making processes to search for patterns. A decision support system is a software designed to provide decision-making support, but it is not necessarily focused on searching for patterns in raw data.

Question 18

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

Accepted Answer

An executive dashboard is a software program designed to present key business information in graphical, easy-to-interpret form and alert managers to any deviations or unusual patterns in the data. This allows them to make informed decisions quickly and effectively. A transaction processing system (B) is a software system that processes transactions, such as sales or purchases, in real-time. An executive information system (C) is a specialized software application designed to support the informational needs of executives and other decision-makers. An information reporting system (D) is a software system that collects, processes, and distributes data to users who need it.

Question 19

____ specify standards for employee participation, teamwork, and problem solving.
A) Budgets
B) Quality control systems
C) Reward systems
D) Statistical reports

Accepted Answer

Quality control systems often include guidelines and procedures for employee participation, teamwork, and problem solving to ensure consistent quality standards are met. Budgets, reward systems, and statistical reports may also indirectly impact employee participation, but they do not typically specify standards for teamwork and problem solving.

Question 20

____ 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

Accepted Answer

Business intelligence refers to the use of technology to analyze a company's data in order to gain insights and make more informed strategic decisions. It typically involves data warehousing, data mining, and other advanced analytical techniques.

Quiz 8: Using Information Technology for Control and Coordination

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

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

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:

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

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?

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

Which of the following is not a management control system?

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

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

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

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

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

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

____ 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.

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

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

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

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?

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

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