Quiz 16: Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness
Business
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True False
False Explanation: A way to improve productivity is to encourage employee involvement and innovation.As a manager,you can encourage your employees,who are closest to the work process,to come up with suggestions for improving their own operations.And,of course,you can give workers a bigger say in doing their jobs,allow employee flextime,and reward people for learning new skills and taking on additional responsibility.
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False Explanation: The four management functions are planning,organizing,leading,and controlling.
Q 3Q 3
Productivity is defined by the formula of outputs divided by inputs for a specified period of time.
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True Explanation: Productivity is defined by the formula of outputs divided by inputs for a specified period of time.
Q 4Q 4
If a manager decreases the efficiency of labor and makes no improvements to the efficiency of capital,an increase in productivity will result.
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True False
Q 5Q 5
Lumber mills that sell sawdust and wood chips are increasing their efficiency of materials input.
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True False
Q 6Q 6
Increasing gross domestic product in the United States depends on raising productivity,as well as on a growing workforce.
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True False
Q 7Q 7
Paying attention to the feedback is important because of its dynamic nature while progressing through the steps in the control process.
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True False
Q 8Q 8
Recent productivity growth is likely the result of organizations' huge investment in information technology like computers,the Internet,other telecommunications advances,and computer-guided production line improvements.
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Q 12Q 12
All four management functions affect one another and in turn affect an organization's productivity.
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Q 13Q 13
Control systems cannot help managers anticipate,monitor,and react to environmental changes and uncertainties.
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Q 14Q 14
American-produced cars were perceived as better built than Japanese-produced cars which used American quality controls.
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Q 15Q 15
A markdown on certain grocery store items that results in a rush of customer demand for those products is an example of the use of control systems to detect opportunities,such as reducing prices for similar items.
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Q 16Q 16
Controls allow top management to decentralize decision-making at lower levels within the organization.
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Q 18Q 18
A control standard,or performance standard (or simply standard),is the desired performance level for a given goal.
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Q 21Q 21
The acceptable deviation depends on the range of variation built into the standards when they were set.
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Q 22Q 22
Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
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True False
Q 23Q 23
When performance exceeds the standards set in the control systems,managers should give rewards.
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Q 25Q 25
Strategic control is monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.
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Q 26Q 26
Tactical control is monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.
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Q 28Q 28
The physical area of organizational control includes buildings,equipment,and tangible products.
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Q 30Q 30
Decentralized control is characterized by the use of rules,regulations,and formal authority to guide performance.
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True False
Q 31Q 31
Bureaucratic control is most appropriate for an organization in which the tasks are explicit and certain.
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True False
Q 32Q 32
Except for in rare instances,employees at George's Pro Painting take responsibility for their own work and how it is done,rather than being governed by a rigid set of rules.George's Pro Painting is using decentralized control.
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Q 33Q 33
Customer satisfaction and financial measures are two of four indicators of the balanced scorecard.
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Q 35Q 35
Traditional financial measures improve customer satisfaction,quality,and employee motivation.
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Q 36Q 36
The internal business perspective,including business processes such as quality,employee skills,and productivity,is what the company must do internally to meet its customers' expectations.
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True False
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Q 38Q 38
Strategy maps show the cause-and-effect links by which specific improvements create desired outcomes,such as objectives for revenue growth,targeted customer markets,the role of excellence and innovation in products.
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True False
Q 39Q 39
Six primary performance areas for measurement management include financial performance,operating efficiency,customer satisfaction,employee performance,innovation/change,and community/environment.
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True False
Q 40Q 40
One of the reasons that measurement-managed firms succeed is due to strong teamwork and cooperation among the management team and more willingness to take risks.
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True False
Q 41Q 41
The point of an audit is to provide a yardstick against which managers can measure performance and make comparisons as with other departments or previous years.
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Q 43Q 43
Incremental budgeting allocates increased or decreased funds to a department by using the last budget period as a reference point;only incremental changes in the budget request are reviewed.
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Q 45Q 45
One advantage with incremental budgets is that they are flexible in meeting environmental demands.
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Q 46Q 46
A capital expenditures budget anticipates investments in major assets such as land,buildings,and major equipment.
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Q 47Q 47
A variable budget can be adjusted over time to accommodate pertinent changes in the environment.
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Q 48Q 48
A variable budget does not allow the allocation of resources to vary in proportion with various levels of activity.
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Q 49Q 49
A balance sheet summarizes an organization's overall financial worth,or its assets and liabilities,at a specific point in time.
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Q 50Q 50
An income statement summarizes an organization's financial results over a specified period of time,such as a quarter or a year.
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Q 51Q 51
Ratio analysis is the practice of evaluating financial ratios to determine an organization's financial health.
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Q 52Q 52
The singular task of internal auditors is to verify that the organization,in preparing its financial statements,followed generally accepted accounting principles.
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Q 53Q 53
An external audit is a verification of an organization's financial accounts and statements by the organization's own professional staff.
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Q 54Q 54
A principle of Deming management is that quality should be aimed at meeting the needs and expectations of the ultimate user.
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Q 55Q 55
In Deming's PDCA cycle,"D" stands for "do," which means to implement the change or make a small-scale test.
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Q 58Q 58
TQM assumes that continuous improvement must be an everyday matter and that no improvement is too small.
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Q 60Q 60
On her first visit to a new doctor's office,Candace noted the fine furniture in the pristine lobby and the crisp white coats that each of the staff wore.Candace was judging the tangibles dimension of the RATER scale.
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Q 61Q 61
Twice daily,factory workers at Mountain CopperWorks select random samples from the production runs and test them for quality,rejecting runs if too many samples fall outside a standard range of acceptability.These workers are engaged in statistical process control.
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Q 63Q 63
GlobalSatellite,applying TQM,restructured its service call procedures and eliminated some steps involved so that employees can finish each call faster.This is an example of reduced cycle time.
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Q 66Q 66
Lean Six Sigma focuses on problem solving and performance improvement,or speed with excellence of a well-defined project.
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Q 67Q 67
Managers should develop control standards when they are developing strategic plans to measure how well the plans are being achieved.
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Q 69Q 69
Involving employees in both the planning and execution of control systems can bring legitimacy to the process and heighten employee morale.
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Q 72Q 72
The more goods and services that are produced and made easily available to us and for export,the higher our standard of living.
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Q 73Q 73
Debt management ratios indicate the degree to which an organization can meet its short-term financial obligations.
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Q 74Q 74
Asset management ratios indicate how effectively an organization is managing its assets,such as whether it has obsolete or excess inventory on hand.
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Q 75Q 75
Return ratios-often called return on investment (ROI)or return on assets (ROA)-indicate how effective management is in generating a return,or profits,on its assets.
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Q 76Q 76
Productivity is important because it determines whether the organization will make a profit or even survive.
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Q 77Q 77
Gina was recently promoted to facilities director at Wholesome Grains.Which of the following should she do immediately as she tries to improve productivity?
A)Use the established technology with which her employees are most familiar.
B)Rotate all personnel so that each has an opportunity to try something new.
C)Hire new employees such that they are similar to those already on the team.
D)Establish a system of measurement.
E)Cut costs.
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Multiple Choice
Q 78Q 78
Which of the following is a not one of the seven challenges a manager must deal with in the 21st century?
A)sustainability
B)ethical standards
C)economic stagnation
D)globalization
E)diversity
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Multiple Choice
Q 79Q 79
Which of the following is a primary function of management?
A)communicating
B)globalizing
C)cooperating
D)organizing
E)influencing
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Multiple Choice
Q 80Q 80
Productivity equals _____.
A)labor,capital,energy,and materials,divided by goods and services produced
B)goods and services produced,divided by labor,capital,energy,and materials
C)labor,energy,and capital,divided by goods,services,and materials
D)goods and services and energy and materials,divided by labor and capital produced
E)energy and materials,divided by labor and capital
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Multiple Choice
Q 81Q 81
Managers can increase overall productivity by increasing the efficiency of all the following except _____.
A)goals
B)energy
C)materials
D)labor
E)capital
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Multiple Choice
Q 82Q 82
Britta is trying to measure her salon's productivity during the first quarter.For this period,she should divide _______ by the costs of her staff,loans,materials and utility bills.
A)the number of clients
B)the average daily receipts
C)her budgeted costs
D)the total salon services and products sold
E)her projected revenue
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Multiple Choice
Q 83Q 83
Which of the following best describes ERP systems?
A)popular recruiting systems that help maximize diversity in the workplace
B)comprehensive systems for identifying and measuring changes in productivity
C)software information systems that integrate all aspects of business,helping managers stay on top of the latest developments
D)training systems for employees that allow self-discovery and correction of weaknesses
E)control systems in which managers are made aware of all deviations from standards
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Multiple Choice
Q 84Q 84
______ is defined as monitoring performance,comparing it with goals,and taking corrective action as needed.
A)Measuring
B)Leading
C)Organizing
D)Controlling
E)Planning
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Multiple Choice
Q 85Q 85
Kim,a customer service manager,tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2% through additional training for her staff.She is engaged in _____.
A)organizing
B)controlling
C)measuring
D)leading
E)planning
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Multiple Choice
Q 86Q 86
Which of the following is not one of the reasons that control is needed in an organization?
A)to adapt to change and uncertainty
B)to detect opportunities
C)to eliminate the need for teamwork
D)to deal with complexity
E)to decentralize decision making
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Multiple Choice
Q 87Q 87
Smith Commercial Development has effective control processes,allowing its managers to discover ______ in bookkeeping right away,before a would-be embezzler could seriously affect its business.
A)irregularities and errors
B)a potential merger
C)competence
D)team problems
E)tax breaks
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Multiple Choice
Q 88Q 88
Which of the following is a step in the control process?
A)Complete a job redesign.
B)Evaluate opportunities.
C)Compare work units to one another.
D)Implement TQM.
E)Establish standards.
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Multiple Choice
Q 89Q 89
Standards are best measured when they are _____.
A)broad
B)quantifiable
C)narrow
D)efficient
E)ethical
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Q 90Q 90
All of the following are reasons why performance falls significantly short of the standard except _____.
A)unrealistic standards
B)changing conditions
C)insufficient resources
D)insufficient management attention
E)unawareness of performance drop
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Multiple Choice
Q 91Q 91
The amount of acceptable deviation from a standard,determined when the standard was established,is called the _____.
A)span of exception
B)breadth control
C)range of variation
D)benchmark
E)zero-based control
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Multiple Choice
Q 92Q 92
Which of the following may be done as corrective action in the control process?
A)Establish standards.
B)Renew standards.
C)Compare performance to standards.
D)Align processes with goals.
E)Evaluate performance and take action.
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Multiple Choice
Q 93Q 93
Jimmy's supervisor noticed that he was struggling with the computerized setup for production runs at his new job.The supervisor observed him while he tried it again and gave suggestions for improvement.The supervisor is doing which step of the control process?
A)Take corrective action.
B)Establish standards.
C)Compare performance to standards.
D)Measure performance.
E)Control productivity.
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Multiple Choice
Q 94Q 94
At UPS,delivery ______ vary according to whether a route is urban,suburban,or rural in nature.
A)RATER scales
B)standards
C)ratio analyses
D)PDCA cycles
E)strategy maps
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Multiple Choice
Q 95Q 95
Tactical control is performed mainly by _____.
A)the CEO
B)top managers
C)middle managers
D)first-level managers
E)team leaders
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Q 96Q 96
Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ______ control.
A)strategic
B)functional
C)operational
D)tactical
E)managerial
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Multiple Choice
Q 97Q 97
Typically,operational control is accomplished through reports issued _____.
A)weekly
B)daily
C)monthly
D)annually
E)randomly
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Multiple Choice
Q 98Q 98
A sales forecast is an example of an organizational control from the _____ area.
A)informational
B)physical
C)human resources
D)financial
E)capital
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Multiple Choice
Q 99Q 99
Kara was required to take a word-processing test as part of her application for an executive assistant position.This control is part of the ______ area.
A)structural
B)physical
C)financial
D)informational
E)human resources
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Multiple Choice
Q 100Q 100
Which of the following is an example of an informational resource control?
A)a competition analysis
B)a delivery-tracking system
C)a debt-repayment schedule
D)a leadership survey
E)a personality test
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Multiple Choice
Q 101Q 101
Which of the following is the best example of bureaucratic control?
A)Southwest Airlines
B)Ritz Carlton
C)Monica's Diner
D)Levi Strauss
E)U.S.Army
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Multiple Choice
Q 102Q 102
Michele manages employees at Maui Tours and Lodging.She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times,knowing that performance is evaluated on the number of suggestions only.This problem is typical of ______ control.
A)bureaucratic
B)market
C)decentralized
D)autocratic
E)functional
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Multiple Choice
Q 103Q 103
______ control is an approach to organizational control that is characterized by informal and organic structural arrangements.
A)Relational
B)Functional
C)Decentralized
D)Bureaucratic
E)Market
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Multiple Choice
Q 104Q 104
Which of the following areas of control for organizations exerts informal control?
A)structural
B)human resources
C)informational
D)competitive
E)cultural
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Multiple Choice
Q 105Q 105
Some managers use _____,which provides four indicators with which organizations can set goals and measure performance.
A)a strategic map
B)the balanced scorecard
C)measurement management
D)a strategic scorecard
E)evidence-based management
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Multiple Choice
Q 106Q 106
Which of the following is not a perspective of the balanced scorecard?
A)internal business
B)external processes
C)financial
D)innovation and learning
E)customer
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Multiple Choice
Q 107Q 107
Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?
A)external perspective
B)customer perspective
C)internal business perspective
D)financial perspective
E)innovation and learning perspective
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Multiple Choice
Q 108Q 108
Which balanced scorecard perspective helps top management's judgment to be better linked to measures of employee actions at lower levels?
A)operational perspective
B)internal business perspective
C)customer perspective
D)financial perspective
E)innovation and learning perspective
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Multiple Choice
Q 109Q 109
According to Kaplan and Norton,"_______ show the cause-and-effect links by which specific improvements create desired outcomes."
A)Strategy maps
B)Positioning maps
C)Multidimensional maps
D)Customer maps
E)Graphic interface maps
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Multiple Choice
Q 110Q 110
Which of the following is a mechanism that contributes to a measurement-managed company's success?
A)using mostly "soft" objectives that are not quantifiable
B)measuring activities of all types
C)developing the measurement systems without interference from employees
D)developing focus and alignment between individual,unit,and strategic performance
E)trusting in informal feedback systems
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Multiple Choice
Q 111Q 111
Which of the following is a frequent barrier to effective measurement?
A)Communication is bureaucratic.
B)Top executives create the organization's strategy.
C)Employees resist new measurement systems.
D)The organizational culture overemphasizes teamwork.
E)The organizational culture allows too much risk taking.
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Multiple Choice
Q 112Q 112
A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n)_____.
A)standardized budget
B)fixed budget
C)zero-based budget
D)incremental budget
E)tactical budget
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Multiple Choice
Q 113Q 113
One characteristic of incremental budgeting is that it _____.
A)allows comparison using various units,like labor hours and dollars
B)is flexible toward changing environmental demands
C)allows easy comparison of different departments doing different activities
D)locks managers into stable spending arrangements
E)requires more time from managers than zero-based budgeting
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Multiple Choice
Q 114Q 114
A(n)______ budget projects what an organization will create in goods and services,what financial resources are needed,and what income is expected.
A)expense
B)revenue
C)operating
D)cash
E)cash flow
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Multiple Choice
Q 115Q 115
A budget that allocates resources on the basis of a single estimate of costs is called a(n)______ budget.
A)unitary
B)zero-based
C)cash
D)incremental
E)fixed or static
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Multiple Choice
Q 116Q 116
The type of budget that can be adjusted over time for changing environmental conditions is known as a(n)______ budget.
A)operating
B)incremental
C)zero-based
D)variable or flexible
E)cash
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Multiple Choice
Q 117Q 117
At Polar Sportswear,orders have significantly exceeded projections,and Chris,the operations director,has decided to hire for a third shift in the plant.Chris is clearly operating with the use of a(n)______ budget.
A)zero-based
B)incremental
C)cash
D)fixed
E)variable
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Multiple Choice
Q 118Q 118
Current assets,fixed assets,and liabilities are all part of an organization's _____.
A)cash flow statement
B)capital expenditures budget
C)income statement
D)expense budget
E)balance sheet
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Multiple Choice
Q 119Q 119
Profits or losses incurred by an organization are represented in its _____.
A)expense budget
B)income statement
C)ratio analysis
D)capital expenditures budget
E)balance sheet
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Multiple Choice
Q 120Q 120
______ ratios can help an organization to detect if it has obsolete or excessive inventory on hand.
A)Return
B)Liquidity
C)Debt management
D)Activity
E)Asset management
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Multiple Choice
Q 121Q 121
ROI is a(n)_____.
A)liquidity ratio
B)cash ratio
C)return ratio
D)asset management ratio
E)debt management ratio
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Multiple Choice
Q 122Q 122
Which of the following is not characteristic of an external audit?
A)performed by CPAs
B)primarily used when management suspects embezzlement
C)performed by an independent organization
D)verifies that generally accepted accounting principles have been followed
E)verifies the accuracy and fairness of financial statements
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Multiple Choice
Q 123Q 123
Which of the following is not a principle of Deming management?
A)Quality should be aimed at the needs of the consumer.
B)Companies should determine which workers are to blame for problems.
C)Improved quality leads to increased market share and employment.
D)Quality can be improved on the basis of hard data.
E)Companies should aim at improving the system.
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Multiple Choice
Q 124Q 124
Which of the following is part of Deming's PDCA cycle?
A)check
B)direct
C)apply
D)process
E)decide
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Multiple Choice
Q 125Q 125
TQM is defined as a comprehensive approach dedicated to continuous _____.
A)measurement of quantifiable goals and quick corrections
B)product innovation and organizational learning,over fast cycles
C)quality improvement,training,and customer satisfaction
D)customer input into management strategy and decision making
E)focus on components of service success: tangibles,questions,and margins
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Multiple Choice
Q 126Q 126
TQM's two core principles are _____.
A)employee commitment and customer satisfaction
B)financial health and financial stability
C)management and leadership
D)people orientation and improvement orientation
E)radical innovation and continuous improvement
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Multiple Choice
Q 127Q 127
A team that meets to solve a onetime problem is called a _____.
A)continuous improvement team
B)work group
C)self-managed team
D)unit
E)special-purpose team
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Multiple Choice
Q 128Q 128
Oakley Lumber Mill formed a team to help the organization determine a course of action in the wake of a forest fire that temporarily closed access to its mountain satellite office.This is an example of a _____.
A)cross-functional team
B)JIT team
C)special-purpose team
D)self-managed team
E)continuous improvement team
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Multiple Choice
Q 129Q 129
The process of instituting ongoing small,incremental improvements in all parts of an organization is called _____.
A)MBO
B)reengineering
C)radical innovation
D)continuous improvement
E)productivity
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Multiple Choice
Q 130Q 130
Employees' knowledge,courtesy,and ability to convey trust and confidence make up which dimension of the RATER scale?
A)reliability
B)empathy
C)tangibles
D)assurance
E)responsiveness
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Multiple Choice
Q 131Q 131
Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to _____.
A)ISO 9000
B)restructuring
C)reduced cycle time
D)ISO 14000
E)statistical process control
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Multiple Choice
Q 132Q 132
At Phoenix Instruments,Claudia pulls six samples an hour from an assembly line to examine them for quality defects.If she finds any,she makes adjustments to various pieces of equipment in his area.Claudia job involves _____.
A)feed-forward control
B)benchmarking
C)reduced cycle time
D)statistical process control
E)strategic control
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Multiple Choice
Q 133Q 133
Which of the following is not a common characteristic of successful control systems?
A)strategic and results-oriented
B)realistic
C)encouragement of self-control
D)subjective
E)flexible
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Multiple Choice
Q 134Q 134
Which kind of organization is most likely to try to exert too much control?
A)bureaucratic
B)market
C)employee-driven
D)decentralized
E)matrix
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Multiple Choice
Q 135Q 135
Before the fall term began,professors at Hillview College were required to fill out numerous forms,ranging from performance objectives,surveys,reports to lists of summer contacts with prospective students.Many professors complained that their time would be better spent preparing for their courses.This is an example of which barrier to successful control?
A)overemphasis on one instead of multiple approaches
B)too much control
C)overemphasis on means instead of ends
D)overemphasis on paperwork
E)too much flexibility
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Multiple Choice
Q 136Q 136
At Panther Lighting Fixtures,employees were asked how the quality of its customer service could best be measured,and management then implemented a survey system based on the feedback.The company has overcome which of the following barriers to success of control systems?
A)overemphasis on one instead of multiple approaches
B)overemphasis on paperwork
C)overemphasis on means instead of ends
D)too little employee participation
E)too much control
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Multiple Choice
Q 137Q 137
Recruiters for Mountainview College were under extreme pressure to increase an enrollment goal by 10%.As a result,they admitted many students who were marginally qualified and who performed poorly in classes.This is an example of which problem associated with control systems?
A)overemphasis on means instead of ends
B)overemphasis on paperwork
C)overemphasis on one instead of multiple approaches
D)too much control
E)too little participation
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Multiple Choice
Q 138Q 138
Harbor Casino and Resort requires its casino dealers to have licenses,observes them using closed-circuit TV,and requires detailed reports at the end of each shift.This organization has overcome the control system barrier of _____.
A)too much control
B)overemphasis on paperwork
C)overemphasis on means instead of ends
D)overemphasis on one instead of multiple approaches
E)too little participation
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Multiple Choice
Q 139Q 139
Which of the following is not a characteristic of a successful control system?
A)strategic and results-oriented
B)timely,accurate,and objective
C)realistic,positive,and understandable
D)encourages self-control
E)inflexible to optimize control
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Multiple Choice
Q 140Q 140
Which of the following is not a purpose of a manager?
A)plan
B)organize
C)get people to achieve productivity and realize results
D)control
E)increase globalization
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Multiple Choice
Q 141Q 141
Which of the following is not a financial control?
A)budgets
B)financial statements
C)ratio analysis
D)audits
E)RATER
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Multiple Choice
Q 142Q 142
Techniques for improving quality include all of the following except _____.
A)employee involvement
B)outsourcing
C)reduced cycle time
D)statistical process control
E)market share
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Multiple Choice
Q 143Q 143
What is productivity? Why is increasing productivity important? In the context of a specific job,preferably from your own experience,discuss at least three ways that managers can improve productivity.
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Q 147Q 147
Explain the four perspectives of the balanced scorecard and how a balanced scorecard is related to a strategy map.
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Q 148Q 148
Define these terms: financial statement,balance sheet,income statement,ratio analysis.Describe four types of financial ratios and explain the use of each.
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Q 150Q 150
Describe at least three TQM techniques.For each,describe how a company would implement this technique.
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Q 151Q 151
What are the keys to a successful control system? Think of the parenting techniques your parents or guardians used in raising you.Did they apply these principles? How could they have done so more effectively?
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Q 152Q 152
Describe the barriers to the success of control systems.Consider one of your college classes as an example and your instructor as someone who would like to have good control systems in place.Explain if and how the barriers have detracted from performance in the class.
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Q 154Q 154
What are the four common characteristics of successful control systems? What are at least four barriers to a successful control system?
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Q 156Q 156
What are the four mechanisms that contribute to the success of measurement-managed companies?
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