Question 1

Measures which monitor critical performance variables that help managers track progress toward achieving a company's strategic goals are collectively called diagnostic control systems.

Accepted Answer

This statement is true. Diagnostic control systems are used by managers to monitor critical performance variables that help track progress towards achieving a company's strategic goals.

Question 2

Some companies,make environmental performance a line item on every employee's salary appraisal report.

Accepted Answer

Some companies do indeed make environmental performance a line item on every employee's salary appraisal report as a way to incentivize and reward environmentally responsible behavior.

Question 3

Interactive control systems are informal information systems managers use to focus the company's attention and learning on key strategic issues.

Accepted Answer

Interactive control systems are formal information systems managers use to focus the
company's attention and learning on key strategic issues.

Question 4

An excessive focus on diagnostic control systems and critical performance variables can cause an organization to ignore emerging threats and opportunities.

Accepted Answer

If an organization is too focused on diagnostic control systems and critical performance variables, it can become myopic and miss important external factors that could impact its success or failure. It is important to have a balance between monitoring performance and remaining aware of changing markets, trends, and potential disruptors.

Question 5

"Levers of control," in addition to a diagnostic control system,are needed in an organization because ________.
A) diagnostic controls have been found to lead to poor financial performance
B) diagnostic controls have no place in a balanced scorecard system
C) pressure to perform on diagnostic controls may lead to unethical behavior
D) they are mandated by the Financial Accounting Standards Board

Accepted Answer

While diagnostic controls can be effective in ensuring financial accountability, there is a risk that employees may feel excessive pressure to perform and resort to unethical behavior in order to meet targets. By incorporating levers of control like interactive, belief, and boundary systems, organizations can create a more balanced approach to performance management and reduce the risk of unethical behavior.

Question 6

Interactive control system ________.
A) ensure to adhere to legal or ethical accounting policies and procedures
B) ensure prompt and severe reprimand of unethical conduct, regardless of the benefits that might accrue to the company from unethical action
C) ensure employees' intrinsic motivation, the desire to achieve self-satisfaction for performing well regardless of external rewards such as bonuses or promotion
D) ensure frequent face-to-face communications among managers and employees regarding the critical uncertainties

Accepted Answer

An interactive control system is designed to ensure that managers and employees frequently engage in face-to-face communication regarding critical uncertainties. This is done in order to ensure that potential problems are identified and resolved in a timely manner. While adhering to legal or ethical policies and procedures is important, it is not the primary purpose of an interactive control system. Similarly, while prompt reprimands of unethical conduct may be necessary, such measures are not sufficient to ensure effective control. Finally, while motivating employees is important, an interactive control system is not primarily focused on ensuring intrinsic motivation.

Question 7

Intrinsic motivation comes from being given greater responsibility,doing interesting and creative work,and having pride in doing that work.

Accepted Answer

Intrinsic motivation is driven by personal interest, enjoyment, and satisfaction rather than external rewards. Greater responsibility, interesting and creative work, and pride in one's work are all examples of factors that can boost intrinsic motivation.

Question 8

Managers use ________ to ensure employees' intrinsic motivation,the desire to achieve self-satisfaction for performing well regardless of external rewards such as bonuses or promotion.
A) diagnostic control systems
B) boundary systems
C) belief systems
D) interactive control systems

Accepted Answer

Managers use belief systems to foster intrinsic motivation in employees. Belief systems are comprised of organizational values, mission statements, and other messaging that communicates the organization's purpose and goals to employees. By communicating these values and goals, managers can inspire employees to work toward them out of personal fulfillment and satisfaction, rather than just the promise of external rewards. Diagnostic control systems, boundary systems, and interactive control systems are all types of control systems that help managers monitor and direct employee behavior, but they do not directly relate to fostering intrinsic motivation.

Question 9

"Cooking the books" means reporting of understated assets and overstated liabilities.

Accepted Answer

"Cooking the books" refers to the deliberate manipulation of financial records to falsify company's financial performance, often by overstating assets, understating liabilities, or providing false or misleading information.

Question 10

Briefly explain each of the four levels of control.Why does a company need to implement more than a diagnostic control system?

Accepted Answer

The answer of Briefly explain each of the four levels...

Question 11

Match between columns
                        Premises: Change in revenues
Cycle time
Economic order quantity
Manufacturing defects
Market share
New products
On-time delivery
Operating income
Product reliability
Time-to-market

Accepted Answer

The Answer of Profitability and Customer satisfaction and Innovation and is...

Quiz 23: Performance Measurement, compensation, and Multinational Considerations

Measures which monitor critical performance variables that help managers track progress toward achieving a company's strategic goals are collectively called diagnostic control systems.

Some companies,make environmental performance a line item on every employee's salary appraisal report.

Interactive control systems are informal information systems managers use to focus the company's attention and learning on key strategic issues.

An excessive focus on diagnostic control systems and critical performance variables can cause an organization to ignore emerging threats and opportunities.

"Levers of control," in addition to a diagnostic control system,are needed in an organization because ________.

Interactive control system ________.

Intrinsic motivation comes from being given greater responsibility,doing interesting and creative work,and having pride in doing that work.

Managers use ________ to ensure employees' intrinsic motivation,the desire to achieve self-satisfaction for performing well regardless of external rewards such as bonuses or promotion.

"Cooking the books" means reporting of understated assets and overstated liabilities.

Briefly explain each of the four levels of control.Why does a company need to implement more than a diagnostic control system?

Assume you are evaluating a manufacturing company. Match the various organizational activities and concepts with the performance measures listed. Some items may have more than one match.