Question 1

_____ refers to the efforts to systematically find,organize,and make available a company's intellectual capital and to foster a culture of continuous learning and information sharing.
A)Feedback control
B)Outcome control
C)Knowledge management
D)Transaction management

Accepted Answer

Knowledge management refers to the efforts to systematically find,organize,and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing.The company's intellectual capital is the sum of its knowledge,experience,understanding,relationships,processes,innovations,and discoveries.

Question 2

Which of the following is not a perspective of the balanced scorecard?
A)Financial performance
B)Customer service
C)Learning and growth
D)Quality control

Accepted Answer

A BSC contains four major perspectives:financial performance,customer service,internal business processes,and the organization's capacity for learning and growth.Within these four areas,managers identify key performance indicators (KPIs)the organization will track.

Question 3

Hierarchical methods define explicit rules,policies,and procedures for employee behavior.

Accepted Answer

Hierarchical methods define explicit rules,policies,and procedures for employee behavior.Control relies on centralized authority,the formal hierarchy,and close personal supervision.

Question 4

_____ are people who are at the center of an information network.These are people who are sought out for their knowledge and information.
A)Brokers
B)Peripheral players
C)Hubs
D)Communicators

Accepted Answer

Hubs are people who are at the center of an information network.These are people who are sought out for their knowledge and information.Hubs tend to have more influence than other employees.

Question 5

Effective control systems involve the use of feedback to determine whether organizational performance meets established standards to help the organization attain its goals.

Accepted Answer

All effective control systems involve the use of feedback to determine whether organizational performance meets established standards to help the organization attain its goals.Managers set up systems for organizational control that consist of the four key steps in the feedback control model.

Question 6

Data warehousing is also known as data mining.

Accepted Answer

Data warehousing is 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.Data mining or business intelligence means searching out and analyzing data from multiple sources across the enterprise,and increasingly from outside sources as well,to identify patterns and relationships that might be significant.

Question 7

In decentralized control,managers rely on shared goals and values to control employee behavior.

Accepted Answer

Decentralized control is based on values and assumptions that are almost opposite to those of hierarchical control.Rules and procedures are used only when necessary.Managers rely instead on shared goals and values to control employee behavior.

Question 8

Establishing metrics and standards of performance is one of the four key steps in a feedback control model.

Accepted Answer

The cycle of control includes setting strategic goals for departments or the organization as a whole,establishing metrics and standards of performance,comparing metrics of actual performance to standards,and correcting or changing activities as needed.

Question 9

_____ is based on managers' direct observation and supervision of employee actions to see whether the individual follows rules and policies and performs tasks as instructed.
A)Feedback control
B)Outcome control
C)Behavior control
D)Transaction control

Accepted Answer

The reward system is often of paramount concern at the supervisory level.There are two different approaches to evaluating and controlling team or individual performance and allocating rewards.Behavior control is based on managers' direct observation and supervision of employee actions to see whether the individual follows rules and policies and performs tasks as instructed.

Question 10

In decentralized control,the organizational structure is vertical,like a pyramid.

Accepted Answer

With decentralized control,power is more dispersed and is based on knowledge and experience as much as formal position.The organizational structure is flat and horizontal,with flexible authority and teams of workers solving problems and making improvements.

Question 11

_____ focus on production and operating statistics,such as order fulfillment or cost per order.
A)Customer service indicators
B)Business process indicators
C)Learning and growth potentials
D)Quality control perspectives

Accepted Answer

Business process indicators focus on production and operating statistics,such as order fulfillment or cost per order.

Question 12

Data mining software is designed to print out data from the government sector,particularly from census reports.

Accepted Answer

Business intelligence refers to the high-tech analysis of a company's data in order to make better strategic decisions.Data mining or business intelligence means searching out and analyzing data from multiple sources across the enterprise,and increasingly from outside sources as well,to identify patterns and relationships that might be significant.

Question 13

A(n)_____ provides a visual representation of the key drivers of an organization's success and shows how specific outcomes in each area are linked.
A)feedback map
B)outcome map
C)strategy map
D)transaction map

Accepted Answer

The cause-effect control technique is the strategy map.A strategy map provides a visual representation of the key drivers of an organization's success and shows how specific outcomes in each area are linked.

Question 14

An organization's _____ focuses on how well resources and human capital are being managed for the company's future.
A)business process indicator
B)customer service indicator
C)learning and growth potential
D)quality control perspective

Accepted Answer

The final component of a balanced scorecard looks at the organization's potential for learning and growth,focusing on how well resources and human capital are being managed for the company's future.

Question 15

Executive information systems collect data from transactions such as sales,purchase from suppliers,and inventory changes and store them in a database.

Accepted Answer

Transaction processing systems (TPSs)automate the organization's routine,day-to-day business transactions.A TPS collects data from transactions such as sales,purchases from suppliers,and inventory changes,and stores them in a database.

Question 16

A form of outsourcing is to use _____,firms that collect data from multiple organizations and analyze the combined data for them.
A)hubs
B)peripheral players
C)data summarizers
D)data intermediaries

Accepted Answer

A form of outsourcing is to use data intermediaries,firms that collect data from multiple organizations and analyze the combined data for them.For example,Visa and MasterCard do analysis on the billions of transactions from cardholders in 210 countries to predict consumer and business trends and sell the data to others.

Question 17

Hierarchical control involves cultural values,traditions,shared beliefs,and trust to foster compliance with organizational goals.

Accepted Answer

Hierarchical control involves monitoring and influencing employee behavior through extensive use of rules,policies,hierarchy of authority,written documentation,reward systems,and other formal mechanisms.In contrast,decentralized control relies on cultural values,traditions,shared beliefs,and trust to foster compliance with organizational goals.

Question 18

Which of the following perspectives of a balanced scorecard includes traditional measures such as net income and return on investment?
A)Learning and growth potential
B)Customer service indicators
C)Financial perspective
D)Quality control perspective

Accepted Answer

The financial perspective reflects a concern that the organization's activities contribute to improving short- and long-term financial performance.It includes traditional measures such as net income and return on investment.

Question 19

With hierarchical control,the organizational culture is flexible,and managers consider culture a useful means for coordinating employees and the organization.

Accepted Answer

With hierarchical control,the organizational culture is somewhat rigid,and managers do not consider culture a useful means of controlling employees and the organization.Hierarchical methods define explicit rules,policies,and procedures for employee behavior.

Question 20

In recent years,the balanced scorecard has evolved into a system that helps managers see how:
A)organizational performance results from cause-effect relationships among the four mutually supportive perspectives of balanced scorecard.
B)decentralized control is effective for organizations to achieve the preset goals, mission, and vision.
C)accuracy and responsiveness of employees improve drastically from the usage of outcome control instead of behavior control in their organization.
D)each and every perspective of a balanced scorecard is dependent on each other.

Accepted Answer

In recent years,the balanced scorecard has evolved into a system that helps managers see how organizational performance results from cause-effect relationships among these four mutually supportive areas.Overall effectiveness is a result of how well these four elements are aligned,so that individuals,teams,and departments are working in concert to attain specific goals that cause high organizational performance.

Quiz 8: Using Information Technology for Control and Coordination

_____ refers to the efforts to systematically find,organize,and make available a company's intellectual capital and to foster a culture of continuous learning and information sharing.

Which of the following is not a perspective of the balanced scorecard?

Hierarchical methods define explicit rules,policies,and procedures for employee behavior.

_____ are people who are at the center of an information network.These are people who are sought out for their knowledge and information.

Effective control systems involve the use of feedback to determine whether organizational performance meets established standards to help the organization attain its goals.

Data warehousing is also known as data mining.

In decentralized control,managers rely on shared goals and values to control employee behavior.

Establishing metrics and standards of performance is one of the four key steps in a feedback control model.

_____ is based on managers' direct observation and supervision of employee actions to see whether the individual follows rules and policies and performs tasks as instructed.

In decentralized control,the organizational structure is vertical,like a pyramid.

_____ focus on production and operating statistics,such as order fulfillment or cost per order.

Data mining software is designed to print out data from the government sector,particularly from census reports.

A(n) _____ provides a visual representation of the key drivers of an organization's success and shows how specific outcomes in each area are linked.

An organization's _____ focuses on how well resources and human capital are being managed for the company's future.

Executive information systems collect data from transactions such as sales,purchase from suppliers,and inventory changes and store them in a database.

A form of outsourcing is to use _____,firms that collect data from multiple organizations and analyze the combined data for them.

Hierarchical control involves cultural values,traditions,shared beliefs,and trust to foster compliance with organizational goals.

Which of the following perspectives of a balanced scorecard includes traditional measures such as net income and return on investment?

With hierarchical control,the organizational culture is flexible,and managers consider culture a useful means for coordinating employees and the organization.

In recent years,the balanced scorecard has evolved into a system that helps managers see how: