85. Which of the following statements does NOT accurately describe a feature, characteristic or outcome of using participation in the planning process?
C. Only a few key people should be involved in developing plans in order to keep the plans simple and to facilitate implementation.
1. Measuring performance and taking action to ensure desired results is the essence of the management function of
E. controlling.
2. The word 'control' must be used carefully because
E. the word has a negative connotation.
3. The purpose of controlling is to
A. make sure plans are fulfilled and that actual performance meets or surpasses objectives.
4. Which of the following is the definition of controlling found in the textbook?
A. Controlling is a process of measuring performance and taking action to ensure desired results.
5. Controlling does all of the following EXCEPT
D. secure adequate financing for the enterprise.
6. The role of the controlling function in the management process is
B. to ensure results.
7. The four steps of the control process are: establish objectives and standards; __________; compare results with objectives and standards, and __________.
C. Measure actual performance take corrective action as needed.
8. A(n) __________ is self-contained in its performance-monitoring and correction capabilities.
A. cybernetic control system
9. The four steps of the control process are: establish performance objectives and standards; measure actual performance; compare actual performance with objectives and standards; and
D. take corrective action as needed.
10. Effective planning by managers helps accomplish which step in the control process?
C. Establishing performance objectives and standards
11. __________ standards measure effort in terms of the amount of work expended in task performance.
D. Input
12. __________ measure performance results in terms of quantity, quality, cost, or time of accomplished work.
A. Output standards
13. In the control process, _________ must be accurate enough to identify significant difference between what is really taking place and what was originally planned.
A. measurement
14. The unwillingness or inability to measure the performance of people at work
E. is a common management failure in measuring actual performance.
15. Which of the following is an accurate description of the control equation?
E. Need for action = desired performance - actual performance
16. A manager can determine the need for corrective action by using __________ comparison measures.
D. All of the above.
17. In using a relative approach to compare desired and actual performance, a manager will
D. use performance achievements of other people, work units or organisations to set the standard.
18. In using a historical approach for comparing desired and actual performance, a manager will
C. use past performance as a benchmark.
19. In using an engineering approach to compare desired and actual performance, a manager will
D. use standards set scientifically through such methods as time and motion studies.
20. The practice of giving priority attention to situations showing the greatest need for action is called
A. management by exception.
21. __________ is the technique of focusing managerial attention on situations where the difference between actual and desired performance is greatest.
E. High control management
22. When the control equation identifies a situation in which actual performance is less than desired performance, the situation is called
A. a problem situation.
23. A management exception known as the __________ occurs when the need for action centres on discovering why desired performance was exceeded and what can be done to continue the higher level of performance in the future.
A. opportunity situation
24. A management exception known as the __________ occurs when actual performance is below standard.
E. problem situation
25. Suppose that, in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found no deviation (that is, actual performance was EQUAL to the standard), the manager should
A. take no corrective action.
26. Suppose that, in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was LESS than the standard, the manager should
A. take corrective action.
27. Suppose that, in reviewing a quarterly report of a department's achievements, the manager compared desired performance with actual performance. If the manager found that actual performance was GREATER than the standard, the manager should
A. take action to understand why actual results exceeded the standard.
28. A(n) __________ is a structured review of the lessons learned and results accomplished on a completed project, task force or special operation.
C. after-action review
29. Which of the following statements accurately characterises the major types of managerial control systems?
E. None of the above
30. A feedforward control system focuses on
C. work inputs.
31. __________ controls are designed to anticipate potential problems and take preventive action to avoid their occurrence.
D. Feedforward
32. __________ ensures that directions and resources are right before the work begins.
B. Feedforward
33. Shift supervisors working alongside employees, constantly observing and intervening with immediate corrective action when something is not done properly, is an example of __________ control.
E. concurrent
34. The central question of __________control is: What can be done to improve things before we finish?
D. concurrent
35. A concurrent control system focuses on
D. work throughputs.
36. The central question of __________control is: What can be done to improve things right now?
E. concurrent
37. Shift supervisors working alongside employees, constantly observing and intervening with immediate corrective action when something is not done properly, is an example of __________ control.
B. concurrent
38. A feedback control system focuses on
C. work outputs.
39. Controls that focus on end results and provide information that can be used for future planning are called _________ controls.
E. feedback
40. The central question of __________control is: Now that we are finished, how did we do?
C. feedback
41. A cost report showing budget overruns on a project completed during the prior month is an example of which type of control?
E. Feedback control
42. A manager who uses a formal administrative system to directly supervise the activities of subordinates is exercising __________ control.
C. external
43. Internal control occurs when
C. motivated individuals and groups exercise self-discipline in fulfilling job requirements.
44. __________ control occurs through personal supervision and the use of formal administrative systems.
B. External
45. Which of the following statements about internal and external control is/are accurate?
D. a and c.
46. The potential for self-control is increased under all of the following conditions EXCEPT
C. when people work in an organisation with a culture that restricts participation in decision making.
47. Control that flows through the organisation's hierarch of authority is called
A. bureaucratic control.
48. The potential for self-control is increased under all of the following conditions EXCEPT
E. when people work in a organisation with a culture that restricts participation in decision making.
49. Procedures and policies regarding sexual harassment are designed to
C. provide guidelines for elimination of any sexual improprieties and sexual pressures to individuals in the workplace.
50. Bureaucratic control emphasises hierarchy and authority while clan control emphasises
C. norms and expectations set by the organisational culture.
51. An example of clan control in operation is when:
A. Individuals in an organisation act, talk, behave and dress in similar manners.
52. If a company begins to get positive publicity for its business practices, a competitive advantage may exist which is an example of
A. market control.
53. Which of the following is NOT a guideline for having effective pay-for-performance in an incentive compensation program?
C. Pay satisfactorily for average performance
54. When Jack Kilgore looked at his many job offers (he had an MBA from the University of Queensland and an engineering degree from RMIT), he looked at base pay and fringe benefits as the most important variables in choosing a company. This demonstrates that
B. pay and benefits are important in attracting and retaining highly qualified workers.
55. ______________ is defined as influencing behaviour through reprimand.
E. Discipline
56. When __________ is handled in a fair, consistent, and systematic way, it is a useful form of managerial control.
C. discipline
57. A supervisor who orally warns an employee the first time he is late for work, gives him a written reprimand the second time, and suspends him for one day without pay the third time, is using a system called
B. progressive discipline.
58. A hot stove burns and people should not touch a hot stove in order to avoid harm. Based on this notion, the 'hot stove rules' analogy of employee discipline indicates that a reprimand should
D. All of the above
59. Which of the following is not a Hot Stove Rule?
C. A reprimand should be customised to the employee's personality.
60. In progressive discipline, the goal always is to achieve compliance with organisational expectations through the __________ reprimand possible.
A. least extreme
61. Which of the following is not a consideration in a progressive discipline system?
A. Whether or not the employee is a minority
62. __________ ties reprimands to the severity and frequency of the employee's infractions.
B. Progressive discipline.
63. For control purposes, which of the following is NOT an important financial aspect of organisational performance?
D. The ability to sell shares of the company's stock
64. Which of the following statements provides an accurate description of financial ratios?
E. Liquidity ratios use information about current assets and current liabilities.
65. A measure of the economic value being created by the firm is
E. economic value added.
66. The Current Ratio is known as a
D. liquidity ratio.
67. The Debt ratio is expressed as
D. total debts divided by total assets.
68. The higher the better for this ratio:
D. inventory turnover.
69. The lower the better for this ratio:
A. debt ratio.
70. The ability to earn revenues greater than costs describes the
A. profitability ratios.
71. This control technique provides an information framework for historical comparisons within the firm and for external benchmarking relative to industry performance
E. financial ratios.
72. All of the following are financial performance measures that managers should know EXCEPT
C. projected inventory levels.
73. Financial ratios provide all of the following EXCEPT
E. a calculation of the breakeven quantity.
74. Trends in purchasing control include
D. All of the above
75. The basic goal of inventory control is to
C. make sure that an inventory is just the right size for the task at hand.
76. Ordering a fixed number of items every time an inventory level falls to a predetermined point is called
E. economic order quantity.
77. Scheduling materials to arrive on a timely basis at a workstation or facility in order to reduce costs and improve workflow is known as
D. just-in-time (JIT) scheduling.
78. In the context of control systems, __________ involves checking processes, materials, products and services to ensure that they meet high standards.
E. quality control
79. Statistical quality control is the use of statistical techniques to
E. None of the above
80. A project has all of the following components EXCEPT
D. date of completion is usually left fairly flexible.
81. __________ refer to one-time activities that have clear beginning and end points.
B. Projects
82. Project management is responsible for all of the following EXCEPT
D. delegating budgetary responsibility to the finance organisation.
83. A project manager's job is to ensure all of the following EXCEPT
A. completion of the project within a fairly flexible time frame.
84. A method of graphically displaying the scheduling of tasks required to complete a project is a(n)
A. Gantt chart.
85. The shortest possible time in which an entire project can be completed if all project tasks go according to plan is the
E. critical path.
86. The following are some typical activities of a project that a Gantt chart would display, with the exception of
D. completion date for employee reward system.
87. __________involves making sure that the activities required to complete a project are done on time, within budget, and fulfill objectives.
E. Project management
88. Meg is a project manager. She has a very complex assignment that requires tight control and planning. She uses a project management tool that breaks her project into a series of small, sub-activities that have clear beginning and end points. The result of this activity is a diagram showing the various interrelationships necessary to complete the project. Meg is using what tool?
D. CPM/PERT
89. A tally of an organisation's performance in financial, customer service, internal process and innovation and learning areas is referred to as a(n)
C. balanced scorecard.
90. __________ is a structured process of regular communication in which a supervisor and subordinate or team member jointly set performance objectives for the subordinate or team member and review performance results that are obtained.
B. Management by objectives (MBO)
91. In management by objectives (MBO), the supervisor and subordinate formally agree on all of the following except
B. procedures for distributing rewards based on performance results.
