Essentials of contemporary management 7th edition jones test bank 1

ESSENTIALS

OF

CONTEMPORARY

MANAGEMENT 7TH EDITION JONES

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Chapter 08

Control, Change, and Entrepreneurship

True / False Questions

1. Using the controlling function, managers monitor and evaluate the organization's strategy to evaluate whether it is working as intended.

True False

8-1

or distribution without the prior written consent of McGraw-Hill Education.

2. Organizational control procedures can give managers feedback about the quantity, but not the quality, of products produced by the organization.

True False

3. Managers use feedforward control to anticipate problems.

True False

4. During the input stage, the most common type of control procedure is concurrent control, which gives managers immediate feedback.

True False

5. At the output stage, managers use feedforward control to provide information about customers' reactions to goods.

True False

6. The first step in the control process is to evaluate results in terms of performance standards.

True False

7. A standard of performance that measures efficiency at the functional level is operating costs.

True False

8. Standard operating procedures are mechanisms for clan control.

True False

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9. The most commonly used financial performance measure in organizations is the debt-toequity ratio

True False

10. The inventory turnover ratio is an example of the activity ratio of an organization.

True False

11. Output control procedures are used at every management level of an organization.

True False

12. Control by means of a comprehensive system of rules and standard operating procedures that shape and regulate the behavior of divisions, functions, and individuals is known as bureaucratic control.

True False

13. Organizational culture makes control possible in situations where managers cannot use behavior control.

True False

14. An inert culture is one that controls employee behavior and attitudes through its strong and cohesive organizational culture.

True False

15. Adaptive cultures are those whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective.

True False

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Multiple Choice Questions

16. The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as _______.

A. organizing

B. leading

C. controlling

D. coordinating

17. The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems.

A. operating

B. organizational

C. control

D. recurrent

18. The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control.

A. feedforward

B. concurrent

C. feedback

D. bureaucratic

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19. Action Explosives gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process. This is an example of ________ control.

A. concurrent

B. feedforward

C. feedback

D. bureaucratic

20. Managers at Zeppel Construction Company set up a stringent job interview process by which management applicants are carefully screened at different levels of the organization before they are hired, attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization. By using this process, Zeppel is using ________ control.

A. concurrent

B. feedforward

C. feedback

D. MBO

21. Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Hanover is utilizing ________ control.

A. feedforward

B. feedback

C. bureaucratic

D. MBO

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22. The control system that managers use at the conversion stage of transforming raw materials into finished goods is ________ control.

A. feedforward

B. bureaucratic

C. concurrent

D. feedback

23. The control system that is typically used in a garment plant to solve problems like substandard inputs, broken machine parts, or a worker's skill deficiency to produce a particular type of garment is ________ control.

A. feedforward

B. MBO

C. feedback

D. concurrent

24. At the output stage, managers usually utilize ________ control.

A. MBO

B. bureaucratic

C. feedforward

D. feedback

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25. Brennan Manufacturing monitors the number of customer returns for each product model to track when the organization is producing a large number of defective products. In this case, Brennan Manufacturing is using ________ control.

A. feedforward

B. concurrent

C. MBO

D. feedback

26. Beswick Widget Ltd. sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes and the possible resulting impact on future sales. With this system, Beswick is using ________ control.

A. feedforward

B. feedback

C. MBO

D. bureaucratic

27. Ben, the production manager of Pace Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Ben is ________.

A. establishing the standards of performance

B. measuring the actual level of performance of employees

C. comparing the actual performance against chosen standards of performance

D. evaluating the result of the set standards

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28. The managers of Foodex, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Foodex are ________.

A. establishing the standards of performance

B. measuring the actual level of performance of employees

C. comparing the actual performance against chosen standards

D. evaluating the result of the set standards

29. The standard of performance that measures efficiency at the corporate level of the organization is known as ________.

A. cost of goods sold

B. capital costs

C. net sales

D. operating costs

30. The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is ________.

A. measuring actual performance

B. comparing actual performance to the standards

C. initiating corrective action

D. measuring standards of performance

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31. Brandon, the manager of Flipflop Footwear, checked the weekly records and discovered that the number of shoes produced in one week by 20 employees was 250 against the set target of 220 shoes. With reference to the control process, Brandon is ________.

A. establishing the standards of performance

B. measuring the actual level of performance of employees

C. comparing the actual performance against chosen standards of performance

D. evaluating the result of the set standards

32. The final step in the control process is to ________.

A. evaluate results and initiate corrective action

B. measure actual performance

C. compare actual performance to the standards

D. measure the standards of performance

33. Danny, the manager of Wader Shoes, installed new machinery to speed up the production process after the assigned targets were not achieved for the third week of the month. With regard to the control process, Danny is ________.

A. establishing the standards of performance

B. measuring the actual level of performance of employees

C. evaluating the result of the set standards

D. initiating corrective actions

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34. A mechanism of control utilized in organizational culture is ________.

A. direct supervision

B. management by objectives

C. socialization

D. organizational goals

35. Management by objectives is a mechanism of control with ________ organizational control systems.

A. input

B. clan

C. output

D. behavior

36. The manager of Triks Burgers keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of Triks Burgers is utilizing ________ control.

A. output

B. bureaucratic

C. input

D. MBO

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37. The manager of Inkman, a convenience store, keeps track of the average sale amount for each customer as a way of deciding on the product mix to be carried in the store. This is an example of ________ control.

A. feedforward

B. output

C. input

D. MBO

38. The performance ratio that measures the efficiency of the organization in terms of how well the resources of the organization have been used to generate profit is a(n) _______ ratio.

A. activity

B. leverage

C. profit

D. liquidity

39. The most commonly used financial performance measure that allows managers of one organization to compare performance with that of other organizations is ________.

A. gross profit margin

B. the debt-to-assets ratio

C. the inventory turnover ratio

D. return on investment

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40. An organization's net income before taxes divided by the total assets of the organization is known as ________.

A. gross profit margin

B. return on investment

C. the debt-to-assets ratio

D. days sales outstanding

41. The financial ratio that measures the ability of the organization to pay its short-term debts is the ________ ratio.

A. leverage

B. liquidity

C. activity

D. profit

42. The ratio that is computed by dividing the difference between current assets and inventory by current liabilities is the ________ ratio.

A. inventory turnover

B. quick

C. current

D. debt-to-assets

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43. The current assets of Global Acorn are valued at 25 million dollars and its current liabilities are at 6 million dollars. If its inventory is worth 1 million dollars, what is its quick ratio?

A. 4

B. 0.25

C. 0.14

D. 3.6

44. The CEO of a company would like to know whether his managers can pay off claims of shortterm creditors without selling inventory. What ratio will help him understand the company's liquidity?

A. Inventory turnover ratio

B. Quick ratio

C. Current ratio

D. Debt-to-assets ratio

45. The financial ratio that indicates whether or not the organization is capable of paying off its short-term debts without having to sell its inventory is the ________ ratio.

A. quick

B. current

C. days sales outstanding

D. profit

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46. From the information given below, calculate the organization's return on investment. Total Liabilities = $300,000; Total Assets = $600,000; Gross Margin = $200,000; Net Income Before Taxes = $30,000; Total Expenses = $240,000

A. 50 percent

B. 5 percent

C. 10 percent

D. 12.5 percent

47. Calculate the return on investment from the information given below. Net Income = $18,000; Advertising Expenses = $220,000; Total Liabilities = $120,000; Total Assets = $160,000; Gross Margin = $80,000; Taxes Paid = $2,000

A. 16.67 percent

B. 15 percent

C. 11.25 percent

D. 12.5 percent

48. Calculate the current ratio of the organization from the information given below. Sales = $200,000; Gross Profit = $40,000; Total Assets = $450,000; Current Assets = $250,000; Current Liabilities = $300,000

A. 0.44

B. 0.56

C. 0.67

D. 0.83

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49. From the information given below, calculate the organization's current ratio.

Total Liabilities = $750,000; Current Liabilities = $220,000; Total Assets = $700,000; Current Assets = $176,000

A. 0.25

B. 0.93

C. 0.29

D. 0.80

50. The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the ________ ratio.

A. leverage

B. liquidity

C. activity

D. profit

51. The financial ratio that measures how well the managers of the organization are creating value from the organization's assets is the ________ ratio.

A. leverage

B. liquidity

C. current

D. activity

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52. The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the ________ ratio.

A. debt-to-assets

B. quick

C. current

D. days sales outstanding

53. The managers of a division are given a fixed budget and are then evaluated on the basis of their ability to produce goods or services. This is an example of a(n) ________ budget approach.

A. expense

B. profit

C. cash flow

D. revenue

54. The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the _______ budget approach.

A. expense

B. cash flow

C. revenue

D. profit

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55. When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach.

A. profit

B. revenue

C. expense

D. cash flow

56. When a manager is evaluated on the difference between sales revenue and the budgeted cost of making those goods and services, this is an example of a(n) ________ budget approach.

A. revenue

B. cash flow

C. expense

D. profit

57. A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager is being evaluated using the _______ budget approach.

A. profit

B. revenue

C. cost

D. expense

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58. When a divisional manager is evaluated based on the operating income of his division, this is an example of a(n) ________ budget approach.

A. capital

B. revenue

C. expense

D. profit

59. The most immediate and potent form of behavior control is ________.

A. direct supervision

B. clan control

C. bureaucratic control

D. socialization

60. With management by objectives, the first things established are ________.

A. evaluations

B. organizational objectives

C. management goals

D. subordinate goals

61. Rules and SOPs are used to regulate the behavior of workers within the organization with a ________ control system.

A. bureaucratic

B. feedback

C. feedforward

D. concurrent

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62. Rules and SOPs are of little use in telling a scientist how to discover something new. Thus, which of the following forms of control should notbe applied to scientists?

A. feedforward

B. feedback

C. bureaucratic

D. concurrent

63. When actions are performed by employees the same way time and time again and the outcomes of their work are predictable, employee behavior is ________.

A. generalized

B. standardized

C. maximized

D. minimized

64. A worker at a motorcycle plant comes up with a new way to attach the fuel injection system to the motor, increasing the efficiency of the assembly process. The managers instruct all employees to attach fuel injection systems the same way so that every car would come off the assembly line with its fuel injection system attached in the new way. The managers are using ________ control.

A. bureaucratic

B. clan

C. output

D. input

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65. The set of values, norms, and expectations of behavior that control the ways in which workers interact with one another within the organization is known as ________.

A. bureaucratic culture

B. organizational culture

C. feedback control

D. feedforward control

66. The control that is imposed on workers within the organization by the shared values, norms, standards of behavior, and expectations is ________ control.

A. bureaucratic

B. operating

C. clan

D. leverage

67. When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) ________ culture.

A. networked

B. inert

C. adaptive

D. bureaucratic

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68. Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a ________.

A. top-down approach to promote adaptive culture

B. bottom-up approach to promote adaptive culture

C. top-down approach to promote inert culture

D. bottom-up approach to promote inert culture

69. When an organization has a culture that leads to values and norms that fail to motivate or inspire employees, which eventually leads to stagnation and often failure over time, that company has a(n) ________ culture.

A. adaptive

B. inert

C. communal

D. bureaucratic

70. Companies with an inert culture ________.

A. closely supervise their employees within a hierarchical system

B. develop long-term career paths for their employees

C. invest heavily in training and development of employees

D. encourage the development of supportive work attitudes and behaviors

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71. In companies that have an adaptive culture, employees are ________.

A. content to be told what to do during work hours

B. not motivated to perform beyond minimum requirements

C. closely supervised within a hierarchical authority

D. likely to have long-term career paths to follow

72. In an adaptive culture, employees often receive rewards based on their ________.

A. performance

B. contracts

C. length of service

D. organizational commitment

73. Organizational change can affect practically all aspects of organizational functioning, ________.

A. including organizational culture and strategies

B. including response to opportunities but not threats

C. excluding the human resource management system

D. excluding communication, motivation, and leadership

74. Which of the following stages in making organizational change includes benchmarking?

A. Assess the need for change

B. Decide on the change to make

C. Implement the change

D. Evaluate the change

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75. Which of the following stages in making organizational change includes deciding whether change will occur from the top down or from the bottom up?

A. Assess the need for change

B. Decide on the change to make

C. Implement the change

D. Evaluate the change

76. Which of the following happens in the conversion stage?

A. Anticipating possible problems

B. Managing problems as they occur

C. Dealing with problems that have arisen

D. Managing without correction of problems

77. The company PinnTaxx has opted for a control system policy that deals with problems after they arise. What type of control should they be using and at what stage?

A. Feedforward control at the input stage

B. Concurrent control at the feedback stage

C. Feedback control at the output stage

D. Feedforward control at the conversion stage

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78. The process through which managers try to increase members' abilities to understand and appropriately respond to changing conditions is known as ________.

A clan control

B. socialization

C. organizational learning

D. bureaucratic control

79. In assessing the need for organizational change, managers must ________.

A. identify the obstacles to change at the corporate and individual levels

B. plan how they are going to attain the organization's ideal future state

C. recognize that there is a problem and identify its source

D. implement change from the top down or from the bottom up

80. The process of comparing one company's performance on specific dimensions with the performance of high-performing organizations, to decide how successful a change effort has been, is known as ________.

A. socialization

B. diversification

C. social facilitation

D. benchmarking

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81. Entrepreneurship is the mobilization of resources to ________.

A. start a process that ends with the founding of a new business

B. compare two companies on specific dimensions

C. market an old product with a new twist

D. provide customers with new or improved goods and services

82. Members of which of the following groups may be considered intrapreneurs?

A. Employees of an organization who notice opportunities to develop new products

B. Employees of an organization who have worked across various industries

C. Managers who are responsible for two or more departments within a company

D. Managers who ensure interdepartmental transfer of skills

83. Agave Pharma has opted for a top-down approach to changing how the company functions so that efficiency is increased. What is the change likely to entail?

A. A fast or revolutionary approach involving managers at all levels

B. A gradual or evolutionary approach involving only the top managers

C. A fast or revolutionary approach involving only the top managers

D. A gradual or evolutionary approach involving managers at all levels

84. Stag Plugs, Ltd., opts to take a bottom-up approach in order to draft a new attendance policy. What will the approach entail?

A. A fast or revolutionary approach involving managers at all levels

B. A gradual or evolutionary approach involving only the top managers

C. A fast or revolutionary approach involving only the top managers

D. A gradual or evolutionary approach involving managers at all levels

8-25

85. Top managers at a food chain company consult with middle and first-line managers to revise their marketing strategy. This approach will lead to ________.

A. top-down changes that can be implemented quickly throughout the organization

B. bottom-up changes to minimize resistance from employees and uncertainty

C. bottom-up changes that can be implemented quickly throughout the organization

D. top-down changes to minimize resistance from employees and uncertainty

Essay Questions

86. Define control systems and mention the three characteristics of an effective control system.

87. What are the four steps in the control process?

8-26

88. Managers typically use three primary measures to assess the output performance of their organizations. Write a brief note on these three types of measures.

89. The top managers of an organization typically use a variety of financial indicators to assess the performance of their organizations. Discuss the four major types of financial measures.

90. Behavior control is one way managers attempt to motivate workers. Discuss three ways managers could use behavior control with subordinates.

8-27

91. Direct supervision is one of the best ways for managers to monitor the behavior of subordinates, but this method of behavior control can create problems with subordinates. Discuss the problems that can occur for managers when working with subordinates.

92. Management by objectives (MBO) is one way that managers can use to evaluate the performance of subordinates. Discuss the steps involved in using this technique.

8-28

93. All organizations make use of bureaucratic control methods in their dealings with the employees of the organization. This type of control system can, however, create problems for the subordinates. Discuss these types of problems and explain what an organization's managers can do to reduce these types of problems within the organization.

94. How does organizational culture help managers exert control over subordinates?

8-29

95. Define adaptive culture and inert culture. Which is better for an organization and why? Give at least two examples of what organizations with each of these do to develop their cultures.

96. Discuss the need to balance two opposing forces in the control process that influences the way organizations change.

97. Identify the steps in the organizational change process and describe what occurs in each step.

8-30

98. Define entrepreneurs and intrapreneurs.

99. List the common problems entrepreneurs have in managing their organizations.

100.Describe evaluation, the fourth and final step in establishing organizational control.

8-31

Chapter 08 Control, Change, and Entrepreneurship Answer Key

True / False Questions

1. Using the controlling function, managers monitor and evaluate the organization's strategy to evaluate whether it is working as intended.

TRUE

In controlling, managers monitor and evaluate whether the organization's strategy and structure are working as intended, how they could be improved, and how they might be changed if they are not working.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:ControlSystems

8-32

2. Organizational control procedures can give managers feedback about the quantity, but not the quality, of products produced by the organization.

FALSE

Organizational control helps managers obtain superior efficiency, quality, responsiveness to customers, and innovation the four building blocks of competitive advantage.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:ControlSystems

3. Managers use feedforward control to anticipate problems.

TRUE

Managers use feedforward control to anticipate problems before they arise so problems do not occur later during the conversion process.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:FeedforwardControl

8-33

4. During the input stage, the most common type of control procedure is concurrent control, which gives managers immediate feedback.

FALSE

At the conversion stage, concurrent control gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:ConcurrentControl

5. At the output stage, managers use feedforward control to provide information about customers' reactions to goods.

TRUE

At the output stage, managers use feedback control to provide information about customers' reactions to goods and services so corrective action can be taken if necessary.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:FeedforwardControl

8-34

6. The first step in the control process is to evaluate results in terms of performance standards.

FALSE

The first step in the control process is to establish the standards of performance, goals, or targets against which performance is to be evaluated.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-02Describethefourstepsinthecontrolprocessandthewayitoperatesovertime.

Topic:ControlProcessSteps

7. A standard of performance that measures efficiency at the functional level is operating costs.

FALSE

At the corporate level, a standard of performance that measures efficiency is operating costs, the actual costs associated with producing goods and services, including all employee-related costs.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-02Describethefourstepsinthecontrolprocessandthewayitoperatesovertime.

Topic:ControlProcessSteps

8-35

8. Standard operating procedures are mechanisms for clan control.

FALSE

Standard operating procedures are mechanisms for behavior control.

Refer: Figure 8.3

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-02Describethefourstepsinthecontrolprocessandthewayitoperatesovertime.

Topic:ClanControl

9. The most commonly used financial performance measure in organizations is the debt-toequity ratio.

FALSE

Return on investment (ROI), an organization's net income before taxes divided by its total assets, is the most commonly used financial performance measure because it allows managers of one organization to compare performance with that of other organizations.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-03Identifythemainoutputcontrols,anddiscusstheiradvantagesanddisadvantagesasmeansof coordinatingandmotivatingemployees.

Topic:ControlProcessSteps

8-36

10. The inventory turnover ratio is an example of the activity ratio of an organization.

TRUE

Activity ratios show how well managers are creating value from organizational assets. Inventory turnover ratio is an example of the activity ratio that measures how efficiently managers are turning inventory over so excess inventory is not carried.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Apply

Difficulty:2Medium

LearningObjective:08-03Identifythemainoutputcontrols,anddiscusstheiradvantagesanddisadvantagesasmeansof coordinatingandmotivatingemployees.

Topic:ControlProcessSteps

11. Output control procedures are used at every management level of an organization.

TRUE

Output control is used at every level of the organization, and it is vital that the goals set at each level harmonize with the goals set at other levels so managers and other employees throughout the organization work together to attain the corporate goals that top managers have set.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-03Identifythemainoutputcontrols,anddiscusstheiradvantagesanddisadvantagesasmeansof coordinatingandmotivatingemployees.

Topic:ControlProcessSteps

8-37

12. Control by means of a comprehensive system of rules and standard operating procedures that shape and regulate the behavior of divisions, functions, and individuals is known as bureaucratic control.

TRUE

Bureaucratic control is control by means of a comprehensive system of rules and standard operating procedures (SOPs) that shapes and regulates the behavior of divisions, functions, and individuals.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-03Identifythemainoutputcontrols,anddiscusstheiradvantagesanddisadvantagesasmeansof coordinatingandmotivatingemployees.

Topic:BureaucraticControl

13. Organizational culture makes control possible in situations where managers cannot use behavior control.

TRUE

Organizational culture makes control possible in situations where managers cannot use output or behavior control.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-02Describethefourstepsinthecontrolprocessandthewayitoperatesovertime.

Topic:OrganizationalCulture

8-38

14. An inert culture is one that controls employee behavior and attitudes through its strong and cohesive organizational culture.

FALSE

An adaptive culture is one that controls employee behavior and attitudes through its strong and cohesive organizational culture.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-02Describethefourstepsinthecontrolprocessandthewayitoperatesovertime.

Topic:AdaptiveCulture

15. Adaptive cultures are those whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective.

TRUE

An adaptive culture is one that controls employee behavior and attitudes through its strong and cohesive organizational culture. Adaptive cultures are cultures whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-02Describethefourstepsinthecontrolprocessandthewayitoperatesovertime.

Topic:AdaptiveCulture

8-39

Multiple Choice Questions

16. The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as _______.

A. organizing

B. leading

C. controlling

D. coordinating

Controlling is the process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals. Controlling helps managers monitor and evaluate whether the organization's strategy and structure are working as intended, how they could be improved, and how they might be changed if they are not working.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:ControlSystems

8-40

17. The formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively are known as ________ systems.

A. operating

B. organizational

C. control

D. recurrent

Control systems are formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about whether the organization's strategy and structure are working efficiently and effectively. Effective control systems alert managers when something is going wrong and give them time to respond to opportunities and threats.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:ControlSystems

8-41

18. The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control.

A. feedforward

B. concurrent

C. feedback

D. bureaucratic

At the input stage, managers use feedforward control to anticipate problems before they arise so that problems do not occur later, during the conversion process.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Remember

Difficulty:1Easy

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:FeedforwardControl

8-42

19. Action Explosives gives specifications to its suppliers of raw materials in an attempt to improve the quality of those raw materials and to minimize and anticipate the problems they are likely to face in the conversion process. This is an example of ________ control.

A. concurrent

B. feedforward

C. feedback

D. bureaucratic Feedforward control is used to anticipate problems before they arise so problems do not occur later during the conversion process.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Apply

Difficulty:2Medium

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:FeedforwardControl

8-43

20. Managers at Zeppel Construction Company set up a stringent job interview process by which management applicants are carefully screened at different levels of the organization before they are hired, attempting to increase the chance that newly hired managers will have the knowledge and skills they need to be successful within the organization. By using this process, Zeppel is using ________ control.

A. concurrent

B. feedforward

C. feedback

D. MBO

Managers can use feedforward control while screening job applicants, often by viewing their résumés electronically, and using several interviews to select the most highly skilled people, which can lessen the chance that they will hire people who lack the necessary skills or experience to perform effectively.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Apply

Difficulty:2Medium

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:FeedforwardControl

8-44

21. Hanover Insurance set up a management information system that gives its regional managers information about changes in the task environment that may affect the organization at some future time. By using this system, Hanover is utilizing ________ control.

A. feedforward

B. feedback

C. bureaucratic

D. MBO

Managers use feedforward control to anticipate problems before they arise so that problems do not occur later. The development of management information systems promotes feedforward control that gives managers timely information about changes in the task and general environments that may impact their organization later on.

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

Blooms:Apply

Difficulty:2Medium

LearningObjective:08-01Defineorganizationalcontrol,andexplainhowitincreasesorganizationaleffectiveness.

Topic:FeedforwardControl

8-45

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