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Most economists agree that recent productivity growth is the result of an improved work ethic, primarily due to more millennials in the workforce.
True
False
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False
Chapter 16 #8 Most economists seem to think the recent productivity growth is the result of organizations' huge investment in information technology—computers, the Internet, other telecommunications advances, and computer-guided production line improvements. Learning Objective: 16-01 How do managers influence productivity? Topic: Managing for Productivity Page: 509 |
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Which kind of organization is most likely to try to exert too much control?
Clan Market Bureaucratic Decentralized Matrix |
Bureaucratic
Some organizations, particularly bureaucratic ones, try to exert too much control. They may try to regulate employee behavior in everything from dress code to coffee breaks. Allowing employees too little discretion for analysis and interpretation may lead to employee frustration. Chapter 16 #127 Learning Objective: 16-07 What are the keys to successful control; and what are the barriers to control success? Topic: Managing Control Effectively Page: 536 |
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Which of the following is NOT one of the reasons that control is needed in an organization?
To adapt to change & uncertainty To eliminate the need for teamwork To detect opportunities To deal with complexity To decentralize decision making |
To eliminate the need for teamwork
Figure 16.3 shows the six reasons for control in an organization, one of which is to decentralize decision making and facilitate teamwork. Chapter 16 #79 Learning Objective: 16-02 Why is control such an important managerial function? Topic: Control: When Managers Monitor Performance Page: 511-512 |
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A markdown on certain grocery-store items may result in a rush of customer demand for those products, which is an example of the control systems benefit of detecting threats.
True False |
False
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. Chapter 16 #16 Learning Objective: 16-02 Why is control such an important managerial function? Topic: Control: When Managers Monitor Performance Page: 511 |
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Ferris Insurance has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.
team problems a potential merger competence a tax break irregularities |
Irregularities
One reason control is needed because it helps you to discover irregularities and errors. Cost overruns, manufacturing defects, employee turnover, bookkeeping errors, and customer dissatisfaction may be tolerable in the short run. But in the long run, they can bring about even the downfall of an organization. Chapter 16 #80 Learning Objective: 16-02 Why is control such an important managerial function? Topic: Control: When Managers Monitor Performance Page: 511 |
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In Deming's PDCA cycle, "A" stands for "act", which means to implement the change or make a small scale test.
True False |
False
The PDCA cycle is a plan-do-check-act cycle using observed data for continuous improvement of operations (see Figure 16.7). "Do" means to implement the change or make a small-scale test. Chapter 16 #55 Learning Objective: 16-06 How do top companies improve the quality of their products or services? Topic: Total Quality Management Page: 527 |
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Control systems can help managers anticipate, monitor, and react to environmental changes.
True False |
True
Markets shift. Consumer tastes change. New competitors appear. Technologies are reborn. New materials are invented. Government regulations are altered. All organizations must deal with these kinds of environmental changes and uncertainties. Control systems can help managers anticipate, monitor, and react to these changes. Chapter 16 #13 Learning Objective: 16-02 Why is control such an important managerial function? Topic: Control: When Managers Monitor Performance Page: 510 |
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Each day, factory workers at Premier Fabrication 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 benchmarking.
True False |
False
Benchmarking is a process by which a company compares its performance with the best practices of high-performing organizations. The question is describing statistical process control. Chapter 16 #64 Learning Objective: 16-06 How do top companies improve the quality of their products or services? Topic: Total Quality Management Page: 533 |
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______ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.
Controlling Organizing Leading Planning |
Controlling
Controlling is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. Chapter 16 #77 Learning Objective: 16-02 Why is control such an important managerial function? Topic: Control: When Managers Monitor Performance Page: 510 |
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At Bertram Development, 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. Bertram has overcome which of the following barriers to success of control systems?
Overemphasis on paperwork Overemphasis on means instead of ends Too much control Too little employee participation |
Too little employee participation
One barrier to successful control systems is too little employee participation. Involving employees in both the planning and execution of control systems as Bertram did, can bring legitimacy to the process and heighten employee morale. Chapter 16 #129 Learning Objective: 16-07 What are the keys to successful control; and what are the barriers to control success? Topic: Managing Control Effectively Page: 537 |
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If a manager increases the efficiency of labor but makes no improvements to the efficiency of capital, an increase in productivity will result.
True False |
True
You can increase overall productivity by making substitutions or increasing the efficiency of any one element: labor, capital, materials, and energy. Chapter 16 #4 Learning Objective: 16-01 How do managers influence productivity? Topic: Managing for Productivity Page: 509 |
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A variable budget allows the allocation of resources to vary in proportion with various levels of activity.
True False |
True
A variable budget allows the allocation of resources to vary in proportion with various levels of activity. That is, the budget can be adjusted over time to accommodate pertinent changes in the environment. Chapter 16 #47 Learning Objective: 16-05 Financial performance is important to most organizations. What are the financial tools I need to know about? Topic: Some Financial Tools for Control Page: 523 |
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A(n) ______ budget projects what an organization will create in goods and services, what financial resources are needed, and what income is expected.
expense revenue cash operating cash flow |
Operating
An operating budget projects what an organization will create in goods or services, what financial resources are needed, and what income is expected. Chapter 16 #111 Learning Objective: 16-05 Financial performance is important to most organizations. What are the financial tools I need to know about? Topic: Some Financial Tools for Control Page: 523 |
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A sales forecast is an example of an organizational control from the ______ area.
physical informational human resources financial capital |
Informational
Production schedules, sales forecasts, environmental impact statements, analyses of competition, and public relations briefings are all controls on an organization's various information resources. Chapter 16 #92 Learning Objective: 16-03 How do successful companies implement controls? Topic: Levels & Areas of Control Page: 516 |
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A fixed budget does not allow for adjustment over time except when there are pertinent changes in the environment.
True False |
False
A fixed budget allocates resources on the basis of a single estimate of costs. That is, there is only one set of expenses; the budget does not allow for adjustment over time. A variable budget allows the allocation of resources to vary in proportion with various levels of activity. That is, the budget can be adjusted over time to accommodate pertinent changes in the environment. Chapter 16 #46 Learning Objective: 16-05 Financial performance is important to most organizations. What are the financial tools I need to know about? Topic: Some Financial Tools for Control Page: 523 |
