Management, 11e (Robbins/Coulter)Chapter 18 Introduction to Controlling1) Controlling is the process of monitoring, comparing, and correcting work performance. Answer: TRUEPage Ref: 486Objective: 1Difficulty: EasyClassification: Conceptual2) Having a control system reduces the scope of employee empowerment and autonomy. Answer: FALSEPage Ref: 487Objective: 1Difficulty: EasyClassification: Conceptual3) Some control criteria, such as employee satisfaction, can be used for any manageme nt situation. Answer: TRUEPage Ref: 488Objective: 2Difficulty: EasyClassification: Conceptual4) Deviations that exceed the acceptable range of variation become significant and need a manager's attention.Answer: TRUEPage Ref: 489Objective: 2Difficulty: EasyClassification: Conceptual5) Basic corrective action corrects problems at once to get performance back on track. Answer: FALSEPage Ref: 490Objective: 2Difficulty: EasyClassification: Conceptual6) Managers should do nothing if the variance observed from the standard is acceptable. Answer: TRUEPage Ref: 491Objective: 2Difficulty: EasyClassification: Conceptual7) Productivity decreases when an organization raises the prices of its products.Answer: FALSEPage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual8) Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met.Answer: TRUEPage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual9) Feedforward control is more popular and effective than the other forms of control. Answer: FALSEPage Ref: 494Objective: 4Difficulty: EasyClassification: Conceptual10) Feedforward control takes place while a work activity is in progress.Answer: FALSEPage Ref: 494Objective: 4Difficulty: EasyClassification: Conceptual11) Activity ratios measure an organization's ability to meet its current debt obligations. Answer: FALSEPage Ref: 495Objective: 4Difficulty: EasyClassification: Conceptual12) The balanced scorecard approach evaluates organizational performance from more than just the financial perspective.Answer: TRUEPage Ref: 496Objective: 4Difficulty: EasyClassification: Conceptual13) Managers should not consider the standards when measuring the actual performance of employees.Answer: FALSEPage Ref: 497Objective: 4Difficulty: EasyClassification: Conceptual14) Benchmarks for a company must be created based on the previous performance of the company.Answer: FALSEPage Ref: 498Objective: 4Difficulty: EasyClassification: Conceptual15) Managers tend to use more direct supervision and highly centralized decision making for control in less technologically advanced countries.Answer: TRUEPage Ref: 499Objective: 5Difficulty: EasyClassification: Conceptual16) Embezzlement and fraudulent filing of expenses are examples of employee theft. Answer: TRUEPage Ref: 500Objective: 5Difficulty: EasyClassification: Conceptual17) Employers establish specific policies defining theft and fraud and discipline procedures. This is an example of a concurrent control measure to control employee theft.Answer: FALSEPage Ref: 501Objective: 5Difficulty: EasyClassification: Conceptual18) Using corporate hotlines or other mechanisms for reporting and investigating workplace violence is an example of feedback control.Answer: FALSEPage Ref: 501Objective: 5Difficulty: EasyClassification: Conceptual19) Job uncertainties and employee stress are factors that contribute to workplace violence. Answer: TRUEPage Ref: 502Objective: 5Difficulty: EasyClassification: Conceptual20) A service profit chain is the service sequence from employees to customers to profit. Answer: TRUEPage Ref: 504Objective: 5Difficulty: EasyClassification: Conceptual21) The Sarbanes-Oxley Act also called for more disclosure and transparency of corporate financial information.Answer: TRUEPage Ref: 505Objective: 5Difficulty: EasyClassification: Conceptual22) ________ refers to the process of monitoring, comparing, and correcting work performance.A) ControllingB) LeadingC) PlanningD) OrganizingAnswer: APage Ref: 486Objective: 1Difficulty: EasyClassification: Conceptual23) Which of the following is the final step in the management process?A) organizingB) planningC) controllingD) leadingAnswer: CPage Ref: 487Objective: 1Difficulty: EasyClassification: Conceptual24) Which of the following corresponds to the controlling step in the management process?A) performance measurementsB) employee motivationC) strategy formulationD) organizational structuringAnswer: APage Ref: 487Objective: 1Difficulty: EasyClassification: Conceptual25) Which of the following observations is true of organizational controlling?A) An effective control system facilitates employee empowerment.B) Forming an organizational structure is a crucial control activity.C) Human resource management is a subset of the controlling process.D) Organizational strategies are formed during the controlling stage.Answer: APage Ref: 487Objective: 1Difficulty: EasyClassification: Conceptual26) The control process assumes that ________.A) employees require clear directions from managementB) employees are under-qualified and require trainingC) performance standards are already in placeD) employee monitoring costs are part and parcel of doing businessAnswer: CPage Ref: 488Objective: 2Difficulty: EasyClassification: Conceptual27) The first step in the control process is ________.A) setting the desired standardsB) measuring actual performanceC) comparing performance against expectationsD) enforcing managerial controlAnswer: BPage Ref: 488Objective: 2Difficulty: EasyClassification: Conceptual28) Managers should use subjective measures when ________.A) work activities cannot be expressed in quantifiable termsB) work activities are critical to the organizationC) organizational processes and activities are complexD) immediate managerial action is requiredAnswer: APage Ref: 488Objective: 2Difficulty: EasyClassification: Conceptual29) Which of the following sources of information for measuring performance has the disadvantage of being subject to personal biases, and is time consuming and obtrusive?A) oral reportsB) personal observationsC) statistical reportsD) written reportsAnswer: BPage Ref: 489Objective: 2Difficulty: EasyClassification: Conceptual30) Which of the following is one of the main advantages of using statistical reports as the source of information?A) Statistical reports can be used to obtain firsthand knowledge.B) Unfiltered information can be obtained using statistical reports.C) Statistical reports are effective for showing relationships.D) Statistical reports allow verbal and non-verbal feedback.Answer: CPage Ref: 489Objective: 2Difficulty: EasyClassification: Conceptual31) Which of the following sources usually provides filtered information which cannot be documented?A) oral reportsB) personal observationsC) statistical reportsD) written reportsAnswer: APage Ref: 489Objective: 2Difficulty: EasyClassification: Conceptual32) Which of the following sources provides information which is comprehensive, formal, and easy to file and retrieve?A) oral reportsB) personal observationsC) statistical reportsD) written reportsAnswer: DPage Ref: 489Objective: 2Difficulty: EasyClassification: Conceptual33) The comparing step in the control process determines ________.A) a company's relative position in the industry in terms of the standards usedB) a company's relative position in the industry in terms of performance variancesC) the ideal standard to be used in measuring organizational performanceD) the variation between actual performance and the standardAnswer: DPage Ref: 489Objective: 2Difficulty: EasyClassification: Conceptual34) ________ corrects the problem at once to get performance back on track.A) Basic corrective actionB) Immediate corrective actionC) Revision of standardsD) Revision of benchmarksAnswer: BPage Ref: 490Topic: The Control ProcessObjective: 2Difficulty: EasyClassification: Conceptual35) If a manager investigates how and why performance has deviated beyond the acceptable range of variation, and then corrects the source of the deviation, she is using ________.A) bureaucratic controlB) immediate corrective actionC) basic corrective actionD) concurrent controlAnswer: CPage Ref: 490Objective: 2Difficulty: EasyClassification: Conceptual36) Managers could choose to do nothing when ________.A) an employee fails to attain the standard because of internal problemsB) the difference between actual performance and standard performance is low and acceptableC) performance standards are acceptable, though the employees have not attained itD) the variance observed from the expected performance is caused due to unrealistic standards Answer: BPage Ref: 491Topic: The Control ProcessObjective: 2Difficulty: EasyClassification: Conceptual37) Which of the following refers to the overall output of goods or services produced divided by the inputs needed to generate that output?A) YieldB) Demand functionC) EffectivenessD) ProductivityAnswer: DPage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual38) ________ is measured by the costs of acquiring and transforming organizational resources into outputs.A) InputB) QualityC) EffectivenessD) EfficiencyAnswer: APage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual39) Which of the following is considered the easiest way to increase organizational productivity?A) increasing the price of outputsB) increasing the amount of inputsC) hiring more employeesD) decreasing the value of the productsAnswer: APage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual40) In order to increase the ratio of outputs to inputs, a manager would have to ________.A) decrease the selling priceB) increase productivityC) increase the quality of inputsD) hire additional employeesAnswer: BPage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual41) Organizational ________ is a measure of how appropriate organizational goals are and how well an organization is achieving those goals.A) productivityB) effectivenessC) efficiencyD) yieldAnswer: BPage Ref: 492Objective: 3Difficulty: EasyClassification: Conceptual42) Certain organizations conduct culture audits to find out which companies are the best to work for. What is the major benefit associated with these rankings?A) The rankings indicate the effectiveness of an organization's concurrent control.B) The rankings indicate how well a company performs in comparison to others.C) These rankings are used by governments to make decisions on corporate grants.D) These rankings affect the credit rating of concerned organizations.Answer: BPage Ref: 493Objective: 3Difficulty: EasyClassification: Conceptual43) An organization hires additional personnel as soon as they get a major contract. The organization is using ________ control.A) feedforward controlB) concurrent controlC) feedback controlD) management controlAnswer: APage Ref: 494Objective: 4Difficulty: ModerateClassification: Application44) Which of the following is considered the most desirable type of control to prevent anticipated problems?A) feedforward controlB) concurrent controlC) feedback controlD) reactive controlAnswer: APage Ref: 494Objective: 4Difficulty: EasyClassification: Conceptual45) The management control that takes place while a work activity is in progress is known as________.A) feedforward controlB) concurrent controlC) feedback controlD) reactive controlAnswer: BPage Ref: 494Objective: 4Difficulty: EasyClassification: Conceptual46) Management by walking around is an example of ________ control.A) feedbackB) concurrentC) feedforwardD) reactiveAnswer: BPage Ref: 494Objective: 4Difficulty: EasyClassification: Conceptual47) ________ is when a manager in the work area interacts directly with employees to maintain supervision.A) Preventive maintenanceB) Management by walking aroundC) Reactive controlD) Feedforward controlAnswer: BPage Ref: 494Objective: 4Difficulty: EasyClassification: Conceptual48) The ________ ratios measure an organization's ability to meet its current debt obligations.A) activityB) liquidityC) leverageD) profitabilityAnswer: BPage Ref: 495Objective: 4Difficulty: EasyClassification: Conceptual49) Which of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt?A) liquidity ratiosB) leverage ratiosC) profitabilityD) activity ratiosAnswer: BPage Ref: 495Objective: 4Difficulty: EasyClassification: Conceptual50) ________ ratios measure how efficiently the firm is using its assets.A) LiquidityB) LeverageC) ProfitabilityD) ActivityAnswer: DPage Ref: 495Objective: 4Difficulty: EasyClassification: Conceptual51) Which of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?A) liquidity ratiosB) leverage ratiosC) activity ratiosD) profitability ratiosAnswer: DPage Ref: 495Objective: 4Difficulty: EasyClassification: Conceptual52) The ________ approach to performance measurement was introduced as a way to evaluate organizational performance from more than just the financial perspective.A) market valueB) economic valueC) balanced scorecardD) financial controlAnswer: CPage Ref: 496Objective: 4Difficulty: EasyClassification: Conceptual53) Which of the following is a performance measurement tool that looks at four areas that contribute to a company's performance?A) market value methodB) economic value methodC) balanced scorecard approachD) information control approachAnswer: CPage Ref: 496Objective: 4Difficulty: EasyClassification: Conceptual54) When data is analyzed and processed, it becomes ________.A) a systemB) informationC) factD) a structureAnswer: BPage Ref: 497Objective: 4Difficulty: EasyClassification: Conceptual55) Raw, unanalyzed facts are called ________.A) dataB) informationC) databaseD) data centerAnswer: APage Ref: 497Objective: 4Difficulty: EasyClassification: Conceptual56) ________ is the search for the best practices among competitors or noncompetitors that lead to their superior performance.A) Factor analysisB) Total quality managementC) Market positioningD) BenchmarkingAnswer: DPage Ref: 498Objective: 4Difficulty: EasyClassification: Conceptual57) Control techniques can be quite different for different countries. The differences are primarily in the ________.A) types of tasks that employees perform in various countriesB) way employees respond to the controlling measuresC) strategic orientation of each techniqueD) measurement and corrective action steps of the control processAnswer: DPage Ref: 499Objective: 5Difficulty: EasyClassification: Conceptual58) Fraudulent filing of expense reports is an example of ________.A) employee theftB) workplace piracyC) workplace violenceD) privacy intrusionAnswer: APage Ref: 500Objective: 5Difficulty: EasyClassification: Conceptual59) Clinical psychologists suggest that employee theft ________.A) occurs primarily when there are poor management-labor relationsB) is a symptom of poor planning and management controlC) happens because people find ways to rationalize this behavior as correctD) reflects deep cultural problems in the societyAnswer: CPage Ref: 501Objective: 5Difficulty: EasyClassification: Conceptual60) Factors that have been found to be linked to workplace violence include ________.A) too much caffeineB) employee stressC) poor employee dietD) poor personal hygieneAnswer: BPage Ref: 502Objective: 5Difficulty: EasyClassification: Conceptual61) Experts have described employee work driven by TNC as a primary contributor to workplace violence. TNC refers to ________.A) time, numbers, and crisesB) time, number, and chaosC) time, neglect, and crisesD) time, neglect, and chaosAnswer: APage Ref: 502Objective: 5Difficulty: EasyClassification: Conceptual62) Which of the following is an example of a feedforward control measure used to control possible workplace violence?A) Clearly communicate the security policies to employees.B) Use corporate hotlines for reporting and investigating incidences.C) Review company policies and change, if necessary.D) Investigate incidences and take appropriate action.Answer: APage Ref: 503Objective: 5Difficulty: EasyClassification: Conceptual63) An organization communicates openly to its employees about violent incidences in the workplace and what's being done to handle them. This is an example of a ________ control strategy.A) feedbackB) proactiveC) concurrentD) feedforwardAnswer: APage Ref: 503Objective: 5Difficulty: EasyClassification: Conceptual64) The service profit chain is the service sequence from employees to customers to profit. According to this concept, the company's strategy and service delivery system determines________.A) the skill development of employeesB) how the firm performs in the short runC) the employee satisfaction in the companyD) how employees service customersAnswer: DPage Ref: 504Topic: Contemporary Issues in ControlObjective: 5Difficulty: EasyClassification: Conceptual65) Corporate governance ________.A) refers to executive governance practices in companiesB) is a system used to govern a corporation so that the interests of corporate owners are protectedC) is a term that refers to legal agreements made between two or more partner firmsD) refers to the negative influence of the corporate in societyAnswer: BPage Ref: 504Topic: Contemporary Issues in ControlObjective: 4Difficulty: EasyClassification: Conceptual66) Two areas in which corporate governance is being reformed are the role of boards of directors and ________.A) employee stock optionsB) financial reportingC) executive compensationD) top level managementAnswer: BPage Ref: 504-505Topic: Contemporary Issues in ControlObjective: 5Difficulty: EasyClassification: Conceptual67) The Sarbanes-Oxley Act called for ________.A) increased pollution control measures from the governmentB) more disclosure and transparency of corporate financial informationC) limited accountability of directors and executives of corporatesD) more social contribution from companies in the United StatesAnswer: BPage Ref: 505Objective: 5Difficulty: EasyClassification: ConceptualStatco's Control (Scenario)Statco, Inc., is a statistical software company based in Columbia, TN. This publicly traded firm has grown in a systematic fashion over its 25-year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. The firm hires Mark Adams, an expert in control system design, to design a control system and offer suggestions to improve the firm's performance.68) Which of the following is a key activity that the proposed control system should perform?A) organizational planningB) organizational structuringC) performance measurementD) strategic planningAnswer: CPage Ref: 487AACSB: Analytic SkillsObjective: 1Difficulty: ModerateClassification: Application69) Mark wants to formulate a control process for the organization. What should be the first step in the control process?A) carrying out performance comparisonB) determining the actual performanceC) developing a benchmarkD) validating the performance standardAnswer: BPage Ref: 488AACSB: Analytic SkillsObjective: 2Difficulty: ModerateClassification: Application70) Mark wants to use a tool which is easy to visualize and effective for showing relationships. Which of the following tools is best suited for this?A) personal observationsB) oral reportsC) written reportsD) statistical reportsAnswer: DPage Ref: 489AACSB: Analytic SkillsObjective: 2Difficulty: ModerateClassification: Application71) Mark recommends that the managers at Statco should identify how and why performance has deviated beyond the acceptable range of variation, and then correct the source of the deviation. Here, Mark is recommending ________.A) bureaucratic controlB) immediate corrective actionC) basic corrective actionD) concurrent controlAnswer: CPage Ref: 490AACSB: Analytic SkillsObjective: 2Difficulty: ModerateClassification: ApplicationThe Industry Leader (Scenario)Frank, the new CEO for First Fidelity, is working hard to turn around the formerly successful real estate business. His goal is to make First Fidelity a leader in the industry. He understands the importance of improving organizational productivity in achieving his goals. Mark is keen to improve organizational performance and effectiveness.72) The operations manager suggests a hike in the prices to improve productivity. However, Frank rules this option out. What could be the possible reason for this?A) Product prices are not related to organizational productivity.B) Selling price is negatively correlated to organizational productivity.C) The real estate business is characterized by intense competition.D) Such an action would lead to reduced employee satisfaction.Answer: CPage Ref: 492AACSB: Analytic SkillsObjective: 3Difficulty: ModerateClassification: Application73) Frank believes organizational effectiveness is more important to the organization than organizational productivity. What could be the rationale behind this belief?A) Organizational productivity is not a measure of organizational performance.B) Organizational effectiveness is a measure of how well the organizational goals are met.C) Organizational productivity is not directly related to organizational output.D) Organizational effectiveness is a quantitative measure of the input-output relationship. Answer: BPage Ref: 492AACSB: Analytic SkillsObjective: 3Difficulty: ModerateClassification: ApplicationControlling OperationsCharles is the operations manager of a firm which operates as a leaf tobacco merchant and processor worldwide. Charles believes that the firm's productivity can be increased substantially from the current level. He wants to exert control to improve organizational performance and productivity.74) Charles wants to prevent problems before their occurrence. Which of the following is the most desirable type of control to achieve this goal?A) reactive controlB) concurrent controlC) feedforward controlD) feedback controlAnswer: CPage Ref: 494AACSB: Analytic SkillsObjective: 4Difficulty: ModerateClassification: Application75) Charles interacts directly with the employees in the work area to identify problem areas. He works with various departments to obtain a holistic idea of the business. This type of direct supervision is an example of ________ control.A) proactiveB) concurrentC) feedforwardD) feedbackAnswer: BPage Ref: 494AACSB: Analytic SkillsObjective: 4Difficulty: ModerateClassification: Application76) Charles discovers major flaws in the packaging department. He consults the production manager and formulates control measures to improve packaging. Here, Charles is using the________ control.A) feedbackB) proactiveC) concurrentD) feedforwardAnswer: APage Ref: 494AACSB: Analytic SkillsObjective: 4Difficulty: ModerateClassification: ApplicationFinancial ControlsRuth Moody works as a freelance financial consultant. She renders financial services to individuals and small businesses. Entropic Communications, Inc., a fabless semiconductor company, seeks her services to study the financial stability of their company.77) Ruth wants to analyze the organization's ability to meet its current debt obligations. Which of the following ratios is most helpful to Ruth in analyzing this?A) inventory turnover ratioB) return on investment ratioC) current ratioD) total asset turnover ratioAnswer: CPage Ref: 495AACSB: Analytic SkillsObjective: 4Difficulty: ModerateClassification: Application78) Ruth identifies the firm's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?A) Increase the money supply by selling a part of its assets.B) Pay back part of its debts to improve the ratio.C) Maintain more current assets than current liabilities.D) Reduce the sales to total assets ratio of the firm.Answer: BPage Ref: 496AACSB: Analytic SkillsObjective: 4Difficulty: ModerateClassification: ApplicationEmployee TheftBarbara is the product manager of an energy company which operates in the Americas. She is concerned about the increased employee theft observed in the factory. A study has shown that $30000 worth of merchandise was accounted to employee theft in the year 2010.79) Barbara consults a criminologist to identify the reasons for employee thefts. Which of the following is the most likely interpretation that the criminologist would present?A) People have financial-based pressures which motivate them to steal.B) People steal because the opportunity presents itself through lax controls.C) Favorable circumstances tempt people to commit crimes.D) People steal because they can rationalize whatever they're doing.Answer: APage Ref: 500-501AACSB: Analytic SkillsObjective: 5Difficulty: ModerateClassification: Application80) Barbara wants to take corrective measures to prevent future theft. Which of the following is a feedback tactic that Barbara could use to control theft?A) use the services of professional investigatorsB) openly communicate the costs of stealingC) use corporate hotlines for reporting incidencesD) educate and train employees about the policiesAnswer: APage Ref: 501AACSB: Analytic SkillsObjective: 5Difficulty: ModerateClassification: Application。