Management Chapter 16

Reema was recently promoted to facilities director at Harvest Processing. Which of the following should she do immediately as she tries to improve productivity? A. Use the established technology with which her employees are most familiar. B. Rotate all personnel so that each has an opportunity to try something new. C. Hire new employees such that they are similar to those already on the team. D. Immediately cut costs. E. Establish a system of measurement.

Which of the following is a challenge a manager will deal with in the 21st century? A. Sustainability B. Employee revolts C. Economic stagnation D. Leadership vacuums E. Religious issues

Which of the following is a primary function of management? A. Communicating B. Organizing C. Cooperating D. Globalizing E. Influencing

Productivity equals A. labor, capital, energy, and materials, divided by goods and services produced. B. goods and services and energy and materials, divided by labor and capital produced. C. labor, energy, and capital, divided by goods, services, and materials. D. goods and services produced, divided by labor, capital, energy, and materials. E. energy and materials, divided by labor and capital.

Managers can increase overall productivity by A. decreasing efficiency of capital. B. increasing energy. C. increasing the efficiency of materials. D. decreasing the efficiency of labor. E. decreasing outputs.

Which of the following has been a primary source of productivity gains in the years 1995 to 2001? A. Reduced standards of living. B. Recessionary spending. C. Reemphasis on ethical business behaviors. D. Enterprise resource planning software systems. E. Reduced costs of raw materials through globalization

Which of the following best describes ERP systems? A. Information systems that integrate all aspects of business. B. Comprehensive systems for identifying and measuring changes in productivity. C. Popular recruiting systems that help to maximize diversity in the workplace. D. Training systems for employees that allow self-discovery and correction of weaknesses. E. Control systems in which managers are made aware of all deviations

_____ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed. A. Measuring B. Controlling C. Organizing D. Leading E. Planning

Corrine, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce them to fewer than 0.2% with additional training for her staff. She is engaged in A. controlling. B. organizing. C. measuring. D. leading. E. planning.

Which of the following is not one of the reasons that control is needed in an organization? A. To adapt to change and uncertainty. B. To eliminate the need for teamwork. C. To detect opportunities. D. To deal with complexity. E. To decentralize decision making.

Carlyon Land Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business. A. team problems B. a potential merger C. competence D. a tax break E. irregularities

Which of the following is a step in the control process? A. Complete a job redesign. B. Evaluate opportunities. C. Establish standards. D. Implement TQM. E. Compare work units to one another.

Standards are best measured when they are A. broad. B. efficient. C. narrow. D. quantifiable. E. ethical.

Which of the following standards is the most difficult to measure directly? A. An increase in insurance policies sales month to month. B. Stable material costs. C. More effective teamwork. D. 0.5% of products rejected for poor quality. E. Reduced energy costs compared to the same month last year.

The amount of acceptable deviation from a standard, determined when the standard was established, is called the A. span of exception. B. range of variation. C. breadth control. D. benchmark. E. zero-based control.

Which of the following may be done as corrective action in the control process? A. Evaluate performance. B. Revise standards. C. Compare performance to standards. D. Align processes with goals. E. Establish standards.

Jimmy's supervisor noticed that he was struggling with the computerized setup for production runs at his new job. The supervisor sat next to him while he tried it again and gave suggestions for improvement. The supervisor is doing which step of the control process? A. Compare performance to standards. B. Establish standards. C. Take corrective action. D. Measure performance. E. Control productivity.

At UPS, delivery ______ vary according to whether a route is urban, suburban, or rural in nature. A. RATER scales B. ratio analyses C. standards D. PDCA cycles E. strategy maps

Tactical control is performed mainly by A. middle managers. B. top managers. C. the CEO. D. first-level managers. E. team leaders.

Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ______ control. A. strategic B. functional C. tactical D. operational E. managerial

Typically, operational control is accomplished through reports issued A. daily. B. weekly. C. monthly. D. quarterly or less frequently. E. randomly.

A sales forecast is an example of an organizational control from the _____ area. A. physical B. informational C. human resources D. financial E. capital

Tara was required to take a word processing test as part of her application for an executive assistant position. This control is part of the ______ area. A. human resources B. physical C. financial D. informational E. structural

Which of the following is an example of an informational resource control? A. A personality test B. A delivery-tracking system C. A debt-repayment schedule D. A leadership survey E. A competition analysis

Which of the following is the best example of bureaucratic control? A. Southwest Airlines B. U.S. Army C. General Electric D. Levi Strauss E. Ritz Carlton

Eileen manages employees at Maui Tours and Lodging. She has noticed that one of her employees submits via the computer system the same suggestions for continuous improvement multiple times, knowing that performance is evaluated on the number of suggestions only. This problem is typical of ______ control. A. clan B. market C. decentralized D. bureaucratic E. functional

______ control is an approach to organizational control that is characterized by informal and organic structural arrangements. A. Decentralized B. Functional C. Relational D. Bureaucratic E. Market

Which of the following areas of control for organizations exerts informal control? A. Structural B. Human resources C. Informational D. Cultural E. Competitive

Some managers use _____, which provides four indicators with which organizations can set goals and measure performance. A. the balanced scorecard B. a strategic map C. measurement management D. a strategic scorecard E. evidence-based management

Which of the following is a perspective of the balanced scorecard? A. Internal weaknesses B. Innovation and learning C. External processes D. Stakeholder satisfaction E. Collaboration and teamwork

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives? A. External perspective B. Customer perspective C. Financial perspective D. Internal business perspective E. Innovation and learning perspective

Which balanced scorecard perspectives helps top management's judgment to be better linked to measures of employee actions at lower levels? A. Operational perspective B. Financial perspective C. Customer perspective D. Internal business perspective E. Innovation and learning perspective

According to Kaplan and Norton, "_______ show the cause-and-effect links by which specific improvements create desired outcomes." A. Positioning maps B. Strategy maps C. Multidimensional maps D. Customer maps E. Graphical interface maps

Which of the following is a mechanism that contributes to a measurement-managed company's success? A. Using mostly "soft" objectives that are not quantifiable. B. Measuring activities of all types. C. Developing the measurement systems without interference from employees. D. Trusting in informal feedback systems. E. Developing alignment between individual, unit, and strategic performance.

Which of the following is a frequent barrier to effective measurement? A. Communication is bureaucratic. B. Top executives create the organization's strategy. C. The organizational culture overemphasizes teamwork. D. Employees resist new measurement systems. E. The organizational culture allows too much risk taking.

A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n) A. standardized budget. B. incremental budget. C. zero-based budget. D. fixed budget. E. tactical budget.

One characteristic of incremental budgeting is that it A. allows comparison using various units, like labor hours and dollars. B. is flexible towards changing environmental demands. C. locks managers into stable spending arrangements. D. allows easy comparison of different departments doing different activities. E. requires more time from managers than zero-based budgeting.

A(n) ______ budget projects what an organization will create in goods and services, what financial resources are needed, and what income is expected. A. expense B. revenue C. cash D. operating E. cash flow

A budget that allocates resources on the basis of a single estimate of costs is called a(n) ______ budget. A. unitary B. zero-based C. cash D. fixed E. incremental

The type of budget that can be adjusted over time for changing environmental conditions is known as a(n) ______ budget. A. variable B. incremental C. zero-based D. operating E. cash

At Camden Windows and Doors, orders have significantly exceeded projections, and Nischal, the operations director, has decided to hire for a third shift in the plant. Nischal is clearly operating with the use of a(n) ______ budget. A. zero-based B. incremental C. variable D. fixed E. cash

Current assets, fixed assets, and liabilities are all part of an organization's A. capital expenditures budget. B. balance sheet. C. income statement. D. expense budget. E. cash flow statement.

Profits or losses incurred by an organization are represented in its A. income statement. B. expense budget. C. ratio analysis. D. capital expenditures budget. E. balance sheet.

_____ ratios can help an organization to detect if it has obsolete or excessive inventory on hand. A. Return B. Liquidity C. Debt management D. Asset management E. Activity

ROI is a(n) A. liquidity ratio. B. return ratio. C. cash ratio. D. asset management ratio. E. debt management ratio.

Which of the following is not characteristic of an external audit? A. Primarily used when management suspects embezzlement. B. Performed by CPAs. C. Performed by an independent organization. D. Verifies that generally accepted accounting principles have been followed. E. Verifies the accuracy and fairness of financial statements

Which of the following is not a principle of Deming management? A. Quality should be aimed at the needs of the consumer. B. Companies should aim at improving the system. C. Improved quality leads to increased market share. D. Quality can be improved on the basis of hard data. E. Companies should determine which workers are to blame for problems.

Which of the following is part of Deming's PDCA cycle? A. Process B. Direct C. Apply D. Check E. Decide

TQM is defined as a comprehensive approach dedicated to continuous A. measurement of quantifiable goals and quick corrections. B. quality improvement, training, and customer satisfaction. C. product innovation and organizational learning, over fast cycles. D. customer input into management strategy and decision making. E. focus on components of service success: tangibles, questions, and margins.

TQM has two core principles: A. Employee commitment and customer satisfaction. B. Financial health and financial stability. C. People orientation and improvement orientation. D. Management and leadership. E. Radical innovation and continuous improvement.

A team that meets to solve a onetime problem is called a A. continuous improvement team. B. work group. C. self-managed team. D. special-purpose team. E. department.

Thurmond Paper Mills convened a team to help the organization determine a course of action in the wake of a forest fire that temporarily closed access to its mountain satellite office. This is an example of a A. cross-functional team. B. special-purpose team. C. JIT team. D. self-managed team. E. continuous improvement team.

The process of instituting ongoing small, incremental improvements in all parts of an organization is called A. MBO. B. reengineering. C. radical innovation. D. MBWA. E. continuous improvement.

Employees' knowledge, courtesy, and ability to convey trust and confidence make up which dimension of the RATER scale? A. Reliability B. Assurance C. Tangibles D. Empathy E. Responsiveness

Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to A. ISO 14000. B. restructuring. C. reduced cycle time. D. ISO 9000. E. statistical process control.

At New Haven Medical Devices, Nico pulls six samples an hour from an assembly line to examine them for quality defects. If he finds any, he makes adjustments to various pieces of equipment in his area. Nico's job involves A. statistical process control. B. benchmarking. C. reduced cycle time. D. feedforward control. E. strategic control.

Which of the following is not a common characteristic of successful control systems? A. Results oriented B. Realistic C. Encouragement of self-control D. Flexible E. Emphasis on accountability

Which kind of organization is most likely to try to exert too much control? A. Clan B. Market C. Bureaucratic D. Decentralized E. Matrix

Before the fall term began, professors at Ridgeview College were required to fill out many forms, ranging from performance objectives to lists of summer contacts with prospective students. Many professors complained that they would rather spend the time getting ready for their courses. This is an example of which barrier to successful control? A. Overemphasis on one instead of multiple approaches. B. Overemphasis on paperwork. C. Overemphasis on means instead of ends. D. Too much control. E. Too much flexibility.

At Claremont Profession Fencing, 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. Claremont has overcome which of the following barriers to success of control systems? A. Overemphasis on one instead of multiple approaches. B. Overemphasis on paperwork. C. Overemphasis on means instead of ends. D. Too much control. E. Too little employee participation.

Recruiters for Littleton University were under extreme pressure to meet their objective of a 10% increase in the size of the freshman class. As a result, they admitted many students who were not qualified and who failed to perform in classes. This is an example of which problem associated with control systems? A. Overemphasis on one instead of multiple approaches. B. Overemphasis on paperwork. C. Overemphasis on means instead of ends. D. Too much control. E. Too little participation.

Harbor Casino and Resort requires its casino dealers to have licenses, observes them using closed-circuit TV, and requires detailed reports at the end of each shift. This organization has overcome the control system barrier of A. overemphasis on one instead of multiple approaches. B. overemphasis on paperwork. C. overemphasis on means instead of ends. D. too much control. E. too little participation.