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
In a revenue budget approach, managers are asked to maximize the revenues from the
sales of goods and services produced. Managers are then remunerated on the basis of the
net sales generated by the division.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Control Systems
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
With a revenue budget, managers are asked to maximize the revenues from the sales of
goods and services produced.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Control Systems
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
Managers of a division may be given a fixed budget for resources and be evaluated on the
amount of goods or services they can produce using those resources. This is a cost or
expense budget approach.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Control Systems
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
In a profit budget approach, managers are evaluated on the difference between the
revenues generated by the sales of goods and services and the budgeted cost of making
those goods and services.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Control Systems
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
With a profit budget, managers are evaluated on the difference between revenues
generated by the sale of goods and services and budgeted cost of making those goods and
services, which is the operating income.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Control Systems
59.
The most immediate and potent form of behavior control is ________.
A.
direct supervision
B.
clan control
C.
bureaucratic control
D.
socialization
The most immediate and potent form of behavior control is direct supervision by managers
who actively monitor and observe the behavior of their subordinates, teach subordinates
the behaviors that are appropriate and inappropriate, and intervene to take corrective
action as needed.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Control Process Steps
60.
With management by objectives, the first things established are ________.
A.
evaluations
B.
organizational objectives
C.
management goals
D.
subordinate goals
Management by objective starts when top managers establish overall organizational
objectives such as specific financial performance targets.
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Management by Objectives (MBO)
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
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Bureaucratic Control
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
not
be applied to scientists?
A.
feedforward
B.
feedback
C.
bureaucratic
D.
concurrent
An organization thrives when its members are constantly thinking of new ways to increase
efficiency, quality, and customer responsiveness. By definition, new ideas do not come
from blindly following standardized procedures. Similarly, the pursuit of innovation implies
a commitment by managers to discover new ways of doing things; innovation, however, is
incompatible with the use of extensive bureaucratic control.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Bureaucratic Control
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
When employees follow the rules that managers have developed, their behavior is
standardized—actions are performed the same way time and time again—and the
outcomes of their work are predictable.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Bureaucratic Control
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
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. It is the responsibility of a manager to develop rules that allow
employees to perform their activities efficiently and effectively. When employees follow
the rules that managers have developed, their behavior is standardized—actions are
performed the same way time and time again—and the outcomes of their work are
predictable.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Bureaucratic Control
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
Organizational culture is the shared set of beliefs, expectations, values, norms, and work
routines that influences how members of an organization relate to one another and work
together to achieve organizational goals.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Organizational Culture
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
Clan control is the control exerted on individuals and groups in an organization by shared
values, norms, standards of behavior, and expectations.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Clan Control
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
An adaptive culture is a strong and cohesive organizational culture that controls employee
attitudes and behaviors.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Organizational Culture
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
In adaptive cultures employees often receive rewards linked directly to their performance
and to the performance of the company as a whole. Sometimes, employee stock
ownership plans (ESOPs) are developed in which workers as a group are allowed to buy a
significant percentage of their company’s stock.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Adaptive 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
Inert cultures are those that lead to values and norms that fail to motivate or inspire
employees; they lead to stagnation and often failure over time.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Organizational Culture
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
In an inert culture, employees are content to be told what to do and have little incentive or
motivation to perform beyond minimum work requirements. As you might expect, the
emphasis is on close supervision and hierarchical authority, which result in a culture that
makes it difficult to adapt to a changing environment.
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Organizational Culture
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
Companies with adaptive culture develop long-term career paths for their employees and
invest heavily in training and development to increase employees’ value to the
organization. In these ways, terminal and instrumental values pertaining to the worth of
human resources encourage the development of supportive work attitudes and behaviors.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Adaptive Culture
72.
In an adaptive culture, employees often receive rewards based on their ________.
A.
performance
B.
contracts
C.
length of service
D.
organizational commitment
In adaptive cultures, employees often receive rewards linked directly to their performance
and to the performance of the company as a whole.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 08-02 Describe the four steps in the control process and the way it operates over time.
Topic: Adaptive Culture
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
Organizational change can affect practically all aspects of organizational functioning,
including organizational structure, culture, strategies, control systems, and groups and
teams, as well as the human resource management system and critical organizational
processes such as communication, motivation, and leadership.
AACSB: Analytical Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Organizational Culture
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
During evaluation of change, managers also can use benchmarking, comparing their
performance on specific dimensions with the performance of high-performing
organizations, to decide how successful a change effort has been.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Benchmarking
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
In the stage involving implementation of change, managers decide whether change will
occur from the top down or from the bottom up. Thereafter they introduce and manage
change accordingly.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Organizational 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
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.
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Concurrent Control
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
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: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 08-03 Identify the main output controls, and discuss their advantages and disadvantages as means of
coordinating and motivating employees.
Topic: Feedback Control