Chapter 14 Suboptimization Occurs When Performance Improvement Attained One

Document Type
Test Prep
Book Title
Effective Management 6th Edition
Authors
Chuck Williams
Course Pre-Assessment CH 14
Williams Effective Management 6e
TRUE/FALSE
1. Benchmarking is the process of setting corporate norms.
2. One significant advantage of economic value added (EVA) is that it clearly specifies what specific
actions managers should or should not take in order to improve financial performance.
MULTIPLE CHOICE
1. The basic control process begins with:
a.
either benchmarking or keystoning
b.
the establishment of clear standards of performance
c.
the comparison of actual performance to expected performance
d.
problem identification
e.
determining what corrective action will be if actual performance does not equal or exceed
expected performance
2. The three basic control methods are:
a.
feedback control, feedforward control, and symmetry control
b.
balance control, vertical control, and symmetry control
c.
concurrent control, feedback control, and feedforward control
d.
feedforward control, presumptive control, and stasis control
e.
stasis control, feedback control, and simultaneous control
3. ____ is the extent to which it is possible to implement each step in the control process.
a.
Control feasibility
b.
Cybernetic feasibility
c.
A quasi-control assessment
d.
A balanced scorecard assessment
e.
Information management
4. The two types of objective controls managers use are:
a.
output and input
b.
administrative and participative
c.
self-control and organizational control
d.
autonomous and individualized
e.
behavior and output
5. ____ is a control method that encourages managers to look beyond traditional measures to evaluate
four different perspectives on company performance.
a.
Optimization
b.
Customer churn
c.
Balanced scorecard
d.
Customer defection
e.
Financial ratio analysis
6. One of the advantages the balanced scorecard has over traditional control processes that rely solely on
financial measures is that it:
a.
encourages control delegation
b.
eliminates problems with regulation costs
c.
minimizes the chances of suboptimization
d.
allows companies to determine the ideal control methods
e.
creates functional independence
7. In traditional control systems used at most companies, ____ tools are used to assess performance.
a.
accounting
b.
customer
c.
value/quality
d.
quality/profit
e.
optimization
8. For the internal perspective of the balanced scorecard, managers ask the question:
a.
“At what must we excel?”
b.
“How do we provide value to our stakeholder?”
c.
“What is the bottom line?”
d.
“How important is customer satisfaction?”
e.
“What can we do to improve and create value?”
9. When a company emphasizes ____ as its quality goal, managers must simultaneously control
excellence, price, durability, or other features of a product or service that customers strongly associate
with it.
a.
excellence
b.
value
c.
conformance to expectations
d.
profitability
e.
performance
10. Process modification, material/product substitution, and ____ are the three strategies used for waste
prevention and reduction.
a.
collective reuse
b.
modification of organizational culture
c.
process diversification
d.
good housekeeping
e.
product innovation
11. Normative controls should be used when:
a.
cause-and-effect relationships are clear
b.
workers have been taught self-control skills
c.
responsibility for task accomplishment is given to autonomous work groups
d.
it is necessary to standardize all operations
e.
organizational culture, values, and beliefs are strong

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