34. Which of the following is a philosophy of organization-wide commitment to continuous improvement,
focusing on teamwork, customer satisfaction, and lowering costs?
a.
Engineering
b.
Total quality management
c.
Outsourcing
d.
Culture
e.
Diversity
35. A quality circle is a group of ____ volunteer employees.
a.
2 to 4
b.
6 to 12
c.
10 to 20
d.
15 to 25
e.
30 to 50
36. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting
their common work activities is a
a.
feedforward control group.
b.
work team.
c.
quality circle.
d.
committee.
e.
problem team.
37. Heather belongs to an informal group at work that meets twice a month to discuss common issues and
problems in the workplace. Recently, this group has been focusing on ways to improve safety in the
workplace. This group is an example of
a.
a safety group.
b.
a quality circle.
c.
an ad-hoc committee.
d.
a problem team.
e.
none of these.
38. Quality circles are based on the assumption(s) that
a.
the people who do the job know it better than anyone else.
b.
quality can be increased by increasing the size of the organization.
c.
quality can be increased by talking more about it.
d.
the more employees talk, the more satisfied they will be.
e.
all of these.
39. What is the key to successful benchmarking?
a.
Application
b.
Implementation
c.
Analysis
d.
Strategy
e.
Planning
40. Which of the following is the process of measuring your organizational process against the best in the
industry?
a.
Outsourcing
b.
Continuous improvement
c.
Environmental analysis
d.
Benchmarking
e.
Competitive measurement
41. Which of the following is a quality control approach that emphasizes a relentless pursuit of higher
quality and lower costs?
a.
Continuous improvement
b.
Cycle time
c.
Quality circles
d.
Six Sigma
e.
Benchmarking
42. To reduce the organization’s cycle time is to reduce the number of
a.
committees in the organization.
b.
layers of management.
c.
steps in an organizational process.
d.
staff employees in the organization.
e.
none of these.
43. ____ refers to the steps taken to complete a company process.
a.
Continuous improvement
b.
Cycle time
c.
Quality circle
d.
Six sigma
e.
Benchmarking
44. It seems that once a year the managers of Stone Construction, Inc. attempt a major organization
intervention, such as management-by-objectives. They never seem to be satisfied with the performance
of Stone Construction and, sure enough, 12 months later, along comes another major intervention. By
implementing organizational change in this way, Stone Construction’s management may well be
violating the principle of
a.
benchmarking.
b.
continuous improvement.
c.
unity of direction.
d.
top-down control.
e.
none of these.
45. ____ is(are) most beneficial when employees have challenging jobs.
a.
Six Sigma
b.
Total Quality Management
c.
Kaizen
d.
Quality circles
e.
Continuous improvement
46. Contingency factors that can influence the success of a TQM program in a positive way include all of
the following EXCEPT:
a.
tasks make high skill demands on employees
b.
TQM serves to enrich jobs and motivate employees
c.
problem-solving skills are improved for all employees
d.
participation and teamwork are used to tackle significant problems
e.
managers wait for big, dramatic innovations
47. ____ is a contingency factor that can influence the success of a TQM program in a negative way.
a.
Continuous improvement is a way of life
b.
TQM serves to enrich jobs and motivate employees
c.
Problem-solving skills are improved for all employees
d.
Participation and teamwork are used to tackle significant problems
e.
Union leaders are left out of QC discussions
48. Contingency factors that can influence the success of a TQM program in a negative way include all of
the following EXCEPT:
a.
tasks make high skill demands on employees
b.
management expectations are unrealistically high
c.
middle managers are dissatisfied about loss of authority
d.
workers are dissatisfied with other aspects of organizational life
e.
managers wait for big, dramatic innovations
49. Which of these is based on a set of international standards for quality?
a.
Quality circle
b.
Corporate governance
c.
ISO certification
d.
Open-book management
e.
Balance scorecard
50. Which of the following refers to the system of governing an organization so that the interests of
corporate owners are protected?
a.
Quality circle
b.
Corporate governance
c.
ISO certification
d.
Open-book management
e.
Balance scorecard
51. Ophelia, the new CEO at Odyssey Inc., plans to implement a highly effective systematic process of
regulating organizational activities to make them consistent with the expectations that are established
by managers within the company. This is referred to as:
a.
Organizational control
b.
Feedback control
c.
Budgetary control
d.
Systems control
e.
Quality control
52. Focusing on how well resources and human capital are being managed for the company’s future refers
to which component of the balanced scorecard?
a.
Customers
b.
Learning and growth
c.
Financials
d.
Internal business processes
e.
External business processes
53. In the process of implementing the balanced scorecard approach at his company, operations manager
Seth Howard wonders whether internal activities and processes add value for customers and
shareholders. This involves which dimension of the balanced scorecard?
a.
Customers
b.
Learning and growth
c.
Financials
d.
External business processes
e.
Internal business processes
54. Use of the balanced scorecard can hinder or decrease organizational performance if it is implemented
using which type of orientation?
a.
Performance management orientation
b.
Performance measurement orientation
c.
Customer orientation
d.
Learning and growth orientation
e.
Internal business process orientation
55. ________ control is the process of setting targets for an organizations expenditures.
a.
Quality
b.
Income
c.
Budgetary
d.
Systems
e.
Supply chain
56. Ron meets with his company’s accountant to discuss the budget of anticipated and actual expenses for
each segment of the organization. This involves review of which type of budget?
a.
Expense budget
b.
Revenue budget
c.
Cash budget
d.
Capital budget
e.
Nonfinancial budget
57. Stella, a systems manager for a large technology company, would like to get an understanding of her
company’s financial position with respect to assets and liabilities at the end of the fiscal year. Which
financial statement should she refer to?
a.
Income statement
b.
Activity ratio
c.
TQM report
d.
Balance sheet
e.
Balance scorecard
58. In today’s tough economy, companies are predominantly looking for employees with what types of
skills?
a.
Accounting skills
b.
Conceptual skills
c.
Researching skills
d.
Technical skills
e.
A diverse set of skills
59. At LBK Industries, responsibility for quality control rests with a team of quality control inspectors and
supervisors rather than with employees. LBK uses what type of organizational control?
a.
Matrix control
b.
Hierarchical control
c.
Decentralized control
d.
Bottom-up control
e.
Balanced control
60. At RWI Distilleries, rules and procedures are used only when necessary. Instead, shared goals and
values guide employee behavior. RWI uses what type of organizational control?
a.
Centralized control
b.
Hierarchical control
c.
Decentralized control
d.
Top-down control
e.
Balanced control
61. Silver n’ Gold Inc. recently introduced a new control philosophy where all employees have access to
the same information that owners have, such as what money is coming in and where it is going. This
is an example of which control philosophy?
a.
Balanced scorecard
b.
Six Sigma
c.
Continuous improvement
d.
Total quality management
e.
Open-book management
62. Charlie, a manager at a textile company, is bothered by a lack in quality of products manufactured by
his company. Charlie hopes to infuse quality into the company through continuous improvement by
involving everyone who works there. This describes which control philosophy?
a.
Balanced scorecard
b.
Six Sigma
c.
Continuous improvement
d.
Total quality management
e.
Open-book management
63. Which quality control technique uses a five-step methodology to define, measure, analyze, improve,
and control processes, otherwise referred to as DMAIC?
a.
Quality circles
b.
Six Sigma
c.
Benchmarking
d.
Balanced scorecard
e.
Continuous improvement
CASE
Scenario – Katrina Aldridge
The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is
preparing for that audit and is also preparing her budget for the coming year.
1. Which of these budgets will provide Katrina information about planned investments in major assets
like buildings and heavy machinery?
a.
Cash budget
b.
Revenue budget
c.
Capital budget
d.
Expense Budget
e.
Balance-Sheet budget
2. In planning and budgeting for the next 12 months, Katrina is participating in a budgeting process in
which lower-level manager’s budget their department’s resource needs and pass them up to top
management for approval. This budget process is an example of
a.
zero-based budgeting.
b.
bottom-up budgeting.
c.
top-down budgeting.
d.
balance sheet budgeting.
e.
none of these.
COMPLETION
1. The systematic process through which managers regulate organizational activities is known as
____________________.
2. When ____________________ deviates from a(n) ____________________, managers must interpret
the deviation.
3. A(n) ____________________ is defined as any organizational department or unit under the
supervision of a single person who is responsible for its activity.
4. A(n) ____________________ includes anticipated and actual expenses for each responsibility center
and for the total organization.
5. A(n) ____________________ lists forecasted and actual revenues of the organization.
6. The ____________________ estimates receipts and expenditures of money on a daily or weekly basis
to ensure that an organization has sufficient cash to meet its obligations.
7. The ____________________ lists planned investments in major assets such as buildings, trucks, and
heavy machinery, often involving expenditures over more than a year.
8. In a traditional ____________________ approach, budgeted amounts for the coming year are imposed
on middle- and lower-level managers.
9. A budgeting process in which middle and lower-level managers set departmental budget targets in
accordance with overall company revenues and expenditures specified by top management is called
____________________ budgeting.
10. A budgeting process in which lower-level managers budget their departments’ resource needs and pass
them up to top management for approval is called ____________________ budgeting.
11. The ____________________ provides three types of information: assets, liabilities, and owners’
equity.
12. The firm’s financial performance for a given time period is shown on the ____________________.
13. ____________________ involves monitoring and influencing employee behavior through extensive
use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal
mechanisms.
14. ____________________ control uses cultural values, traditions, shared beliefs, and trust to generate
compliance with organizational goals.
15. Sharing financial information and results with all employees in the organization is called
____________________ management.
16. An organization-wide commitment to infusing quality into every activity through continuous
improvement is called ____________________.
17. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting
their common work activities is known as a(n) ____________________.
18. The continuous process of measuring products, services, and practices against major competitors or
industry leaders is called ____________________.
19. ____________________ refers to the number of steps taken to complete a company process.
20. The implementation of a large number of small, incremental improvements in all areas of the
organization on an ongoing basis is referred to as ____________________.
21. ____________________ refers to the system of governing an organization so that the interests of
corporate owners are protected.
SHORT ANSWER
1. List the four major perspectives of a balanced scorecard.
2. List the four steps in the feedback control model.
ESSAY
1. Identify and briefly describe the four steps of the feedback control model.
2. Describe the difference between a balance sheet and an income statement.
3. Compare hierarchical control with decentralized control.
4. Discuss open-book management and the balanced scorecard.
5. Discuss the evolution of the balanced scorecard from a system that places equal emphasis on
performance management categories to one that emphasizes cause and effect.
6. In a TQM program, what is benchmarking?
7. Discuss the positive and negative factors that can influence the success of a TQM program.