61) Which of the following is NOT related to business process reengineering?
A) radical changes
B) customer focus
C) systems redesign
D) incremental approach
62) Which of the following is NOT key to Total Quality Management?
A) customer focus
B) large-scale redesign
C) incremental improvement
D) employee involvement
63) Which of the following is focused on environmental concerns?
A) lean management
B) TQM
C) ISO 9000
D) ISO 14000
64) Which of the following encourages employees to set their own performance goals?
A) MBO
B) TQM
C) CRM
D) lean management
65) What are the primary goals of Six Sigma?
A) reduce costs and increase profits
B) reduce costs and improve customer relationships
C) increase profits and empower employees
D) increase sustainability and increase profits
66) As an internal consultant in her company, Marianne employs a specific sequence of quality
management methods to help departments reduce their costs. What is Marianne implementing?
A) Total Quality Management
B) ISO 9001
C) Lean Management
D) Six Sigma
67) Pam is preparing her company’s annual review process. This year, she has decided to gather
information from each employee’s supervisor, colleagues, and even some client contacts. What
type of review is Pam planning?
A) peer-to-peer
B) 360-degree
C) supportive
D) balanced scorecard
68) This week Tomas is conducting a series of quality circles at work. He will lead employees in
discussions to explore process-based solutions for quality problems. What control approach is
Tomas using?
A) Total Quality Management
B) Business Process Reengineering
C) Six Sigma
D) Lean Management
69) Gloria has just been named CEO of a struggling athletic shoe company. Some employees are
excited for the future. Others are nervous because Gloria favors a fundamental rethinking of the
company’s business. Gloria is clearly an advocate of ________.
A) Six Sigma
B) kaizen
C) BPR
D) TQM
70) Juan believes that managing a business comes down to one simple thing: transforming inputs
into outputs. Which term best describes Juan’s philosophy?
A) customer relations management
B) scientific management
C) operations management
D) management by objectives
71) When Kai was laid off from her job, part of her felt relieved to be free of such a tightly
controlled, top-down environment. One of her criteria for considering new employers will be
organizations that promote a strong culture of empowering employees. Clearly Kai responds best
to ________.
A) levers of control
B) behavior control
C) output control
D) normative control
72) Kamal has reviewed the monthly reports for his drug manufacturing facility. The group
missed production targets on all but three days. Tomorrow he will gather employees to share
strategies to exceed the targets next month. The meeting is which step in the control process?
A) creating standards and metrics
B) measuring performance
C) taking corrective action
D) comparing performance to standards
73) Vito believes his pizzeria can gain competitive advantage by offering the fastest delivery in
town. After researching delivery-time benchmarks, he has asked his drivers to track the amount
of time between receiving an order and delivering it for the next month. What step of the control
process is Vito currently implementing?
A) creating standards and metrics
B) measuring performance
C) comparing performance to standards
D) taking corrective action
74) Annie dreads this time of year. She has to anticipate her department’s needs for the next six
months and allocate financial resources to cover them. What type of financial control is Annie
preparing?
A) cash flow analysis
B) budget
C) balance sheet
D) profit and loss statement
75) As a highly-paid business consultant, Carlos tells his clients that they should strive for
improvement measured in multiples not fractions. What approach does Carlos likely recommend
to his clients?
A) Total Quality Management
B) scientific management
C) Six Sigma
D) Business Process Reengineering
76) Pham is a stickler for accountability, so he truly enjoys his job. He travels around the country
doing formal reviews of companies to ensure that they have accurately managed and reported
processes according to established guidelines. What does Pham do for work?
A) conduct audits
B) prepare performance appraisals
C) develop standards and metrics
D) prepare cash flow analyses
77) Mike is planning to expand his business and invest in several new Taco Giant trucks. To
qualify for a loan, the bank wants to know the net income of Mike’s business. What kind of
document should Mike provide?
A) cash flow analysis
B) balance sheet
C) profit and loss statement
D) budget
78) Suki’s dress pattern business has grown quickly. She meets with advisors to plan the
company’s next phase, and tells them she’s likely to use the Beyond Budgeting control system.
One thing that attracted Suki to the system is that it focuses on ________.
A) tightly controlling employees
B) eliminating redundancy
C) empowering employees
D) centralizing decision making
79) Which of the following is NOT one of the adaptability principles of the Beyond Budgeting
model?
A) reward teams for successes
B) make strategy an inclusive process
C) rethink the core business
D) use resources as needed
80) Why does a command-and-control approach to management work well in the military but not
in a traditional business?
A) Command-and-control works well only in close-knit organizations.
B) Command-and-control works most effectively in life-threatening situations.
C) Command-and-control works best when employees are highly empowered.
D) Command-and-control works well only in informal organizations.
81) Which of the following is NOT a direct measure of success for CRM?
A) profits
B) customer loyalty
C) process improvement
D) customer retention
82) Which of Simons’ lever systems is related to normative controls?
A) interactive control systems
B) diagnostic control systems
C) boundary systems
D) belief systems
83) Bar code readers that perform real-time tracking in grocery stores are an example of
________. If sales are down, the managers will know immediately, and they can take corrective
action such as more advertising.
A) concurrent control
B) performance metrics
C) normative control
D) implicit control
84) Which kind of control system emphasizes employee self-direction?
A) normative control
B) bureaucratic control
C) objective control
D) behavior control
85) Which of the following is NOT related to the Sarbanes-Oxley Act of 2002?
A) audits
B) corporate governance
C) ISO 14000
D) accounting controls
86) A company working toward ISO 14000 certification would be most concerned with
oversight from the ________.
A) U.S. Food and Drug Administration (FDA)
B) World Trade Organization (WTO)
C) Sarbanes-Oxley Act
D) U.S. Environmental Protection Agency (EPA)
87) Over 99 percent of employees exceed the company’s current production standard. Which of
the following is NOT true?
A) The standard is too high.
B) The standard is too low.
C) The employees are good performers.
D) The standard requires corrective action.
88) Why is Business Process Reengineering considered to be the opposite of Total Quality
Management?
A) TQM requires a major overhaul of an entire operation, while BPR takes an incremental
approach to change.
B) BPR requires a major overhaul of an entire operation, while TQM takes an incremental
approach to change.
C) BPR is a customer-based approach, while TQM does not have a customer focus.
D) TQM is a customer-based approach, while BPR does not have a customer focus.
89) The consensus in the management community is that the most effective controls focus on
people, processes, and results. Do you agree? Explain your reasoning.
90) What did Mary Parker Follett mean when she said that managers should have “power with”
not “power over” employees?
91) Shannon hates waiting in line to get into a nightclub. The bouncers act so superior with their
click-counters, and deciding how many people can go in and when. Yet the bouncer is actually
serving an important function. Explain.
92) What type of control serves as the foundation for Threadless, the successful t-shirt company?
Why do you think this approach is successful?
93) Do you think the Balanced Scorecard is an effective way to appraise employee performance?
Explain your reasoning.
94) How might the Sarbanes-Oxley Act prevent future scandals such as the one that took place at
Enron?
95) What is feed-forward control? Give an example.
96) Some people believe that government should limit its involvement with business. Do you
think the Baldrige National Quality Award is a good idea? Explain your reasoning.
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97) It is time for your annual performance review. Would you rather have the review based only
on your supervisor’s perspective, or a 360-degree review? Explain your rationale.
98) You need to deliver a negative performance appraisal to an employee. How can you make
sure that the review is constructive and the employee doesn’t respond negatively?