16–97
95.
_____ control involves creating relationships based on mutual respect and encouraging
each individual to take responsibility for his or her actions.
Scenario A: Tim is doing some management consulting for three companies. Specialty
Coatings Inc. is a large corporation that was established in the 1960s. It produces
specialty plastic coatings for industrial products. The organization uses a strict set of rules
and regulations with its workforce and tracks a large amount of data using statistical
techniques. Western Mountains Health Associates is a network of regional medical
centers that was started eight years ago. Its management uses a control system that ties
salaries to prevailing salary standards, and the center directors are evaluated on the basis
of the profitability of their centers. Resources are moved between centers on the basis of
transfer prices. Forest Games Inc. is a software company. Its control process is very future
oriented. It likes to prevent problems before they arise, using policies, procedures, and
rules.
96.
Which of the following control systems does Specialty Coatings utilize?
97.
Which of the following control systems does Western Mountains Health Associates
utilize?
98.
Which of the following control systems does Forest Games utilize?
Scenario B: Theresa, the manager of a large beauty salon, is having problems with
employees not complying with the rules about clocking in and clocking out each day. If the
employees fail to follow these rules, their pay would be affected. She is considering three
different options to address this problem:
1. There would be supervision at the entrance so that employees comply with the rules
during shift changes.
2. Reports on employees not complying with the rules will be generated and such
employees will be asked to take corrective measures.
3. A new procedure will be implemented that is easier for the employees to follow.
Training will be conducted so that each employee knows the policy and the procedure
before it is enacted.
99.
Which of the following approaches to bureaucratic control is described in option 1?
100.
Which of the following approaches to bureaucratic control is described in option 2?
101.
Which of the following approaches to bureaucratic control is described in option 3?
16–102
Scenario C: Panhandle Prime Energy Partners is an organization that has undergone a
dramatic transformation over the last few years. Earlier, employees were managed using a
wide array of rules, regulations, and procedures. Offending employees were punished for
their violations. Today, employees are encouraged to make decisions and come up with
innovative solutions to problems they encounter. Most employees are much more satisfied
under the new arrangement. The group is much more cohesive and is committed not only
to the overall success of the organization but also to its standards and reputation.
102.
Which of the following types of control systems did the organization most likely use in the
past?
103.
Which of the following types of control systems does the organization currently use?
104.
On which of the following control systems do the top managers want to focus?
105.
On which of the following control systems do the middle-level managers want to focus?
16–105
106.
On which of the following control systems does Agatha want the organization to focus?
Scenario E: Stan is the finance manager of Fast Signal Corp. a communication and
information technology corporation. His department is working on enforcing some financial
controls on the organization. Stan assigns different tasks to his team members. Emily’s
task is to give him a present financial picture of the company. Tony’s task is to give him
the values of various items the company owns. Humberto’s task is to give him a report on
the amount the company owes to various creditors. And finally, Nadia’s task is to prepare
a report on the amount accruing to the corporation’s owners.
107.
On which of the following would Emily be working?
108.
On which of the following would Tony be working?
109.
On which of the following will Humberto be working?
110.
On which of the following will Nadia be working?
16–108
Essay Questions
111.
Explain what the two conjoined twins of management are. How does this idea relate to the
control function of management?
Answers may vary.
112.
There are three broad strategies for achieving organizational control. Describe these
strategies and provide an example of each.
Answers may vary.
113.
List the four major steps of a typical control system and describe ways in which each step
can be performed.
Answers may vary.
114.
List and give an example of each of the four types of performance standards.
Answers may vary.
115.
Explain the principle of exception and describe how it can help in comparing performance
with the standard.
Answers may vary.
116.
Describe feedforward, feedback, and concurrent control. Give an example of each.
Answers may vary.
117.
Discuss the role of six sigma as a quality control tool.
Answers may vary.
118.
Explain the processes of internal and external audits.
Answers may vary.
119.
Describe at least four different types of budgets that are frequently used.
Answers may vary.
120.
Briefly explain the elements of a balance sheet and of a profit and loss statement.
Answers may vary.
121.
Explain the three categories of financial ratios with examples.
Answers may vary.
122.
Discuss the downside of bureaucratic control and describe an example of rigid
bureaucratic behavior.
Answers may vary.
123.
Describe the various criteria that control systems should meet when designed by
management.
Answers may vary.
124.
Briefly describe market control at the corporate level, business unit level, and individual
level.
Answers may vary.
16–113
125.
Describe the role of empowerment in clan control.
Answers may vary.