Management, 9e (Kinicki)
Chapter 16 Control Systems and Quality Management:
Techniques for Enhancing Organizational Effectiveness
1) Productivity is defined by the formula of outputs divided by inputs for a specified period of
time.
2) Controls allow top management to decentralize decision making at lower levels within the
organization.
3) The control process begins with establishing standards.
4) Corrective action is a control principle that states that managers should be informed of a
situation only if data show a significant deviation from standards.
5) Incremental budgeting allocates increased or decreased funds to a department by using the last
budget period as a reference point; only incremental changes in the budget request are reviewed.
6) A balance sheet summarizes an organization’s overall financial worth, or its assets and
liabilities, at a specific point in time.
7) An income statement summarizes an organization’s financial results over a specified period of
time, such as a quarter or a year.
8) Twice daily, factory workers at Fabulous Skeins and Yarn select random samples from the
production runs and test them for quality, rejecting runs if too many samples fall outside a standard
range of acceptability. These workers are engaged in statistical process control.
9) Rural Internet Services, applying TQM, restructured its service call procedures and eliminated
some steps involved so that employees can finish each call faster. Rural Internet Services is
attempting to reduce cycle time.
10) Unlike the ISO 9000 series, the ISO 14000 series identifies standards for environmental
performance.
11) Which of the following is NOT one of the seven challenges a manager must deal with in the
21st century?
A) sustainability
B) ethical standards
C) economic stagnation
D) globalization
E) diversity
12) Which of the following is a primary function of management?
A) communicating
B) globalizing
C) cooperating
D) organizing
E) influencing
13) Productivity equals
A) labor, capital, energy, and materials, divided by goods and services produced.
B) goods and services produced, divided by labor, capital, energy, and materials.
C) labor, energy, and capital, divided by goods, services, and materials.
D) goods and services and energy and materials, divided by labor and capital produced.
E) energy and materials, divided by labor and capital.
14) Managers can increase overall productivity by increasing the efficiency of all the following
EXCEPT
A) goals.
B) energy.
C) materials.
D) labor.
E) capital.
15) Charlotte is trying to measure her salon’s productivity during the first quarter. For this period,
she should divide ________ by the costs of her staff, loans, materials, and utility bills.
A) the number of clients
B) the average daily receipts
C) her budgeted costs
D) the total salon services and products sold
E) her projected revenue
16) Which of the following best describes ERP systems?
A) popular recruiting systems that help maximize diversity in the workplace
B) comprehensive systems for identifying and measuring changes in productivity
C) software information systems that integrate all aspects of business, helping managers stay on
top of the latest developments
D) training systems for employees that allow self-discovery and correction of weaknesses
E) control systems in which managers are made aware of all deviations from standards
17) ________ is defined as monitoring performance, comparing it with goals, and taking
corrective action as needed.
A) Measuring
B) Leading
C) Organizing
D) Controlling
E) Planning
18) Roberta, a customer service manager, tracks monthly complaints and has been trying over the
past six months to reduce complaints to less than 0.2 percent through additional training for her
staff. She is engaged in
A) organizing.
B) controlling.
C) measuring.
D) leading.
E) planning.
19) Enright Industrial Leasing has effective control processes, allowing its managers to discover
________ in bookkeeping right away, before a would-be embezzler could seriously affect its
business.
A) irregularities and errors
B) a potential merger
C) competence
D) team problems
E) tax breaks
20) Which of the following is a step in the control process?
A) complete a job redesign
B) evaluate opportunities
C) compare work units to one another
D) implement TQM
E) establish standards
21) Standards are best measured when they are
A) broad.
B) quantifiable.
C) narrow.
D) efficient.
E) ethical.
22) All of the following are reasons why performance falls significantly short of the standard
EXCEPT
A) unrealistic standards.
B) changing conditions.
C) insufficient resources.
D) insufficient management attention.
E) unawareness of performance drop.
23) ________ is the amount of acceptable deviation from a standard, determined when the
standard was established.
A) Span of exception
B) Breadth control
C) Range of variation
D) Benchmark
E) Zero-based control
24) Which of the following may be done as a corrective action in the control process?
A) Establish standards.
B) Renew standards.
C) Compare performance to standards.
D) Align processes with goals.
E) Evaluate performance and take action.
25) Tre’quon’s supervisor noticed that he was struggling with the computerized setup for
production runs at his new job. The supervisor observed him while he tried it again and gave
suggestions for improvement. The supervisor is doing which step of the control process?
A) taking corrective action
B) establishing standards
C) comparing performance to standards
D) measuring performance
E) controlling productivity
26) Tactical control is performed mainly by
A) the CEO.
B) top managers.
C) middle managers.
D) first-level managers.
E) team leaders.
27) Monitoring performance to ensure that day-to-day goals are being implemented and taking
corrective action as needed is known as ________ control.
A) strategic
B) functional
C) operational
D) tactical
E) managerial
28) Typically, operational control is accomplished through reports issued
A) weekly.
B) daily.
C) monthly.
D) annually.
E) randomly.
29) A sales forecast is an example of an organizational control from the ________ area.
A) informational
B) physical
C) human resources
D) financial
E) capital
30) Charmaine was required to take an Excel spreadsheet test as part of her application for an
executive assistant position. This control is part of the ________ area.
A) structural
B) physical
C) financial
D) informational
E) human resources
31) Kimberli manages employees at Mountaintop Ski Resorts. She has noticed that one of her
employees submits via the computer system the same suggestions for continuous improvement
multiple times, knowing that performance is evaluated on the number of suggestions only. This
problem is typical of ________ control.
A) bureaucratic
B) market
C) decentralized
D) autocratic
E) functional
32) ________ control is an approach to organizational control that is characterized by informal and
organic structural arrangements.
A) Relational
B) Functional
C) Decentralized
D) Bureaucratic
E) Market
33) Which of the following areas of control for organizations exerts informal control?
A) structural
B) human resources
C) informational
D) competitive
E) cultural
34) Some managers use ________, which provides four indicators with which organizations can
set goals and measure performance.
A) a strategic map
B) the balanced scorecard
C) measurement management
D) a strategic scorecard
E) evidence-based management
35) Which of the following is NOT a perspective of the balanced scorecard?
A) internal business
B) external processes
C) financial
D) innovation and learning
E) customer
36) Examining how the organization looks to shareholders is part of which of the balanced
scorecard perspectives?
A) external perspective
B) customer perspective
C) internal business perspective
D) financial perspective
E) innovation and learning perspective
37) ________ perspective helps top management focus on what the organization must excel at to
effectively meet its financial objectives and customers’ expectations.
A) Operational
B) Internal business
C) Customer
D) Financial
E) Innovation and learning
38) According to Kaplan and Norton, ________ maps are “visual representations of a company’s
critical objectives and the crucial relationships among them that drive organizational
performance.”
A) strategy
B) positioning
C) multidimensional
D) customer
E) graphic interface
39) A(n) ________ budget allocates increased or decreased funds to a department by using the last
budget period as a reference point.
A) standardized
B) fixed
C) ero-based
D) incremental
E) tactical
40) One characteristic of incremental budgeting is that it
A) allows comparison using various units, like labor hours and dollars.
B) is flexible toward changing environmental demands.
C) allows easy comparison of different departments doing different activities.
D) locks managers into stable spending arrangements.
E) requires more time from managers than zero-based budgeting.
41) A(n) ________ budget allocates resources on the basis of a single estimate of costs.
A) unitary
B) zero-based
C) cash
D) incremental
E) fixed
42) A(n) ________ budget is one that can be adjusted over time for changing environmental
conditions.
A) operating
B) incremental
C) zero-based
D) variable
E) cash
43) At Taylor Activewear, orders have significantly exceeded projections, and Macon, the
operations director, has decided to hire for a third shift in the plant. Macon is clearly operating with
the use of a(n) ________ budget.
A) zero-based
B) incremental
C) cash
D) fixed
E) variable