Chapter 16: Control
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 managers
should or should not do 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. Control is a(n) __________ process.
a.
standardized, periodic, and cybernetic
b.
flexible, intermittent, and automated
c.
standardized, periodic, and robotic
d.
continuous, flexible, and automated
e.
continuous, dynamic, and cybernetic
3. In terms of the basic methods of control, __________ control is an improvement over __________
control because it attempts to eliminate or shorten the delay between performance and feedback about
the performance.
a.
feedback; concurrent
b.
concurrent; feedback
c.
feedback; feedforward
d.
feedforward; feedback
e.
concurrent; stasis
4. __________ 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
5. 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
6. __________ 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
7. Economic value added (EVA) is so important to workers and managers because it:
a.
eliminates the need for quantitative motivation
b.
encourages the use of participative management techniques
c.
specifies what should be done to improve EVA performance
d.
creates strategic windows
e.
shows whether a business or subset of a business is really making a profit
8. According to the text, which of the following levels of waste minimization produces the greatest
minimization of waste?
a.
waste prevention and reduction
b.
recycle and reuse
c.
waste treatment
d.
waste disposal
e.
waste remarketing
9. 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
