CHAPTER 18

Foundations of Control

MULTIPLE CHOICE

For each of the following choose the answer that most completely answers the question.

WHAT IS CONTROL?

1. An effective control system

a.ensures that activities lead to attainment of the organizations goals

b.makes people feel good about their jobs

c.facilitates goal achievement

  1. all of the above are true
  2. both a and c above are true

e moderate

2.Under a market control system, an organization could be expected to be controlled by

a.price competition

b.relative market share

c.profits generated by each profit center

  1. all of the above are true
  2. both a and c above are true

d moderate

3.Under a bureaucratic control system, activities would be controlled by

a.shared values

b.profits

c.rules, regulations, and procedures

d.relative market share

e.price competition

c easy

4.Under clan control, employees would respond to control from

a.shared values

b.profits

c.rules, regulations, and procedures

  1. relative market share
  2. price competition

a easy

WHY IS CONTROL IMPORTANT?

5.Goals of an organization are related, in that,

a.control informs managers that goals are either attained or not attained

b.control follows up on goal setting to ensure success

c.control serves as feedback from the planning process and therefore supports goals

d.all of the above are true

e.none of the above are true

d challenging

6.Some managers are reluctant to delegate authority to subordinates because

a.the managers are tempted to do things themselves

b.control systems are not in existence to support delegation

c.the subordinates might do something wrong and this will reflect on the manager

d.all of the above are true

e.both a and c are true

d challenging

THE CONTROL PROCESS

7.The control process consists of

a.taking managerial action to correct deviations or inadequate standards

b.comparing actual performance to standards

c.measuring actual performance

d.all of the above are true

e.both a and c are true

d challenging

8.Information for control systems gained from oral reports is important because the information

a.is gained quickly

b.is not filtered

c.removes the tone of the conversations

d.cannot be referenced at a later date

e.can be referenced at a later date

a moderate

9.A source of information that will allow a manager to develop a control system is

a.personal observation

b.statistical reports

c.written reports

d.oral reports

e.all of the above are true

e moderate

10.Selecting control criteria is important because

a.the wrong criteria can cause dysfunctional behavior

b.the criteria determines what employees strive for

c.employees can sense when criteria are invalid

d.all of the above are true

e.both a and b are true

e challenging

11.A standard control criteria that fits most businesses is

a.keeping costs within budget

b.the value of each person to profit in the firm

c.producing a given output from a given input

d.all of the above are true

e.both a and c are true

e challenging

TYPES OF CONTROL

12.Control that prevents anticipated problems and takes place in advance of a particular activity is known as

a.feedback control

b.concurrent control

c.feedforward control

d.higher level control

e.lower level control

c easy

13.Feedforward control is attractive because it

a.specifies the higher-level control functions

b.allows managers to prevent problems

c.allows lower-level control to develop

d.challenges the viability of the control criteria

e.relates controls to goals better than motivation does

b moderate

14.Control that takes place while an activity is in progress is known as

a.feedback control

b.concurrent control

c.feedforward control

d.higher level control

e.lower level control

b easy

15.An example of concurrent control is

a.direct supervision

b.computer software that alerts it user to problems

c.computerized machine controls

d.a thermostat in a room

e.all of the above are true

e easy

16.Control that takes place after an activity is completed is

a.feedback control

b.concurrent control

c.feedforward control

d.higher level control

e.lower level control

a easy

17.A major drawback to feedback control is

a.by the time managers have information, waste has already occurred

b.managers can make decisions after an activity has occurred

c.managers can not correct problems before the problem occurs

d.that these controls are costly to implement because of the planning incurred

e.based on knowledge of the particular industry

a moderate

18.Feedback control’s advantage is that it

a.gives an evaluation on the planning process.

b.enhances employee motivation

c.improves communication processes

d.all of the above are true

e.both a and b are true

e moderate

19.Which of the following is true relative to control?

  1. Small organizations rely more on formal control systems.
  2. As organizational size increases, formal control systems are replaced by direct supervision.
  3. Small organizations typically rely on highly formalized and impersonal feedforward controls.
  4. Small organizations typically rely on highly formalized and impersonal feedback controls.
  5. Concurrent control through direct supervision is the most cost efficient process in small organizations.

e moderate

20.Which of the following is false relative to control?

  1. The higher one climbs in organizations, the greater the need for multiple sets of criteria.
  2. The higher one moves in organizations, the more ambiguity there is in measuring performance.
  3. Lower level jobs in organizations, have less clarity in the expected performance and broader interpretation of job performance.
  4. More decentralized organizations need more feedback to measure performance.
  5. When organizational culture is based on trust, autonomy and openness, managers can expect informal self-control systems.

c challenging

21.An example of constraints on corrective actions in foreign countries is

  1. closing facilities
  2. laying off employees
  3. taking money out of the country
  4. bringing in new management team
  5. all of the above

e moderate

22.In a geographically-dispersed, e-business organization, which of the following is false?

  1. As a feedforward control process, managers hire employees who can exercise self-control.
  2. As a feedforward control process, managers develop work practices that flexible, but make it clear that the work is expected to be finished.
  3. In concurrent control processes, managers cannot communicate readily so other control functions are used.
  4. Managers must realize that net surfing relieves stress in limited amounts.
  5. Feedback controls should include regular reports from the employees.

c moderate

CONTEMPORARY ISSUES IN CONTROL

23.A major control issue faced in e-business organizations is the potential for

  1. harassment in email messages
  2. bias in email messages
  3. discrimination in email messages
  4. offensive sexual behavior on the Internet
  5. all of the above are true

e moderate

24.All organizations need a policy that defines

  1. inappropriate electronic communications
  2. state management’s right to monitor Internet and email usage by employees
  3. a record keeping process to investigate charges against employees
  4. disciplinary actions for any violations of organizational policies
  5. all of the above

e moderate

25.An employer has the right to monitor all of the following except

  1. email on office computers
  2. phone calls
  3. computer work assignments
  4. email at home
  5. employee actions in restrooms and dressing rooms

d moderate

26.Management must monitor email and Internet activities by employees for all the following reasons except

  1. recreational web surfing is free
  2. placing bets in online casinos is expensive
  3. checking stock prices online takes time away from work
  4. emailing friends and family is non-productive
  5. none of the points above are true

a moderate

27.The Electronic Communications Privacy Act of 1986 prohibits monitoring of

  1. employers’ reading email
  2. unauthorized interception of electronic communication
  3. Internet connections
  4. all of the above are true
  5. only a and c above are true

b moderate

28.Which of the following is not a feedforward control measure to prevent theft or fraud by employees?

  1. redesigning control measures
  2. careful pre-hiring screening
  3. involving employees in writing policies
  4. educating and training employees about policies
  5. having professionals review your internal security controls

a challenging

29.Which of the following is not a concurrent control measure to prevent theft or fraud by employees?

  1. careful pre-hiring screening
  2. making sure that employees know that fraud has occurred
  3. announcing successes in preventing thefts
  4. all of the above are true
  5. only a and b above are true

a challenging

30.Which of the following does not contribute to workplace violence?

  1. employees driven by time numbers and crises
  2. rapid unpredictable change plagues employees
  3. double standards for employees and managers
  4. emotionally troubled employees
  5. none of the above are true

e challenging

Fill-In-the-Blank

For each of the following choose the answer that most completely answers the question.

WHAT IS CONTROL?

31.______is the process of monitoring activities to ensure that they are being accomplished as expected and for correcting any significant deviations.

  1. Planning
  2. Organizing
  3. Leading
  4. Motivating
  5. Controlling

e easy

32.______is the process of collecting information and is the first step in control.

  1. Taking managerial action
  2. Comparing performance to standards
  3. Measuring performance
  4. Developing standards
  5. Evaluating standards

c moderate

33.______is a way of acquiring information to develop controls.

a.Personal observation

b.Management by walking around (MBWA)

c.Relying on statistical reports

d.Reading written reports

e.all of the above are true

e easy

34.Information for control systems gained from oral reports is important because ______.

a.physiological needs

b.safety needs

  1. social needs
  2. Theory X
  3. Theory Y
  4. e Moderate

35.Some variation in performance is expected, so an acceptable ______of variation is important so that excessive control is not utilized.

  1. mean
  2. median
  3. mode
  4. range
  5. standard deviation

d easy

36.In correcting actual performance, ______corrects problems at once to get performance back on track.

  1. immediate corrective action
  2. basic corrective action
  3. rational corrective action
  4. motivational action
  5. hygienic action

a moderate

37.In correcting actual performance, ______determines how and why performance has deviated and then proceeds to correct the source of deviation.

  1. immediate corrective action
  2. basic corrective action
  3. rational corrective action
  4. motivational action
  5. hygienic action

b moderate

38.Correcting actual performance is not practical if the ______is unrealistic.

  1. motivation
  2. perception
  3. standard
  4. reward
  5. challenge

c moderate

39.As companies expand globally, home offices depend more on ______for control.

  1. formal reports
  2. informal reports
  3. indirect computer-related reports
  4. work-related oral reports
  5. core beliefs

a moderate

40.Organizations in more technologically advanced countries rely more on ______for control.

  1. formal reports
  2. informal reports
  3. indirect computer-related reports
  4. work-related oral reports
  5. core beliefs

c moderate

CONTEMPORARY ISSUES IN CONTROL

41.Managers should monitor email in the organization to ensure that ______is (are) not allowed outside the organization.

  1. intellectual property
  2. information that might harm the organization
  3. trade secrets
  4. confidential financial records
  5. all of the above are true

e easy

42.Managers can make sure electronic monitoring is not demeaning if the computer usage policy is ______.

  1. ambiguous
  2. unambiguous
  3. hidden
  4. all of the above are true

e.only a and c above are true

b moderate

43.Organizations lose 85% of all organizational theft to ______.

a.organized theft rings

b.contractors

c.suppliers

d.employees

e.customers

d moderate

44.Theft by employees is caused by all of the following except ______.

a.lax controls

b.favorable opportunities

c.vice-based pressures

d.financial-based pressures

e.none of the above are true

e moderate

45.When employees steal from the company because they feel “everyone does it,” they are driven by the ______theory.

  1. equity
  2. reinforcement
  3. physiological
  4. expectancy
  5. both b an c are true

a challenging

46.Overemphasis on ______is a major contributor to driving employees to workplace violence.

  1. deadlines
  2. numbers
  3. crises
  4. all of the above are true
  5. only a and c above are true

d easy

47.Embezzlement from companies include removing

  1. software
  2. equipment
  3. office supplies
  4. all of the above are true
  5. only a and c above are true

d easy

48.Management’s monitoring of ______is illegal under the Electronic Communication Privacy Act of 1986

  1. email
  2. Internet usage
  3. authorized web surfing
  4. wagers placed via the Internet
  5. none of the above are true

e moderate

49.______is not part of a dysfunctional environment that contributes to workplace violence.

  1. Double standards for different employees
  2. Unresolved grievances
  3. Repetitive work
  4. Authoritative leadership
  5. Safe equipment

e moderate

50.When mangers ______, they are allowing situations to escalate toward violence.

  1. defuse threats
  2. hire stable employees
  3. develop employee assistance programs
  4. are a good role model
  5. communicate polices to employees

a moderate

Scenario Questions

Gerald has worked for his current employer for three years. Early in his employment, he worked to understand the intricacies of his job, but lately he has worked to understand the control processes that are in effect.

51.Initially, Gerald saw the operations of the company controlled by rules, regulations and procedures. He came to understand that as ______control.

a.market

b.clan

  1. bureaucratic
  2. strategic
  3. tactical

c easy

52.Later as Gerald began working with other managers, he saw the values, beliefs, and norms within these managers controlling their behavior. This is ______control exerting its influence in the company.

a.market

b.clan

  1. bureaucratic
  2. strategic
  3. tactical

b easy

53.As Gerald became more familiar with the products and services that his employer offered, he began to see how competition, pricing, and the company’s image in the environment influenced control over the company. He learned this is the effect of ______control.

a.market

  1. clan
  2. bureaucratic
  3. strategic
  4. tactical

a easy

54.As Gerald understands the control function the more he sees it is closely related to

  1. goals
  2. planning
  3. marketing
  4. all of the above are true
  5. only a and b above are true

e moderate

55.Gerald is asked to manage a new part of the organization that is just beginning. One of the things he must do is to set up a control operation. The first step in controlling this operation is to

  1. take action to correct inadequate operations
  2. set goals
  3. compare actual performance to standards
  4. develop plans
  5. measure or determine actual performance

b challenging

Jean has been promoted to manager of a large branch of a bank. This branch has not been as profitable as it could be in the past few months, Jean realizes that control has been lax in the branch and this has affected profitability.

56. Each morning she begins her day with a quick tour of the branch speaking to many employees and evaluating the overall operation by

  1. personal observation
  2. horizontally orienting herself for the day
  3. management by walking around (MBWA)
  4. all of the above are true
  5. only a and c above are true

e moderate

57.Jean continues her early evaluation of the operation by examining the performance of the branch using various graphs, bar charts, and numerical displays. This source of data is called

  1. skilled analysis
  2. task definition
  3. statistical reports
  4. all of the above are true
  5. only a and b above are true

c moderate

58.Next she visits with the various department heads in the branch so she can see how the branch operated the previous day. This form of data collection is known as

  1. oral reports
  2. group reports
  3. statistical reports
  4. operational planning
  5. all of the above are true

a challenging

59.Finally, Jean reads the ______reports to get a sense of the operation. She realizes that these reports are slower, than first hand reports, but they are more concise and comprehensive than the other reports.

  1. statistical
  2. annual
  3. oral
  4. written
  5. standardized

d moderate

60.Jean needs to analyze the information that she collects. She does this by looking at the range of ______in the data.

  1. deviation
  2. variation
  3. conclusion
  4. description
  5. initiative

b challenging

Jason works as a manager in a local drug store. He faces many challenges as he actively attempts to control the operation and remain profitable.

61.Jason’s initial response to problems that occur in the course of a day is to use ______to correct problems at once to get performance back on track

  1. bureaucratic action
  2. instinctive response to problems
  3. basic corrective action
  4. immediate corrective action
  5. scientific management

d easy

62.After the initial response is set in motion, Jason uses ______to determine why performance deviated originally and correct the source of the deviation.

  1. bureaucratic action
  2. instinctive response to problems
  3. basic corrective action
  4. immediate corrective action
  5. scientific management

c easy

63.Jason tries to train his employees to do their jobs and to appraise their own performance. This is an example of ______control.

  1. statistical
  2. annual
  3. entrepreneurial
  4. feedforward
  5. feedback

d moderate

64.Jason’s direct supervision is a form of ______control.

  1. statistical
  2. concurrent
  3. entrepreneurial
  4. feedforward
  5. feedback

b moderate

65.Jason has one group of employees who are consistently below average in performance. Normal behavior is for the employees to ask Jason to

  1. revise the standard
  2. find a new supervisor for them
  3. be more understanding
  4. hire some more employees
  5. ask for a deviation from expectations

a moderate