11.

________ is the process by which managers monitor and regulate the efficiency and
effectiveness of workers in performing activities necessary to achieve organizational goals. D)
Controlling

12. ________ systems are the formal monitoring, evaluation, and feedback systems that allow
managers to determine if the organization's strategy and structure are working according to
plan. C) Control

13. In order to anticipate problems before they arise, managers should develop a system for
________ control. A) feedforward

14. When working with suppliers, TechCo provides detailed product specifications to help control
the quality of inputs it will receive. This is an example of ________ control. D) feedforward

15. To ensure the right clerk is selected for an opening, a law firm reviews all résumés
electronically and assesses candidates through several interviews. This is an example of
________ control. B) feedforward

16. A manufacturing company that produces bolts and washers decides to use a new steel
supplier. The manufacturing company wants to ensure that the materials from the supplier
are delivered on time and within the specifications needed to meet the manufacturing
company's product goals. What form of control system could the manufacturing company
implement to ensure its needs are met? B) feedforward

17. During the conversion stage, managers use ________ control to recognize when problems are
arising. C) concurrent

18. In concert with quality management programs, ________ controls help monitor the quality of
goods or services at each step in the production process to alert managers to problems. B)
concurrent

19. A coffee shop uses an online system to engage customers. After each transaction, customers
receive a text asking them to rate their experience with either a smiley, neutral, or sad face
emoji. This practice is an example of ________ control. E) feedback

20. An online clothing retailer discovered that the majority of the returns it received were the
result of incorrect sizing. The retailer then worked with the clothing manufacturing company
to improve the accuracy of its sizing patterns. This demonstrates the use of ________ control.
D) feedback

21. A control process begins with D) establishing performance standards.

22. A customer service team identifies a goal of three business days for addressing all customer
concerns. In the context of a control process, this goal is D) establishing a standard of
performance.

23. Organizational performance can be hindered when managers E) focus on only one
performance standard instead of many different standards.

24. School attendance records in the context of a control process are an example of C) measuring
actual performance.

25. What is true regarding measuring actual performance? D) Outputs are generally easier to
measure than behaviors because they are more tangible and objective.
26. Which of these performance standards would managers find the most difficult to measure?
A) the creativity of a research engineer

27. Once managers have measured actual performance, they should B) compare actual
performance to the standards.

28. After evaluating measures of performance, managers must A) decide whether to take
corrective action.

29. The managers at a research company interview members of an underperforming team. They
determine the team's office is too distracting, so they decide to build a dedicated lab
environment to enable the team to meet its deadlines. This is an example of A) initiating
corrective action.

30. The company's top executives meet quarterly to review its performance. They focus on the
results of several measures regarding efficiency, quality, customer responsiveness, and
innovation compared to previously established goals. Based on these results, the leadership
team decides on the next steps for addressing performance gaps. This activity reflects a D)
control system.

31. Why is return on investment (ROI) the most commonly used financial performance measure?
E) It allows managers of one organization to compare performance with that of other
organizations in its industry.

32. ________ is a company's operating profit divided by its sales revenues. D) Operating margin

33. Why would a company calculate its operating margin? B) to determine how efficiently it is
using resources to make and sell products

34. ________ ratios measure the ability of an organization to pay its short-term debts. B)
Liquidity

35. You are a CEO who wants to determine whether the company has sufficient resources
available to address loan and interest payments that are due to some short-term creditors.
Which measure would you find most useful? D) current ratio

36. A(n) ________ calculation helps managers assess a firm's ability to meet payments to short-
term creditors without impacting inventory levels. A) quick ratio

37. The times-covered ratio, which measures the degree to which managers use debt or equity to
finance ongoing operations, is a type of ________ ratio. C) leverage

38. To measure how well the managers of an equipment rental service are converting the
company's assets into value, ________ ratios would be used. E) activity

39. To establish stretch goals for an organization, managers should C) set specific and challenging
goals that are within reach.

40. What is an operating budget? E) a blueprint that states how managers intend to use
organizational resources to achieve organizational goals efficiently

41. As a regional manager, Maria's performance is evaluated on the difference between her
region's sales revenues and the cost of making the goods and services sold. Maria is being
evaluated using a(n) ________ budget approach. A) profit
42. Each fiscal year, Dwayne is allocated an operating budget and then evaluated based on the
amount of goods produced by his organization. Dwayne's performance is evaluated on a(n) C)
expense budget approach.

43. When evaluating performance based on a revenue budget approach, on what would you
advise managers to focus? Answer: C) how well the organization generates earnings from
goods and services sold

44. A) Clan control

 What is a technique used to control behavior?

45. What is the most instantaneous and powerful form of behavior control? Answer: D) direct
supervision

46. Mitchell regularly walks through the manufacturing floor, checking each station and guiding
workers on his team. This is an example of Answer: E) direct supervision.

 What is Mitchell's action considered in terms of behavior control?

47. As a behavior control technique, direct supervision is Answer: A) expensive and requires
more managers.

 What is a characteristic of direct supervision?

48. Jared is considering using a direct supervision technique to influence his subordinates'
behavior. What is a potential outcome of this choice? Answer: B) Jared's subordinates may
feel scrutinized and become less motivated to work.

 What could be a consequence of implementing direct supervision?

49. A) Management by objectives

 What is a behavior control technique that provides a framework to monitor progress toward
the achievement of goals?

50. Each year, employees of a real estate agency meet with their direct manager to set individual
sales targets based on the agency's overall goals. Each employee reviews his or her progress
with his or her manager quarterly and is awarded a relative bonus. This is an example of
Answer: C) management by objectives.

 What type of performance evaluation system is being described?

51. MBO starts when top managers Answer: D) establish overall organizational objectives.

 At what point does the process of Management by Objectives (MBO) begin?

52. Why is it advantageous to have subordinates participate in goal setting? Answer: A) It

strengthens subordinates' commitment to achieving goals and meeting budgets.

 What is a benefit of involving subordinates in the goal-setting process?

53. A) Bureaucratic control

 What is control through a comprehensive system of rules and standard operating procedures
(SOPs)?
54. When faced with problems, A) rules and SOPs

 What control technique can help regulate employee behavior when problems arise?

55. B) bureaucratic

 A bureaucratic control technique accomplishes standardized behavior and work outputs.

What is it?

56. What is a potential downside of using a bureaucratic approach to control behavior? Answer:
C) Too many rules can stop employees from thinking for themselves.

 What is a potential negative consequence of excessive standardization through rules and

SOPs?

57. The values, norms, and expectations of behavior that control how workers interact with one
another within an organization represent the organization's Answer: B) culture.

 What does the organization's control system represent in terms of values, norms, and
behavior expectations?

58. An online footwear company advertises that for every pair of shoes sold, a pair will be
donated to someone in need. Employees at the company can multiply those donations by
meeting specific sales and customer-service goals. The company is using B) clan control to
influence employee behavior.

 What type of control is the company using by promoting shared values and norms?

59. Clan control Answer: D) helps keep organization members goal-directed while remaining
open to new opportunities.

 What is a dual function of clan control?

60. E) Organizational change

 What is the movement of an organization away from its present state toward some preferred
future state to increase its efficiency and effectiveness?

61. According to the force-field theory, Answer: B) a wide variety of forces arises from the way
an organization operates that make organizations resistant to change.

 According to the force-field theory, what makes organizations resistant to change?

62. A state of inertia occurs when Answer: C) the forces for change and the resistance to change
are evenly balanced.

 When does a state of inertia occur in an organization?

63. As the leader of a company, you want to see your company reach a higher level of sales
performance. According to Lewin's force-field theory, what must you do? Answer: C) increase
the forces for change and reduce resistance to change

 What actions should you take to achieve a higher level of sales performance, according to
Lewin's force-field theory?
64. To achieve compliance with a new industry standard, a company develops a five-year plan in
which goals are set for each year with incremental organizational changes focusing on one
area of the new standard. This is an example of Answer: E) evolutionary change.

73. One of Sanjay's work responsibilities is to check inspection stations periodically to monitor
the quality of the products throughout the production process. This is an example of
________ control.

 Answer: A) Concurrent

74. After measuring and evaluating the manufacturing performance of a new product, a manager
raises the performance standard for the next production cycle. For what reason might a
manager decide to raise the standard?

 Answer: B) The manager wants to challenge subordinates.

75. To monitor financial performance, a(n) ________ ratio is used to assess cost of goods sold
relative to inventory levels.

 Answer: C) Activity

76. The owner of a food truck monitors employee efficiency by counting the number of
customers served and the cost of goods sold. This is an example of ________ control.

 Answer: E) Output

77. ________ control tends to be the first type of control that managers at all levels use to
evaluate performance.

 Answer: E) Output

78. ________ is most likely to cause organizational costs to increase.

 Answer: A) Direct supervision

79. Management by objectives (MOB) is a mechanism of

 Answer: C) Behavior control.

80. The CEO of a large corporation mandates that new goals be implemented immediately. This is
an example of

 Answer: B) Revolutionary change.

81. The managers at a theme park are comparing the number of annual passes they sold last
year with the number of annual passes sold by other high-performing parks. This is an
example of

 Answer: D) Benchmarking.

82. A restaurant manager routinely measures the number of customer complaints and how often
customers leave negative reviews on its social media page. These controls help the restaurant
improve its

 Answer: B) Quality.
83. Rentals Plus recently implemented a customer relationship management (CRM) system that
tracks wait times and end-of-call evaluations for customer service representatives. This is an
example of a control that helps manage

 Answer: D) Customer responsiveness.

84. An executive report lists divisional goals with related operating budget status and measures
of financial performance. This report demonstrates

 Answer: E) Output

85. At the output stage of a production process, ________ is used to detect problems and trigger
management action.

 Answer: A) Feedback