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Exam 15: Organizational Control in a Complex Business Environment

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Question 21

True/False

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The majority of systems lend themselves to the use of a single performance measure.

A) True
B) False

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Question 22

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The total goods sold divided by the average inventory indicates how efficiently the firm is forecasting sales or ordering merchandise. This measure is an example of an activity ratio.

A) True
B) False

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Question 23

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Computer monitoring is more concerned with detecting illegal activities than with measuring employee performance.

Probable cause drug testing usually relies upon unannounced and unscheduled random employee drug examinations.

Jerry Junkins, the CEO of Texas Instruments, is very careful to select suppliers that provide his company with high-quality component parts. Making sure that the inputs to a production process are of high quality is a form of

To be effective, a control system must employee the majority, but not all, of the steps in the control process.

Match each term with the correct statement below. -this step involves determining if actual performance compared to standards falls within acceptable limits

Rather than addressing all of the problems of a struggling small business, the manager, Damian Leone, targets only the troubled areas that are brought to his attention. In fact, on days when nothing goes wrong, no one reports anything to Damian. This approach to organizational control that solely focuses on the elements that are not meeting the standards is called

Match each term with the correct statement below. -whenever possible, the standards should be set in a manner that allows them to be compared with actual performance

Match each term with the correct statement below. -use of formal mechanisms to influence behavior, assess performance, and correct unacceptable deviations from standards

Gina Owens, a service manager at a major hotel, is concentrating her control efforts on discovering undesirable outputs and implementing corrective action. Gina is concentrating on which type of control?

Reliability refers to the precision with which the measurement can be made.

__________ is defined as the systematic process through which managers regulate organizational activities to make them consistent with the expectations established in plans and to help them achieve all predetermined standards of performance.

Jacob Trueman is interested in the probability that the process being controlled will consistently behave in an acceptable manner. Jacob is concerned with

Match each term with the correct statement below. -reliance upon social values, traditions, shared beliefs, flexible authority, and trust to assess performance and correct unacceptable deviations

Designing an effective control system can be far more complex than simply performing the four steps in the control process.

Jim Smith is worried about the reliability of the machines in his shop that measure the length of the electrical wiring that he sells. If the length of the wiring is not absolutely accurate, it must be scrapped. Jim is worried about

To ensure the highest levels of customer satisfaction, a firm issued standard operating procedures and policies that prescribe forms of acceptable employee behavior and performance. The firm also employs a rigid hierarchy of authority that extends from the top of the organization to the bottom. This firm's method of control can best be described as

Capability refers to the probability that the object or process being controlled will consistently behave in an acceptable manner.

Control must focus on either the inputs or the outputs of the operating system, but not on both.