Chapter 16 Multiple Choice Questions PDF

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Chapter 16 Multiple Choice Questions 77.

Gina was recently promoted to facilities director at Wholesome Grains. Which of the following should she do immediately as she tries to improve productivity?

A. Use the established technology with which her employees are most familiar. B. Rotate all personnel so that each has an opportunity to try something new. C. Hire new employees such that they are similar to those already on the team. D. Establish a system of measurement. E. Cut costs.

78.

Which of the following is a not one of the seven challenges a manager must deal with in the 21st century?

A. sustainabili ty B. ethical standards C. economic stagnation D. globalizati on E. diversi ty 79.

Which of the following is a primary function of management?

A. communicati ng B. globalizi ng C. cooperati ng D. organizin g E. influenci ng

80.

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 81.

Managers can increase overall productivity by increasing the efficiency of all the following except _____.

A. goal s B. energ y C. materia ls D. labo r E. capit al

82.

Britta 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 83.

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 84.

______ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

A. Measurin g B. Leadin g C. Organizin g D. Controlli ng E. Plannin g

85.

Kim, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2% through additional training for her staff. She is engaged in _____.

A. organizin g B. controlli ng C. measuri ng D. leadin g E. plannin g 86.

Which of the following is not one of the reasons that control is needed in an organization?

A. to adapt to change and uncertainty B. to detect opportunities C. to eliminate the need for teamwork D. to deal with complexity E. to decentralize decision making 87.

Smith Commercial Development 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. competen ce D. team problems E. tax breaks

88.

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.

89.

Standards are best measured when they are _____.

A. broa d B. quantifiab le C. narro w D. efficie nt E. ethic al

90.

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

91.

The amount of acceptable deviation from a standard, determined when the standard was established, is called the _____.

A. span of exception B. breadth control C. range of variation D. benchma rk E. zero-based control 92.

Which of the following may be done as 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.

93.

Jimmy'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. Take corrective action. B. Establish standards. C. Compare performance to standards. D. Measure performance. E. Control productivity. 94.

At UPS, delivery ______ vary according to whether a route is urban, suburban, or rural in nature.

A. RATER scales B. standar ds C. ratio analyses D. PDCA cycles E. strategy maps

95.

Tactical control is performed mainly by _____.

A. the CEO B. top managers C. middle managers D. first-level managers E. team leaders

96.

Monitoring performance to ensure that day-to-day goals are being implemented and taking corrective action as needed is known as ______ control.

A. strateg ic B. function al C. operation al D. tactic al E. manageri al

97.

Typically, operational control is accomplished through reports issued _____.

A. weekl y B. dail y C. month ly D. annuall y E. random ly

98.

A sales forecast is an example of an organizational control from the _____ area.

A. informatio nal B. physic al C. human resources D. financi al E. capit al 99.

Kara was required to take a word-processing test as part of her application for an executive assistant position. This control is part of the ______ area.

A. structur al B. physic al C. financi al D. informatio nal E. human resources

100. Which of the following is an example of an informational resource control?

A. a competition analysis B. a delivery-tracking system C. a debt-repayment schedule D. a leadership survey E. a personality test

101. Which of the following is the best example of bureaucratic control?

A. Southwest Airlines B. Ritz Carlton C. Monica's Diner D. Levi Strauss E. U.S. Army

102. Michele manages employees at Maui Tours and Lodging. 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. bureaucrat ic B. mark et C. decentraliz ed D. autocrat ic E. function al

103. ______ control is an approach to organizational control that is characterized by informal and organic structural arrangements.

A. Relation al B. Function al C. Decentraliz ed D. Bureaucrat ic E. Marke t

104. Which of the following areas of control for organizations exerts informal control?

A. structur al B. human resources C. informatio nal D. competiti ve E. cultur al 105. 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

106. Which of the following is not a perspective of the balanced scorecard?

A. internal business B. external processes C. financi al D. innovation and learning E. custom er

107. 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

108. Which balanced scorecard perspective helps top management's judgment to be better linked to measures of employee actions at lower levels?

A. operational perspective B. internal business perspective C. customer perspective D. financial perspective E. innovation and learning perspective

109. According to Kaplan and Norton, "_______ show the cause-and-effect links by which specific improvements create desired outcomes."

A. Strategy maps B. Positioning maps C. Multidimensional maps D. Customer maps E. Graphic interface maps

110. Which of the following is a mechanism that contributes to a measurementmanaged company's success?

A. using mostly "soft" objectives that are not quantifiable B. measuring activities of all types C. developing the measurement systems without interference from employees D. developing focus and alignment between individual, unit, and strategic performance E. trusting in informal feedback systems 111. Which of the following is a frequent barrier to effective measurement?

A. Communication is bureaucratic. B. Top executives create the organization's strategy. C. Employees resist new measurement systems. D. The organizational culture overemphasizes teamwork. E. The organizational culture allows too much risk taking.

112. A budget that allocates increased or decreased funds to a department by using the last budget period as a reference point is called a(n) _____.

A. standardized budget B. fixed budget C. zero-based budget D. incremental budget E. tactical budget

113. 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 .

114. A(n) ______ budget projects what an organization will create in goods and services, what financial resources are needed, and what income is expected.

A. expens e B. revenu e C. operati ng D. cas h E. cash flow

115. A budget that allocates resources on the basis of a single estimate of costs is called a(n) ______ budget.

A. unitar y B. zerobased C. cas h D. increment al E. fixed or static

116. The type of budget that can be adjusted over time for changing environmental conditions is known as a(n) ______ budget.

A. operati ng B. increment al C. zerobased D. variable or flexible E. cas h

117. At Polar Sportswear, orders have significantly exceeded projections, and Chris, the operations director, has decided to hire for a third shift in the plant. Chris is clearly operating with the use of a(n) ______ budget.

A. zerobased B. increment al C. cas h D. fixe d E. variabl e

118. Current assets, fixed assets, and liabilities are all part of an organization's _____.

A. cash flow statement B. capital expenditures budget C. income statement D. expense budget E. balance sheet

119. Profits or losses incurred by an organization are represented in its _____.

A. expense budget B. income statement C. ratio analysis D. capital expenditures budget E. balance sheet

120. ______ ratios can help an organization to detect if it has obsolete or excessive inventory on hand.

A. Retur n B. Liquidi ty C. Debt management D. Activit y E. Asset management

121. ROI is a(n) _____.

A. liquidity ratio B. cash ratio C. return ratio D. asset management ratio E. debt management ratio

122. Which of the following is not characteristic of an external audit?

A. performed by CPAs B. primarily used when management suspects embezzlement C. performed by an independent organization D. verifies that generally accepted accounting principles have been followed E. verifies the accuracy and fairness of financial statements .

123. Which of the following is not a principle of Deming management?

A. Quality should be aimed at the needs of the consumer. B. Companies should determine which workers are to blame for problems. C. Improved quality leads to increased market share and employment. D. Quality can be improved on the basis of hard data. E. Companies should aim at improving the system.

124. Which of the following is part of Deming's PDCA cycle?

A. chec k B. dire ct C. appl y D. proces s E. decid e

125. TQM is defined as a comprehensive approach dedicated to continuous _____.

A. measurement of quantifiable goals and quick corrections B. product innovation and organizational learning, over fast cycles C. quality improvement, training, and customer satisfaction D. customer input into management strategy and decision making E. focus on components of service success: tangibles, questions, and margins

126. TQM's two core principles are _____.

A. employee commitment and customer satisfaction B. financial health and financial stability C. management and leadership D. people orientation and improvement orientation E. radical innovation and continuous improvement

127. A team that meets to solve a onetime problem is called a _____.

A. continuous improvement team B. work group C. self-managed team D. uni t E. special-purpose team 128. Oakley Lumber Mill formed a team to help the organization determine a course of action in the wake of a forest fire that temporarily closed access to its mountain satellite office. This is an example of a _____.

A. cross-functional team B. JIT team C. special-purpose team D. self-managed team E. continuous improvement team

129. The process of instituting ongoing small, incremental improvements in all parts of an organization is called _____.

A. MB O B. reengineeri ng C. radical innovation D. continuous improvement E. productivi ty

130. Employees' knowledge, courtesy, and ability to convey trust and confidence make up which dimension of the RATER scale?

A. reliabili ty B. empat hy C. tangibl es D. assuranc e E. responsivene ss

131. Installing quality-control procedures that can be audited by independent qualitycontrol experts is fundamental to _____.

A. ISO 9000 B. restructuri ng C. reduced cycle time D. ISO 14000 E. statistical process control

132. At Phoenix Instruments, Claudia pulls six samples an hour from an assembly line to examine them for quality defects. If she finds any, she makes adjustments to various pieces of equipment in his area. Claudia job involves _____.

A. feed-forward control B. benchmarki ng C. reduced cycle time D. statistical process control E. strategic control

133. Which of the following is not a common characteristic of successful control systems?

A. strategic and resultsoriented B. realisti c C. encouragement of selfcontrol D. subjecti ve E. flexibl e

134. Which kind of organization is most likely to try to exert too much control?

A. bureaucrat ic B. mark et C. employeedriven D. decentraliz ed E. matri x

135. Before the fall term began, professors at Hillview College were required to fill out numerous forms, ranging from performance objectives, surveys, reports to lists of summer contacts with prospective students. Many professors complained that their time would be better spent preparing for their courses. This is an example of which barrier to successful control?

A. overemphasis on one instead of multiple approaches B. too much control C. overemphasis on means instead of ends D. overemphasis on paperwork E. too much flexibility

136. At Panther Lighting Fixtures, employees were asked how the quality of its customer service could best be measured, and management then implemented a survey system based on the feedback. The company has overcome which of the following barriers to success of control systems?

A. overemphasis on one instead of multiple approaches B. overemphasis on paperwork C. overemphasis on means instead of ends D. too little employee participation E. too much control

137. Recruiters for Mountainview College were under extreme pressure to increase an enrollment goal by 10%. As a result, they admitted many students who were marginally qualified and who performed poorly in classes. This is an example of which problem associated with control systems?

A. overemphasis on means instead of ends B. overemphasis on paperwork C. overemphasis on one instead of multiple approaches D. too much control E. too little participation

138. Harbor Casino and Resort requires its casino dealers to have licenses, observes them using closed-circuit TV, and requires detailed reports at the end of each shift. This organization has overcome the control system barrier of _____.

A. too much control B. overemphasis on paperwork C. overemphasis on means instead of ends D. overemphasis on one instead of multiple approaches E. too little participation

139. Which of the following is not a characteristic of a successful control system?

A. strategic and resultsoriented B. timely, accurate, and objective C. realistic, positive, and understandable D. encourages selfcontrol E. inflexible to optimize control

140. Which of the following is not a purpose of a manager?

A. pla n B. organiz e C. get people to achieve productivity and realize results D. contr ol E. increase globalization

141. Which of the following is not a financial control?

A. budget s B. financial statements C. ratio analysis D. audit s E. RATER

142. Techniques for improving quality include all of the following except _____.

A. employee involvement B. outsourci ng C. reduced cycle time D. statistical process control E. market share...