Mgmt09_tif18

mgmt09_tif18
Download Document
Showing pages : 1 - 3 of 31
This preview has blurred sections. Sign up to view the full version! View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 18 Foundations of Control TRUE/FALSE QUESTIONS WHAT IS CONTROL AND WHY IS IT IMPORTANT? 1. Control is the process of monitoring activities to ensure that they are being accomplished as planned. (True; moderate; p. 526) 2. The criterion that determines the effectiveness of a control system is how well it reduces unnecessary costs. (False; moderate; p. 526) 3. Clan control is found almost exclusively in small family-owned businesses, and is dependent upon the individual and the group to identify appropriate and expected behaviors and performance measures. (False; difficult; p. 527) 4. The value of the control function lies in its relation to organizational structure. (False; moderate; p. 528) 5. Managers need to control to protect the organization and its assets. (True; moderate; p. 529) THE CONTROL PROCESS 6. The control process is a two-step process that compares actual performance against a standard and takes managerial action to correct deviations or inadequate standards. (False; difficult; p. 529) 7. Some control criteria, such as employee satisfaction, are applicable to any management situation. (True; easy; p. 530) 8. Deviations that exceed the acceptable range of variation become significant and need the managers attention. (True; moderate; p. 531) 9. Understating sales is not nearly as troublesome as overstating. (False; moderate; p. 532) 10. In taking managerial actions, managers must correct actual performance, as it is the only choice. (False; difficult; p. 532) 11. Basic corrective action is aimed at correcting more generalized problems as quickly as possible, leaving more detailed action for later. (False; easy; p. 532) 243 12. Effective managers analyze deviations and, when the benefits justify it, take the time to pinpoint and correct the causes of variance. (True; moderate; p. 532) CONTROLLING FOR ORGANIZATIONAL PERFORMANCE 13. Performance is the end result of an activity. (True; easy; p. 534) 14. The most frequently used organizational performance measures include liquidity, profitability, leverage, and activity ratios. (False; moderate; p. 535) 15. What guides managerial decisions in designing strategies and work activities and in coordinating the work of employees is how well the organization meets its goals. (True; moderate; p. 536) TOOLS FOR CONTROLLING ORGANIZATIONAL PERFORMANCE 16. The key to feedforward controls is taking action while the problem is occurring. (False; easy; p. 538) 17. Feedforward provides managers with meaningful information on how effective their planning efforts were. (False; moderate; p. 538) 18. Concurrent control prevents anticipated problems since it takes place before the actual activity. (False; easy; p. 538) 19. Direct supervision is the best-known form of concurrent control....
View Full Document