Chapter 18 Foundations of Control
WHAT IS CONTROL AND WHY IS IT IMPORTANT?
Control is the process of monitoring activities to ensure that they are being accomplished as
(True; moderate; p. 526)
The criterion that determines the effectiveness of a control system is how well it reduces
(False; moderate; p. 526)
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
(False; difficult; p. 527)
The value of the control function lies in its relation to organizational structure.
(False; moderate; p. 528)
Managers need to control to protect the organization and its assets.
(True; moderate; p. 529)
THE CONTROL PROCESS
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)
Some control criteria, such as employee satisfaction, are applicable to any management situation.
(True; easy; p. 530)
Deviations that exceed the acceptable range of variation become significant and need the
(True; moderate; p. 531)
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)
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
(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.
(True; easy; p. 538)
This is the end of the preview. Sign up
access the rest of the document.