0324302592_72723

0324302592_72723 - Chapter 15ORGANIZATIONAL CONTROL IN A...

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Unformatted text preview: Chapter 15ORGANIZATIONAL CONTROL IN A COMPLEX BUSINESS ENVIRONMENT TRUE/FALSE 1. Organizational control 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. ANS: T DIF: E OBJ: 1 2. Motivation 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. ANS: F DIF: E OBJ: 1 3. The control process should begin with the measurement of actual performance. ANS: F DIF: E OBJ: 2 4. Whenever possible, the standards for performance should be set in a manner that allows them to be compared with actual performance. ANS: T DIF: E OBJ: 2 5. Qualitative performance measures require a subjective assessment to determine whether the standard is being met. ANS: T DIF: E OBJ: 2 6. The first two steps of the control process provide managers with the information that allows them to make comparisons between actual performance and standards. ANS: T DIF: E OBJ: 2 7. After comparing actual performance with standards, we can choose to either (1) take no corrective action, or (2) take corrective action. ANS: T DIF: E OBJ: 2 8. A control standard that states "defects rates should be kept low" is preferable to a control standard that states "defects rates should be .02 % or lower." ANS: F DIF: E OBJ: 2 9. Variance refers to the number of activities, processes, or items that are measured or controlled. ANS: F DIF: E OBJ: 3 10. Designing an effective control system can be far more complex than simply performing the four steps in the control process. 114 ANS: T DIF: E OBJ: 3 11. To maintain adequate control in any system, the control system must contain as much variety as the system being controlled. This is known as the law of compulsory variety. ANS: F DIF: E OBJ: 3 12. Requisite variety can be achieved by either (1) increasing the amount of variety in the control system, or (2) reducing the amount of variety in the system being controlled. ANS: T DIF: E OBJ: 3 13. Sensitivity refers to the precision with which a measurement can be made. ANS: T DIF: E OBJ: 3 14. Reliability refers to the precision with which the measurement can be made. ANS: F DIF: E OBJ: 3 15. Focusing on the elements that are not meeting the standards is called management by exception. ANS: T DIF: E OBJ: 3 16. When a control system is linked to organizational strategy, it recognizes strategic shifts and is flexible enough to measure what is important as indicated by the firm's strategy....
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0324302592_72723 - Chapter 15ORGANIZATIONAL CONTROL IN A...

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