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______ control systems are designed to measure progress toward set performance goals.
______ control systems are designed to measure progress toward set performance goals.
Bureaucratic
Rank the following steps of the control process in order from first (at the top) to last (at the bottom):
Rank the following steps of the control process in order from first (at the top) to last (at the bottom):
- Establish the standards of performance, goals, or targets against which performance is to be evaluated. = First
- Measure actual performance = Second
- Compare actual performance against chosen standards of performance = Third
- Initiate corrective action if the standard is not being achieved = Last
Performance standards are usually based on what the job requires.
Performance standards are usually based on what the job requires.
True
Which of the following is NOT a criteria for setting performance standards?
Which of the following is NOT a criteria for setting performance standards?
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According to the ______, control increases when managers concentrate on exceptions to the performance standard.
According to the ______, control increases when managers concentrate on exceptions to the performance standard.
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What management tool will identify and correct significant variations when activities are not proceeding as planned?
What management tool will identify and correct significant variations when activities are not proceeding as planned?
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Which of the following is the first major step in the control process?
Which of the following is the first major step in the control process?
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When managers take corrective action due to deviation from the standard, they are using the principle of:
When managers take corrective action due to deviation from the standard, they are using the principle of:
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Which of the following would be considered a measurable performance standard?
Which of the following would be considered a measurable performance standard?
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Performance standards are set regarding which of the following? (Check all that apply.)
Performance standards are set regarding which of the following? (Check all that apply.)
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In the last step of the control process, managers take steps to correct ______.
In the last step of the control process, managers take steps to correct ______.
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The concept that control increases when managers focus on significant deviations from the standard is known as the principle of:
The concept that control increases when managers focus on significant deviations from the standard is known as the principle of:
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Which of the following are approaches to bureaucratic control? (Check all that apply.)
Which of the following are approaches to bureaucratic control? (Check all that apply.)
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With the ______, only exceptional cases require corrective action.
With the ______, only exceptional cases require corrective action.
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The last step of the control process is ______.
The last step of the control process is ______.
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Match the approach to bureaucratic control to its definition:
Match the approach to bureaucratic control to its definition:
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______ takes place before operations begin and allows managers to ensure that planned activities are carried out properly.
______ takes place before operations begin and allows managers to ensure that planned activities are carried out properly.
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When is concurrent control used?
When is concurrent control used?
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Feedback control is used at the ______ stage of the process of transforming inputs into finished goods and services.
Feedback control is used at the ______ stage of the process of transforming inputs into finished goods and services.
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______ control occurs at the input stage and allows managers to look ahead to anticipate problems before they arise.
______ control occurs at the input stage and allows managers to look ahead to anticipate problems before they arise.
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During which stage of the process of transforming inputs into finished goods and services is feedforward control used?
During which stage of the process of transforming inputs into finished goods and services is feedforward control used?
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Which of the following are examples of issues in the workplace that can be avoided with feedforward controls in the form of policies? (Check all that apply.)
Which of the following are examples of issues in the workplace that can be avoided with feedforward controls in the form of policies? (Check all that apply.)
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______ control occurs while plans are being put into motion.
______ control occurs while plans are being put into motion.
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___ control includes directing, monitoring, and fine-tuning activities as they are performed.
___ control includes directing, monitoring, and fine-tuning activities as they are performed.
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If an individual can push a button during the production process to stop and examine a defect, which type of control is being used?
If an individual can push a button during the production process to stop and examine a defect, which type of control is being used?
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Which type of control gives managers information about results to correct problems after they arise?
Which type of control gives managers information about results to correct problems after they arise?
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A company has gathered and analyzed information about its performance. This is an example of ______ control.
A company has gathered and analyzed information about its performance. This is an example of ______ control.
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Feedforward control is __ oriented.
Feedforward control is __ oriented.
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Human resources policies against workplace romances are a type of ______ control.
Human resources policies against workplace romances are a type of ______ control.
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When supervisors monitor what employees are doing, they are exercising ______ control.
When supervisors monitor what employees are doing, they are exercising ______ control.
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Why is time particularly important to feedback control?
Why is time particularly important to feedback control?
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Concurrent control, through information technology, allows managers to react quickly when problems occur during business operations.
Concurrent control, through information technology, allows managers to react quickly when problems occur during business operations.
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When managers tell employees what they are doing wrong and help them improve their performance, they are using _____ control.
When managers tell employees what they are doing wrong and help them improve their performance, they are using _____ control.
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______ is designed to reduce defects in all organizational processes.
______ is designed to reduce defects in all organizational processes.
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Which Greek letter is used in statistics to represent the estimated standard deviation in a process?
Which Greek letter is used in statistics to represent the estimated standard deviation in a process?
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______ control is based on performance data that has been gathered and analyzed.
______ control is based on performance data that has been gathered and analyzed.
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When organizations use the six sigma process, they are striving for a ______ environment.
When organizations use the six sigma process, they are striving for a ______ environment.
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Six sigma is a quality control tool designed to resolve:
Six sigma is a quality control tool designed to resolve:
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At six sigma level, a process is producing fewer than ______ defects per million.
At six sigma level, a process is producing fewer than ______ defects per million.
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True or false: Omega is the Greek letter used in statistics to represent the standard deviation in a process.
True or false: Omega is the Greek letter used in statistics to represent the standard deviation in a process.
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The six sigma approach is based on a statistical analysis of business processes that contribute to which goals?
The six sigma approach is based on a statistical analysis of business processes that contribute to which goals?
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______ establishes relationships among feedforward control, concurrent control, and feedback control.
______ establishes relationships among feedforward control, concurrent control, and feedback control.
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With the six sigma control process, the goal is zero ______.
With the six sigma control process, the goal is zero ______.
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Which of the following are steps in the budgetary control process? (Check all that apply.)
Which of the following are steps in the budgetary control process? (Check all that apply.)
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True or false: At six sigma level, a process is producing at 96.6666% accuracy.
True or false: At six sigma level, a process is producing at 96.6666% accuracy.
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The ______ effort requires that a company measure performance at each stage and reduce errors to fewer than 3.4 per million.
The ______ effort requires that a company measure performance at each stage and reduce errors to fewer than 3.4 per million.
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Two statements that summarize a company's financial condition are the profit and loss statement and:
Two statements that summarize a company's financial condition are the profit and loss statement and:
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A balance sheet shows the financial health of a company at a specific time and reports:
A balance sheet shows the financial health of a company at a specific time and reports:
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Compared to other methods of managerial control, budgetary control is:
Compared to other methods of managerial control, budgetary control is:
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______ are equal to liabilities plus stockholder's equity.
______ are equal to liabilities plus stockholder's equity.
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The first step of the budgetary control process involves ______. (Check all that apply.)
The first step of the budgetary control process involves ______. (Check all that apply.)
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A tentative profit and loss statement can be used to:
A tentative profit and loss statement can be used to:
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The balance sheet and the ______ are financial statements that help control overall organizational performance.
The balance sheet and the ______ are financial statements that help control overall organizational performance.
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Which documents contain the numbers that determine key financial ratios?
Which documents contain the numbers that determine key financial ratios?
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A balance sheet itemizes which of the following? (Check all that apply.)
A balance sheet itemizes which of the following? (Check all that apply.)
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What is the most common liquidity ratio?
What is the most common liquidity ratio?
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The values of the items a firm owns are called ______.
The values of the items a firm owns are called ______.
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The debt-equity ratio shows how well a company is positioned to cover its long-term financial obligations. What type of ratio is it?
The debt-equity ratio shows how well a company is positioned to cover its long-term financial obligations. What type of ratio is it?
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An itemized financial statement of income and expenses is a(n):
An itemized financial statement of income and expenses is a(n):
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The debt-equity ratio is an example of a ______ ratio.
The debt-equity ratio is an example of a ______ ratio.
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Return on investment (ROI) is an example of a(n) ______ ratio.
Return on investment (ROI) is an example of a(n) ______ ratio.
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Which statements are true of key financial ratios?
Which statements are true of key financial ratios?
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______ ratios reveal whether a business is able to cover short-term debts.
______ ratios reveal whether a business is able to cover short-term debts.
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Fixating on ______ and profits while neglecting long-term strategy is known as management myopia.
Fixating on ______ and profits while neglecting long-term strategy is known as management myopia.
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______ ratios indicate how much of the company's money is coming from creditors versus how much is from shareholders.
______ ratios indicate how much of the company's money is coming from creditors versus how much is from shareholders.
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Which of the following is NOT a potential drawback of a bureaucratic control system?
Which of the following is NOT a potential drawback of a bureaucratic control system?
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Which leverage ratio shows how well the company can cover its long-term financial obligations?
Which leverage ratio shows how well the company can cover its long-term financial obligations?
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If managers use too much ______, they can discourage employee innovation.
If managers use too much ______, they can discourage employee innovation.
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______ ratios show how well management is generating a financial return on sales or investment.
______ ratios show how well management is generating a financial return on sales or investment.
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Which of the following are tactical behaviors intended to 'beat the system'?
Which of the following are tactical behaviors intended to 'beat the system'?
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Placing too much emphasis on short-term income and profits instead of pursuing a longer-term strategy is known as ______.
Placing too much emphasis on short-term income and profits instead of pursuing a longer-term strategy is known as ______.
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True or false: Implementing control systems eliminates dysfunctional employee behavior.
True or false: Implementing control systems eliminates dysfunctional employee behavior.
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______ occurs when control systems prompt employees to follow the rules to an extreme that stifles creativity.
______ occurs when control systems prompt employees to follow the rules to an extreme that stifles creativity.
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Control systems don't work very well if employees use ______ behavior to 'beat the system.'
Control systems don't work very well if employees use ______ behavior to 'beat the system.'
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Study Notes
Bureaucratic Control Systems
- Bureaucratic control systems measure progress toward performance goals and enable corrective measures to ensure objectives are met.
- Performance standards are established based on job requirements and can include quality, time, cost, and quantity.
Control Process Steps
- Steps in the control process include establishing performance standards, measuring actual performance, comparing results to standards, and initiating corrective actions when necessary.
- The first step in the process is to set performance standards.
Principles of Control
- The principle of exception indicates that control is enhanced when managers focus on significant deviations from the standard.
- Concurrent control involves monitoring and directing activities as they occur, while feedback control addresses discrepancies after they arise.
- Feedforward control anticipates and resolves potential issues before operations commence.
Control Types
- Examples of performance standards include shipping 95% of orders on time and responding to customer complaints within one day.
- Human resource policies on workplace conduct, such as workplace romance, exemplify feedforward control strategies.
Six Sigma Quality Control
- Six Sigma aims for a zero-defect environment, producing fewer than 3.4 defects per million opportunities.
- The process uses statistical analyses to enhance product quality and customer satisfaction, focusing on reducing production costs and defects.
Budgetary Control
- Budgetary control establishes relationships between various types of control (feedforward, concurrent, feedback) and measures performance against set budgets.
- Key steps in the budgetary control process include establishing expectancies, performing operations, and taking corrective actions if needed.
Financial Ratios
- Key financial ratios provide insight into a company's performance, strengths, and long-term obligations, with liquidity ratios assessing short-term debt coverage.
- The debt-equity ratio evaluates a company's capability to meet long-term financial commitments and is a leverage ratio.
Management Myopia and Control Challenges
- Management myopia refers to the focus on short-term earnings at the expense of long-term strategy, potentially stifling innovation.
- Rigid bureaucratic control can encourage a rule-following culture that may inhibit creativity and adaptability within the organization.
Drawbacks of Bureaucratic Control
- While bureaucratic control systems facilitate structure, they might not effectively eliminate dysfunctional behaviors, as employees can engage in tactical behaviors to circumvent controls.
- Common drawbacks of excessive bureaucratic control include discouragement of innovation and creativity among employees.
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Description
Test your understanding of bureaucratic control systems with these flashcards. Learn key concepts related to performance goals and the steps in the control process. Perfect for students studying management principles.
