Bureaucratic Control Flashcards

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______ 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):

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.

True

Which of the following is NOT a criteria for setting performance standards?

Education Signup and view all the answers

According to the ______, control increases when managers concentrate on exceptions to the performance standard.

principle of exception Signup and view all the answers

What management tool will identify and correct significant variations when activities are not proceeding as planned?

bureaucratic control system Signup and view all the answers

Which of the following is the first major step in the control process?

Setting performance standards Signup and view all the answers

When managers take corrective action due to deviation from the standard, they are using the principle of:

exception Signup and view all the answers

Which of the following would be considered a measurable performance standard?

Shipping 95% of orders on time Signup and view all the answers

Performance standards are set regarding which of the following? (Check all that apply.)

Quantity Signup and view all the answers

In the last step of the control process, managers take steps to correct ______.

significant deviations from the standard Signup and view all the answers

The concept that control increases when managers focus on significant deviations from the standard is known as the principle of:

exception Signup and view all the answers

Which of the following are approaches to bureaucratic control? (Check all that apply.)

Feedforward control Signup and view all the answers

With the ______, only exceptional cases require corrective action.

principle of exception Signup and view all the answers

The last step of the control process is ______.

to take action that will correct significant deviations Signup and view all the answers

Match the approach to bureaucratic control to its definition:

Feedforward = Used before operations begin Concurrent = Used while plans are being carried out Feedback = Corrects deviations from the acceptable standard after they arise Signup and view all the answers

______ takes place before operations begin and allows managers to ensure that planned activities are carried out properly.

Feedforward control Signup and view all the answers

When is concurrent control used?

While plans are being carried out Signup and view all the answers

Feedback control is used at the ______ stage of the process of transforming inputs into finished goods and services.

final Signup and view all the answers

______ control occurs at the input stage and allows managers to look ahead to anticipate problems before they arise.

Feedforward Signup and view all the answers

During which stage of the process of transforming inputs into finished goods and services is feedforward control used?

Before operations begin Signup and view all the answers

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.)

Workplace romance Signup and view all the answers

______ control occurs while plans are being put into motion.

Concurrent Signup and view all the answers

___ control includes directing, monitoring, and fine-tuning activities as they are performed.

Concurrent Signup and view all the answers

If an individual can push a button during the production process to stop and examine a defect, which type of control is being used?

concurrent Signup and view all the answers

Which type of control gives managers information about results to correct problems after they arise?

Feedback control Signup and view all the answers

A company has gathered and analyzed information about its performance. This is an example of ______ control.

feedback Signup and view all the answers

Feedforward control is __ oriented.

future Signup and view all the answers

Human resources policies against workplace romances are a type of ______ control.

feedforward Signup and view all the answers

When supervisors monitor what employees are doing, they are exercising ______ control.

concurrent Signup and view all the answers

Why is time particularly important to feedback control?

In order to resolve problems, managers need to identify them quickly. Signup and view all the answers

Concurrent control, through information technology, allows managers to react quickly when problems occur during business operations.

True Signup and view all the answers

When managers tell employees what they are doing wrong and help them improve their performance, they are using _____ control.

feedback Signup and view all the answers

______ is designed to reduce defects in all organizational processes.

Six sigma Signup and view all the answers

Which Greek letter is used in statistics to represent the estimated standard deviation in a process?

Sigma Signup and view all the answers

______ control is based on performance data that has been gathered and analyzed.

Feedback Signup and view all the answers

When organizations use the six sigma process, they are striving for a ______ environment.

zero-defect Signup and view all the answers

Six sigma is a quality control tool designed to resolve:

any problems that might cause customers to feel unsatisfied. Signup and view all the answers

At six sigma level, a process is producing fewer than ______ defects per million.

3.4 Signup and view all the answers

True or false: Omega is the Greek letter used in statistics to represent the standard deviation in a process.

False Signup and view all the answers

The six sigma approach is based on a statistical analysis of business processes that contribute to which goals?

Decreased production costs, customer satisfaction, decreased product defects. Signup and view all the answers

______ establishes relationships among feedforward control, concurrent control, and feedback control.

Budgetary control Signup and view all the answers

With the six sigma control process, the goal is zero ______.

defects Signup and view all the answers

Which of the following are steps in the budgetary control process? (Check all that apply.)

Establish expectancies Signup and view all the answers

True or false: At six sigma level, a process is producing at 96.6666% accuracy.

False Signup and view all the answers

The ______ effort requires that a company measure performance at each stage and reduce errors to fewer than 3.4 per million.

six sigma Signup and view all the answers

Two statements that summarize a company's financial condition are the profit and loss statement and:

balance sheet. Signup and view all the answers

A balance sheet shows the financial health of a company at a specific time and reports:

assets, liabilities, and stockholder's equity. Signup and view all the answers

Compared to other methods of managerial control, budgetary control is:

widely recognized, commonly used. Signup and view all the answers

______ are equal to liabilities plus stockholder's equity.

Assets Signup and view all the answers

The first step of the budgetary control process involves ______. (Check all that apply.)

Budget approval and publication Signup and view all the answers

A tentative profit and loss statement can be used to:

establish a performance goal. Signup and view all the answers

The balance sheet and the ______ are financial statements that help control overall organizational performance.

profit and loss statement. Signup and view all the answers

Which documents contain the numbers that determine key financial ratios?

Balance sheet Signup and view all the answers

A balance sheet itemizes which of the following? (Check all that apply.)

Liabilities Signup and view all the answers

What is the most common liquidity ratio?

current ratio Signup and view all the answers

The values of the items a firm owns are called ______.

assets Signup and view all the answers

The debt-equity ratio shows how well a company is positioned to cover its long-term financial obligations. What type of ratio is it?

leverage Signup and view all the answers

An itemized financial statement of income and expenses is a(n):

profit and loss statement. Signup and view all the answers

The debt-equity ratio is an example of a ______ ratio.

leverage Signup and view all the answers

Return on investment (ROI) is an example of a(n) ______ ratio.

profitability Signup and view all the answers

Which statements are true of key financial ratios?

They show the company's general performance. Signup and view all the answers

______ ratios reveal whether a business is able to cover short-term debts.

Liquidity Signup and view all the answers

Fixating on ______ and profits while neglecting long-term strategy is known as management myopia.

short-term earnings Signup and view all the answers

______ ratios indicate how much of the company's money is coming from creditors versus how much is from shareholders.

Leverage Signup and view all the answers

Which of the following is NOT a potential drawback of a bureaucratic control system?

Conformance Signup and view all the answers

Which leverage ratio shows how well the company can cover its long-term financial obligations?

debt-equity ratio Signup and view all the answers

If managers use too much ______, they can discourage employee innovation.

rigid control Signup and view all the answers

______ ratios show how well management is generating a financial return on sales or investment.

Profitability Signup and view all the answers

Which of the following are tactical behaviors intended to 'beat the system'?

Deliberately submitting a false estimate about future performance Signup and view all the answers

Placing too much emphasis on short-term income and profits instead of pursuing a longer-term strategy is known as ______.

management myopia Signup and view all the answers

True or false: Implementing control systems eliminates dysfunctional employee behavior.

False Signup and view all the answers

______ occurs when control systems prompt employees to follow the rules to an extreme that stifles creativity.

Rigid bureaucratic control Signup and view all the answers

Control systems don't work very well if employees use ______ behavior to 'beat the system.'

tactical Signup and view all the answers

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.