Control in Management

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Questions and Answers

What is the primary purpose of control within an enterprise?

To achieve and maintain acceptable productivity (correct)
To monitor employee behavior strictly
To provide freedom for creativity
To enforce rules and regulations

How is feedback significant in the control process?

It eliminates the need for a control plan
It allows for punishment of underperforming staff
It aids in understanding deviations from plans and standards (correct)
It serves as a fixed point of reference for all management actions

In what way does control contribute to management functions?

It replaces the need for planning and organizing
It may lead to changes in the performance of other management functions (correct)
It is a static process that enforces adherence
It promotes a rigid approach to performance standards

Which statement best describes the nature of control?

Control is a continuous and flexible process (B) Signup and view all the answers

Which of the following is NOT a characteristic of control?

It requires a rigid adherence to set plans at all times (B) Signup and view all the answers

What is the definition of management according to Henry Fayol?

To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control. Signup and view all the answers

What is the definition of management according to Koontz and O’Donnel?

Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals. Signup and view all the answers

Which of the following are the salient characteristics of management? (Select all that apply)

Management is goal-oriented. (A), Management is a group activity. (B), Management involves decision-making. (C), Management draws ideas and concepts from many disciplines. (D), Management implies good leadership. (E), Management is a process. (F), Management is intangible. (G), Management is a profession. (H), Management dynamic and not static. (I), Need of organization. (J), Management is a system of authority. (K), Management has levels. (L), Management is a universal activity. (M), Management is a science as well as an art. (N), Management also implies the willingness and expertise to make people do things. (O) Signup and view all the answers

Which of the following are the three scientific characteristics of ‘science’?

The principles are exact and also have a universal applicability without any limitation. (A), The principles are evolved according to the continued observations and experiments. (B), It is a systematic body of knowledge using the scientific methods for observation. (C) Signup and view all the answers

Which of the following are the three important characteristics of ‘art’?

It is often undertaken to accomplish an end through deliberate efforts. (A), Art is an application of science. It is putting the principles into practice (B), After the determination of a particular art, practice is required to reach a level of perfection (C) Signup and view all the answers

Management is both a science and an art.

True (A) Signup and view all the answers

Which of the following are the five basic functions of management? (Select all that apply)

Controlling (A), Staffing (B), Organizing (C), Planning (D), Leading (E) Signup and view all the answers

Define planning.

Planning can be described as the process by which managers decide the firm’s mission and goals and take the required steps to achieve the desired goals. Signup and view all the answers

Define controlling.

Controlling can be defined as the continuous measurement and analysis of actual operations against existing industry standards. Signup and view all the answers

Which of the following are the 14 principles of management according to Henri Fayol? (Select all that apply)

Authority and Responsibility (A), Discipline (B), Emphasis on Subordination of Personal Interest to Common Interest (C), Unity of Command (D), Division of Work (E), Esprit de Corps (F), Remuneration (G), Initiative (H), Order (I), Unity of Direction (J), Stability of Tenure (K), Centralization (L), Scalar Chain (M), Equity (N) Signup and view all the answers

The terms ‘management’ and ‘administration’ are used synonymously.

True (A) Signup and view all the answers

Which of the following are the three levels of management?

Supervisory or First-level management (A), Middle-level management (B), Top-level management (C) Signup and view all the answers

Define ‘Manager’.

A manager is the person in charge of organizing and directing a group of individuals’ work, overseeing their performance, and taking corrective measures if appropriate. Signup and view all the answers

What are the three broad headings of Henry Mintzberg’s managerial roles?

Decision-making Roles (A), Interpersonal Roles (B), Analytical Roles (C) Signup and view all the answers

What are the three types of managerial skills identified by Robert L. Katz?

Human Skills (A), Conceptual Skills (B), Technical Skills (C) Signup and view all the answers

What is the definition of ‘bureaucracy’?

Bureaucracy is an organization based on rules and regulations, formal relations, specialization, etc. Signup and view all the answers

What is the definition of ‘scientific management’?

That form of management that conducts a company or company by established standards, by facts or truths obtained by systematic observation, experimentation or reasoning. Signup and view all the answers

What are Taylor’s five principles of scientific management?

Harmony in group action, rather than discord. (A), The scientific selection, training and placement of workers. (B), Equal division of work and responsibility between workers and managers. (C), Maximum output than the restricted output. (D), Science, not rule of thumb. (E) Signup and view all the answers

What is the definition of ‘administrative management’?

Administrative management focused on principles that managers could use to coordinate the organizations’ internal activities. Signup and view all the answers

Henri Fayol believed that ‘satisfactory outcomes were unavoidable with proper management techniques and scientific forecasts’

True (A) Signup and view all the answers

What are the six activities Henri Fayol divided business operations into?

Managerial (A), Technical (B), Security (C), Accounting (D), Financial (E), Commercial (F) Signup and view all the answers

The theory of administrative management criticized the classical theorists on several grounds.

False (B) Signup and view all the answers

What are the three viewpoints incorporated in the classical theory of management?

Weber’s Ideal Bureaucracy (A), Taylor’s Scientific Management (B), Fayol’s Administrative Management (C) Signup and view all the answers

The neo-classical theory of management focused on the industrial human dimension.

True (A) Signup and view all the answers

What are the four basic tenets of the neoclassical or human relations approach?

Business organization is a social system. (A), The objective of the management must be to develop the social and leadership skills in addition to the technical skills. (B), In an organization, it is ultimately the cooperative attitude and not the extra commands that yields result. (C), An individual employee cannot be motivated by economic incentives alone. (D), Behaviour of an individual is dominated by the informal group, he is a member of. (E), In an organization, both morale and productivity go hand. (F) Signup and view all the answers

What are the Hawthorne studies?

The Hawthorne studies were a series of experiments conducted at the Hawthorne Works of Western Electric Company in Chicago from 1927 to 1932, to assess the impact of lighting and other factors on workers’ productivity. Signup and view all the answers

What did the Hawthorne studies indicate about the impact of human factors on worker productivity?

The group determines the norms of behavior for the group members and thus exercises a powerful influence on the attitudes and performance of individual workers. (A), The informal organization also exists within the framework of formal organization. (B), Every manager should adopt a sound human approach to all organizational problems. (C), Two-way communication is necessary because it carries necessary information downward for the proper functioning of the organization. (D), Social environment on the job affects the workers and is also affected by them. (E) Signup and view all the answers

What is the definition of ‘management by objectives’?

Management by Objectives (MBO) is a systematic and organized approach that enables management to focus on achievable goals and achieve the best possible outcomes from the resources available. Signup and view all the answers

Management by objectives (MBO) was first outlined by Peter Drucker in his book, ‘The Effective Executive’.

False (B) Signup and view all the answers

What are the four phases of the management by objectives (MBO) process?

Action Plan (A), Periodic Review (B), Final Review (C), Defining the Goal (D) Signup and view all the answers

Management by objectives (MBO) emphasizes on the participation in setting goals that are tangible, verifiable and measurable.

True (A) Signup and view all the answers

What are the four major components of a system?

Outputs (A), Feedback (B), Transformations (C), Inputs (D) Signup and view all the answers

What are the characteristics of the contingency school of management?

There is no one right way of handling all problems according to this principle. (A), The contingency theory is also known as a situational theory. (B), The response “it depends” holds good for several management situations. (C) Signup and view all the answers

The organization’s work flow is built around a network of relationships between authority and responsibilities.

True (A) Signup and view all the answers

The aim of organizing is to create a systemic structure within which managers and others are performing their roles.

True (A) Signup and view all the answers

What are two sub-processes of the organizing process?

Differentiation (A), Integration (B) Signup and view all the answers

The need for integration occurs because it is important to bring all the distinct units together, otherwise they would remain separated and fragmented.

True (A) Signup and view all the answers

What are the five benefits of organization?

Organizational structure provides a mechanism for managers to navigate organizational changes without compromising their cohesion and continuity. (A), It facilitates the orderly positioning of organizational work in terms of a network of individual jobs, sections and other work units. (B), Devolution of authority between different managerial positions is crucial for decision-making and control. (C), The communication structure is a formal organization in an integral element of the authority and activity structure. (D), Various processes that are the part of organizing function like, division of tasks, creation of compact and homogeneous work units, determination of appropriate spans of management, unity of command, parity of authority and responsibility etc. are meant for the protection of organization’s members from the perils of over-work, confusion, inter-position clashes, harassment and so on. (E), The creation of staff units to take over some of the work load of line managers is meant to give the latter some respite, so as to enable them to concentrate on their day-to-day management functions. (F), It enables an individual to know what is to be done, where one stands in the structure and what is their space and status. (G) Signup and view all the answers

What are the five steps in setting standards?

Standards should be flexible i.e., capable of being changed when the circumstances require so. (A), Standards should be precise, accurate, acceptable and also workable. (B), Standards should not be either too high or too low and should be realistic and attainable. (C), Standards are used as the criteria by which performance is measured in the control process. (D), The standards must be clear and intelligible. (E) Signup and view all the answers

What are the three steps involved in the control process?

Taking corrective action (A), Establishing standards (B), Measuring and comparing actual results against standards (C) Signup and view all the answers

The second step in the control process is to measure the performance and compare it with the predetermined standards.

True (A) Signup and view all the answers

What are the three actions involved in taking corrective action?

The manager should try to influence environmental conditions and external situations in such a way as to facilitate the achievement of objectives. (A), The manager must review with subordinates the instructions given earlier so that he may be able to give clear, complete and reasonable instructions in future. (B), There are many external forces which cannot be adjusted by the manager. They have to be accepted as the facts of the situation, and the executives should revise their plans in the light of these changing forces. (C) Signup and view all the answers

What are the four types of responsibility centers?

Profit Centre (A), Revenue Centre (B), Investment Centre (C), Cost Centre (D) Signup and view all the answers

The central control of cash enables the use of a smaller cash balance than would be the case if each business unit held cash balances sufficient to provide the required buffer for the unevenness of cash inflows and cash outflows.

True (A) Signup and view all the answers

For the purposes of assessing the efficiency of inventories, inventories should be priced at normal or average cost, if the business unit can influence the payment period allowed by creditors.

True (A) Signup and view all the answers

The strategic planning is an excellent resource for management preparation and education; it gives the managers an ability to think about plans and their execution.

True (A) Signup and view all the answers

Budgeting is used to establish cohesion between an organization’s various departments and emphasizes their interdependence.

True (A) Signup and view all the answers

Variance analysis is a systematic assessment of variances in an effort to provide managers with valuable knowledge for effectiveness calculation and performance enhancement.

True (A) Signup and view all the answers

A favorable variance indicates an efficiency and an unfavorable variance indicates the inefficiency of an organization.

True (A) Signup and view all the answers

The incentive compensation system is an important mechanism encouraging and motivating the managers to achieve the objectives of an organization.

True (A) Signup and view all the answers

What are the four key elements of the management by objectives (MBO) process?

Personal remuneration (A), Management control systems (B), Feedback regarding performance (C), Employee motivation (D) Signup and view all the answers

Strategies describe the general direction in which an organization plans to move to attain its objectives.

True (A) Signup and view all the answers

The logic for linking controls to strategy is based on the need for different task priorities.

True (A) Signup and view all the answers

Nonprofit organization managers are responsible for designing a proper management control system to ensure resource utilization is effective and efficient.

True (A) Signup and view all the answers

Professional service organizations have a high reliance on tangible assets.

False (B) Signup and view all the answers

The aim of a management control system is to ensure that all actions are consistent with the plan.

True (A) Signup and view all the answers

Planning is required at the outset of the management process.

True (A) Signup and view all the answers

What are the five elements of the mechanism of international regulation?

Location of decision-making (A), Organization Structure (B), Planning (C), Control mechanism (D), Special situations including the dynamics of control (E) Signup and view all the answers

Control systems are designed to gather and use data to assess the performance of various organisational resources.

True (A) Signup and view all the answers

The time rate of change does not affect the accuracy of control systems.

False (B) Signup and view all the answers

The control system should be designed to be sensitive enough to point out deviations from plans immediately.

True (A) Signup and view all the answers

Control systems should be formal and objective.

True (A) Signup and view all the answers

The control system should be built into the organizational structure.

True (A) Signup and view all the answers

The control system should be economical to operate.

True (A) Signup and view all the answers

A control system should give due allowance for factors or variables which cannot be controlled.

True (A) Signup and view all the answers

A control system should be understandable to those whose performance is sought to be regulated.

True (A) Signup and view all the answers

The responsibility accounting is a system of accounting where an organization’s different sections, divisions and departments are set up as ‘Responsibility Centres.’

True (A) Signup and view all the answers

Budgeting is a statement of anticipated results during a designated time period expressed in financial and non-financial terms.

True (A) Signup and view all the answers

A management information system (MIS) is defined as the assemblage of facilities and personnel for collecting, processing, storing, retrieving and transmitting information that is required by one or more managers in the performance of their functions.

True (A) Signup and view all the answers

Management audit is defined as systematic evaluation of the functioning, performance and effectiveness of management of an organisation.

True (A) Signup and view all the answers

The control system should be flexible and forward looking.

True (A) Signup and view all the answers

A profit center is an organization segment whose manager is responsible for both income and costs.

True (A) Signup and view all the answers

Flashcards

What is the purpose of control?

Control is based on facts, figures, and data to achieve and maintain acceptable productivity from resources. It's about achieving results, not punishing people.

What is the role of feedback in control?

Feedback, or information about performance, is crucial for effective control. It helps managers understand if operations align with plans and standards.

Why is control a dynamic and flexible process?

Control is a continuous process that involves reviewing performance, taking corrective actions, and potentially changing other management functions.

What makes control a continuous activity?

Control is a continuous activity that involves consistently analyzing performance, making adjustments, and ensuring alignment with plans and standards.

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Is control the opposite of freedom?

Control is not about restricting freedom. It's about using facts and data to improve productivity and achieve organizational goals.

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What is management?

Management is a continuous process of coordinating resources, planning, organizing, staffing, leading, and controlling to achieve specific goals.

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Why is management universal?

Management is relevant not just to businesses, but to all organized groups, including those in finance, social, religious, and educational fields.

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Is management an art?

Management involves using principles to make things happen, like an artist using techniques in their craft.

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Is management a science?

Management is a systematic study with established principles.

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What are the main functions of management?

The five key functions of management are planning, organizing, staffing, leading, and controlling.

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What is planning?

Planning involves setting goals, strategies, and actions to achieve them.

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What is organizing?

Organizing involves assigning tasks, allocating resources, and coordinating efforts.

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What is staffing?

Staffing involves finding the right people, training, and managing them.

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What is leading?

Leading involves motivating, inspiring, and guiding employees to achieve organizational objectives.

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What is controlling?

Controlling involves monitoring progress, measuring performance, and making adjustments to align with plans.

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What's the difference between administration and management?

Administration often refers to the management of non-profit organizations, while management is associated with business enterprises.

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What are top-level managers responsible for?

Top-level managers are responsible for setting strategic direction and overall goals.

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What are middle-level managers responsible for?

Middle-level managers focus on implementing top-level strategies and coordinating departments.

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What are first-level managers responsible for?

Supervisors or first-level managers oversee daily operations and direct employees.

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What is a manager?

A manager is someone who organizes, directs, and oversees the work of a group.

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What skills are essential for a manager?

Managers must be able to work with people, understand tasks, and make strategic decisions.

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What are technical skills?

Technical skills involve understanding tools, methods, and techniques specific to the industry or profession.

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What are human skills?

Human skills involve understanding and motivating people to work effectively together.

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What are conceptual skills?

Conceptual skills involve the ability to think strategically and understand how different parts of the organization fit together.

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What is bureaucratic management?

Bureaucracy, by Max Weber, emphasizes formal rules, hierarchy, and rational decision-making to ensure efficiency.

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What is scientific management?

Scientific management emphasizes applying scientific methods to optimize work processes.

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Who was Frederick W. Taylor?

Frederick W. Taylor, a pioneer in scientific management, focused on finding the most efficient ways to do tasks.

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What is administrative theory?

Administrative theory, by Henri Fayol, focuses on principles for managing and coordinating organizational activities.

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Who was Henri Fayol?

Henri Fayol, known for administrative theory, developed 14 principles for managing organizations.

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What are Theory X and Theory Y?

Douglas McGregor's Theory X assumes employees are lazy and need close supervision, while Theory Y believes employees are motivated and responsible.

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What is the human relations approach?

The human relations approach highlights the importance of social factors and employee well-being in organizations.

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What were the Hawthorne Studies?

The Hawthorne Studies, conducted at the Western Electric Company, showed the significance of social factors in influencing employee productivity.

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What is the behavioral approach to management?

The behavioral approach emphasizes understanding individual and group behavior in organizations.

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What is the neo-classical theory?

The neo-classical theory integrates insights from human relations and behavioral approaches into classical management principles.

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Study Notes