Organizational Control and Change
47 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the first step in the organizational change process?

  • Assess the need for change (correct)
  • Implement the change
  • Evaluate the change
  • Decide on the change to make
  • Which level of management is responsible for setting goals that align with corporate objectives?

  • Corporate-level managers (correct)
  • Divisional managers
  • Functional managers
  • Project managers
  • In the context of organizational control, what must managers balance?

  • Immediate profits with long-term strategies
  • Improving current operations with responding to unanticipated events (correct)
  • Staff productivity with cost reduction
  • Employee satisfaction with client feedback
  • Which of the following is NOT a step in the organizational change process?

    <p>Create a budget for the change initiative (D)</p> Signup and view all the answers

    What is involved in the evaluation step of the organizational change process?

    <p>Benchmarking pre-change and post-change performance (A)</p> Signup and view all the answers

    What is the primary goal of control and information systems in an organization?

    <p>To measure performance in transforming inputs into outputs (B)</p> Signup and view all the answers

    What type of control allows managers to anticipate problems before they arise?

    <p>Feedforward Control (B)</p> Signup and view all the answers

    Which of the following mechanisms is NOT associated with behavior control?

    <p>Financial performance measures (B)</p> Signup and view all the answers

    Which type of control provides insights about customer reactions to goods and services?

    <p>Feedback Control (B)</p> Signup and view all the answers

    Which of the following is considered a financial measure of performance?

    <p>Profit Ratios (B)</p> Signup and view all the answers

    What role does technology play in concurrent control?

    <p>To alert managers for immediate action as problems arise (C)</p> Signup and view all the answers

    What is the main function of operating budgets in organizational control?

    <p>To serve as a measure of performance (C)</p> Signup and view all the answers

    Which organizational control focuses on managing through established values and norms?

    <p>Culture/clan control (D)</p> Signup and view all the answers

    What is the primary objective of Lewin’s Force-Field Theory in the context of organizational change?

    <p>To increase forces for change or reduce resistance (D)</p> Signup and view all the answers

    In the context of organizational learning, what does the term 'impetus for change' refer to?

    <p>The motivation or drive behind organizational change (A)</p> Signup and view all the answers

    Which approach to implementing change is described as a gradual or evolutionary process involving all management levels?

    <p>Bottom-Up Change (D)</p> Signup and view all the answers

    What stage in Lewin's model of organizational change involves preparing for change by recognizing the need for it?

    <p>Unfreezing (D)</p> Signup and view all the answers

    What is a key characteristic of Management by Objectives (MBO)?

    <p>Goals are negotiated between managers and their subordinates. (B)</p> Signup and view all the answers

    Which control mechanism is aimed at managing potential problems before they occur?

    <p>Feedforward control (C)</p> Signup and view all the answers

    What is a significant problem associated with bureaucratic control?

    <p>It creates bureaucratic 'red tape' that hinders responsiveness. (D)</p> Signup and view all the answers

    How does an adaptive culture differ from an inert culture?

    <p>An adaptive culture promotes change and responsiveness to goals. (D)</p> Signup and view all the answers

    What is the correct order of stages in the organizational control process?

    <p>Establish standards, measure actual performance, provide feedback, make adjustments (A)</p> Signup and view all the answers

    What critical activity does benchmarking involve in the context of evaluating change?

    <p>Comparing performance with similarly high-performing organizations (D)</p> Signup and view all the answers

    Which of the following best describes the Balanced Scorecard's purpose?

    <p>To evaluate performance across diverse organizational perspectives. (C)</p> Signup and view all the answers

    Which of the following is NOT a part of the components of clan control?

    <p>Standard operating procedures. (A)</p> Signup and view all the answers

    Which of the following is NOT a stage in Lewin's three stages of change?

    <p>Integrating (D)</p> Signup and view all the answers

    What is a drawback of an inert organizational culture?

    <p>It can lead to stagnation and organizational failure. (D)</p> Signup and view all the answers

    In the context of organizational control, what is the role of bureaucratic control?

    <p>To regulate behavior through a stringent system of rules. (B)</p> Signup and view all the answers

    What is the objective of organizational change?

    <p>To shift toward a desired future state for better efficiency. (A)</p> Signup and view all the answers

    What is the primary purpose of organizational control in an organization?

    <p>To monitor and regulate performance towards achieving goals. (C)</p> Signup and view all the answers

    Which of the following is NOT a characteristic of an effective control system?

    <p>Focus solely on financial outcomes. (C)</p> Signup and view all the answers

    What are behavior controls primarily used for within an organization?

    <p>To manage and motivate employees. (B)</p> Signup and view all the answers

    How does organizational culture influence organizational control?

    <p>It can enhance the effectiveness of clan control systems. (D)</p> Signup and view all the answers

    Which of the following steps is NOT part of the control process?

    <p>Ignoring deviations. (A)</p> Signup and view all the answers

    What is a key disadvantage of output controls?

    <p>They may lead to a narrow view of employee performance. (B)</p> Signup and view all the answers

    Managing change within an organization is primarily considered a vital task for which reason?

    <p>It helps in adapting to environmental changes effectively. (D)</p> Signup and view all the answers

    Which of the following best describes control systems in an organization?

    <p>They include evaluation and feedback mechanisms. (A)</p> Signup and view all the answers

    What is the formula for calculating Return on Investment (R.O.I)?

    <p>$ rac{PPR}{TAA}$ (D)</p> Signup and view all the answers

    Which of the following ratios assesses how efficiently an organization uses its resources?

    <p>Operating Margin (B)</p> Signup and view all the answers

    What does the Quick Ratio indicate?

    <p>If a company can pay short-term liabilities without selling inventory (C)</p> Signup and view all the answers

    Which ratio helps determine the extent to which managers have used borrowed funds?

    <p>Debt-to-Asset Ratio (B)</p> Signup and view all the answers

    What is the purpose of the Times-Covered Ratio?

    <p>To determine how much profit can decline before interest charges cannot be met (A)</p> Signup and view all the answers

    Which ratio measures how well managers protect resources to meet short-term debts?

    <p>Quick Ratio (B)</p> Signup and view all the answers

    What does the formula for Operating Margin represent?

    <p>$ rac{Operating Profit}{Total Revenue}$ (D)</p> Signup and view all the answers

    Which of the following is a measure of activity ratios?

    <p>Inventory Turnover (B)</p> Signup and view all the answers

    The formula for the Current Ratio is best defined as?

    <p>$ rac{Current Assets}{Current Liabilities}$ (B)</p> Signup and view all the answers

    How is the Debt-to-Asset Ratio calculated?

    <p>$ rac{Total Debt}{Total Assets}$ (A)</p> Signup and view all the answers

    Study Notes

    Organizational Control and Change

    • Organizational control is the process of monitoring and regulating how efficiently and effectively an organization and its members perform activities to achieve organizational goals.
    • Organizational control increases organizational effectiveness by monitoring progress, identifying problems, and taking corrective action.
    • The control process involves four steps: establishing performance standards, measuring performance, comparing actual and expected performance, and taking corrective action.
    • Output controls focus on measurable results. Examples include financial ratios, profit ratios, return on investment, operating margin, liquidity ratios (current ratio, quick ratio), and leverage ratios(debt-to-asset ratio, times-covered ratio). Activity ratios measure efficiency in asset use, including inventory turnover and days sales outstanding. Organizational goals provide direction and motivation to achieve corporate results. Operating budgets outline the allocation of resources for achieving goals effectively and efficiently.
    • Behavior controls focus on employee actions, including direct supervision, management by objectives (MBO), the balanced scorecard, and bureaucratic control. Direct supervision actively monitors employee behavior and corrects as needed. MBO involves setting specific goals between managers and subordinates to achieve goals and objectives. The balanced scorecard has four dimensions (financial, customer service, internal business processes, and organizational capability for strategic learning and growth) and provides a holistic performance measure. Bureaucratic control utilizes rules and standard operating procedures to guide employee behavior.
    • Organizational culture or clan control involves shared values, norms, and expectations that guide employee behavior and influence work relationships to achieve organizational goals. Adaptive cultures facilitate organizational growth by responding to changes. Inert cultures often fail because the values and norms do not motivate employees.

    Organizational Change

    • Organizational change is a movement away from a current state toward a desired future state to increase an organization's efficiency and effectiveness.
    • The force field theory of change indicates that forces for change and resistance to change are always in opposition. Managers must increase supportive forces or reduce resistance. The three stages of change are unfreezing, changing, and refreezing.
    • Assessing the need for change involves recognizing a problem, identifying its source, deciding on the desired future state, and identifying obstacles. Implementing includes deciding if change occurs from the top-down or bottom-up, and introducing and managing change. Assessing results involves comparing pre- and post-change performance and using benchmarking.
    • Managers need to balance the need to improve current operations with the need to respond to new events when making change.
    • Organizational learning is a process where managers attempt to increase organizational members' abilities to understand and respond appropriately to changes.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Description

    This quiz explores the concepts of organizational control and the techniques used to monitor and improve performance within an organization. It covers the four steps of the control process, types of control mechanisms, and the importance of output controls in achieving organizational goals. Test your knowledge on how effective monitoring can drive organizational success.

    More Like This

    Nature of Controlling in Management
    24 questions

    Nature of Controlling in Management

    DefeatedConstructivism963 avatar
    DefeatedConstructivism963
    Management Control Systems Quiz
    48 questions
    Management Control Fundamentals - Chapter 9
    10 questions
    Use Quizgecko on...
    Browser
    Browser