Topic 2 - Types of Management Control (I)
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Questions and Answers

What is the primary purpose of redundancy as an action control?

  • To increase the sense of responsibility for actions
  • To increase the probability that a task will be properly executed (correct)
  • To enhance personal capabilities of employees
  • To improve employee motivation
  • Which type of action control is most effective in addressing motivational problems?

  • Behavioral constraints (correct)
  • Pre-action reviews
  • Redundancy
  • Action accountability
  • What is the primary purpose of personnel controls?

  • To clarify expectations and ensure employees understand what the organization wants
  • To increase the likelihood of self-monitoring
  • To ensure employees possess the required capabilities and resources
  • All of the above (correct)
  • Which action control is most effective in addressing personal limitations of employees?

    <p>Pre-action reviews</p> Signup and view all the answers

    How do action accountability controls help address control problems?

    <p>By increasing the sense of responsibility and informing employees of the consequences of undesired actions</p> Signup and view all the answers

    Which action control is most effective in addressing a lack of direction among employees?

    <p>Pre-action reviews</p> Signup and view all the answers

    Which of the following is NOT a key element of results controls in an organization?

    <p>Implementing physical or administrative behavioral constraints</p> Signup and view all the answers

    What is the primary disadvantage of results controls according to the text?

    <p>Employees may over-focus on specific targets and miss the overall strategy</p> Signup and view all the answers

    Which of the following is NOT a key advantage of results controls mentioned in the text?

    <p>Encourage employees to focus on the overall organizational strategy</p> Signup and view all the answers

    What is the primary purpose of action controls according to the text?

    <p>To ensure employees act in the organization's best interest</p> Signup and view all the answers

    Which of the following is NOT a form of action control mentioned in the text?

    <p>Providing rewards related to target attainment</p> Signup and view all the answers

    What is the relationship between results controls and action controls according to the text?

    <p>Results controls focus on outcomes, while action controls focus on employee behavior</p> Signup and view all the answers

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

    <p>To address potential issues or problems that may arise in achieving desired outcomes</p> Signup and view all the answers

    Which control mechanism is primarily focused on ensuring employees understand their roles and responsibilities?

    <p>Action Controls</p> Signup and view all the answers

    What is the primary benefit of Results Controls in addressing control problems?

    <p>They motivate employees to pursue organizational objectives by aligning their actions with desired results</p> Signup and view all the answers

    Which control mechanism is primarily concerned with addressing personal limitations of employees?

    <p>Personnel Controls</p> Signup and view all the answers

    What is the primary role of Cultural Controls in an organization?

    <p>To foster a shared set of values, beliefs, and norms that guide employee behavior</p> Signup and view all the answers

    Which statement best describes the relationship between control mechanisms and core management functions?

    <p>Control mechanisms link and support the effective execution of core management functions</p> Signup and view all the answers

    Which of the following is an example of an indirect cost?

    <p>All of the above</p> Signup and view all the answers

    What is the primary issue when a company seeks to become more technologically innovative but lacks employees with an R&D background?

    <p>Inappropriate allocation of resources for research and development</p> Signup and view all the answers

    If a company's best employees consistently miss sales targets, which of the following could be a contributing factor?

    <p>All of the above</p> Signup and view all the answers

    Which of the following statements best describes the concept of goal congruence?

    <p>Both a) and b)</p> Signup and view all the answers

    If a company experiences low productivity from its HR team, which type of cost could be a potential factor?

    <p>Indirect costs due to inappropriate control systems</p> Signup and view all the answers

    If shareholders are unsatisfied with their return on investment, which of the following could be a contributing factor?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is NOT one of the means of implementing cultural controls?

    <p>Monetary incentives based on individual performance</p> Signup and view all the answers

    Which control problem can be addressed by both personnel controls and cultural controls?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is NOT a means of implementing personnel controls mentioned in the text?

    <p>Performance appraisals and incentive systems</p> Signup and view all the answers

    Which of the following is a direct cost associated with implementing controls?

    <p>Audit fees for ensuring compliance with action controls</p> Signup and view all the answers

    Which of the following is an example of a 'tone at the top' cultural control mentioned in the text?

    <p>Managers stating and repeating phrases that capture and promote the organizational culture</p> Signup and view all the answers

    Based on the information provided, which of the following statements is TRUE?

    <p>Direct costs of implementing controls include bonuses for achieving targets of results controls.</p> Signup and view all the answers

    Study Notes

    Management Control

    • Management control is crucial as it links planning, empowering employees, and protecting the workplace.

    Types of Management Control

    • Results Controls: involve defining performance measures, setting targets, and providing rewards.
    • Action Controls: ensure employees act in the organization's best interest through behavioral constraints, pre-action reviews, action accountability, and redundancy.
    • Personnel Controls: clarify expectations, ensure capabilities, and increase self-monitoring through human resource selection, training, job design, and sourcing.
    • Cultural Controls: encourage mutual monitoring through codes of conduct, group rewards, employee internal rotation, physical arrangements, and "tone at the top".

    Control Problems and Mechanisms

    • Control Problems: lack of direction, motivational problems, and personal limitations.
    • Control Mechanisms: results controls, action controls, personnel controls, and cultural controls.

    Effective Management Control and Motivation

    • Motivation is the desire to attain a selected goal, involving goal-congruence and effort aspects.

    Control Costs

    • Direct Costs: out-of-pocket costs related to controls, such as bonuses and audit fees.
    • Indirect Costs: costs linked to the design of inappropriate controls that detach employee behavior from real organizational objectives.
    • Adaptation Costs: costs incurred to adapt the organization's control systems across different business units and environments.

    Examples of Control Problems

    • Company seeking to become more technologically innovative but lacking R&D background.
    • Best employees consistently missing sales targets.
    • Units produced not meeting forecasted demands or presenting defects.
    • HR manager complaining about low productivity.
    • Shareholders unsatisfied with return on investment.

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    Description

    Learn about the importance of control in management, how it links to planning, empowers employees, and protects the workplace. Explore control problems and mechanisms in management.

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