Types of Management Control - Other Key Issues

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Which type of control system emphasizes the use of external market mechanisms to establish the standards used in the control system?

Market Control (correct)
Bureaucratic Control
Formal Control System
Clan Control

Which of the following is NOT a component of the formal management control system of a company?

Shared values and organizational culture (correct)
Incentive plans
Performance measures
Explicit rules and procedures

Which type of control system regulates behavior by shared values, norms, traditions, rituals, and beliefs of the firm's culture and group members?

Bureaucratic Control
Clan Control (correct)
Market Control
Formal Control System

Which of the following is NOT an example of an informal management control system?

The management accounting system (C) Signup and view all the answers

Which type of control system emphasizes organizational authority and relies on rules, regulations, procedures, and policies?

Bureaucratic Control (C) Signup and view all the answers

Which of the following is a component of the formal management control system of a company?

The human resources system (C) Signup and view all the answers

What is one of the main control problems that may be more salient in not-for-profit organizations due to diminished employee quality?

Personal limitations of employees (A) Signup and view all the answers

What is a characteristic of healthcare organizations as mentioned in the passage?

Variety of employee backgrounds and cognitive distance between professionals (C) Signup and view all the answers

What is one potential issue mentioned in the passage regarding the lack of formal controls in healthcare organizations?

The lack of formal controls becomes problematic (A) Signup and view all the answers

According to the passage, what is one of the main control problems in not-for-profit organizations?

Diminished employee quality (D) Signup and view all the answers

What is a special characteristic of healthcare organizations mentioned in the passage?

Change in mix of service providers (D) Signup and view all the answers

Which type of control mechanism focuses on flexibility and facilitating interaction and creativity?

Organic control systems (B) Signup and view all the answers

What is the primary purpose of feedforward control mechanisms?

To prevent anticipated problems before they occur (C) Signup and view all the answers

Which of the following is NOT a key advantage of feedback control systems?

Allowing for real-time adjustments to ongoing activities (C) Signup and view all the answers

What is the primary purpose of concurrent control mechanisms?

To monitor an activity while it is in progress (D) Signup and view all the answers

Which type of control mechanism relies on formal rules, standardized operating procedures and routines?

Mechanistic control systems (B) Signup and view all the answers

What is a key difference between feedforward and feedback control mechanisms?

Feedforward controls prevent problems before they occur, feedback controls take corrective action after the fact (D) Signup and view all the answers

Which of the following is NOT a feature of enabling control repair as described in the text?

Restricting worker autonomy in solving process inefficiencies (A) Signup and view all the answers

What is the primary concern of flexibility in enabling control, according to the text?

Allowing employees to deviate from procedures when the situation requires it (A) Signup and view all the answers

Internal transparency, as described in the text, refers to which of the following?

Visibility of routines and procedures that enable employees to understand work processes (D) Signup and view all the answers

What is the primary focus of global transparency?

Enabling employees to understand how their work fits into the overall organization (C) Signup and view all the answers

Which of the following statements is NOT supported by the information provided in the text?

Global transparency involves giving employees discretion in defining standard costs (B) Signup and view all the answers

Based on the information in the text, which of the following is a correct interpretation of the relationship between internal and global transparency?

Internal transparency is concerned with understanding work processes, while global transparency is about understanding the broader organizational context (C) Signup and view all the answers

What is the primary objective of using interactive management control systems (MCS)?

To identify sources of uncertainty and encourage new ideas for revising initial estimates (D) Signup and view all the answers

What is a key characteristic of interactive management control system (MCS) use?

Continuous challenge, debate, and action plans (C) Signup and view all the answers

According to Adler and Borys (1996), what characterizes enabling formal control systems?

Granting greater responsibility and autonomy to employees (C) Signup and view all the answers

What is a typical outcome of enabling control systems, according to the text?

Psychological empowerment of employees (B) Signup and view all the answers

How does the text describe the relationship between enabling and coercive control systems?

Coexistence of the two types is possible when the manager has the freedom to choose (B) Signup and view all the answers

What is a characteristic of coercive control systems?

Presenting a tendency towards rigid and barely interactive processes (D) Signup and view all the answers