Management Control

What is the primary purpose of control in management?

• To increase the workload of employees

• To monitor activities and correct deviations

• To reduce the need for planning

• To eliminate competition

Which of the following is NOT a characteristic of bureaucratic control?

• Use of rules and regulations

• Emphasis on organizational authority

• Shared values and norms

• Standardization of activities

Which of the following control approaches relies on market mechanisms such as price competition?

• Bureaucratic control

• Clan control

• Market control

• Strategic control

The first step in the control process is:

• Measuring actual performance

• Taking corrective action

• Comparing performance with standards

• Revising standards

What is an example of feedforward control?

• Supervising employees during production

• Inspecting finished products for defects

• Designing quality into a product before production

• Evaluating customer feedback after sales

Which performance measure considers the overall output of goods and services divided by the inputs used?

• Profitability

• Productivity

• Effectiveness

• Efficiency

What is benchmarking?

• Setting unrealistic goals for employees

• Reducing the size of an organization

• Increasing employee salaries

• Comparing performance with industry best practices

Which of the following is NOT a financial control tool?

• Ratio analysis

• Budget analysis

• Market share analysis

• Economic Value Added (EVA)

What type of control occurs after an activity is completed?

• Feedback control

• Feedforward control

• Concurrent control

• Clan control

Which of the following is NOT a method of measuring performance?

• Personal observation

• Reports and charts

• Guesswork

• Performance statements