CHAPTER 9. CONTROLLING — REVIEW

Which term refers to the systematic process managers use to regulate organizational activities to ensure they align with established plans and performance standards?

• Strategic Planning

• Leading

• Organizational control

• Organizing

Answer explanation

The term 'Organizational control' refers to the systematic process managers use to monitor and regulate activities, ensuring they align with plans and performance standards, making it the correct choice.

What is the initial stage in the four-step feedback control model?

• Establishing standards of performance

• Comparing performance to standards

• Measuring actual performance

• Taking corrective action

Answer explanation

The initial stage in the four-step feedback control model is establishing standards of performance. This step sets the benchmarks against which actual performance will be measured and compared.

In the feedback control model, what is the second step that involves formalizing quantitative data for review?

• Measuring actual performance

• Developing a budget

• Adjusting standards

• Selecting a strategy

Answer explanation

In the feedback control model, the second step is 'Measuring actual performance', which involves collecting and formalizing quantitative data to assess how well the actual performance aligns with the established standards.

When a manager identifies a significant variance between actual results and the desired target, what is the appropriate final step in the control process?

• Hire more employees

• Take corrective action

• Redefine the mission

• Do nothing

Answer explanation

When a manager sees a significant variance, the final step is to take corrective action. This ensures that the organization can address the issues and align actual results with the desired targets.

The "Balanced Scorecard" is a management system that integrates traditional financial data with operational measures related to:

• Macro-economic indicators

• Critical success factors

• Competitor secrets

• Weather conditions

Answer explanation

The Balanced Scorecard focuses on integrating financial data with operational measures that reflect critical success factors, which are essential for achieving strategic objectives.

Which area of the balanced scorecard focuses specifically on how well the organization meets the needs of its buyers?

• Financial performance

• Learning and growth

• Customer service

• Internal business processes

Answer explanation

The customer service area of the balanced scorecard specifically addresses how well the organization meets the needs of its buyers, focusing on customer satisfaction and retention.

Within the balanced scorecard, which perspective evaluates if the organization is learning, changing, and improving its human capital?

• Customer service

• Learning and growth

• Internal business processes

• Financial performance

Answer explanation

The 'Learning and growth' perspective in the balanced scorecard focuses on the organization's ability to learn, adapt, and enhance its human capital, making it the correct choice for evaluating improvement in these areas.

Which control philosophy emphasizes top-down authority, detailed rules, and close supervision of employees?

• Decentralized control

• Hierarchical control

• Open-book management

• Total Quality Management

Answer explanation

Hierarchical control emphasizes a clear chain of command, strict rules, and close supervision, making it the correct choice for a control philosophy that prioritizes top-down authority.

Decentralized control is characterized by a reliance on which of the following to foster compliance?

• Extrinsic rewards only

• Rigid policies and procedures

• Quality control inspectors

• Shared values and trust

Answer explanation

Decentralized control relies on shared values and trust to foster compliance, as it encourages collaboration and commitment among individuals, rather than relying solely on external rewards or strict oversight.

What is the name for the use of software programs to set employee targets and provide performance feedback?

• Algorithmic control

• Hierarchical monitoring

• Benchmarking

• Scenario building

Answer explanation

Algorithmic control refers to using software to set employee targets and provide performance feedback, making it the correct choice. It leverages data-driven methods to monitor and evaluate employee performance effectively.