RUTGERS INTRO TO MANAGEMENT
EXAM #2 – LUCAS QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
Control - ANS consists of monitoring performance, comparing it with goals, and taking
corrective action as needed
Control helps an organization by - ANS 1. adapt to change and uncertainty
2. discover irregularities and errors
3. reduce cost, increase productivity, or add value
4. detect opportunities
5. provide performance feedback
6. decentralize decision making and facilitate teamwork
4 steps of control process - ANS 1. Establish standards
2. Measure performance
3. compare performance to standards
4. take corrective action, if necessary
Control Standard - ANS is the desired performance level of a given goal
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Sources of performance data - ANS 1. Employee behavior and deliverables (are employees
achieving their objectives?)
2. Peer input or observations
3. Customer feedback
4. Managerial observations
5. Output from a production process
Control Charts - ANS are a visual statistical tool used for quality control purposes
Management By Exception - ANS is a control principle that states that managers should be
informed of a situation only if data show a significant deviation from standards
After comparing performance to standards, there are three possible courses of action: -
ANS 1. Make no changes
2. Recognize and reinforce positive performance
3. Take action to correct negative performance
Concurrent Control - ANS entails collecting performance information in real-time.
- Helps managers to determine if employees and processes conform to standards and
regulations
Feedback Control - ANS amounts to collecting performance information after a task or
project is done.
- Example: customer feedback after they have purchased a product is used to improve the
product
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Balance Scorecard - ANS is a form of control; it provides top managers with a fast but
comprehensive view of the organization via four indicators:
1. Financial metrics. - Examples: revenue or profit growth, return on equity (ROE)
2. Customer metrics. - How do customers see us?
3. Internal business process metrics.
4. Innovation and learning metrics.
Fixed budget - ANS is a projection in which resources are allocated on a single estimate of
costs
- Does not allow for adjustment over time
- If you are allocated $50,000 for buying equipment in a given year, that is your budget limit
even if revenues are much higher than expected
Variable Budget - ANS allocates resources in proportion with various levels of activity.
- The budget can be adjusted over time (the standards change) to accommodate relevant
changes in the environment
Financial Statement - ANS summary of some aspect of an organization's financial status
Balance Sheet - ANS summarizes an organization's overall financial worth - that is, assets and
liabilities - at a specific point in time
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM #2 – LUCAS QUESTIONS AND
ANSWERS. VERIFIED 2025/2026.
Control - ANS consists of monitoring performance, comparing it with goals, and taking
corrective action as needed
Control helps an organization by - ANS 1. adapt to change and uncertainty
2. discover irregularities and errors
3. reduce cost, increase productivity, or add value
4. detect opportunities
5. provide performance feedback
6. decentralize decision making and facilitate teamwork
4 steps of control process - ANS 1. Establish standards
2. Measure performance
3. compare performance to standards
4. take corrective action, if necessary
Control Standard - ANS is the desired performance level of a given goal
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Sources of performance data - ANS 1. Employee behavior and deliverables (are employees
achieving their objectives?)
2. Peer input or observations
3. Customer feedback
4. Managerial observations
5. Output from a production process
Control Charts - ANS are a visual statistical tool used for quality control purposes
Management By Exception - ANS is a control principle that states that managers should be
informed of a situation only if data show a significant deviation from standards
After comparing performance to standards, there are three possible courses of action: -
ANS 1. Make no changes
2. Recognize and reinforce positive performance
3. Take action to correct negative performance
Concurrent Control - ANS entails collecting performance information in real-time.
- Helps managers to determine if employees and processes conform to standards and
regulations
Feedback Control - ANS amounts to collecting performance information after a task or
project is done.
- Example: customer feedback after they have purchased a product is used to improve the
product
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Balance Scorecard - ANS is a form of control; it provides top managers with a fast but
comprehensive view of the organization via four indicators:
1. Financial metrics. - Examples: revenue or profit growth, return on equity (ROE)
2. Customer metrics. - How do customers see us?
3. Internal business process metrics.
4. Innovation and learning metrics.
Fixed budget - ANS is a projection in which resources are allocated on a single estimate of
costs
- Does not allow for adjustment over time
- If you are allocated $50,000 for buying equipment in a given year, that is your budget limit
even if revenues are much higher than expected
Variable Budget - ANS allocates resources in proportion with various levels of activity.
- The budget can be adjusted over time (the standards change) to accommodate relevant
changes in the environment
Financial Statement - ANS summary of some aspect of an organization's financial status
Balance Sheet - ANS summarizes an organization's overall financial worth - that is, assets and
liabilities - at a specific point in time
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
