MGT 330 Chapter 11 Exam Questions with Verified Answers (Graded A+)

MGT 330 Chapter 11 Exam Questions with Verified Answers (Graded A+) Controlling - Answers the process whereby managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals Organizational control - Answers helps managers obtain superior efficiency, quality, responsiveness to customers and innovation -important in determining the quality of goods because it gives managers feedback on product quality Control systems - Answers formal target-setting, monitoring, evaluation and feedback systems that provide managers with information about whether the organizations strategy and structure are working efficiently and effectively An effective control system has 3 characteristics; - Answers 1. It is flexible enough to allow managers to respond as necessary to unexpected events 2. It provides accurate information about organizational performance 3. It gives managers information in a timely manner because making decisions on the basis of outdated information is a recipe for failure At the input stage: - Answers managers use feedforward control to anticipate problems before they arise so problems do not occur later during the conversion process. At the conversion stage: - Answers concurrent control gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise Concurrent control - Answers at the heart of total quality management programs because workers are expected to constantly monitor the quality of the goods and serves at every step of the process and inform managers as soon as they discover a problem At the output stage: - Answers managers use feedback control to provide information about customers reactions to goods and services so corrective action can be taken if needed The control process at any stage can be broken down into 4 steps: - Answers 1. Establish the standards of performance, goals or targets against which performance is to be evaluated 2. Measure actual performance Compare actual performance against chosen standards of performance 3. Evaluate the result and initiate corrective action if the standard is not being achieved Output control has 3 mechanisms used to asses control or performance; - Answers 1. Financial Measures of Performance 2. Organizational Goals 3. Operating Budgets Profit Ratios - Answers Measure how efficiently managers are using the organizations resources to generate profits Liquidity Ratios - Answers Measure how well managers have protected organizational resources to be able to meet short-term obligations Leverage Ratios - Answers Measure the degree to which managers use debt or equity to finance ongoing operations Activity Ratios - Answers Show how well managers are creating value from organizational assets Corporate level managers - Answers set goals for individual divisions that will allow the organization to achieve corporate goals Divisional managers - Answers set goals for each function that will allow the division to achieve its goals Functional managers - Answers set goals for each individual worker that will allow the function to achieve its goals An operating budget - Answers a blueprint that states how managers intend to use organizational resources to achieve organizational goals efficiently Types of Behavior Control - Answers 1. Direct Supervision 2. Management of Objectives