Testbank of fundamental of management 7e by robin ch 13

Fundamentals of Management, 7e (Robbins/DeCenzo/Coulter) Chapter 13 Foundations of Control 1) Control is the process of monitoring and evaluating activities to ensure that they are being accomplished as planned Answer: TRUE Explanation: Managers can't know how successful operations are until they have been compared to a standard Diff: Page Ref: 350 Objective: 13.1 2) The criterion that determines the effectiveness of a control system is how well it reduces unnecessary costs Answer: FALSE Explanation: Goals, not costs, determine the effectiveness of a control system The more a control system helps the organization achieve its goals, the more effective and successful it is Diff: Page Ref: 350 Objective: 13.1 3) Control is the only managerial function that allows managers to make sure that organizational goals are being met Answer: TRUE Explanation: Plans can be carried out with motivated employees, but without monitoring there is no way to be sure that goals are actually being met Diff: Page Ref: 350 Objective: 13.1 4) The value of the control function lies in three areas: planning, organizing, and motivating Answer: FALSE Explanation: The value of the control function is seen in three areas: planning, empowering employees, and protecting the workplace Diff: Page Ref: 350 Objective: 13.1 5) An effective control system can help managers delegate authority to employees with confidence Answer: TRUE Explanation: Empowering employees can be fraught with dangers unless proper control measures are in place to make sure that work is being put out in an efficient, effective, and timely manner Diff: Page Ref: 351 Objective: 13.1 Copyright © 2011 Pearson Education, Inc 6) The control function is not intended to protect the organization from threats Answer: FALSE Explanation: A major function of a control system is to protect the organization from threats that might arise from disruptions, security breaches, unexpected financial events, and other similar problems Diff: Page Ref: 351 Objective: 13.1 7) Motivation and leadership are two primary parts of the control function Answer: FALSE Explanation: Motivation and leadership are part of the managerial function of leading, not the controlling function Diff: Page Ref: 351 Objective: 13.1 8) Controlling provides a critical link back to planning that compares actual outcomes to planned outcomes Answer: TRUE Explanation: Without the assessment that takes place during the controlling function, there is no accurate way to determine whether or not planning goals have been carried out and met Diff: Page Ref: 351 Objective: 13.1 9) The control process is a two-step process that measures and compares Answer: FALSE Explanation: The control process is a three, not a two-step process that includes measuring performance, comparing performance against a standard, and taking action, if necessary Diff: Page Ref: 352 Objective: 13.2 10) The development or identification of objectives or standards must precede the control process Answer: TRUE Explanation: The measurement of performance during the control process must have some standard to measure against Usually the standard is set during the planning phase of the operation being carried out, before the control process begins Diff: Page Ref: 352 Objective: 13.2 11) Personal observation as a form of control measurement requires little time Answer: FALSE Explanation: Personal observation in fact requires a great deal of time, so the statement is false Diff: Page Ref: 352 Objective: 13.2 Copyright © 2011 Pearson Education, Inc 12) MBWA can pick up moods and attitudes that other forms of measurement miss Answer: TRUE Explanation: By virtue of it being a personal action, MBWA, or management by walking around, can detect moods, attitudes, tones of voice, and other subjective and emotional forms of information that other types of measurement miss Diff: Page Ref: 352 Objective: 13.2 13) A major drawback of an oral report is that there is no way to store the information in the report for later reference Answer: FALSE Explanation: New technologies, such as videotaping oral reports, mean that documentation of an oral report is no longer impossible to carry out Diff: Page Ref: 352 Objective: 13.2 14) What is measured in the control process is often less critical than how it is measured Answer: FALSE Explanation: The opposite is true—what is measured is usually more, not less important than how it is measured The criteria that managers choose to measure often define how an organization will operate Diff: Page Ref: 352 Objective: 13.2 15) Some control criteria, such as employee satisfaction or absenteeism, are applicable to almost any management situation Answer: TRUE Explanation: In almost all situations the success of managers is related to how satisfied employees are and how dedicated they are to their jobs, so these criteria are fairly universal Diff: Page Ref: 352 Objective: 13.2 16) A gap between actual performance and planned goals that falls within an acceptable range of variation usually requires managerial action Answer: FALSE Explanation: Only when the gap between actual performance and goals falls out of an acceptable range of variation is action required Diff: Page Ref: 354-356 Objective: 13.2 17) Henry Ford basing his assembly line on practices he viewed in Chicago slaughterhouses is an example of benchmarking Answer: TRUE Explanation: Benchmarking is the practice of adopting methods from other industries to improve your own industry Ford was indeed benchmarking when he took the division of labor practices seen in slaughterhouses and adopted them in car-building Diff: Page Ref: 356 Objective: 13.2 Copyright © 2011 Pearson Education, Inc 18) A single business cannot experience both underperformance and overperformance at the same time Answer: FALSE Explanation: As the example on page 356 shows, one part of a business can exceed goals while another segment can underperform Therefore, both phenomena can occur at the same time Diff: Page Ref: 356 Objective: 13.2 19) Immediate corrective action might include changing the way employees are paid for their work Answer: TRUE Explanation: Immediate corrective action includes any practice that can work to correct a performance deviation—which could include extra training, stiff discipline, or a new pay scale that, for example, pays employees by the piece rather than by the hour Diff: Page Ref: 356 Objective: 13.2 20) Basic corrective action focuses on identifying the cause of a performance deviation Answer: TRUE Explanation: Basic corrective action looks to find out how and why performance didn't meet goals, not how to correct the situation Diff: Page Ref: 356 Objective: 13.2 21) An example of revising a standard is a teacher who changes a grading scale because students poorly on an exam Answer: TRUE Explanation: Rather than blame poor performance on the students themselves, the teacher in this case assumes that the standard, the grading scale for the test, was too high and adjusts it downward Diff: Page Ref: 356 AACSB: Analytic Skills Objective: 13.2 22) The key to feedforward controls is taking action while the problem is occurring Answer: FALSE Explanation: The key to feedforward control is taking action before the problem occurs, not while it occurs Diff: Page Ref: 357 Objective: 13.2 23) A spell-checker that corrects words as you type in a word processing program is an example of feedforward control Answer: FALSE Explanation: A spell-checker that corrects words as they are being typed is making the correction as the event occurs, so it is an example of concurrent control, not feedforward control Diff: Page Ref: 356-357 AACSB: Communication Objective: 13.2 Copyright © 2011 Pearson Education, Inc 24) Direct supervision is the best-known form of concurrent control Answer: TRUE Explanation: When managers overlook what workers are doing and make corrections in realtime they are using concurrent control Diff: Page Ref: 357 Objective: 13.3 25) A GPS that tells you that you are making a wrong turn is an example of concurrent control Answer: TRUE Explanation: The GPS is operating in real-time and correcting the situation as the event is occurring, making it a concurrent form of control Diff: Page Ref: 358 AACSB: Analytic Skills Objective: 13.3 26) A major advantage of feedforward control is that it increases employee motivation Answer: FALSE Explanation: Feedback control, not feedforward control, is best for motivation, because it provides information so employees can know exactly how their performance measures up Diff: Page Ref: 358 Objective: 13.3 27) The major drawback of feedback control is that by the time the manager has the information, the problem has already occurred Answer: TRUE Explanation: Feedback always takes place after the fact Therefore a major drawback to feedback control is that it cannot anticipate problems or deal with ongoing problems Diff: Page Ref: 359 Objective: 13.3 28) Performance feedback should focus on general rather than specific employee work behaviors Answer: FALSE Explanation: The reverse is true—in order to be well understood and accepted, performance feedback should be specific rather then general, giving the employee specific items to consider and improve Diff: Page Ref: 359 Objective: 13.3 29) Negative performance feedback should focus on behaviors that the employee can control Answer: TRUE Explanation: Little benefit can come from suggestions that are beyond an employee's control Improvement can occur only if feedback focuses on behaviors that can be changed, rather than innate or immutable traits Diff: Page Ref: 359 Objective: 13.3 Copyright © 2011 Pearson Education, Inc 30) Performance feedback should avoid reference to hard data Answer: FALSE Explanation: Hard data is preferable over other forms of information for performance feedback When presented with clear facts and hard data, resistance on the part of the employee is much less likely Diff: Page Ref: 359 Objective: 13.3 31) Profitability ratios are a traditional way for a company to measure success Answer: TRUE Explanation: Profitability ratio, identified as net profit after taxes over total sales or assets, is a useful traditional way to measure how efficiently company assets produce profit Diff: Page Ref: 360 Objective: 13.3 32) Budgets can be effective tools for both planning and controlling Answer: TRUE Explanation: Budgets are highly effective planning tools However, once created, budgets also function as effective controlling tools since they can be used as standards for gauging monetary activity Diff: Page Ref: 360 Objective: 13.3 33) A management information system (MIS) focuses on providing managers with the raw data that pertains to the organization Answer: FALSE Explanation: The goal of an MIS is to give managers access to useful, processed data that has been organized and interpreted, not raw data Diff: Page Ref: 361 Objective: 13.3 34) Firewalls, data backup, and encryption help prevent security breaches in organizations Answer: TRUE Explanation: These measures can prevent ordinary breaches for the most part In rare cases, even with these measures, compromising information can leak out into the world at large, so most organizations need all of the security instruments they can get Diff: Page Ref: 361 Objective: 13.3 35) A balanced scorecard with respect to organizational performance includes areas that are financial and customer-oriented only Answer: FALSE Explanation: A balanced scorecard also includes assets from internal processes within the organization, as well as assets from people/ innovation/growth Diff: Page Ref: 361 Objective: 13.3 Copyright © 2011 Pearson Education, Inc 36) A scorecard with respect to organizational performance should always focus on all four performance areas equally Answer: FALSE Explanation: Many organizations choose not to use a balanced approach, but rather to focus disproportionately on one (or more than one) particular area, such as customer relations, and deemphasize other areas Diff: Page Ref: 361 Objective: 13.3 37) Management of a global company often relies on highly formalized reports as controls for distant operations Answer: TRUE Explanation: Without being able to observe a distant operation directly, managers of global companies often need to rely on formal reports and other formal measures Diff: Page Ref: 362 AACSB: Globalizations Objective: 13.4 38) Control measures in two different locations in different parts of the world are always comparable Answer: FALSE Explanation: In fact, control measures are often not comparable Profit per worker, for example, may be wildly different in Mexico than it is in France, so control measures must reflect these differences Diff: Page Ref: 363 AACSB: Globalizations Objective: 13.4 39) Employers have the legal right to read personal email of employees if it is sent on a company computer Answer: TRUE Explanation: Employers have the right to monitor private correspondences that take place in the workplace Diff: Page Ref: 364 AACSB: Communication Objective: 13.4 40) Employee theft amounts to less than $450 annually per worker in the United States Answer: FALSE Explanation: Estimates show that employee theft averages a loss of about $4500 annually per worker, not $450 Diff: Page Ref: 365 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 Copyright © 2011 Pearson Education, Inc 41) Workplace violence, as measured by homicide, has been increasing in the recent decade Answer: FALSE Explanation: Workplace homicide has decreased since 1994 However, workplace violence in all of its forms presents a serious problem in the United States Diff: Page Ref: 366 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 42) A rigid, militaristic, high-pressure workplace that includes intimidation is likely to be a dysfunctional work environment Answer: TRUE Explanation: Rigidity, pressure, and intimidation are key signs that a workplace is dysfunctional Diff: Page Ref: 366 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 43) The control management function ensures that in an organization A) goals are set B) goals are met C) plans are made D) plans are realistic Answer: B Explanation: B) The control function does not involve making plans or setting goals for the future Instead, control is involved with looking back after plans have been made and seeing that goals have been successfully met, making "goals being met" the correct response for this question Diff: Page Ref: 350 Objective: 13.1 44) A major part of the controlling function of management is to A) formulate strategies B) set standards C) correct performance problems D) structure an organization Answer: C Explanation: C) In addition to making sure that goals have been met, a major function of controlling is to correct performances that are not up to standards, making "orrecting performance problems" the correct response Formulating strategies and setting standards both fall primarily under the planning function, while structuring an organization is part of the organizing function Diff: Page Ref: 350 Objective: 13.1 Copyright © 2011 Pearson Education, Inc 45) The more a control system helps an organization , the more successful it is judged to be A) make a profit B) help employees achieve job satisfaction C) meet its goals D) help employees be productive Answer: C Explanation: C) The purpose of a control system is first and foremost to help a company achieve its goals, whatever they are, making "meeting its goals" the correct response Though productivity, profit, and job satisfaction are all important to many organizations, they may not be specific goals of a given organization, so they are not correct responses for this question Diff: Page Ref: 350 Objective: 13.1 46) A well-run company that has well-thought-out plans, motivated and productive workers, and an efficient organizational structure A) always attains its goals B) may not always be attaining its goals C) rarely attains its goals D) has no reason to monitor its performance Answer: B Explanation: B) Though it is likely that a well-run company will attain its goals, only monitoring an organization's activities and comparing them to standards can confirm that those goals have been met This rules out "rarely attaining its goals," since most well-run companies attain goals, and it also rules out "always attaining goals" because a company may seem to everything right and still not attain its goals "Having no reason to monitor performance" is incorrect because monitoring is the one way in which a company can determine for sure whether it has achieved goals Since all other choices have been eliminated, "not always attaining goals" is the correct response for this question since it correctly identifies the unlikely but still possible eventuality that a company that does all the right things could still fail to attain its goals Diff: Page Ref: 350 AACSB: Analytic Skills Objective: 13.1 47) The value of the controlling function is seen in three specific areas: planning, A) organizing, and leading B) protecting employees, and empowering the workplace C) protecting employees, and protecting the workplace D) empowering employees, and protecting the workplace Answer: D Explanation: D) The value of the controlling function is seen in planning, the empowering of employees, and the protecting of the workplace, making "empowering employees and protecting the workplace" the correct response and ruling out all other responses Diff: Page Ref: 350 Objective: 13.1 Copyright © 2011 Pearson Education, Inc 48) Controlling is the in the management process A) first step B) final step C) most important step D) least important step Answer: B Explanation: B) All four steps in the management process are more or less equal in importance, making both choices regarding importance incorrect responses for this question Controlling comes after planning, organizing, and leading in the management process, so it is the final, not the first step in the management process, making final step the correct response Diff: Page Ref: 351 Objective: 13.1 49) Controlling compares to see if goals are being achieved A) planned performance to standard performance B) standard performance to ideal performance C) actual performance to competitor performance D) actual performance to planned performance Answer: D Explanation: D) Controlling compares how the organization actually performed to the goals and plans that were set during the planning stage of the management process, making "actual performance to planned performance" the correct response and ruling out all other responses If the actual performance matches what was planned, goals are considered met and the organization in most cases can consider itself successful However, if actual performance is judged to be insufficient for some reason, then the organization will consider its performance to be inadequate and take some kind of action to remedy the situation Diff: Page Ref: 351 Objective: 13.1 50) Effective controlling can help managers who are afraid to delegate authority A) empower their employees B) set their goals C) maximize risk D) minimize employee empowerment Answer: A Explanation: A) Effective controlling gives managers a way to delegate authority but still make sure that empowered employees are progressing effectively toward organizational goals, making "empowering employees" the correct response and ruling out "minimization of employee empowerment," since controlling maximizes rather than minimizes empowerment Setting goals is not a correct response because controlling takes place long after goals have been set Maximizing risk can be eliminated as a correct response because effective controlling would serve to reduce, or minimize, not maximize risk Diff: Page Ref: 351 Objective: 13.1 10 Copyright © 2011 Pearson Education, Inc 111) is a measure of an organization's ability to meet its current debt obligations A) Profitability B) Activity C) Leverage D) Liquidity Answer: B Explanation: B) Activity, the ratio of sales to inventory, is a measure of how well a company uses its assets, making that choice the correct response Leverage, the ratio of total debt to total assets, is a measure of how much debt a company acquires to finance its assets Liquidity, the ratio of current assets to current liabilities, is a measure of an organization's ability to meet its debt payments Profitability, the ratio of net after-tax profits to total sales, is a measure of how good a company is at using its assets to generate profits Diff: Page Ref: 360 Objective: 13.3 112) is a measure of an organization's ability to meet its current debt obligations A) Profitability B) Liquidity C) Activity D) Leverage Answer: D Explanation: D) Leverage, the ratio of total debt to total assets, is a measure of how much debt a company acquires to finance its assets, making that choice the correct response Profitability, the ratio of net after-tax profits to total sales, is a measure of how good a company is at using its assets to generate profits Liquidity, the ratio of current assets to current liabilities, is a measure of an organization's ability to meet its debt payments Activity, the ratio of sales to inventory, is a measure of how well a company uses its assets Diff: Page Ref: 360 Objective: 13.3 113) is a measure of how readily a company can use its assets to generate profits A) Profitability B) Leverage C) Liquidity D) Activity Answer: A Explanation: A) Profitability, the ratio of net after-tax profits to total sales, is a measure of how good a company is at using its assets to generate profits, making that choice the correct response Liquidity, the ratio of current assets to current liabilities, is a measure of an organization's ability to meet its debt payments Activity, the ratio of sales to inventory, is a measure of how well a company uses its assets Leverage, the ratio of total debt to total assets, is a measure of how much debt a company acquires to finance its assets Diff: Page Ref: 360 Objective: 13.3 31 Copyright © 2011 Pearson Education, Inc 114) When a budget is formulated, it is being used as a(n) tool A) organizing B) controlling C) planning D) leadership Answer: C Explanation: C) When first formulated, a budget functions as a planning tool because it is used to estimate costs and allocate resources in the future This makes planning the correct response and eliminates the other three choices because they refer to management functions that occur later in the sequence Diff: Page Ref: 360 Objective: 13.3 115) When a budget is used for controlling, it provides against which resource consumption can be compared A) quantitative standards B) qualitative standards C) flexible standards D) non-numerical standards Answer: A Explanation: A) A budget provides definite, quantitative standards that can be used for comparison with actual consumption data, making quantitative standards the correct response Budgets provide precise quantities that are clearly not non-numerical, flexible, or qualitative Diff: Page Ref: 360 Objective: 13.3 116) A household that cuts back on supermarket spending after going over-budget on its food budget is using the budget as a(n) A) planning tool B) controlling tool C) organizing tool D) leading tool Answer: B Explanation: B) In this case, the budget is being used as a controlling tool because the household is adjusting its consumption as a result of exceeding its budget in a particular area The budget is providing a check on spending This makes "controlling tool" the correct response When the budget was first formulated, it was being used as a planning tool Later, when the budget was used to guide spending it was being used as a leadership tool When the budget helped determine who was going to buy what and when, it was being used as an organizing tool Diff: Page Ref: 360 Objective: 13.3 32 Copyright © 2011 Pearson Education, Inc 117) A family that is using a computer program to create a formal household budget is using the budget as a(n) A) planning tool B) controlling tool C) organizing tool D) leading tool Answer: A Explanation: A) Here, the budget is being used as a planning tool because the family is creating a household spending plan, making "planning tool" the correct response for this question The budget is not being used as a controlling tool because it is simply a plan at this stage; it is not allowing family members to adjust their behavior, making "controlling tool" an incorrect response Later, if the budget gets used to guide spending it will be used as a leadership tool Similarly, if the budget is referred to to help determine who is going to buy what and when, it will be used as an organizing tool Diff: Page Ref: 360 Objective: 13.3 118) A management information system (MIS) provides managers with data A) analyzed and processed B) raw C) unanalyzed D) numerical Answer: A Explanation: A) An MIS is useful because it provides managers with organized, processed, useful forms of data, not data that is raw or unanalyzed Numerical is not correct because much of the data that an MIS supplies will not be numerical Diff: Page Ref: 361 Objective: 13.3 119) All of the following are important in efforts to protect information in an organization EXCEPT A) firewalls B) encryption C) search engines D) data backups Answer: C Explanation: C) Firewalls protect information by providing barriers that prevent hackers and other unauthorized users from accessing organizational files Encryption protects information by encoding data into a form that can't be penetrated or accessed by unauthorized users Data backups protect information by saving valuable files that can get lost or damaged in a computer system Search engines are the one choice in this question that are not explicitly used for protecting information so this choice is the correct response Diff: Page Ref: 361 Objective: 13.3 33 Copyright © 2011 Pearson Education, Inc 120) A balanced scorecard approach creates goals in four key performance areas and assesses A) whether all four goals are met B) whether all four goals are met equally C) whether any of the four goals are met D) which goals are exceeded Answer: B Explanation: B) A balanced approach sets goals in four performance areas—financial, customer, internal processes, people/innovation/growth—and assesses how well balanced the company's performance is, making "whether all four goals are met equally" the correct response and eliminating all other responses Diff: Page Ref: 362 Objective: 13.3 121) When a company's scorecard is not balanced, it usually tends to overemphasize the area that A) involves customers B) has to with productivity C) best matches its organizational style and philosophy D) contrasts most with its organizational style and philosophy Answer: C Explanation: C) Companies strive for a balanced approach but in reality shade toward the area that best matches their style, making that choice the correct response For example, a bottom-line oriented company's scorecard will favor the financial area, while an innovative company's scorecard might lean toward the people/innovation/growth area Diff: Page Ref: 362 Objective: 13.3 122) In general, the greater the distance between the home office of a global company and its branch, the A) more formalized the controls B) less formalized the controls C) more automated the controls D) less automated the controls Answer: A Explanation: A) Though branches of global companies like Seven-Eleven use automated controls to keep tabs on such things as inventory, there is no predictable relationship between distance and automation, so both choices regarding automation are incorrect responses There is a clear relationship between distance and the formalization of control—longer distances tend to require more formal control mechanisms making more formalized the correct response and eliminating less formalized Diff: Page Ref: 362 AACSB: Technology Objective: 13.4 34 Copyright © 2011 Pearson Education, Inc 123) In which country would highly centralized decision making be more likely to be prevalent? A) Mexico B) Scotland C) Japan D) Australia Answer: A Explanation: A) In less technologically advanced countries such as Mexico, direct supervision and highly centralized decision making are more common than in advanced countries, where computer technology takes care of many monitoring functions This makes Mexico the correct response for this question and rules out more technologically advanced countries like Scotland, Japan, and Australia Diff: Page Ref: 363 AACSB: Globalizations Objective: 13.4 124) Direct supervision as a basic means of control is much more common in A) small countries B) democracies C) more technologically advanced countries D) less technologically advanced countries Answer: D Explanation: D) In countries that are technologically advanced, computers often play an important role in monitoring basic transactions For example, supermarket bar codes monitor sales and inventories in places where they are available In less technologically advanced places there is no choice but for direct supervision and monitoring to be used instead of these electronic forms of control, making less technologically advanced countries the correct response and ruling out more advanced as a correct response Whether a country is small or a democracy has no bearing on how technologically advanced it is, so these choices are not correct Diff: Page Ref: 363 AACSB: Technology Objective: 13.4 125) When comparing Mexico to Scotland, you would expect Scottish workers to have A) greater productivity, but lower labor cost per worker B) lower productivity, but higher labor cost per worker C) greater productivity and higher labor cost per worker D) lower productivity and lower labor cost per worker Answer: C Explanation: C) As a more technologically advanced country, you would expect a Scottish facility to be less labor intensive and more productive per worker than a Mexican facility, making greater productivity and higher labor cost the correct response for this question Both choices regarding lower productivity can be ruled out because they indicate lower productivity Greater productivity but lower labor cost per worker is not a correct response because it identifies lower, not higher labor costs per worker Diff: Page Ref: 363 AACSB: Globalizations Objective: 13.4 35 Copyright © 2011 Pearson Education, Inc 126) Which statement about employee privacy is correct? A) Employers have a legal right to monitor on-the-job employee phone calls B) Employers have no legal right to monitor on-the-job employee phone calls C) Employers have the legal right to monitor all employee phone calls D) Employers not have the right to monitor any employee phone calls Answer: A Explanation: A) The correct statement is that employers have the right to monitor any workplace activity, whether it is phone calls, computer use, or some other activity This right makes the choice indicating no legal right to monitor on-the-job phone calls an incorrect response What employers don't have is the right to intrude in employees' lives outside of the workplace, making the choice indicating a legal right to monitor all phone calls an incorrect response Employers not having the right to monitor any phone calls is not correct because it rules out all phone calls, and clearly employers can monitor in-house workplace calls Diff: Page Ref: 363 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 127) Which of the following employer practices is NOT legal? A) reading employee email B) monitoring employees in a bathroom C) tracking an employee's whereabouts D) monitoring an employee's personal home computer Answer: D Explanation: D) Surprisingly, employers can legally read email, monitor employees anywhere in the workplace, including the bathroom, and track employees' whereabouts in the workplace What employers cannot is monitor anything of a personal nature at home or away from the workplace, making monitoring an employee's personal home computer the correct response for this question Diff: Page Ref: 363 Objective: 13.4 128) Among the choices below, this is the most common reason for companies firing employees A) misuse of office phones B) inappropriate computer use C) watching online video D) leaking company secrets Answer: B Explanation: B) Though abuse of office telephones is a major concern for companies, it is small compared to overall inappropriate computer use, which includes shopping, video, emailing, and web surfing Watching online video is incorrect because watching online video comprises part of overall inappropriate computer use Leaking company secrets is also a major problem, but there are no statistics that show the problem is even remotely as widespread as computer abuses Diff: Page Ref: 364 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 36 Copyright © 2011 Pearson Education, Inc 129) This has proved to be very helpful in establishing culpability in sexual harassment cases A) monitoring phone calls B) monitoring emails C) monitoring employee whereabouts D) monitoring Internet use Answer: B Explanation: B) Though the monitoring of phone calls might be marginally helpful in combatting sexual harassment, emails have proved to be a major way to find out what really happened in these cases, making monitoring emails the correct response A common way for alleged harassers and victims to communicate is via email, so harassment cases almost always leave an email trail If companies keep email records, they can recreate events and often eliminate ambiguity in these cases Monitoring employee whereabouts and overall Internet use have no real bearing on harassment cases, so these are not correct choices Diff: Page Ref: 364 Objective: 13.4 130) What fraction of U.S employees personal website surfing every day? A) less than one-quarter B) slightly less than half C) more than half D) almost all Answer: C Explanation: C) A recent survey indicated that over 50 percent of employees did personal web surfing on the Internet everyday, making more than half the correct response Diff: Page Ref: 364 Objective: 13.4 131) Losses from organizational theft and fraud amount to about per worker A) $500 B) $2500 C) $4500 D) $6000 Answer: C Explanation: C) Shockingly, the losses from workers taking equipment, software, supplies, and filing false expense reports comes to about $4500 per person per year, making that choice the correct response and ruling out all other responses These abuses include everything from loading company software on home computers to stealing a copy machine from a store room Diff: Page Ref: 364 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 37 Copyright © 2011 Pearson Education, Inc 132) An effective feedforward strategy for dealing with employee theft is A) screen workers before they are hired B) openly state the real costs of stealing C) have managers set good examples D) hire professional investigators Answer: A Explanation: A) Though stating costs and setting good examples may be helpful, these are concurrent, not feedforward measures so they are incorrect responses Hiring investigators is a feedback response, so is an incorrect response Of the choices given, only pre-screening workers is a feedforward strategy, so screening workers before they are hired is the correct response for this question Diff: Page Ref: 365 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 133) An effective concurrent strategy for dealing with employee theft of supplies and equipment is A) establish theft policies B) redesign all control measures C) "lock-out" options on electronic devices D) video surveillance Answer: D Explanation: D) Though establishing theft policies and redesigning all control measures may be helpful, these are not concurrent measures so they are incorrect responses "Lock-out" options would work for electronic crimes, but not theft of material equipment, so this choice is not a correct response for this question Of the choices given, only video surveillance would be a deterrent to stealing tangible material equipment and supplies, so video surveillance is the correct response for this question Diff: Page Ref: 365 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 134) All of the following are common rationalizations that workers use to justify workplace theft EXCEPT A) "Everyone does it." B) "They'll never miss it." C) "I deserve this." D) "I owe money from gambling." Answer: D Explanation: D) The three incorrect choices are commonly heard rationalizations that people use to justify stealing from large organizations They all make sense and sound plausible, but they not in any way morally or legally justify theft Owing gambling money, on the other hand, is not an after-the-fact rationalization but rather an actual reason for stealing—the person needs the money—making that choice the correct response for this question Note that though this choice provides a reason for stealing, it still doesn't in any way justify stealing in a moral or legal sense Diff: Page Ref: 365 AACSB: Ethical Understanding and Reasoning Abilities Objective: 13.4 38 Copyright © 2011 Pearson Education, Inc 135) In any given week about workers are attacked by coworkers or former coworkers and seriously injured A) percent of all B) 10 C) 25 D) 100 Answer: C Explanation: C) Every year, about 1300 workers are assaulted by current or former coworkers and seriously injured This comes out to about 25 of these incidents per week, making 25 the correct response and ruling out all other responses for this question Diff: Page Ref: 366 Objective: 13.4 136) Workplace violence is likely to occur in A) open organic workplaces B) functional workplaces C) dysfunctional workplaces D) both functional or dysfunctional workplaces—violence shows no pattern Answer: C Explanation: C) Functional and organic workplaces are unlikely sites for violence Violence tends to occur in rigid, high-pressure, abusive dysfunctional workplace atmospheres in which employees are shown little respect and have little power over their own activities, making dysfunctional workplaces the correct response for this question Note that both functional and dysfunctional workplaces is incorrect because violence does have a greater probability in dysfunctional locales Diff: Page Ref: 366 Objective: 13.4 137) In a brief essay, define and describe the management function of control Answer: Control is the process of monitoring organizational activities and making sure that they are being done correctly and successfully The typical control process has managers evaluate work performance and compare actual performance outputs to performance standards These standards are typically the goals set by management during the planning process If the actual performance measures up favorably to the standards, managers little or nothing to change the course of action If performance fails to fall within acceptable standards, managers take corrective action to make sure tasks are performed satisfactorily The effectiveness of control is seen in goals The better the control function is, the more likely that organizational goals will be successfully met Diff: Page Ref: 350 AACSB: Analytic Skills Objective: 13.1 39 Copyright © 2011 Pearson Education, Inc 138) In a short essay, explain why what managers choose to measure can be more important than how they measure Answer: A premium coffee bean company, for example, may choose to measure total sales in a given geographical region as a reflection of how well the company is doing This company might see rising sales of their product as a sign that they are highly successful in this geographical region However, the sales totals may not tell the whole story If premium coffee in the geographical area is a rapidly expanding market, the sales of all premium coffees would be expected to be rising It is possible that the company is actually losing market share to a competitor even as its total sales rise impressively So in this case deciding what to measure—market share as opposed to total sales—may make a huge difference in how the company evaluates its performance If it measures total sales it sees its performance as good If it measures market share it may see its performance as worrisome Diff: Page Ref: 353 AACSB: Analytic Skills Objective: 13.2 139) In a short essay, describe the first step in the control process Answer: The first step in the control process is measuring, or determining the actual performance of an individual or an organization Basic job performance for most jobs can be measured in simple, objective, and easily quantifiable terms However, to get a deeper and more meaningful analysis, managers frequently employ a variety of methods to gauge performance, such as personal observation, statistical reports, oral reports, and written reports For most managers, using a combination of approaches increases the probability of getting meaningful and reliable information Diff: Page Ref: 352-353 AACSB: Analytic Skills Objective: 13.2 140) In a short essay, describe the second step in the control process Answer: Comparing is the second step in the control process Comparing involves taking the data from the measurement stage of the control process and comparing it to a standard Typically, the standard is a performance goal set during the planning process Variation between actual performance and the prespecified standard is to be expected How much variation is acceptable is what managers must determine by identifying an acceptable range of variation Performance outside of this range is deemed unacceptable and merits a response or corrective action of some type Performance within the acceptable range of variation typically requires no action at all on a manager's part Diff: Page Ref: 354-356 AACSB: Analytic Skills Objective: 13.2 40 Copyright © 2011 Pearson Education, Inc 141) In a short essay, describe the third step in the control process Answer: The third step in the control process involves taking managerial action When actual performance falls outside of an acceptable range of deviation managers must somehow fix the situation Generally, managers can choose among three possible courses of action: nothing, correct the actual performance, or revise the standards Managers choose to nothing when performance measures up favorably to standards Managers choose corrective action when performance does not measure up Examples of corrective actions might include changing strategy, structure, compensation plans, training programs, redesigning jobs, or firing employees Revising standards is an appropriate response if the variance was the result of unrealistic, erroneous, or unreasonable expectations Standards can be faulty, especially when the situation changes During boom times, managers sometimes adjust standards up During times of trouble, such as recessions, managers may revise standards downward Diff: Page Ref: 356-357 AACSB: Analytic Skills Objective: 13.2 142) In a short essay, explain how managers determine what a significant deviation is Answer: Significant deviations from an acceptable range of variance are entirely up to the manager him- or herself to determine In some cases, goals may be technically met, but a manager will still feel that some kind of corrective action needs to be taken A manager of a gelato store, for example, might look at monthly sales totals and see that hazelnut gelato performed well below its goal The manager might greet this finding in more than one way She might decide to terminate the sale of this flavor and move on to develop a new flavor She might decide that hazelnut simply needs more time and exposure to the public and its sales will pick up—eliciting a "sit tight" and nothing response Or, she might also decide that hazelnut simply needs some extra promotion to increase sales—posters, free samples, special prices, etc The point of the preceding shows that the interpretation of performance data lies entirely in the eye of the manager who is observing it One person's acceptable deviation might be another person's unacceptable deviation Diff: Page Ref: 356 AACSB: Analytic Skills Objective: 13.2 41 Copyright © 2011 Pearson Education, Inc 143) In a short essay, explain the difference between immediate corrective action and basic corrective action Answer: Immediate corrective action is action that a manager takes to fix a problem in the shortterm to get performance on track An example of taking immediate corrective action would include a building contractor hiring extra carpenters when the people he has on the job aren't working fast enough Basic corrective action goes beyond fixing the problem at hand and attempts to find—and correct —the underlying causes of the problem For example, there might be a number of reasons why a building project gets behind schedule: not enough labor, having to wait for materials, conflicts in scheduling, inefficient workers or supervision, and so on Getting to the bottom of the situation can save managers time, trouble, and money For example, rather than hire (expensive) extra carpenters on a building project, a manager might learn that she simply needs to schedule them better and the problem will be solved Diff: Page Ref: 356 AACSB: Analytic Skills Objective: 13.2 144) In a short essay, describe feedforward control and give an example of its use Answer: Feedforward control is the most desirable type of control because it heads off problems before they actually occur Feedforward control is any controlling activity that takes place before problematic behaviors are likely to occur An example of feedforward control occurs when sports venues ban the sale of alcohol during certain events that are likely to result in fighting or similar incidents By eliminating a factor that always exacerbates and is sometimes the primary cause of violence ahead of time, managers avoid the trouble that violence brings Diff: Page Ref: 357 AACSB: Analytic Skills Objective: 13.3 145) In a short essay, describe concurrent control and give an example of its use Answer: Concurrent control, as its name implies, takes place while an activity is in progress Direct supervision is the best-known form of concurrent control A good example of a company using concurrent control to increase profits is done by Google Each time a user clicks on a Google ad the click is registered and reflected in the data that Google collects If the ad is unsuccessful, Google can report back to the sponsor quickly to change the ad's placement or composition Diff: Page Ref: 358 AACSB: Analytic Skills Objective: 13.3 42 Copyright © 2011 Pearson Education, Inc 146) In a short essay, describe feedback control and give an example of its use Answer: The most popular type of control relies on feedback In feedback control, the control takes place after the activity is done Feedback control tells managers about the effectiveness of their planning effort and can provide information that enhances employee motivation Any performance measurement for a company is an example of feedback control Plans are made and standards are set Those standards are compared to actual sales totals If sales totals and standards generally agree, managers consider their plans accurate and their performance successful If standards and totals not agree, managers can take action to remedy the situation Diff: Page Ref: 358 AACSB: Analytic Skills Objective: 13.3 147) Outline three steps a manager can take to effectively deliver performance feedback Answer: Schedule the feedback session in advance and be prepared For feedback to be effective, you must plan ahead Identify the issues you wish to address and cite specific examples to reinforce what you are saying Furthermore, set aside the time for the meeting with the employee Make sure that you have the time, space, and privacy to complete the session without interruptions Put the employee at ease Create a supportive climate for the employee Recognize that giving and getting this feedback can be a trying emotional event even when the feedback is positive Make sure the employee knows the purpose of this feedback session There should be no surprises in performance feedback sessions The employee should know exactly why he or she has been summoned Clarifying what you are going to sets the appropriate stage for what is to come Diff: Page Ref: 359 AACSB: Communication Objective: 13.3 43 Copyright © 2011 Pearson Education, Inc 148) Outline four additional steps a manager can take to effectively deliver performance feedback Answer: Focus on specific rather than general work behaviors General statements tend to be vague and provide little useful information  especially if you are attempting to correct a problem Stick to specific substantive comments that present no opportunity for the employee to feel that he or she is being criticized on a personal level Keep comments impersonal and job related Feedback should be descriptive rather than judgmental or evaluative, especially negative feedback Keep the feedback job related and never criticize a worker's personal traits or abilities Support feedback with hard data Tell your employee how you came to your conclusion on his or her performance Hard data will help employees to identify with specific behaviors Direct the negative feedback toward work-related behavior that the employee controls Focus on behavior that the employee can something about, and indicate what he or she can to improve the situation Diff: Page Ref: 359 AACSB: Communication Objective: 13.3 149) Outline three additional steps a manager can take to effectively deliver performance feedback Answer: Make sure the employee gets ample opportunity to speak Get the employee's perceptions of the situation, and make the employee feel that he or she is engaging in a two-way dialogue, not a lecture In many cases, the employee will provide information that is unknown to the manager and may significantly alter the manager's view of the overall situation Ensure that the employee has a clear and full understanding of the feedback Feedback must be concise and complete enough so that the employee clearly and fully understands what the manager has said Consistent with active listening techniques, have the employee rephrase the content of the feedback to check whether it fully captures the meaning that was intended Detail a future plan of action Have the employee leave the session with a clear sense of how to proceed in the future Diff: Page Ref: 359 AACSB: Communication Objective: 13.3 44 Copyright © 2011 Pearson Education, Inc 150) In a short essay, describe workplace privacy concerns for managers today What are managers doing to control this issue? Answer: Employers can (and do), among other things, read employee email, tap telephones, and monitor computer use This may sound like an illegal invasion of privacy, but in the workplace the employer in a sense "owns" the worker's time and has a right to make sure that it is not wasted or abused Recreational on-the-job Web surfing is thought to cost billions of dollars in lost work productivity annually and employers have a right to try to minimize those losses Employers also monitor employee email to provide unambiguous evidence for discrimination and sexual harassment cases Finally, companies monitor computer use to ensure that company secrets aren't being leaked either deliberately or inadvertently Although employees may think that it's unfair for a company to monitor their work electronically, the courts have ruled that since the computer belongs to the company, managers have a right to view everything on it Because of all of the serious issues listed above, many companies are developing and enforcing workplace monitoring policies There should be a balance between management's need to know and the effect employee monitoring may have on employee morale Diff: Page Ref: 369-372 AACSB: Analytic Skills Objective: 13.4 45 Copyright © 2011 Pearson Education, Inc ... ratio of total debt to total assets, is a measure of how much debt a company acquires to finance its assets, making that choice the correct response Profitability, the ratio of net after-tax profits... a measure of how much debt a company has to finance its assets Activity, the ratio of sales to inventory, is a measure of how well a company uses its assets Profitability, the ratio of net after-tax... ratio of current assets to current liabilities, is a measure of an organization's ability to meet its debt payments Profitability, the ratio of net after-tax profits to total sales, is a measure of