CH 18

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Management, 15e, Global Edition (Robbins/Coulter)

Chapter 18 Monitoring and Controlling
1) ________ refers to the process of monitoring, comparing, and correcting work performance.
A) Controlling
B) Checking
C) Measuring
D) Verifying
Answer: A
Diff: 2
AACSB: Reflective thinking
Learning Obj: LO 18.1: Explain the nature and importance of control.
Classification: Concept
2) ________ is the final step in the management process, which provides a critical link back to
________.
A) Organizing; planning
B) Planning; controlling
C) Controlling; planning
D) Leading; organizing
Answer: C
Diff: 2
3) Which one of the following management responsibilities determines if organizational goals

are being achieved?
A) Designing the organization's structure
B) Motivating employees
C) Formulating business strategy
D) Measuring firm's performance
Answer: D
Diff: 2
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4) Which one of the following observations best explains why the control function is important?
A) An effective control system includes employee empowerment.
B) An effective control system assures that the organization will meet or exceed its goals.
C) An effective control system is the only way managers know whether organizational goals are
being met.
D) Organizational strategies are formed during the controlling stage.
Answer: C
Diff: 2
5) Statco, Inc., has struggled to meet projected revenues for each of the past ten quarters. The
firm hired Mark Adams to design a control system and offer suggestions to improve the firm's
performance. Which one of the following is a key activity that the proposed control system
should perform?
A) Organizational planning
B) Organizational structuring
C) Performance measurement
D) Corporate governance
Answer: C
Diff: 2
AACSB: Application of knowledge
Classification: Application
6) Which one of the following represents the controlling function?

A) The die cast machine operator adjusts the settings on the machine.
B) The shift supervisor checks the production schedule for the day.
C) The production manager schedules a new customer order.
D) The quality auditor selects one piece every 15 minutes from the batch of molded products
and, using very precise gauges, measures key dimensions on the part.
Answer: D
Diff: 3
7) Having a control system reduces the scope of employee empowerment and autonomy.
Answer: FALSE
Diff: 1
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8) Controlling is the process of monitoring, comparing, and correcting work performance.

Answer: TRUE
Diff: 1
9) Having a control system increases the scope of employee empowerment.

Answer: FALSE
Diff: 2
10) Managers engage in controlling activities to protect the organization and its assets.
Answer: TRUE
Diff: 1
11) What are the major reasons why the control function is important to managers?
Answer: Control is important because it's the only way managers know whether organizational
goals are being met and if not, the reasons why. The value of the control function can be seen in
three specific areas: planning, empowering employees, and protecting the workplace. As the final
step in the management process, controlling provides the critical link back to planning. If
managers didn't control, they'd have no way of knowing whether their goals and plans were
being achieved and what future actions to take. The second reason controlling is important is
because of employee empowerment. Many managers are reluctant to empower their employees
because they fear employees will do something wrong for which they would be held responsible.
Many managers are tempted to do things themselves and avoid empowering. But an effective
control system can provide information and feedback on employee performance, thus reducing
potential problems. The final reason that managers control is to protect the organization and its
assets. Today's environment brings heightened threats from natural disasters, financial scandals,
workplace violence, supply chain disruptions, security breaches, and even possible terrorist
attacks. Managers must have plans in place to protect the organization's employees, facilities,
data, and infrastructure. Having comprehensive controls and backup plans will help assure
minimal work disruptions.
Diff: 3
AACSB: Reflective thinking; Written and oral communication
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12) The control process assumes that ________.

A) feedback is the only way to improve performance
B) managers will be aware of the actions and activities of their employees
C) performance standards are already in place
D) employee monitoring costs are part and parcel of doing business
Answer: C
Diff: 2
Learning Obj: LO 18.2: Describe the three steps in the control process.
13) Sometimes the French fries are rather pale, other times they are golden, sometimes they are
quite dark. Anna cooks them according to how much time she has available between customers.
The variation in appearance can be attributed to ________.
A) customer demand
B) the fact that there is no performance standard
C) differences in the potatoes
D) emphasis of quantity over quality
Answer: B
Diff: 2
14) The first step in the control process is ________.

A) setting the desired standards
B) measuring actual performance
C) comparing performance against expectations
D) enforcing managerial control
Answer: B
Diff: 2
15) Which one of the following sources of information for measuring performance is time
consuming, obtrusive, and subject to personal biases?
A) Oral reports
B) Personal observations
C) Statistical reports
D) Written reports
Answer: B
Diff: 2
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16) Blanca nods as she watches her new employee as he executes the steps in making French
fries. Her purpose is to make sure he follows the instructions exactly as given. Blanca is using
________.
A) personal observation
B) statistical reports
C) mentoring
D) nonverbal feedback
Answer: A
Diff: 2
17) Which one of the following is an advantage of using statistical reports as the source of
information?
A) Statistical reports can be used to obtain firsthand knowledge.
B) Unfiltered information can be obtained using statistical reports.
C) Statistical reports are effective for showing relationships.
D) Statistical reports provide unbiased information.
Answer: C
Diff: 3
18) Andrew prefers to get his performance data in the form of charts and graphs. Andrew prefers
________.
A) personal observations
C) oral reports
D) written reports
Answer: B
Diff: 2
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19) Barry wants to use a tool that makes the data easy to visualize and is effective for showing
relationships. Which one of the following tools is best suited for this?
A) Personal observation
B) Spreadsheets
C) Written reports
D) Statistical reports
Answer: D
Diff: 2
20) Which one of the following sources usually provides filtered information which cannot be
documented?
A) Oral reports
C) Online reports
D) Written reports
Answer: A
Diff: 2
21) Brenda is always ready with a story to tell about performance in her area. Unfortunately,
Brenda sometimes leaves out important facts and makes statements that cannot be corroborated.
Brenda is delivering ________.
C) oral reports
D) anecdotes
Answer: C
Diff: 2
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22) Which one of the following sources provides information which is comprehensive, formal,
and easy to file and retrieve?
A) Oral reports
C) Online reports
D) Written reports
Answer: D
Diff: 2
23) At the end of every month, the accounting department submits a balance sheet, statement of
profit and loss, and cash flow statement to the senior management team. These are all ________.
C) oral reports
D) written reports
Answer: D
Diff: 2
24) For which of the following is a subjective measure most appropriate?

A) Level of satisfaction of patient care in a hospital.
B) Degree of improvement in closing sales in a real estate brokerage.
C) Quality of a water supply.
D) Reduction of waste in a manufacturing process.
Answer: A
Diff: 3
25) The comparing step in the control process determines ________.

A) a company's relative position in the industry in terms of the standards used
B) a company's relative position in the industry in terms of performance variances
C) the variation between actual performance and an external benchmark from a noncompetitor
D) the variation between actual performance and the standard
Answer: D
Diff: 2
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26) At the beginning of every shift, Cody records the amount of pizza sauce in inventory. At the
end of every shift, he records the number of pizzas made and the amount of pizza sauce left in
inventory. Why would he do this?
A) So he can determine if employees are taking sauce home.
B) So he can compare the quantity used with the budgeted amount.
C) So he will know how much pizza sauce to order.
D) So he will know how many customers visited his pizza parlor during his shift.
Answer: B
Diff: 2
27) Managers should use subjective measures when ________.

A) work activities cannot be expressed in quantifiable terms
B) work activities are critical to the organization
C) organizational processes and activities are complex
D) employee attitudes are at stake
Answer: A
Diff: 2
28) ________ corrects the problem at once to get performance back on track.
A) Basic corrective action
B) Immediate corrective action
C) Verbal feedback
D) Disciplinary action
Answer: B
Diff: 2
29) "No, James, you must start the timer after you lower the French fry basket into the fryer, not
before." This supervisor is using ________.
A) basic corrective action
B) disciplinary action
C) immediate corrective action
D) delayed corrective action
Answer: C
Diff: 3
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30) If a manager investigates how and why performance has deviated beyond the acceptable
range of variation, and then corrects the source of the deviation, she is using ________.
A) feedback control
B) immediate corrective action
C) basic corrective action
D) concurrent control
Answer: C
Diff: 2
31) Mark recommends that the managers at Statco should identify how and why performance has
deviated beyond the acceptable range of variation, and then correct the source of the deviation.
Here, Mark is recommending ________.
A) feedforward control
B) immediate corrective action
C) basic corrective action
D) concurrent control
Answer: C
Diff: 3
32) Following a customer complaint, Bigly Mfg. formed a problem solving team to find out why
the system was producing unacceptable parts and make a recommendation to fix it. This is an
example of ________ corrective action.
A) delayed
B) immediate
C) basic
D) preventive
Answer: C
Diff: 3
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33) Managers could choose to do nothing when ________.

A) an employee fails to attain the standard because of internal problems
B) the difference between actual performance and standard performance is low and acceptable
C) performance standards are acceptable, though the employees have not attained it
D) the variance observed from the expected performance is caused due to unrealistic standards
Answer: B
Diff: 2
34) The goal for the sales team at the auto dealership was to sell one new car per day every day
of the month. In August the team sold 33 cars. What should management do?
A) Nothing. The deviation is insignificant.
B) Revise the goal. If the team sold more than the goal, obviously the goal is too low.
C) Wait. See if the performance is duplicated next month before taking any action.
D) Celebrate. Any achievement beyond the goal is deserving of a celebration.
Answer: A
Diff: 3
35) Some control criteria, such as employee satisfaction, can be used for any management
situation.
Answer: TRUE
Diff: 1
36) Deviations that exceed the acceptable range of variation become significant and need a
manager's attention.
Answer: TRUE
Diff: 1
37) Basic corrective action corrects problems at once to get performance back on track.
Answer: FALSE
Diff: 2
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38) Managers should do nothing if the variance observed from the standard is acceptable.
Answer: TRUE
Diff: 1
39) If the variance between the standard and the actual result is in the organization's favor,
managers do not need to do anything.
Answer: FALSE
Diff: 2
40) In a short essay, list and briefly explain the steps, processes, and best practices managers
typically utilize in the control process. Provide examples where appropriate.
Answer:
a. Measuring-the first step in the control process is measuring. Most jobs and activities can be
expressed in tangible and measurable terms. Managers frequently use a variety of sources of
information to measure actual performance, such as personal observation, statistical reports, oral
reports, and written reports. For most managers, using a combination of approaches increases
both the number of input sources and the probability of getting reliable information.
b. Comparing-the second step involves determining the degree of variation between actual
performance and the pre-specified standard. Some variation is to be expected. However, it is
important for managers to determine the acceptable range of variation.
c. Taking managerial action-managers can choose among three possible courses of action: do
nothing, correct the actual performance, or revise the standards. 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 expectations. However, revising standards downwards can be troublesome
when an employee or work unit fall short of reaching a goal. If they don't meet the standard, their
natural response is to attack the standard. If the manager believes the standard is fair, they should
explain their position, reaffirm their desire for the employee or work unit to meet the standard,
and then take necessary corrective action to turn that expectation into reality.
Diff: 3
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41) Which one of the following best fits the definition of organizational performance which
managers should control?
A) Mr. B's Pizzeria sold an average of 18 pizzas per hour on Saturday night.
B) The customer ordered the Victorian Rose interior décor.
C) Colin arrived 15 minutes early for his shift.
D) The shipment of parts arrived two days late.
Answer: A
Diff: 2
Learning Obj: LO 18.3: Explain how organizational and employee performance are measured.
42) Which one of the following refers to the overall output of goods or services produced divided
by the inputs needed to generate that output?
A) Yield
B) Efficiency
C) Effectiveness
D) Productivity
Answer: D
Diff: 2
43) The plant superintendent wants to know the value of products per man hour. She is
concerned with ________.
A) costs
B) waste
C) productivity
D) profits
Answer: C
Diff: 3
44) Festus believes organizational effectiveness is more important to the organization than
organizational productivity. What could be the rationale behind this belief?
A) Organizational productivity is not a measure of organizational performance.
B) Organizational effectiveness is a measure of how well the organizational goals are met.
C) Organizational productivity is not directly related to organizational output.
D) Organizational effectiveness is a quantitative measure of the input-output relationship.
Answer: B
Diff: 3
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45) ________ is measured by the costs of acquiring and transforming organizational resources
into outputs.
A) Input
B) Quality
C) Profit
D) Leverage
Answer: A
Diff: 2
46) Which one of the following is considered the easiest way to increase organizational
productivity?
A) Increasing the price of outputs.
B) Increasing the price of inputs.
C) Hiring more employees.
D) Decreasing the value of the products.
Answer: A
Diff: 2
47) The operations manager suggests a hike in the prices to improve productivity. However, the
marketing manager rules this option out. What could be the possible reason for this?
A) Product prices are not related to organizational productivity.
B) Selling price is negatively correlated to organizational productivity.
C) The industry is characterized by intense competition.
D) Such an action would lead to reduced employee satisfaction.
Answer: C
Diff: 2
48) If a manager wanted to increase the ratio of outputs to inputs, she should ________.
A) decrease the selling price
B) increase productivity
C) increase the quality of inputs
D) hire additional employees
Answer: B
Diff: 2
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49) Buchanan Welders cannot raise its prices in its highly competitive industry. Which one of the
following is an option if Buchanan wants to increase its productivity?
A) Introduce a lower-cost model.
B) Emphasize the importance of quality in its sales materials.
C) Exceed customers' expectations with early deliveries.
D) Use less expensive inputs.
Answer: D
Diff: 2
50) Organizational ________ is a measure of how appropriate organizational goals are and how
well an organization is achieving those goals.
A) productivity
B) effectiveness
C) efficiency
D) yield
Answer: B
Diff: 2
51) Disciplinary action is helpful to the organization because ________.

A) employees know what to do to correct their undesirable behavior
B) disciplined employees are less likely to leave the organization
C) the manager will monitor the disciplined employee more closely
D) after the first rule violation, problem employees are eliminated from the organization.
Answer: A
Diff: 3
52) Productivity decreases when an organization raises the prices of its products.
Answer: FALSE
Diff: 1
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53) Organizational effectiveness is a measure of how appropriate organizational goals are and
how well those goals are being met.
Answer: TRUE
Diff: 1
54) Most employees do their jobs well and never require disciplinary action.
Answer: TRUE
Diff: 1
55) Explain the importance of delivering employee performance feedback including the use of
disciplinary action.
Answer: Managers must assure that employees' work efforts are of the quantity and quality
needed to accomplish organizational goals. As with other performance, managers measure actual
performance, compare that performance to a standard, and take action if needed. Managers need
to provide their employees with feedback so that the employees know where they stand in terms
of their work. Unless employees know what is expected and how they are deviating from
expectations, no change in behavior can be expected, reducing the chances that the organization
will meets its goals. If done properly, positive outcomes can result. In a productive performance
discussion, organizations have the opportunity to reinforce company values, strengthen
workplace culture, and achieve strategic goals. When feedback of this sort is ineffective,
managers may need to apply disciplinary action. Fortunately, most employees do their jobs well
and never need formal correction. When disciplinary action is necessary, it is important for a
manager to know what the organization's policies are on discipline, which can be used to both
control and correct employee performance.
Diff: 3
56) An organization hires additional personnel as soon as they get a major contract. The
organization is using ________ control.
A) feedforward
B) concurrent
C) feedback
D) management
Answer: A
Diff: 2
AACSB: Analytical thinking
Learning Obj: LO 18.4: Describe tools used to measure organizational performance.
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57) Contours, Inc., knows each drill bit can cut approximately 100,000 holes before the hole size
is smaller than the print specification so it changes drill bits after 95,000 uses. Contours, Inc. is
using ________ control.
A) preventive
B) predictive
C) feedforward
D) concurrent
Answer: C
Diff: 3
58) Which one of the following is considered the most desirable type of control to prevent
anticipated problems?
A) Feedforward control
B) Concurrent control
C) Feedback control
D) Management by walking around
Answer: A
Diff: 2
59) Charles wants to prevent problems before their occurrence. Which one of the following is the
most desirable type of control to achieve this goal?
A) Proactive control
B) Preventive control
C) Feedforward control
D) Feedback control
Answer: C
Diff: 2
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60) The management control that takes place while a work activity is in progress is known as
________ control.
A) immediate
B) concurrent
C) feedback
D) consistent
Answer: B
Diff: 2
61) The launch went off without a hitch but the space capsule directed toward Neptune has
veered off course. NASA sends signals to change the direction of flight to get it back on track.
NASA is using ________ control.
A) feedback
B) concurrent
C) preventive
D) feedforward
Answer: B
Diff: 2
62) Devon interacts directly with the employees in the work area to identify problem areas. He
works with various departments to obtain a holistic idea of the business. This type of direct
supervision is an example of ________ control.
A) proactive
B) preventive
C) direct supervision
D) feedback
Answer: C
Diff: 3
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63) At Contours, Inc., quality auditors pull one part from the production line every 15 minutes.
These parts are measured against the production print; any variation that is beyond acceptable
levels is reported to the machine operators. Contours, Inc. is using ________ control.
A) feedforward
B) concurrent
C) feedback
D) concentric
Answer: B
Diff: 2
64) Management by walking around is an example of ________ control.

A) feedback
B) concurrent
C) feedforward
D) reactive
Answer: B
Diff: 1
65) ________ is when a manager in the work area interacts directly with employees to maintain
supervision.
A) Preventive maintenance
B) Management by walking around
C) Proactive control
D) Feedforward control
Answer: B
Diff: 1
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66) Donna discovers major flaws in the packaging department. She consults the production
manager and formulates control measures to improve packaging. Here, Donna is using the
________ control.
A) feedback
B) reactive
C) concurrent
D) feedforward
Answer: A
Diff: 3
67) The information provided by the customer who brings a product in for warranty work can be
used for ________ control
A) feedforward
B) concurrent
C) preventive
D) feedback
Answer: D
Diff: 2
68) The ________ ratios measure an organization's ability to meet its current debt obligations.
A) activity
B) liquidity
C) leverage
D) profitability
Answer: B
Diff: 2
69) Which one of the following ratios examines the organization's use of debt to finance its
assets and its ability to meet the interest payments on the debt?
A) Liquidity ratios
B) Leverage ratios
C) Profitability
D) Activity ratios
Answer: B
Diff: 2
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70) Ruth, a financial consultant, determines her client's leverage ratio to be very high. What
suggestion could Ruth give to help the firm reduce its leverage ratio?
A) Increase the money supply by selling a part of its assets.
B) Pay back part of its debts to improve the ratio.
C) Maintain more current assets than current liabilities.
D) Reduce the sales to total assets ratio of the firm.
Answer: B
Diff: 3
71) ________ ratios measure how efficiently the firm is using its assets.
A) Liquidity
B) Leverage
C) Profitability
D) Activity
Answer: D
Diff: 2
72) Elaine wants to analyze her company's ability to meet its current debt obligations. Which one
of the following ratios is most helpful to Ruth in analyzing this?
A) Inventory turnover ratio
B) Return on investment ratio
C) Current ratio
D) Total asset turnover ratio
Answer: C
Diff: 2
73) Which one of the following ratios measures how efficiently and effectively the firm is using
its assets to generate revenue?
A) Total asset turnover ratio
B) Inventory turnover ratio
C) Acid test ratio
D) Return on investment
Answer: D
Diff: 2
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74) Contours, Inc. uses its budget for labor hours as a ________ tool.
A) preventive
B) concurrent
C) feedforward
D) feedback
Answer: D
Diff: 2
75) When data is analyzed and processed, it becomes ________.

A) a system
B) information
C) fact
D) a structure
Answer: B
Diff: 1
AACSB: Reflective thinking; Information technology
76) Raw, unanalyzed facts are called ________.

A) data
B) information
C) database
D) factoids
Answer: A
Diff: 2
AACSB: Reflective thinking; Information technology
77) Every March, Bill, who owns and operates a small retail shop, takes a large box of receipts
and invoices to his accountant so the accountant can file Bill's taxes in April. Only then does Bill
know if his business has been profitable. Bill could benefit from a(n) ________.
A) concurrent control system
B) balanced scorecard system
C) inventory control system
D) management information system
Answer: D
Diff: 3
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78) The ________ approach to performance measurement was introduced as a way to evaluate
organizational performance from more than just the financial perspective.
A) market value
B) balance sheet
C) balanced scorecard
D) income statement
Answer: C
Diff: 2
79) Which one of the following is a performance measurement tool that looks at four areas that
contribute to a company's performance?
A) market value method
B) triple bottom line method
C) balanced scorecard approach
D) information control approach
Answer: C
Diff: 2
80) ________ is the search for the best practices among competitors or non-competitors that lead
to their superior performance.
A) Factor analysis
B) Total quality management
C) Market positioning
D) Benchmarking
Answer: D
Diff: 1
81) Feedforward control is more popular and effective than the other forms of control.
Answer: FALSE
Diff: 1
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82) Activity ratios measure an organization's ability to meet its current debt obligations.
Answer: FALSE
Diff: 1
83) The balanced scorecard approach evaluates organizational performance from more than just
the financial perspective.
Answer: TRUE
Diff: 1
84) Feedforward control takes place while a work activity is in progress.

Answer: FALSE
Diff: 1
85) Leverage ratios measure an organization's ability to meet its current debt obligations.
Answer: FALSE
Diff: 2
86) Managers should not consider the standards when measuring the actual performance of
employees.
Answer: FALSE
Diff: 1
87) Sensitive, proprietary, and confidential information must be controlled lest it fall into the
hands of people who wish to harm the organization, its customers and/or employees.
Answer: TRUE
Diff: 1
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88) The benchmarking approach can evaluate organizational performance from more than just
the financial perspective.
Answer: TRUE
Diff: 2
89) Benchmarks for a company must be created based on the previous performance of the
company.
Answer: FALSE
Diff: 1
90) In a short essay explain feedforward, concurrent, and feedback controls and provide an
example for each one.
Answer: Feedforward control is the most desirable type of control. Feedforward control prevents
anticipated problems since it takes place before the actual activity. Example - At St. Joseph's
Hospital in West Bend, Indiana, a new facility was designed with identical rooms, nonslip floors,
and glass walls to reduce errors in patient care and to increase employee safety.
Concurrent control, as its name implies, takes place while an activity is in progress. When
control occurs while the work is being performed, management can correct problems before they
become too costly. Example - When managers use management by walking around, which is a
term describing when a manager is out in the work area interacting directly with employees,
they're using concurrent control.
Feedback control, the most popular type of control relies on feedback. In feedback control, the
control takes place after the activity is done. Example - When the Denver Mint discovered
flawed Wisconsin quarters, it was discovered with feedback control. The damage had already
occurred even though the organization corrected the problem once it was discovered.
Diff: 3
AACSB: Reflective thinking; Written and oral communication; Application of knowledge
Classification: Concept; Application
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91) List and discuss four performance control tools used for monitoring and measuring
organizational performance.
Answer:
a. Financial controls-one of the primary purposes of every business firm is to earn a profit. In
pursuit of this objective, managers need financial controls. They might perform several financial
ratio tests to ensure that sufficient cash is available to pay ongoing expenses, that debt levels
haven't become too high, or that assets are being used productively.
b. Information controls-information can be critical to monitoring and measuring an organization's
performance. Managers need the right information at the right time and in the right amount.
Inaccurate, incomplete, or delayed information can seriously impede organizational performance.
Managers need information about the standards in order to be able to compare actual
performance with the standard. They rely on information to help them determine if deviations are
acceptable. They also rely on information to help them develop appropriate courses of action.
c. Balanced scorecard-this is a performance measurement that was introduced as a way to
evaluate organizational performance from more than just the financial perspective. The balanced
scorecard is a performance measurement tool that looks at four areas-financial, customer, internal
processes, and people/innovation/growth assets-that contribute to a company's performance.
According to this approach, managers should develop goals in each of the four areas and
measure to determine if these goals are being met.
d. Benchmarking of best practices-benchmarking is the search for the best practices among
competitors or noncompetitors that lead to their superior performance. At its most fundamental
level, benchmarking means learning from others. As a tool for monitoring and measuring
organizational performance, benchmarking can be used to help identify specific performance
gaps and potential areas for improvement. Students can choose any three to elaborate on.
Diff: 3
92) What do you think are the benefits of benchmarking? Provide examples of benchmarking
practices.
Answer: Benchmarking is the search for the best practices among competitors or non-
competitors that lead to their superior performance. Benchmarking should identify various
benchmarks, which are the standards of excellence against which to measure and compare. It
provides an insight into the best practices in the industry and helps managers evaluate
organizational performance. For instance, the American Medical Association developed more
than 100 standard measures of performance to improve medical care. Carlos Ghosn, CEO of
Nissan, benchmarked Walmart operations in purchasing, transportation, and logistics.
Benchmarking allows organizations to learn from others. Student examples may vary for this
question.
Diff: 3
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93) The earthquake/tsunami which hit Japan in March of 2011 highlights the contemporary need
to design organizational controls for ________.
A) cross-cultural differences
B) global turmoil and disasters
C) workplace privacy
D) workplace safety
Answer: B
Diff: 1
AACSB: Diverse and multicultural work environments; Application of knowledge
Learning Obj: LO 18.5: Discuss contemporary issues in control.
94) Control techniques can be quite different for different countries. The differences are
primarily in the ________.
A) types of tasks that employees perform in various countries
B) way employees respond to the controlling measures
C) strategic orientation of each technique
D) measurement and corrective action steps of the control process
Answer: D
Diff: 1
AACSB: Reflective thinking; Diverse and multicultural work environments
95) Irene was quite upset to learn her employer read her e-mails. She thought all her messages
were private. Which one of the following arguments would best explain her employer's actions?
A) Managers want to ensure company e-mail servers are not being used for personal e-mails.
B) Managers want to be certain employees are not inadvertently passing on company secrets.
C) Managers are looking for information that can later be used to terminate employees.
D) Managers monitor computer usage to justify system upgrades.
Answer: B
Diff: 3
96) Filing of fraudulent expense reports is an example of ________.

A) employee theft
B) workplace piracy
C) workplace violence
D) privacy intrusion
Answer: A
Diff: 1
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lOMoARcPSD|19855742
97) Cindy's elementary school-aged children brought home lists of supplies required for their
classes so Cindy raided the office supplies cabinet. Her rationale is that her employer doesn't pay
her enough to buy these items. Cindy is engaging in ________.
A) workplace piracy
B) employee theft
C) equity adjustment
D) compensation management
Answer: B
Diff: 2
98) Clinical psychologists suggest that employee theft ________.

A) occurs primarily when there are poor management-labor relations
B) is a symptom of poor planning and management control
C) happens because people find ways to rationalize this behavior as correct
D) reflects deep cultural problems in the society
Answer: C
Diff: 2
99) Helen noticed employee theft has increased. She has considered several options to deal with
this loss. Which one of the following is likely to be the most effective concurrent control?
A) Carefully screen job applicants using honesty testing.
B) Publicly announce thefts when they are discovered.
C) Dismiss any employee involved in theft.
D) Publicize progress in reducing theft.
Answer: D
Diff: 3
100) Because so many items had disappeared from the office supplies storeroom, management
installed a surveillance camera to provide ________.
A) feedforward control
B) concurrent control
C) feedback control
D) evidence for prosecution
Answer: B
Diff: 3
27

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101) Diane wants to take corrective measures to prevent future theft. Which one of the following
is a feedback tactic that Diane could use to control theft?
A) Use the services of professional investigators.
B) Openly communicate the costs of stealing.
C) Use corporate hotlines for reporting incidents.
D) Educate and train employees about the policies.
Answer: A
Diff: 2
102) Which one of the following is a feedforward control measure to prevent employee theft?
A) Employee assistance programs to help employees with behavioral problems.
B) Thorough investigation of the incident by an external agency.
C) Use of quick and decisive managerial intervention during the incident.
D) Open communication about incidents and what's being done.
Answer: A
Diff: 3
103) Managers can use social media as a tool to ________.

A) control their employees
B) monitor candid customer feedback
C) sabotage competitors
D) increase their likelihood of promotion
Answer: B
Diff: 1
104) Which of these control mechanisms is a manager in a country that is not technologically
advanced more likely to use?
A) Direct supervision.
B) Computer-generated reports.
C) Indirect control devices.
D) Decentralized decision making.
Answer: A
Diff: 2
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105) Most US companies monitor employees' ________.

A) office Internet use
B) movements
C) personal websites
D) personal cell phones
Answer: A
Diff: 3
106) Approximately 25% of firms report firing employees for ________.

A) misuse of email
B) stealing office supplies
C) inappropriate texting
D) inappropriate cell phone use
Answer: A
Diff: 1
107) An organization communicates openly to its employees about violent incidents in the
workplace and what's being done to handle them. This is an example of a ________ control
strategy.
A) feedback
B) reactive
C) concurrent
D) feedforward
Answer: A
Diff: 2
108) Most organizational theft is committed by ________.

A) shoplifters
B) cybercriminals
C) organized crime rings
D) employees
Answer: D
Diff: 1
29

lOMoARcPSD|19855742
109) Firms often monitor employee emails to limit the firm's legal exposure to ________.
A) sexual harassment claims
B) product liability claims
C) hazardous workplace issues
D) employee theft
Answer: A
Diff: 1
110) Corporate governance ________.

A) refers to executive governance practices in companies
B) is a system used to govern a corporation so that the interests of corporate owners are protected
C) is a term that refers to legal agreements made between two or more partner firms
D) refers to the compliance of the company to applicable laws and regulations
Answer: B
Diff: 2
111) Two areas in which corporate governance is being reformed are the role of boards of
directors and ________.
A) executive bonus systems
B) financial reporting
C) reports to stockholders
D) reporting to government agencies
Answer: B
Diff: 2
112) The Sarbanes-Oxley Act called for ________.

A) increased pollution control measures from the government
B) more disclosure and transparency of corporate financial information
C) limited accountability of directors and executives of corporations
D) more social contribution from companies in the United States
Answer: B
Diff: 2
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113) Managers tend to use more direct supervision and highly centralized decision making for
control in less technologically advanced countries.
Answer: TRUE
Diff: 1
114) Embezzlement and fraudulent filing of expenses are examples of employee theft.
Answer: TRUE
Diff: 1
115) Employers establish specific policies defining theft and fraud and discipline procedures.
This is an example of a concurrent control measure to control employee theft.
Answer: FALSE
Diff: 1
116) Using corporate hotlines or other mechanisms for reporting and investigating workplace
violence is an example of feedback control.
Answer: FALSE
Diff: 1
117) Employers cannot legally read an employee's email if it is marked "confidential."

Answer: FALSE
Diff: 1
118) One way to limit employee theft is to carefully screen job candidates.
Answer: TRUE
Diff: 1
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119) The Sarbanes-Oxley Act called for more disclosure and transparency of corporate financial
information.
Answer: TRUE
Diff: 1
120) The Sarbanes-Oxley Act of 2002 requires senior managers to certify their financial results.
Answer: TRUE
Diff: 1
121) Provide a few examples for feedforward strategies to reduce employee theft.
Answer: The following strategies can be used to control employee theft.
1. Careful prehiring screening.
2. Educating and training employees about policies.
3. Performing professional reviews to study internal controls.
4. Involving employees in writing policies.
5. Establish specific policies defining theft and fraud and discipline procedures.
The students may answer any two.
Diff: 3
122) Employers are increasingly monitoring employees' activities involving the use of company
technology, particularly computers and cell phones. Explain why employers believe such
monitoring is necessary.
Answer: Employees are hired to work, not to surf the Web. Recreational on-the-job Web surfing
is thought to cost billions of dollars in lost work productivity annually. Watching online video
clogs corporate computer networks, making the transmission of business-related data slower.
Employers don't want to risk being sued for creating a hostile work environment because of
offensive messages or an inappropriate image on a coworker's computer screen. Concerns about
racial or sexual harassment are one reason companies might want to monitor or keep back-up
copies of all e-mail. Managers want to ensure that company secrets are not being leaked.
Diff: 3
32

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123) Explain the role of the board of directors.

Answer: Board members are supposed to be an independent group that monitors the firm's
management and looks out for the shareholders' best interest. Members have to ensure the
company is in full compliance with all laws and regulations and operates according to accepted
business practices and industry and professional standards. The board's role in monitoring the
firm expanded significantly due to the passage of the Sarbanes-Oxley Act in 2002.
Diff: 3
124) List some of the employee behaviors and activities that many organizations now monitor.
Answer: Email usage and content, Internet activity, computer keystrokes, cell phone use and text
messaging, and company vehicle locations are widely tracked by many employers. Employers
can tap your work phone, monitor you in an employee bathroom or dressing room, and monitor
all computer activity.
Diff: 2
125) In a short essay, define corporate governance and describe some of the current trends in this
area.
Answer: Corporate governance is the system used to govern a corporation so that the interests of
corporate owners are protected. In response to several recent business scandals, two areas in
which corporate governance is being reformed are the role of boards of directors and financial
reporting. The cozy, quid pro quo composition of corporate boards, where board members are
frequently peers of other corporations, is changing considerably. The Sarbanes-Oxley Act of
2002, puts greater demands on board members of publicly traded companies in the United States
to do what they were empowered and expected to do. In addition to expanding the role of boards
of directors, the Sarbanes-Oxley Act also called for more disclosure and transparency of
corporate financial information. In fact, senior managers in the United States are now required to
certify their companies' financial results. These types of changes should lead to better
information-that is, information that is more accurate and reflective of the firm's financial
condition.
Diff: 3
33

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Management, 15e, Global Edition (Robbins/Coulter)

3) Which one of the following management responsibilities determines if organizational goals

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6) Which one of the following represents the controlling function?

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8) Controlling is the process of monitoring, comparing, and correcting work performance.

9) Having a control system increases the scope of employee empowerment.

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12) The control process assumes that ________.

14) The first step in the control process is ________.

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24) For which of the following is a subjective measure most appropriate?

25) The comparing step in the control process determines ________.

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27) Managers should use subjective measures when ________.

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33) Managers could choose to do nothing when ________.

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51) Disciplinary action is helpful to the organization because ________.

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64) Management by walking around is an example of ________ control.

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75) When data is analyzed and processed, it becomes ________.

76) Raw, unanalyzed facts are called ________.

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84) Feedforward control takes place while a work activity is in progress.

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96) Filing of fraudulent expense reports is an example of ________.

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98) Clinical psychologists suggest that employee theft ________.

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103) Managers can use social media as a tool to ________.

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105) Most US companies monitor employees' ________.

106) Approximately 25% of firms report firing employees for ________.

108) Most organizational theft is committed by ________.

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110) Corporate governance ________.

112) The Sarbanes-Oxley Act called for ________.

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117) Employers cannot legally read an employee's email if it is marked "confidential."

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123) Explain the role of the board of directors.

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