Ch. 19: Managing Quality and Performance

Question 1

organizational control

Answer 1

the systematic process of regulating organizational activities to make them consistent with the expectation established in plans, targets, and standards of performance

Question 2

What are the 4 steps of feedback control?

Answer 2

1. establish clear and specific standards of performance
2. measure actual performance often
3. compare performance to standards
4. take corrective action

Question 3

balanced scorecard

Answer 3

a comprehensive mgmt. control system that balances traditional financial measures with operational measures relating to a company’s critical success factors

Question 4

What are the 4 parts to the balanced scorecard?

Answer 4

1. financial performance
2. customer service (satisfaction)
3. internal business processes (production & operations)
4. potential for learning and growth (resource mgmt.)

Question 5

budgetary control

Answer 5

the process of setting targets for an org’s expenditures, monitoring results, comparing them to the budget and making changes as needed

Question 6

zero-based budget

Answer 6

requires a complete justification for every line item in a budget instead of carrying forward a prior budget and applying a percentage change

Question 7

hierarchical control

Answer 7

monitoring and influencing employee behavior through extensive use of rules, rewards and other formal mechanisms

Question 8

What are 5 aspects of hierarchical control

Answer 8

1. define explicit rules, policies and procedures
2. centralized authority, close personal supervision
3. job descriptions are specific and task related
4. individual employees are given extrinsic rewards but rarely participate in the control process
5. organizational culture is somewhat rigid

Question 9

decentralized control

Answer 9

relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals

Question 10

What are 6 aspects of decentralized control?

Answer 10

1. rely on shared goals and values to control employee behavior
2. emphasis on the election and socialization of employees
3. self-control and self-discipline are what keep workers performing the jobs up to standard
4. everyone is involved in quality control on an ongoing basis
5. job descriptions are results-based
6. managers use extrinsic and intrinsic rewards such as meaningful work and opportunity to learn and grow

Question 11

open-book management

Answer 11

allow employees to see for themselves the financial condition of the company

Question 12

What are 3 benefits of open-book mgmt.?

Answer 12

1. shows the individual employee how his or her job fits into the big picture and affects the future of the org.
2. ties employee rewards to the company’s overall success
3. helps employees appreciate why efficiency is important to the organization’s success as well as their own

Question 13

total quality management

Answer 13

and organization-wide effort to infuse quality into every activity in a company through continuous improvement

Question 14

What are 5 TQM techniques?

Answer 14

1. quality circle
2. benchmarking
3. Six Sigma
4. quality partnering
5. continous improvement (kaizen)

Question 15

quality circle

Answer 15

a group of volunteer employees who meet regularly to discus and solve problems affecting the quality of work

Question 16

benchmarking

Answer 16

the continuous process of measuring product, services and practices against competitors to identify areas for improvement

Question 17

What are the 5 steps in the benchmarking process?

Answer 17

1. planning (identifying objectives)
2. identifying the source of the info to be collected
3. collect data
4. analyze the benchmarking data and recommend areas for improvement
5. implement recommendations and monitor them through continuous benchmarking

Question 18

Six Sigma

Answer 18

quality standard that specifies a goal of no more than 3.4 defects per million parts–emphasizes a disciplined pursuit of higher quality and lower costs

Question 19

quality partnering

Answer 19

assigning dedicated personnel within a particular functional area of the business

Question 20

continuous improvement

Answer 20

the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis

Question 21

ISO 9000 standards

Answer 21

international consensus of what constitutes effective quality management outlined by the International Organization for Standardization

Question 22

corporate governance

Answer 22

the framework of systems, rules, and practices by which an organization ensures accountability, fairness and transparency in its relationships with all stakeholders

Question 23

Sarbanes-Oxley Act of 2002

Answer 23

reforms for better internal monitoring to reduce the risk of fraud and, require certification of financial reports by top leaders, improved measure for external auditing, and enhance public disclosure