Ch 8

Question 1

Feedforward Control

Answer 1

Control that allows managers to anticipate problems before they arise

Question 2

Concurrent Control

Answer 2

Give managers immediate feedback on how efficiently inputs are being transformed into outputs so that managers can correct problems as they arise

Question 3

Feedback Control

Answer 3

Control that gives managers information about customers’ reactions to goods and services so that corrective action can be taken if necessary

Question 4

Profit ratios

Answer 4

Measures of how efficiently
managers convert resources
into profits

Question 5

Liquidity ratios

Answer 5

Measures of how well managers protect resources to meet short term debt—current and quick ratios.

Question 6

Leverage ratios

Answer 6

Measures of how much debt or equity is used to finance operations—debt-to-asset and times-covered ratios.

Question 7

Activity ratios

Answer 7

Measures of how efficiently managers are creating value from assets—inventory turnover, days sales outstanding ratios.

Question 8

Stretch goals

Answer 8

goals that challenge and stretch managers’ ability but are not out of reach and do not require an impossibly high expenditure of managerial time and energy.

Question 9

Operating Budget

Answer 9

A blueprint that states how managers
intend to allocate and use the
resources they control to attain organizational goals effectively and efficiently

Question 10

Management by Objectives (MBO)

Answer 10

A goal-setting process in which managers and subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate their attainment of those goals

Question 11

Bureaucratic Control

Answer 11

Control of behavior by means of a comprehensive system of rules and standard operating procedures.

Question 12

Organizational Culture

Answer 12

The shared set of beliefs, expectations, values, norms, and work routines that influences how members of an organization interact with one another and work together to achieve organizational goals

Question 13

Clan Control

Answer 13

Control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations

Question 14

Adaptive Culture

Answer 14

Culture whose values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be effective

Question 15

Inert Culture

Answer 15

Culture that leads to values and norms that fail to motivate or inspire employees

Question 16

Organizational Learning

Answer 16

Process through which managers try to increase organizational members’ abilities to understand and appropriately respond to changing conditions

Question 17

Top-down change

Answer 17

A fast, revolutionary approach to change in which top managers identify what needs to be changed, decide what to do, and then move quickly to implement changes throughout the organization

Question 18

Bottom-up change

Answer 18

A gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change

Question 19

Benchmarking

Answer 19

Process of comparing one company’s performance on specific dimensions with the performance of other high performance organizations

Question 20

Entrepreneurs

Answer 20

People who notice opportunities and take responsibility for mobilizing the resources necessary to produce new and improved goods and services

Question 21

Intrapreneurs

Answer 21

employees of existing organizations who notice opportunities for product or service improvements and are responsible for managing the development process