Chapter 11

Question 1

Planning and Organizing:

Answer 1

Managers develop organizational strategies and create the structure to use resources most effectively to create value for customers and other stakeholders.

Question 2

Controlling

Answer 2

Managers monitor and evaluate whether strategy and structure are working as intended, how they could be improved, and how they might be changed if they are not working.

Question 3

Steps in the Control Process

Answer 3

1. Establishing standards for performance
2. Measuring performance
3. Comparing actual performance with expected performance
4. Correcting deviations if necessary

Question 4

Establishing Standards of Performance

Answer 4

• Outputs standards: productivity, profitability, market share
• Behavioural standards: customer responsiveness, absenteeism, punctuality

Question 5

Measure Performance:

Answer 5

• What is the actual rate of productivity?
• Determine the rate on investment
• Measure the market share

Question 6

Compare Actual Performance with Expected Performance

Answer 6

• Is performance higher than expected?
• Is performance as expected?
• Is performance lower than expected?
• Evaluate the reasons for variances between the standard and actual performance

Question 7

Correct Deviations

Answer 7

• Take corrective action if the variance is significant
• Re-evaluate the standards
• Allocate sufficient resources such as training and time

Question 8

Operations management

Answer 8

The process of managing the use of materials and other resources to produce goods and services

Question 9

Production system:

Answer 9

Is the system used to acquire inputs, convert inputs into outputs, and dispose of the outputs (goods or services)

Question 10

Five P’s of Organizations Operations

Answer 10

-People (the labour force)
-Plants (facilities)
- Parts (inputs)
- Processes (technology and workflow
- Planning and control systems (standards and measures for quality control)

Question 11

Corporate Governance and Control

Answer 11

Processes companies use to be accountable to stakeholders, including investors, employees. The environment, and communities

Includes levels of executive pay, how they conduct audits, internal control systems, and shareholder rights

Question 12

Management by Objectives

Answer 12

Provide framework within which to evaluate subordinates for their ability to achieve specific goals

Allow managers to monitor progress toward achieving goals

Reviews are held periodically looking at progress toward goals

Question 13

Behavioural Controls:

Answer 13

1. Regulation Through Behavioral Standards:

• Behavioral controls establish clear expectations for employees, such as punctuality, attendance, customer responsiveness, and adherence to ethical guidelines.
• These standards help employees understand what is expected and how their actions contribute to organizational success.

2. Motivation Through Rewards and Accountability:

• Behavioral controls often include performance reviews, recognition, and rewards for meeting or exceeding expectations.
• Negative behaviors can lead to feedback, coaching, or disciplinary action, creating accountability and promoting improvement.