Unit 5 Flashcards
refers to the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance
Organizational control
T/F:
Effectively controlling an organization requires information about performance standards and actual performance, as well as actions taken to correct any deviations from the standards.
T
Involves measuring, restraining and correcting performance to accomplish an objective as it was planned
a. planning
b. organizing
c. directing
d. controlling
d. controlling
It involves the measurement of certain elements such as time, quality, quantity and cost against standards or models which have been established, and the evaluation of the work or performance of various personnel in the organization.
a. organizing
b. controlling
c. planning
d. directing
b. controlling
T/F:
A good control system should be flexible so managers can respond as needed.
T
T/F:
A good control system should provide accurate information about the organization.
T
T/F:
A good control system should provide information in a timely manner.
T
T/F:
A good control system should encourage each employee to exercise self- control.
T
Type of control:
Anticipate problems before they occur
a. Feedforward Control
b. Concurrent Control
c. Feedback Control
a. Feedforward Control
Type of control:
Manage problems as they occur
a. Feedforward Control
b. Concurrent Control
c. Feedback Control
b. Concurrent Control
Type of control:
Manage problems after they have arisen
a. Feedforward Control
b. Concurrent Control
c. Feedback Control
c. Feedback Control
The feedback control model involves using _____________ to determine whether performance meets established standards.
feedback
4 key steps of a well-designed control system
- establish standards
- measure performance
- compare performance to standards
- make corrections as necessary
Arrange the steps in controlling:
(A) Comparison of performance with the standards
(B) Determination of the standards or basis of control
(C) Enactment of remedial measures
(D) Measurement of performance
B-D-A-C
Step 1: Determination of the standards or basis of control
Step 2: Measurement of performance
Step 3: Comparison of performance with the standards
Step 4: Enactment of remedial measures
T/F:
Performance standard must be expressed in qualitative terms whenever possible.
F; quantitative
T/F:
Performance standard may mean the average unit of output an average employee may be able to perform per hour, per day or per week.
T
Address how well the work is performed and/or how accurate or how effective the final product is
a. timeliness
b. standard
c. quality
d. feedback
c. quality
Addresses how quickly, when or by what date the work is produced
a. timeliness
b. standard
c. quality
d. feedback
a. timeliness
Involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Foster compliance with organizational goals through the use of organizational culture, group norms, and a focus on goals rather than rules and procedures
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Basic Assumptions:
People are incapable of self-discipline and cannot be trusted. They need to be monitored and controlled closely.
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Basic Assumptions:
People work best when they are fully committed to the organization
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Actions:
Uses detailed rules and procedures
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Actions:
Formal control systems
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Actions:
Uses top-down authority, formal hierarchy, position power, and quality control inspectors
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Actions:
Relies on task-related descriptions
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Actions:
Emphasizes extrinsic rewards (pay, benefits, status)
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Actions:
Features rigid organizational culture; distrust of cultural norms as means of control
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Actions:
Features limited use of rules; relies on values, group and self-control, selection, and socialization.
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Actions:
Relies on flexible authority, flat structure, expert power; everyone monitors quality
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Actions:
Relies on result-based job descriptions; emphasizes goals to be achieved
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Actions:
Emphasizes extrinsic and intrinsic rewards (meaningful work, opportunities for growth)
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Actions:
Features adaptive culture; culture recognized as means for uniting individuals, team, and organizational goals for overall control
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Consequences:
Employees follow instructions and do just what they are told.
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Consequences:
Employees feel a sense of indifference toward work.
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Consequences:
Employees absenteeism and turnover is high.
a. Hierarchical control
b. Decentralized control
a. Hierarchical control
Consequences:
Employees take initiative and seek responsibility
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Consequences:
Employees are actively engaged and committed to their work.
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Consequences:
Employee turnover is low.
a. Hierarchical control
b. Decentralized control
b. Decentralized control
Total Quality Management (TQM)
a. decentralized control approach
b. hierarchical control approach
a. decentralized control approach
T/F:
The TQM philosophy focuses on individual work, decreasing customer satisfaction, and increaing costs.
F;
teamwork
increasing customer satisfaction
decreasing costs
T/F:
Organizations implement TQM by encouraging managers and employees to collaborate across functions and departments, as well as with customers and suppliers, to identify areas for improvement, no matter how small.
T
T/F:
Each quality improvement is a step toward perfection and meeting a goal of zero defects.
T
T/F:
Quality control becomes part of the annual business of every employee rather than being assigned to specialized departments.
F;
day-to-day business
offer one technique for implementing TQM and include groups of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work
a. Quality circles
b. Benchmarking
c. Six sigma
d. Quality partnering
e. Continuous improvement / Kaizen
a. Quality circles
the continuous process of measuring products, services, and practices against major competitors or industry leaders
a. Quality circles
b. Benchmarking
c. Six sigma
d. Quality partnering
e. Continuous improvement / Kaizen
b. Benchmarking
a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs
a. Quality circles
b. Benchmarking
c. Six sigma
d. Quality partnering
e. Continuous improvement / Kaizen
c. Six sigma
involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process
a. Quality circles
b. Benchmarking
c. Six sigma
d. Quality partnering
e. Continuous improvement / Kaizen
d. Quality partnering
the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis
a. Quality circles
b. Benchmarking
c. Six sigma
d. Quality partnering
e. Continuous improvement / Kaizen
e. Continuous improvement / Kaizen
Sigma Concepts:
The process is selected for improvement, and the project charter is specified.
a. Define
b. Measure
c. Analyze
d. Improve
e. Control
a. Define
Sigma Concepts:
Quality variables valued by the customer are measured, and goals are set for improvement.
a. Define
b. Measure
c. Analyze
d. Improve
e. Control
b. Measure
Sigma Concepts:
The root causes of the current defect levels are identified, and alternatives are considered for process changes.
a. Define
b. Measure
c. Analyze
d. Improve
e. Control
c. Analyze
Sigma Concepts:
The process is changed and checked for improvement.
a. Define
b. Measure
c. Analyze
d. Improve
e. Control
d. Improve
Sigma Concepts:
This step uses a ______ chart or measurements to ensure that the process improvement is not lost over time.
a. Define
b. Measure
c. Analyze
d. Improve
e. Control
e. Control
T/F:
The benchmarking approach can be applied to processes in manufacturing, service, or administrative areas.
F;
Six Sigma approach
Once a process is selected for improvement, a _____________ team is formed since most processes cut across functional lines.
cross-functional
A full-time trained process improvement specialist, usually called a “___________” is chosen to lead the improvement team.
black-belt
The team then sets out to make improvements by using the ________ approach.
DMAIC
Goal:
Understand process flow and eliminate waste
a. Lean
b. Six sigma
a. Lean
Goal:
Improve process capability and eliminate or minimize variation
a. Lean
b. Six sigma
b. Six sigma
Application:
Any business process
a. Lean
b. Six sigma
b. six sigma
Application:
Primarily high volume processes
a. Lean
b. Six sigma
a. Lean
Approach:
Basic principles and “cookbook style” implementation based on accepted practices
a. Lean
b. Six sigma
a. Lean
Approach:
Well understood problem-solving approach relying on statistics (DMAIC or DMADV)
a. Lean
b. Six sigma
b. Six sigma
Project Selection:
Driven by local supervisor
a. Lean
b. Six sigma
a. Lean
Project Selection:
BPM and gap analysis
a. Lean
b. Six sigma
b. Six sigma
Length of Projects:
1 week to 2 months
a. Lean
b. Six sigma
a. Lean
Length of Projects:
2 to 6 moths
a. Lean
b. Six sigma
b. Six sigma
Infrastructure:
Mostly ad-hoc, minimal formal training
a. Lean
b. Six sigma
a. Lean
Infrastructure:
Dedicated resources, broad-based training
a. Lean
b. Six sigma
b. Six sigma
Training:
Learning by doing
a. Lean
b. Six sigma
a. Lean
Training:
Learning by classroom and doing
a. Lean
b. Six sigma
b. Six sigma
QC Tool:
Describe the flow of work and the relationships among steps in the process, and reveal any unnecessary steps and waste that can be eliminated
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
a. Flowcharts
QC Tool:
Identify possible problems that need to be investigated via further data collection and analysis
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
a. Flowcharts
QC Tool:
shows the relationship of factors and variables that might have led to the occurrence of issues
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
b. Cause-and-effect (CE) diagram/ Fishbone diagram
QC Tool:
identifies the problem itself, the effect, which is placed on the right side of the diagram
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
b. Cause-and-effect (CE) diagram/ Fishbone diagram
QC Tool:
fleshes out the various potential causes of the problem that are shown along the spine of the diagram and categorized, for example, as materials, workers, inspection, and tools
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
b. Cause-and-effect (CE) diagram/ Fishbone diagram
QC Tool:
shows an appearance of a diagram that suggests a fishbone analogy
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
b. Cause-and-effect (CE) diagram/ Fishbone diagram
QC Tool:
are data collection done, which are put in a tabular list representing collected data about the process
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
c. Check sheets
QC Tool:
contain critical process measurements taken at periodic intervals during the day and tabulated by the time taken
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
c. Check sheets
QC Tool:
used to tabulate the frequency of certain defects or other quality-related events
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
c. Check sheets
QC Tool:
show the relationship between two variables
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
d. Scatter diagrams
QC Tool:
If a particular cause and effect are suspected to be related, the relationship will be apparent as a linear or curved pattern.
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
d. Scatter diagrams
QC Tool:
Once improvements have been made, the new process should be stabilized to hold the gains by using a new ________ __________.
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
e. Control chart
QC Tool (Control Chart):
process improvement, will no longer be appropriate following the improvements
a. original control chart
b. new control chart
a. original control chart
QC Tool (Control Chart):
with new center lines and upper and lower limits can be created, based on data from the improved process
a. original control chart
b. new control chart
b. new control chart
QC Tool:
a frequency count using data from the check sheet to show the form and shape of the distribution of the data
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
f. Histogram
QC Tool:
indicates that some data points are outliers, or there may be odd shapes to the distribution that indicate skewness or possibly more than one mode or peak in the distribution
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
f. Histogram
QC Tool:
Can be constructed to show the most important problems
a. Flowcharts
b. Cause-and-effect (CE) diagram/ Fishbone diagram
c. Check sheets
d. Scatter diagrams
e. Control chart
f. Histogram
g. Pareto diagram
g. Pareto diagram
observed that a few items in any population constitute a significant percentage of the entire group—the vital few
Vilfredo Pareto (1906)
T/F:
According to Pareto’s law, a few of the failure modes account for most of the observed defects.
T
includes prevention, appraisal, internal failure, and external failure categories
a. budgetary control
b. responsibility center
c. cost of quality
d. corporate governance
c. cost of quality
T/F:
All these, except prevention, are costs of not doing things right the first time.
T
T/F:
When a cost is assigned to high quality, it can be managed and controlled like any other cost.
F;
poor quality
one of the most commonly used forms of managerial control
a. budgetary control
b. responsibility center
c. balanced scorecard
d. corporate governance
a. budgetary control
the process of setting targets for an organization’s expenditures, monitoring results and comparing them to the budget, and making changes as needed
a. budgetary control
b. responsibility center
c. balanced scorecard
d. corporate governance
a. budgetary control
as a control device, ________ are reports that list planned and actual expenditures for cash, assets, raw materials, salaries, and other resources
budgets
T/F:
A budget is created for every division or department within an organization, no matter how small, as long as it performs a distinct project, program, or function.
T
T/F:
Budget reports usually list the variance between the budgeted and actual amounts for each item.
T
any organizational department or unit under the supervision of a single person who is responsible for its activity
a. budgetary control
b. responsibility center
c. balanced scorecard
d. corporate governance
b. responsibility center
outlines the anticipated and actual expenses for a responsibility center
a. expense budget
b. revenue budget
c. cash budget
d. capital budget
a. expense budget
lists forecasted and actual revenues of the organization
a. expense budget
b. revenue budget
c. cash budget
d. capital budget
b. revenue budget
estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations
a. expense budget
b. revenue budget
c. cash budget
d. capital budget
c. cash budget
a budget that plans and reports investments in major assets to be depreciated over several years
a. expense budget
b. revenue budget
c. cash budget
d. capital budget
d. capital budget
has been expanded to refer to the framework of systems, rules, and practices by which an organization ensures accountability, fairness, and transparency in its relationships with all stakeholders, including investors, employees, customers, and the general public
a. budgetary control
b. responsibility center
c. balanced scorecard
d. corporate governance
d. corporate governance
a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization’s capacity for learning and growth
a. budgetary control
b. responsibility center
c. balanced scorecard
d. corporate governance
c. balanced scorecard
Perspectives in a Balanced Scorecard:
reflects a concern that the organization’s activities contribute to improving short- and long-term financial performance
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
a. financial performance
Perspectives in a Balanced Scorecard:
includes traditional measures such as net income and return on investment
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
a. financial performance
Perspectives in a Balanced Scorecard:
measure information such as how customers view the organization and customer retention and satisfaction
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
b. customer service
Perspectives in a Balanced Scorecard:
Data may be collected in many forms, including testimonials from customers describing superlative service or from customer surveys.
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
b. customer service
Perspectives in a Balanced Scorecard:
focus on production and operating statistics
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
c. internal business processes
Perspectives in a Balanced Scorecard:
For clinical laboratories, indicators may include fast turn-around-time in releasing results, the use of fully-automated systems to accommodate high-volume samples, and adherence to safety guidelines.
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
c. internal business processes
Perspectives in a Balanced Scorecard:
focusing on how well resources and human capital are being managed for the company’s future
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
d. potential for learning and growth
Perspectives in a Balanced Scorecard:
Metrics may include things such as employee retention and the introduction of new products.
a. financial performance
b. customer service
c. internal business processes
d. potential for learning and growth
d. potential for learning and growth
T/F:
Managers record, analyze, and discuss various metrics to determine how well the organization is achieving its strategic goals.
T
T/F:
The responsibility center is an effective tool for managing and improving performance, but only if it is clearly linked to a well-defined organizational strategy and goals.
F;
balanced scorecard
