Course: Introduction to Management

Instructor: Dr. Alia Abdel Hamid Aaref

Sheet (9)

Controlling
MCQ
1) ________ 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

2) Which 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 performance

3) 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

4) 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

5) Which of the following sources of information for measuring performance is subject to

personal biases, time consuming, and obtrusive?
A) oral reports
B) personal observations
C) statistical reports
D) written reports
6) Andrew prefers to get his performance data in the form of charts and graphs. Andrew prefers
________.
A) personal observations
B) statistical reports
C) oral reports
D) written reports

7) 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 ________.
A) personal observations
B) statistical reports
C) oral reports
D) written reports

8) 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 ________.
A) personal observations
B) statistical reports
C) oral reports
D) written reports

9) 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

10) 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

11) ________ 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

12) Following a customer complaint, ABC 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 ________.
A) delayed corrective action
B) immediate corrective action
C) basic corrective action
D) preventive corrective action

13) 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

14) Which 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

15) Which of the following is considered the easiest way to increase organizational productivity?
A) increasing the price of outputs
B) increasing the amount of inputs
C) hiring more employees
D) decreasing the value of the products

16) In order to increase the ratio of outputs to inputs, a manager would have to ________.
A) decrease the selling price
B) increase productivity
C) increase the quality of inputs
D) hire additional employees

17) 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

18) The management control that takes place while a work activity is in progress is known as
________.
A) feedforward control
B) concurrent control
C) feedback control
D) reactive control

19) Connor 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) management by walking around
D) feedback

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

A) a system
B) information
C) fact
D) a structure

21) Which 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) economic value method
C) balanced scorecard approach
D) information control approach

22) ________ is the search for the best practices among competitors or noncompetitors that lead
to their superior performance.
A) Factor analysis
B) Total quality management
C) Market positioning
D) Benchmarking

23) Helen noticed employee theft has increased. She has considered several options to deal with
this loss. Which 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.

24) Helen investigates an incident involving a shooting in her workplace. She wants to take
measures to control its effects. By doing this she is exerting ________ control over the incident.
A) feedback
B) concurrent
C) reactive
D) feedforward

25) MegaMogul Mfg. was a very successful company about 50 years ago. Its managers still
behave today as they did back then. They are rigid, aggressive and condescending in their
communication. Their favorites are given the easiest assignments. No one is allowed to question
them. This situation is ripe for ________.
A) employee theft
B) employee fraud
C) a control system makeover
D) workplace violence

26) Which of the following is an example of a feedforward control measure used to control
possible workplace violence?
A) Clearly communicate the security policies to employees.
B) Use corporate hotlines for reporting and investigating incidences.
C) Review company policies and change, if necessary.
D) Investigate incidences and take appropriate action.

27) 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

True and False, correct and justify

1) Controlling is the process of monitoring, comparing, and correcting work performance.
2) Deviations that exceed the acceptable range of variation become significant and need a
manager's attention.
3) Basic corrective action corrects problems at once to get performance back on track.
4) Feedforward control takes place while a work activity is in progress.
5) The balanced scorecard approach evaluates organizational performance from more than just
the financial perspective.
6) Benchmarks for a company must be created based on the previous performance of the
company.
7) Employers establish specific policies defining theft and fraud and discipline procedures. This
is an example of a concurrent control measure to control employee theft.

Essay
1) What are the major reasons why the control function is important to managers?
2) In a short essay, explain the steps of the controlling process.
3) In a short essay, explain feedforward, concurrent, and feedback controls and provide an
example for each one.
4) In a short essay, define corporate governance and the role of the board of directors.