Chapter 18 Foundations of Control
TRUE/FALSE QUESTIONS
WHAT IS CONTROL AND WHY IS IT IMPORTANT?
1. Control is the process of monitoring activities to ensure that they are being accomplished as planned. (True; moderate; p. 526)
2. The criterion that determines the effectiveness of a control system is how well it reduces
unnecessary costs. (False; moderate; p. 526)
3. Clan control is found almost exclusively in small family-owned businesses, and is dependent upon
the individual and the group to identify appropriate and expected behaviors and performance measures.
(False; difficult; p. 527)
4. The value of the control function lies in its relation to organizational structure. (False; moderate; p. 528)
5. Managers need to control to protect the organization and its assets. (True; moderate; p. 529)
THE CONTROL PROCESS
6. The control process is a two-step process that compares actual performance against a standard and
takes managerial action to correct deviations or inadequate standards. (False; difficult; p. 529)
7. Some control criteria, such as employee satisfaction, are applicable to any management situation. (True; easy; p. 530)
8. Deviations that exceed the acceptable range of variation become significant and need the manager’s
attention.
(True; moderate; p. 531)
9. Understating sales is not nearly as troublesome as overstating. (False; moderate; p. 532)
10. In taking managerial actions, managers must correct actual performance, as it is the only choice. (False; difficult; p. 532)
11. Basic corrective action is aimed at correcting more generalized problems as quickly as possible,
leaving more detailed action for later.
499
(False; easy; p. 532)
12. Effective managers analyze deviations and, when the benefits justify it, take the time to pinpoint and
correct the causes of variance. (True; moderate; p. 532)
CONTROLLING FOR ORGANIZATIONAL PERFORMANCE
13. Performance is the end result of an activity. (True; easy; p. 534)
14. The most frequently used organizational performance measures include liquidity, profitability,
leverage, and activity ratios. (False; moderate; p. 535)
15. What guides managerial decisions in designing strategies and work activities and in coordinating the
work of employees is how well the organization meets its goals. (True; moderate; p. 536)
TOOLS FOR CONTROLLING ORGANIZATIONAL PERFORMANCE
16. The key to feedforward controls is taking action while the problem is occurring. (False; easy; p. 538)
17. Feedforward provides managers with meaningful information on how effective their planning efforts
were.
(False; moderate; p. 538)
18. Concurrent control prevents anticipated problems since it takes place before the actual activity. (False; easy; p. 538)
19. Direct supervision is the best-known form of concurrent control. (True; easy; p. 538)
20. Concurrent control relies on feedback. (False; easy; p. 538)
21. Technical equipment cannot be programmed for concurrent controls. (False; moderate; p. 539)
22. In feedback control, the control takes place after the activity is done. (True; easy; p. 539)
23. An example of feedback control is management by walking around. (False; moderate; p. 539)
500
24. When organizations ―manage‖ earnings, they ―time‖ income and expenses to enhance current
financial performance. (True; moderate; p. 541)
25. External controls have been enacted to address some of the problems that have occurred because of
―managed‖ earnings. (True; moderate; p. 542)
26. The Sarbanes-Oxley Act requires more financial disclosure by organizations. (True; moderate; p. 542)
27. Managers can focus on measuring only one performance area because it presents them with the big
picture.
(False; moderate; p. 542)
CONTEMPORARY ISSUES IN CONTROL
28. Managers of foreign companies tend to be less controlled directly by the home office. (True; moderate; p. 546; AACSB: Globalizations)
29. Employers are allowed by law to tap your work telephone without your knowledge. (True; moderate; p. 547; AACSB: Communication)
30. The courts have ruled consistently that since the company owns your computer, managers have the right
to view everything on it. (True; moderate; p. 548)
MULTIPLE-CHOICE QUESTIONS
For each of the following choose the answer that most completely answers the question.
WHAT IS CONTROL AND WHY IS IT IMPORTANT?
31. Managers can’t really know whether their work units are working properly until they’ve evaluated
what activities have been done ______________. a. with those that remain
b. and have compared actual performance to a desired standard c. and evaluate the performance of each of their employees d. successfully (b; easy; p. 526)
501
管理学第九版清华大学出版社课后习题答案第18章
