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Supervision Concepts and Skill-

Building 9th Edition Samuel Certo


Solutions Manual
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Chapter 06 Test Bank KEY
1. _____ is the management function of setting goals and determining how to meet them.
A. Organizing
B. Controlling
C Planning
D. Evaluating
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Planning is the management function of setting goals and determining how to
meet them. The other functions managers perform—organizing, staffing, leading, and
controlling—all depend on good planning.

2. _____ are objectives with a broad focus.


A. Goals
B. Norms
C. Requirements
D. Targets
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Goals are objectives with a broad focus. Planning centers on the setting of
goals and objectives.

3. Which of the following statements is true of planning?


A. Planning should begin at the bottom, with a plan for each department.
B. Planning centers on the setting of goals and objectives.
C. Planning is the function of ensuring that work goes according to a strategy.
D. Planning done by top managers is called operational planning.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Planning centers on the setting of goals and objectives. Planning should begin
at the top, with a plan for the organization as a whole.

4. Which of the following is the management function upon which all the other functions
depend?
A. Staffing
B. Controlling
C. Planning
D. Organizing
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Planning is the management function upon which all the other functions
depend. It involves setting goals and determining how to meet them.

5. _____ specify the desired accomplishments of an organization as a whole or of a part


of it.
A. Traditions
B. Objectives
C. Code of ethics
D. Norms
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Objectives specify the desired accomplishments of the organization as a whole


or of a part of it. According to one school of thought, goals are objectives with a broad
focus.

6. Strategic planning is best defined as the process of:


A. creating long-term goals for the organization as a whole.
B. developing objectives that specify how each department will support organizational
goals.
C. planning what to do if the original plans or objectives set by an organization don't
work out.
D. accurately linking operational planning with financial planning.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Strategic planning is the creation of long-term goals for an organization. These
goals typically include the type and quality of goods or services the organization is to
provide and, for a business, the level of profits it is to earn.

7. Fusion Inc., a clothing manufacturer, has recently become very successful. The top
management is now planning to venture into the confectionary business and earn similar
profits in this new business. This is an example of _____ planning.
A. operational
B. strategic
C. contingency
D. integrated operational
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Apply
Difficulty: 3 Hard
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: The type of planning in the scenario exemplifies strategic planning. Strategic
planning is the creation of long-term goals for an organization. These goals typically
include the type and quality of goods or services the organization is to provide and, for a
business, the level of profits it is to earn.

8. Operational planning is best defined as the process of:


A. creating long-term goals for the organization or company as a whole.
B. developing objectives that specify how each department will support organizational
goals.
C. planning what to do if the original plans or objectives set by an organization don't
work out.
D. accurately linking operational planning with financial planning.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations
Feedback: Operational planning is defined as the development of objectives that specify
how divisions, departments, and work groups will support organizational goals.
Operational planning is performed by middle managers and supervisors.

9. Operational planning differs from strategic planning in that:


A. it is performed by middle managers.
B. it focuses on long-term goals.
C. it involves setting objectives for an organization as a whole.
D. it involves a planning department.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Operational planning is performed by middle managers and supervisors.


Middle managers set objectives that will enable their division or department to contribute
to the goals set for the organization.

10. Which of the following is a defining characteristic of strategic planning?


A. It is typically performed by middle managers and supervisors.
B. It lays down objectives for specific departments and not for the entire firm.
C. It covers a comparatively large time span that is usually over a year.
D. It is primarily aimed at making employees focus on their role in supporting the
company's goals.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Strategic planning covers a comparatively large time span that is usually over
a year. Usually it is top managers who engage in strategic planning.

11. Operational planning is performed by the:


A. top management and the board of directors.
B. top and the middle management.
C. middle management and the supervisors.
D. supervisors and the board of directors.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations
Feedback: Operational planning is performed by middle managers and supervisors. The
objectives developed through operational planning specify how the group will help the
organization achieve its goals.

12. Which of the following is a defining characteristic of operational planning?


A. Operational planning is ideally done by the CEO and other top managers.
B. The scope of operational planning includes stating objectives for the organization as a
whole.
C. Typically, operational planning is done when the original plan fails to materialize.
D. Operational planning is usually short-term with a time frame of one year or less.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

Feedback: Operational planning is usually short-term with a time frame of one year or
less. It is performed by middle managers and supervisors.

13. An effective objective must be _____.


A. broad
B. clear
C. rigid
D. discreet
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: An effective objective must be clear. For objectives to be effective, they


should be written, measurable or observable, clear, specific, and challenging but
achievable.

14. For objectives to be effective, they should be:


A. written, measurable, clear, specific, and challenging but achievable.
B. simple, distinctive, rational, assessable, and easily achievable.
C. specific, acceptable, generalizable, innovative, and extremely challenging.
D. unique, understandable, logical, observable, and simple yet significant.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations
Feedback: For objectives to be effective, they should be written, measurable or
observable, clear, specific, and challenging but achievable.

15. Policies are best defined as:


A. broad guidelines for how to act.
B. the steps that must be completed to achieve a specific purpose.
C. specific statements of what to do or not to do in a given situation.
D. objectives with a narrow focus.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: Policies are broad guidelines for how to act; they do not spell out the details of
how to handle a specific situation.

16. Procedures are best defined as:


A. the principles by which people distinguish what is morally right.
B. the steps that must be completed to achieve a specific purpose.
C. specific statements of what to do or not to do in a given situation.
D. objectives with a comparatively narrow focus.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: Procedures are the steps that must be completed to achieve a specific purpose.
An organization might specify procedures for hiring employees, purchasing equipment,
filing paperwork, and many other activities.

17. At Value Inc., there are specific steps to be followed when applying for a day off.
First, an employee has to apply to his or her immediate supervisors. After getting their
approval, he or she has to get it signed by the branch manager. Then a copy of the leave
application has to be submitted to the HR department. These mandatory steps are referred
to as _____.
A. policies
B. ethics
C. procedures
D. goals
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Apply
Difficulty: 3 Hard
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations
Feedback: The mandatory steps described in the scenario are referred to as procedures.
Procedures are the steps that must be completed to achieve a specific purpose. An
organization might specify procedures for hiring employees, purchasing equipment, filing
paperwork, and many other activities.

18. Which of the following is true of procedures?


A. They are broad guidelines for how to act that are flexible and open to interpretation.
B. They free managers from making decisions about activities they carry out repeatedly.
C. They are specific statements that serve as the basis for action plans and contingency
plans.
D. They do not spell out the steps that must be completed to achieve a specific purpose.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: Procedures free managers from making decisions about activities they carry
out repeatedly. Procedures are the steps that must be completed to achieve a specific
purpose.

19. Rules are best defined as:


A. the principles by which people distinguish what is morally right.
B. the steps that must be completed to achieve a specific purpose.
C. specific statements of what to do or not to do in a given situation.
D. objectives with a comparatively narrow focus.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: Rules are specific statements of what to do or not do in a given situation.


Unlike policies, they are neither flexible nor open to interpretation.

20. The difference between a policy and a rule is that:


A. a policy is rigid, but a rule is comparatively flexible.
B. a policy does not specify details of how to handle a specific situation, but rules are
very specific.
C. a policy is related to operational planning and has a narrower scope compared to a
rule.
D. a policy is not open to interpretation like a rule.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: The difference between a policy and a rule is that a policy does not specify
details of how to handle a specific situation but rules are very specific. Unlike policies,
rules are neither flexible nor open to interpretation.

21. At Ecstasy Café, it is mandatory for employees to wash their hands before handling
food. This is an appropriate example of a:
A. plan.
B. rule.
C. code.
D. procedure.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom's: Apply
Difficulty: 3 Hard
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: The Café requiring employees to wash their hands before handling food is an
example of a rule. Rules are specific statements of what to do or not do in a given
situation.

22. An action plan is best defined as the plan:


A. for how to achieve an objective.
B. that is a back-up for the original plan.
C. that is specifically concerned with the formulation of budget.
D. for setting a mission statement.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: An action plan is a plan for how to achieve an objective. Objectives serve as
the basis for action plans.

23. Which of the following refers to contingency planning?


A. Planning that is specifically concerned with the formulation of a company's budget
B. Planning that is concerned with what to do if the original plans don't work out
C. Planning that is primarily concerned with setting a mission statement
D. Planning that is primarily concerned with dealing effectively with whistle-blowers
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: Planning what to do if the original plans do not work out is known as
contingency planning. A wise supervisor has contingency plans to go with every original
plan.

24. Which of the following is true of contingency planning?


A. It is a formal plan for how to achieve an objective.
B. The supervisor creates a contingency plan by answering the questions what, who,
when, where, and how.
C. It is too time-consuming to create a written contingency plan for every detail of
operations.
D. Contingency plans are the original plans developed by the top managers for the
organization as a whole.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: It would be too time-consuming to create a written contingency plan for every
detail of operations. Contingency planning is not always formal.

25. Which of the following is true of action plans?


A. They are the original plans developed by the top managers for the organization as a
whole.
B. They are created by answering the questions what, who, when, where, and how.
C. They are plans implemented when the original plans do not work out.
D. They cannot be used as a tool to meet desired organizational objectives.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: They are created by answering the questions what, who, when, where, and
how. An action plan is a plan for how to achieve an objective.

26. If objectives are thought of as statements of where one wants to go, then a(n) _____
plan is a map that tells them how to get there.
A. operational
B. strategic
C. contingency
D. action
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

Feedback: If objectives are thought of as statements of where one wants to go, then an
action plan is a map that tells how to get there. An action plan is a plan for how to
achieve an objective.

27. _____ is a process in which managers and employees at all levels set objectives for
what they are to accomplish.
A. Objectives management
B. Strategic objectives managing
C. Program evaluation and review technique
D. Management by objectives
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-03: Define management by objectives (MBO) and discuss its use.
Topic: Planning in Organizations

Feedback: Management by objectives (MBO) is a process in which managers and


employees at all levels set objectives for what they are to accomplish. Their performance
then is measured against those objectives.

28. For the effective use of management by objectives, _____.


A. managers at all levels must be committed to the system
B. the objectives set should be general and immeasurable
C. employees should be excluded from the process
D. the goals must be set solely by top management
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-03: Define management by objectives (MBO) and discuss its use.
Topic: Planning in Organizations

Feedback: For the effective use of MBO, managers at all levels (especially top
management) must be committed to the system. Also, the objectives they set must meet
the criteria for effective objectives described previously.

29. Why do some people dislike management by objectives?


A. It is not possible for managers to periodically review an individual’s performance to
see whether he or she is meeting the objectives.
B. Employees do not benefit from a system of rewards that is based on personality rather
than on performance.
C. Setting and monitoring the achievement of objectives can be time-consuming and
requires a lot of paperwork.
D. When employees are involved in the process of setting goals, it results in lesser
commitment toward achieving those goals.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-03: Define management by objectives (MBO) and discuss its use.
Topic: Planning in Organizations

Feedback: Some people dislike MBO because setting and monitoring the achievement of
objectives can be time-consuming and requires a lot of paperwork. However, the
organization can benefit from involving employees in setting goals, which may lead to
greater commitment in achieving them.

30. Which of the following is true about management by objectives?


A. All individuals in the organization work with their managers to set objectives.
B. The managers dictate the objectives to the employees.
C. It is an informal system of setting objectives.
D. Setting and monitoring the achievement of objectives does not require paperwork.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-03: Define management by objectives (MBO) and discuss its use.
Topic: Planning in Organizations

Feedback: In management by objectives, all individuals in the organization work with


their managers to set objectives, specifying what they are to do in the next operating
period (such as a year).

31. A(n) _____ is defined as a plan for spending money.


A. budget
B. contingency plan
C. schedule
D. action plan
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: A budget is defined as a plan for spending money. The process of allocating
money resources is called budgeting.
32. In the context of budgeting, big-ticket items such as machinery or a new building
would most likely be part of a(n) _____ budget.
A. central
B. capital
C. divisional
D. operating
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: In the context of budgeting, big-ticket items such as machinery or a new


building would most likely be part of a capital budget. A budget is a plan for spending
money.

33. Which of the following is most likely to be included as part of an operating budget?
A. Insurance
B. New plant
C. New building
D. Machinery
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: Insurance is most likely to be included as part of an operating budget. Big-


ticket items such as machinery or a new building would more likely be accounted for
separately as part of a capital budget.

34. Budgeting is best defined as the process of:


A. allocating money resources.
B. formulating an agenda.
C. making a contingency plan.
D. reducing bunker hedging.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: The process of allocating money resources is called budgeting. A budget is a


plan for spending money.
35. Fred, a supervisor at JK Inc., is drafting a report on his department's estimated
expenses for the coming fiscal year and the precise allocation of available capital to areas
such as rent, employee wages, and insurance. Fred is most likely formulating a(n) _____.
A. strategic plan
B. contingency plan
C. strategic budget
D. operating budget
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Bloom's: Apply
Difficulty: 3 Hard
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: Planning in Organizations

Feedback:
36. Which of the following is most likely to be included as part of a capital budget?
A. Amount to be spent on wages
B. Amount to be spent on rent
C. Amount to be spent on insurance
D. Amount to be spent on heavy machinery
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: In the scenario, Fred is most likely formulating an operating budget.


Businesses use operating budgets to break down how much to spend on items such as
wages and salaries, rent, supplies, insurance, and so on.

37. In context of a supervisor's role as a planner, setting a precise timetable for the work
to be done is known as:
A. . scheduling.
B. capital budgeting.
C. strategic planning.
D. evaluating.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: Setting a precise timetable for the work to be done is known as scheduling.
This process includes deciding which activities will take priority over others and deciding
who will do what tasks and when.

38. _____ includes deciding which activities will take priority over others and deciding
who will do what tasks and when.
A. Budgeting
B. Allocating
C. Scheduling
D. Controlling
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: Scheduling includes deciding which activities will take priority over others
and deciding who will do what tasks and when. Setting a precise timetable for the work
to be done is known as scheduling.

39. Two of the most widely used techniques for scheduling are:
A. Supnick matrix and flow network.
B. Gantt charts and PERT networks.
C. directed graphs and matrices.
D. graph algorithms and spectral layout.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: Two of the most widely used techniques for scheduling are Gantt charts and
PERT networks. Many organizations expect supervisors to use one or more of the
techniques and tools that have been developed to help with scheduling.

40. A _____ is a scheduling tool that lists the activities to be completed and uses
horizontal bars to graph how long each activity will take, including its starting and ending
dates.
A. scatter graph
B. run chart
C. stem plot
D. Gantt chart
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: A Gantt chart is a scheduling tool that lists the activities to be completed and
uses horizontal bars to graph how long each activity will take, including its starting and
ending dates. One of the most widely used techniques for scheduling is Gantt charts.
41. A scheduling tool that most efficiently identifies the relationships among tasks as well
as the amount of time each task will take is called a:
A. Gantt chart.
B. PERT network.
C. planar map.
D. run chart.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: The program evaluation and review technique (PERT) is a scheduling tool that
identifies the relationships among tasks and the amount of time each task will take. To
use this tool, the planner creates a PERT network.

42. In the context of program evaluation and review technique (PERT), the sequence of
tasks that requires the greatest amount of time is referred to as the:
A. precautionary principle.
B. exception principle.
C. exaggerated agenda.
D. critical path.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: The sequence of tasks that will require the greatest amount of time is referred
to as the critical path. A delay in the critical path will cause the entire project to fall
behind.

43. In the program evaluation and review technique (PERT), a delay in the _____ will
cause the entire project to fall behind.
A. critical path
B. network
C. action plan
D. concurrent control
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner
Feedback: In the program evaluation and review technique (PERT), a delay in the critical
path will cause the entire project to fall behind. An important piece of information in a
PERT network is the critical path—the sequence of tasks that will require the greatest
amount of time.

44. To make sure that employees understand objectives and consider them achievable,
supervisors should _____.
A. set objectives that are general rather than specific.
B. involve the top managers in the goal-setting process.
C. set objectives that are easy rather than challenging.
D. involve the employees in the goal-setting process.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

Feedback: To make sure that employees understand objectives and consider them
achievable, supervisors may involve them in the goal-setting process. Employees who are
involved in the process tend to feel more committed to the objectives, and they may be
able to introduce ideas that the supervisor has not considered.

45. Controlling is best defined as the:


A. scheduling tool that identifies the relationships among tasks as well as the amount of
time each task will take.
B. management function of making sure that work goes according to plan.
C. process of planning what to do if the original plans don't work out.
D. process of developing objectives that specify how each department will support
organizational goals.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-05: Explain the purpose of using controls.
Topic: The Supervisor as Controller

Feedback: Controlling is best defined as the management function of making sure that
work goes according to plan. Supervisors carry out this process in many ways.

46. _____ is at the heart of the control function.


A. Implementation of plans
B. Detection of problems
C. Elimination of errors
D. Allocation of resources
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-05: Explain the purpose of using controls.
Topic: The Supervisor as Controller

Feedback: Detection of problems is at the heart of the control function. A supervisor has
a responsibility to correct problems as soon as possible, which means that some way to
detect problems quickly must be found.

47. Which of the following is the first step in the process of controlling?
A. Monitoring actual performance against set targets
B. Establishing performance standards
C. Estimating the fund required for efficient productivity
D. Providing feedback based on performance
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Establishing performance standards is the first step in the process of


controlling. Performance standards are a natural outgrowth of the planning process.

48. Which of the following is the next step after establishing performance standards in
the control process?
A. Monitoring performance
B. Fixing problems
C. Reinforcing successes
D. Providing feedback
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: The next step after establishing performance standards in the control process is
monitoring performance. One way to monitor performance is simply to record
information on paper or enter it into a computer, a task that can be done by the
supervisor, the employees, or both.

49. In the context of the process of controlling, standards are best defined as:
A. measures of what is expected.
B. principles by which people distinguish what is morally right.
C. results of performance evaluation.
D. objectives with a comparatively narrow focus.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Standards are best defined as measures of what is expected. Establishing


performance standards is the first step in the process of controlling.

50. To be effective, performance standards should be:


A. orally stated.
B. easy rather than challenging.
C. general rather than specific.
D. measurable.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: To be effective, performance standards should be measureable. They should


meet the criteria of effective objectives; that is, they should be written, measurable, clear,
specific, and challenging but achievable.

51. In the control process, _____ define the acceptable quantity and quality of work.
A. standards
B. controls
C. rules
D. policies
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: In the control process, standards define the acceptable quantity and quality of
work. Standards are measures of what is expected.

52. In the control process, the way supervisors set standards depends on their:
A. employer’s expectations.
B. beliefs and values.
C. personality characteristics.
D. employees’ experience.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller
Feedback: In the control process, the way supervisors set standards depends on their
experience, their employer’s expectations, and the nature of the work being monitored.

53. When setting performance standards, a supervisor must avoid:


A. communicating performance standards to employees.
B. being a slave to the past.
C. having very specific standards.
D. apparent and achievable standards.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: When setting performance standards, a supervisor must avoid being a slave to
the past. To be effective, performance standards should meet the criteria of effective
objectives; that is, they should be written, measurable, clear, specific, and challenging but
achievable.

54. apparent and achievable standards.


A. Monitoring performance
B. Fixing problems
C. Reinforcing successes
D. Providing feedback
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Monitoring performance is the core of the control process. One way to monitor
performance is simply to record information on paper or enter it into a computer, a task
that can be done by the supervisor, the employees, or both.

55. When monitoring performance, supervisors should focus on how actual performance
compares with the standards they have set. Two concepts useful for maintaining this
focus are:
A. Gantt chart and operational planning.
B. variance and the exception principle.
C. standards and performance reports.
D. feedback control and the parity principle.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: When monitoring performance, supervisors should focus on how actual


performance compares with the standards they have set. Two concepts useful for
maintaining this focus are variance and the exception principle.

56. In the context of controlling, the size of the difference between actual performance
and a performance standard is referred to as:
A. an exception metric.
B. a measurement error.
C. variance.
D. critical path.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: The size of the difference between actual performance and a performance
standard is referred to as variance. When setting standards, the supervisor should decide
how much variance is meaningful for control purposes.

57. The control principle stating that a supervisor should take action only when the
variance is meaningful is most accurately referred to as the:
A. exception principle.
B. scalar principle.
C. Peter principle.
D. reinforcement principle.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: The control principle stating that a supervisor should take action only when
the variance is meaningful is most accurately referred to as the exception principle. This
principle is beneficial when it helps the supervisor manage his or her time wisely and
motivate employees.

58. Which of the following is true of the exception principle?


A. The exception principle is beneficial when it helps supervisors manage their time
wisely and motivate employees.
B. According to the exception principle, supervisors should take action only when the
variance is measurable.
C. The exception principle is applied by the top managers during strategic planning when
they set objectives for an organization as a whole.
D. According to the exception principle, supervisors should avoid comparing actual
performance with standards set by them.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: The exception principle is beneficial when it helps the supervisor manage his
or her time wisely and motivate employees. According to the exception principle, the
supervisor should take action only when the variance is meaningful.

59. Encouragement of a behavior by associating it with a reward is known as _____.


A. the exception principle
B. feedback control
C. reinforcement
D. empowerment
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Encouragement of a behavior by associating it with a reward is known as


reinforcement. When employees are doing excellent work, customers are happy, and
costs are within budget, the supervisor needs to reinforce these successes.

60. _____ involves the presentation of something pleasant after a desired behavior has
occurred.
A. Laissez-faire
B. Positive reinforcement
C. Empowerment
D. Affirmative feedback
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Positive reinforcement involves the presentation of something pleasant after a


desired behavior has occurred. An example of positive reinforcement in the workplace is
verbal praise for a job well done.
61. Removal of something unpleasant after a desired behavior has occurred is most
accurately referred to as:
A. positive reinforcement.
B. negative reinforcement.
C. self-evaluation.
D. team evaluation.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Removal of something unpleasant after a desired behavior has occurred is


most accurately referred to as negative reinforcement. Reinforcement is the
encouragement of a behavior by associating it with a reward.

62. In the context of controlling, symptoms are best defined as:


A. measures of what is expected.
B. the principles by which people distinguish what is morally right.
C. the results of performance evaluation.
D. indications of an underlying problem.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: Symptoms are best defined as indications of an underlying problem. To use


the information gained through controlling effectively, the supervisor needs to distinguish
problems from symptoms.

63. In the context of controlling, a factor in an organization that is a barrier to


improvement is known as a _____.
A. symptom
B. threat
C. variance
D. problem
AACSB: Analytic
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: In the context of controlling, a factor in an organization that is a barrier to


improvement is known as a problem. When performance significantly falls short of
standards, the supervisor should investigate. Below-standard performance is the sign of a
problem.
64. The best response to problems related to standards is to make the performance
standard:
A. less challenging.
B. less observable.
C. more appropriate.
D. more general.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: The best response to problems related to standards is to make the performance
standard more appropriate. The supervisor may need to make the standard less stringent
or more challenging.

65. The information gained from the control process is beneficial only if supervisors:
A. develop standards that are less challenging and more specific.
B. use it as the basis for reinforcing or changing behavior.
C. use it to monitor performance before establishing standards.
D. uncover problems as soon as customers and management discover them.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

Feedback: The information gained from the control process is beneficial only if the
supervisor uses it as the basis for reinforcing or changing behavior. If performance is
satisfactory or better, the supervisor needs to encourage it.

66. Which of the following statements is true of the control process?


A. Once performance standards are in place, the supervisor can begin the core of the
control process: fixing problems.
B. The information gained from the control process is beneficial even if supervisors do
not use it as the basis for reinforcing behavior.
C. In a control system, variance refers to a factor in the organization that is a barrier to
improvement.
D. If the control system is working properly, the supervisor should be uncovering
problems before customers and management discover them.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller
Feedback: If the control system is working properly, the supervisor should be uncovering
problems before customers and management discover them. This gives the supervisor the
best opportunity to fix a problem in time to minimize damage.

67. What are the three types of control?


A. Negative, positive, and neutral control
B. Pre, post, and parallel control
C. Strategic, operational, and tactical control
D. Feedback, concurrent, and precontrol
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: There are three types of control in terms of when it occurs: feedback control,
concurrent control, and precontrol.

68. Control that focuses on past performance is referred to as _____ control.


A. feedback
B. concurrent
C. positive
D. negative
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Control that focuses on past performance is referred to as feedback control. A


supervisor reviewing customer comments about service is practicing feedback control.

69. Control that occurs while the work takes place is referred to as _____ control.
A. feedback
B. concurrent
C. positive
D. negative
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Control that occurs while the work takes place is referred to as concurrent
control. The word “concurrent” describes things that are happening at the same time.
70. Statistical process control is a technique for _____.
A. precontrol
B. concurrent control
C. feedback control
D. negative control
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Statistical process control is a technique for concurrent control. Concurrent


control refers to controlling work while that work is being done.

71. _____ refers to efforts aimed at preventing behavior that may lead to undesirable
results.
A. Precontrol
B. Feedback control
C. Concurrent control
D. Negative control
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Precontrol refers to efforts aimed at preventing behavior that may lead to
undesirable results. Such efforts may include setting rules, policies, and procedures.

72. _____ is one of the functions of the management philosophy known as total quality
management.
A. Precontrol
B. Feedback control
C. Concurrent control
D. Negative control
AACSB: Analytic
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Precontrol is one of the functions of the management philosophy known as


total quality management. Precontrol refers to efforts aimed at preventing behavior that
may lead to undesirable results.
73. Which of the following exemplifies feedback control?
A. A café supervisor greeting customers at their tables
B. A supervisor reviewing customer comments about service
C. A production supervisor providing employees with guidelines about the detection of
improperly functioning machinery
D. A restaurant manager visiting the kitchen to see how work is progressing
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: A supervisor reviewing customer comments about service is practicing


feedback control. Feedback control is the type just described, that is, control that focuses
on past performance.

74. Which of the following exemplifies concurrent control?


A. A café supervisor trying to change employee behavior based on customer feedback
B. A supervisor reviewing customer comments about service
C. A production supervisor providing employees with guidelines about the detection of
improperly functioning machinery
D. A restaurant manager visiting the kitchen to see how work is progressing
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: A restaurant manager who is visiting the kitchen to see how work is
progressing is practicing concurrent control. Concurrent control refers to controlling
work while that work is being done.

75. Which of the following exemplifies precontrol?


A. A café supervisor greeting customers at their tables
B. A supervisor reviewing customer comments about service and trying to change
employee behavior based on customer feedback
C. A production supervisor providing employees with guidelines about the detection of
improperly functioning machinery
D. A restaurant manager visiting the kitchen to see how work is progressing
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller
Feedback: A production supervisor providing employees with guidelines about the
detection of improperly functioning machinery is practicing precontrol. Precontrol refers
to efforts aimed at preventing behavior that may lead to undesirable results.

76. Jake, the restaurant manager at Tulips, greets customers at their tables, visits the
kitchen to see how the work is progressing, and makes the effort to fix any issues as soon
as they occur. Jake is most likely practicing _____.
A. feedback control
B. sequencing
C. reinforcement
D. concurrent control
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: In the scenario, Jake is most likely practicing concurrent control. Concurrent
control refers to controlling work while that work is being done.

77. _____ are an invaluable tool with which supervisors can closely monitor and control
the progress and performance of a project.
A. Gantt charts
B. Histograms
C. Bar diagrams
D. Line graphs
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Gantt charts are an invaluable tool with which supervisors can closely monitor
and control the progress and performance of a project. When considering how to monitor
performance, the supervisor can start with some basic tools used by most managers.

78. In controlling, a _____ is useful as a kind of performance standard.


A. budget
B. policy
C. procedure
D. rule
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller
Feedback: In controlling, a budget is useful as a kind of performance standard. The
supervisor compares actual expenses with the amounts in the budget.

79. A summary of performance and comparison with performance standards is referred to


as a performance _____.
A. pattern
B. report
C. synopsis
D. record
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: A summary of performance and comparison with performance standards is


referred to as a performance report. A well-structured report can be an important source
of information.

80. Which of the following is true of performance reports?


A. Few supervisors both prepare and request performance reports.
B. Employees do not prepare performance reports.
C. A performance report does not compare performance with performance standards.
D. Useful performance reports clarify rather than conceal problems.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: Useful performance reports clarify rather than conceal problems. Hiding
performance problems can make it difficult for supervisors to convince managers that the
group needs more resources or training.

81. In the context of tools for control, _____ can help supervisors understand the
activities behind the numbers in performance reports.
A. personal observation
B. positive reinforcement
C. precontrol technique
D. program evaluation
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: In the context of tools for control, personal observation can help supervisors
understand the activities behind the numbers in performance reports. However, the
supervisor must be careful in interpreting what he or she sees.

82. Which of the following is true of the tools for control?


A. Budgets and reports are rarely used control tools in most organizations.
B. Supervisors should ensure that performance reports are elaborate and convoluted.
C. The inability to control through personal observation is a challenge of supervising
employees who work at home.
D. Personal observations cannot help supervisors understand the activities behind the
numbers in reports.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: The inability to control through personal observation is a challenge of


supervising employees who work at home. This issue is growing in importance as
communications technology makes telecommuting possible for people with disabilities,
working parents, and others who prefer to live further from urban centers or to not spend
time commuting to an office.

83. The tools for control include:


A. budgets, performance reports, and personal observation.
B. feedback control, concurrent control, and precontrol.
C. positive reinforcement, negative reinforcement, and standards.
D. management by objectives, policies, and procedures.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

Feedback: The tools for control include budgets, performance reports, and personal
observation. When considering how to monitor performance, the supervisor can start with
some basic tools used by most managers.

84. Allowing a supervisor to occasionally ignore a variance if it is in the best interests of


the company is an example of a control that is:
A. flexible.
B. economical.
C. even.
D. concurrent.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-08: List characteristics of effective controls.
Topic: Characteristics of Effective Controls

Feedback: Allowing a supervisor to occasionally ignore a variance if it is in the best


interests of the company is an example of a control that is flexible. One reason flexibility
is important is that performance measures might be incompatible.

85. In the context of characteristics of effective controls, the controls should be _____,
enabling supervisors to correct problems quickly enough to improve results.
A. timely
B. acceptable
C. economical
D. flexible
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-08: List characteristics of effective controls.
Topic: Characteristics of Effective Controls

Feedback: In the context of characteristics of effective controls, the controls should be


timely, enabling the supervisor to correct problems quickly enough to improve results.

86. Effective controls are those that are:


A. written, clear, measureable, and specific.
B. timely, economical, acceptable, and flexible.
C. simple, observable, adaptable, and precise.
D. rigid, quantifiable, accessible, and central.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-08: List characteristics of effective controls.
Topic: Characteristics of Effective Controls

Feedback: Effective controls are those that are timely, economical, acceptable, and
flexible. When making recommendations about controls or setting up controls to use
within the department, the supervisor can strive for these characteristics.

87. The cost of using the controls should be less than the benefit derived from using
them. This shows that effective controls should be _____.
A. flexible
B. acceptable
C. economical
D. timely
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-08: List characteristics of effective controls.
Topic: Characteristics of Effective Controls

Feedback: The controls should be economical. In general, this means that the cost of
using the controls should be less than the benefit derived from using them.

88. Which of the following is a characteristic of effective controls?


A. They should be acceptable to supervisors and employees.
B. They should enable employees to correct their own mistakes.
C. They should be established by middle managers and supervisors.
D. They should not allow supervisors to ignore variance.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Topic: Characteristics of Effective Controls
Topic: Planning in Organizations

Feedback: A characteristic of effective controls is that they should be acceptable to


supervisors and employees. Supervisors want controls that give them enough information
about performance that they can understand what is going on in the workplace.
Employees want controls that do not unduly infringe on their privacy.

89. Which characteristic of effective controls is important mainly because of


incompatible performance measures?
A. Cost effectiveness
B. Acceptability
C. Timeliness
D. Flexibility
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-08: List characteristics of effective controls.
Topic: Characteristics of Effective Controls

Feedback: Controls should be flexible. One reason flexibility is important is that


performance measures might be incompatible.

90. Which of the following is true in the context of characteristics of effective controls?
A. For effective controls, the cost of using the controls should be more than the benefit
derived from using them.
B. Supervisors and employees want controls that unduly infringe on their privacy.
C. An effective control system is one that helps the supervisor direct his or her efforts
toward spotting significant problems.
D. Normally, a supervisor is not expected to use the control system higher-level
managers have established.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-08: List characteristics of effective controls.
Topic: Characteristics of Effective Controls

Feedback: An effective control system is one that helps the supervisor direct his or her
efforts toward spotting significant problems. Normally, a supervisor has to use whatever
control system higher-level managers have established.

91. Planning should begin at the top, with a plan for the organization as a whole.
TRUE

Feedback: Planning should begin at the top, with a plan for the organization as a whole.
Strategic planning is the creation of long-term goals for the organization.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

92. Rules are flexible and are open to interpretation.


FALSE

Feedback: Rules are neither flexible nor open to interpretation. They are specific
statements of what to do or not do in a given situation.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-02: Identify characteristics of effective objectives.
Topic: Planning in Organizations

93. In the MBO system, the top management alone sets the objectives for each employee
in the company.
FALSE

Feedback: In the MBO system, all individuals in the organization work with their
managers to set objectives, specifying what they are to do in the next operating period
(such as a year).
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-03: Define management by objectives (MBO) and discuss its use.
Topic: Planning in Organizations
94. The objectives set for a department are rigid and do not need to be updated.
FALSE

Feedback: Supervisors will need to update the objectives for their department whenever
top management updates organizational objectives.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

95. A problem underlying significant variance is that the standard is too low or too high.
TRUE

Feedback: A problem underlying significant variance is that the standard is too low or too
high. Fixing a problem may entail adjusting a process, the behavior of an individual
employee, or the standard itself.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-06: Identify the steps in the control process.
Topic: The Supervisor as Controller

96. In all the three types of controlling methods, the controlling process begins only when
employees' work is complete.
FALSE

Feedback: From the description of the control process, it might sound as though
controlling begins when employees’ work is complete. However, this is only one type of
controlling. There are three types of control in terms of when it occurs: feedback control,
concurrent control, and precontrol.
AACSB: Analytic
Accessibility: Keyboard Navigation
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-07: Describe types of control and tools for controlling.
Topic: The Supervisor as Controller

97. Compare and contrast strategic planning and operational planning.

Feedback: Strategic planning is mainly done by top managers, often with a planning
department. In the case of operational planning, the planning is done by middle managers
and supervisors. Strategic planning lays down objectives for the organization as a whole,
whereas operational planning lays down objectives for individual division, department, or
work group. The time frame for strategic planning is usually long (more than one year),
whereas the time frame for operational planning is usually short (one year or less).
AACSB: Analytic
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-01: Describe types of planning that take place in organizations.
Topic: Planning in Organizations

98. Describe the management by objectives (MBO) process.


Feedback: MBO is a formal system for planning in which managers and employees at all
levels set objectives for what they are to accomplish; their performance is then measured
against those objectives. Basically, MBO involves three steps:
1. All individuals in the organization work with their managers to set objectives,
specifying what they are to do in the next operating period (such as a year).
2. Each individual's manager periodically reviews the individual's performance to see
whether he or she is meeting the objectives.
3. The organization rewards individuals on the basis of how close they come to fulfilling
the objectives.
AACSB: Analytic
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-03: Define management by objectives (MBO) and discuss its use.
Topic: Planning in Organizations

99. What are the main activities carried out by the supervisor in the planning process?

Feedback: The roles played by the supervisor as a planner are: (1) providing information
and estimates (2) allocating resources, (3) involving employees, (4) planning with a team,
and (5) updating objectives.
AACSB: Analytic
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process.
Topic: The Supervisor as Planner

100. Define the term "controlling." List the three different forms of controlling.

Feedback: The management function of making sure that work goes according to plan is
referred to as controlling. The three different forms of control are: feedback control that
focuses on past performance; concurrent control that controls work as it takes place; and
precontrol that prevents behavior that may lead to undesirable results.
AACSB: Analytic
Bloom's: Understand
Difficulty: 2 Medium
Learning Objective: 06-05: Explain the purpose of using controls.
Topic: The Supervisor as Controller
Category # of Questions

Chapter 06 Test Bank Summary


Category # of Questions

AACSB: Analytic 97
AACSB: Reflective Thinking 3
Accessibility: Keyboard Navigation 95
Bloom's: Apply 4
Bloom's: Remember 64
Bloom's: Understand 31
Difficulty: 1 Easy 65
Difficulty: 2 Medium 31
Difficulty: 3 Hard 4
Learning Objective: 06-01: Describe types of planning that take place in
organizations. 14
Learning Objective: 06-02: Identify characteristics of effective objectives. 15
Learning Objective: 06-03: Define management by objectives (MBO) and
discuss its use. 6
Learning Objective: 06-04: Discuss the supervisor’s role in the planning process. 16
Learning Objective: 06-05: Explain the purpose of using controls. 3
Learning Objective: 06-06: Identify the steps in the control process. 21
Learning Objective: 06-07: Describe types of control and tools for controlling. 18
Learning Objective: 06-08: List characteristics of effective controls. 6
Topic: Characteristics of Effective Controls 7
Topic: Planning in Organizations 37
Topic: The Supervisor as Controller 42
Topic: The Supervisor as Planner 15

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