Principles of Management Chapter 16

________ is the process of instituting ongoing small, incremental improvements in all parts of an organization.

Continuous improvement

________ is defined as monitoring performance, comparing it with goals, and taking corrective action as needed.

Controlling

________ is the amount of acceptable deviation from a standard, determined when the standard was established.

Range of variation

True or False: Unlike the ISO 9000 series, the ISO 14000 series identifies standards for environmental performance.

True

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

financial

The sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers, is known as the

supply chain.

Standards are best measured when they are

quantifiable.

A ________ budget is one that can be adjusted over time for changing environmental conditions.

variable

One characteristic of incremental budgeting is that it

locks managers into stable spending arrangements.

TQM's two core principles are

people orientation and improvement orientation.

Which primary function of management is concerned with ensuring the right things happen at the right time in the right way?

controlling

When an organization considers “Do we have the people, technology, and organizational culture needed to support our strategies?” it is considering the ________ perspective.

innovation and learning

True or False: A balance sheet summarizes an organization’s overall financial worth, or its assets and liabilities, at a specific point in time.

True

Abasi owns a business that manufactures backpacks and totes from recycled billboard canvas. Abasi’s company is in a growth phase, and she is primarily focused on improving efficiency while maintaining quality. Which question represents the balanced scorecard perspective on which Abasi is most focused?

“At what must we excel?”

True or False: The control process begins with establishing standards.

True

Which of the following more closely aligns with a job versus a career?

A job is temporary and in service of someone else.

Which of the following best defines Kaizen?

a philosophy of small continuous improvement that seeks to involve everyone at every level of the organization

True or False: An income statement summarizes an organization’s financial results over a specified period of time, such as a quarter or a year.

True

True or False: Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

False

Which of the following is part of Deming’s PDCA cycle?

check

Installing quality-control procedures that can be audited by independent quality-control experts is fundamental to

ISO 9000.

According to Kaplan and Norton, ________ maps are “visual representations of a company’s critical objectives and the crucial relationships among them that drive organizational performance.”

strategy

________ is the process of instituting ongoing small, incremental improvements in all parts of an organization.

Continuous improvement

Current assets, fixed assets, and liabilities are all part of an organization’s

balance sheet.

Examining how the organization looks to shareholders is part of which of the balanced scorecard perspectives?

financial

Some managers use ________, which provides four indicators with which organizations can set goals and measure performance.

the balanced scorecard

A ________ budget allocates resources on the basis of a single estimate of costs.

fixed

True or False: Productivity is defined by the formula of outputs divided by inputs for a specified period of time.

True

________ perspective helps top management focus on what the organization must excel at to effectively meet its financial objectives and customers’ expectations.

Internal business

Micaela is implementing the control process for her insurance agency. Before she begins to monitor performance, Micaela should

establish standards.

A(n) ________ budget allocates increased or decreased funds to a department by using the last budget period as a reference point.

incremental