MNGT 3100 fetsch exam 5

What are the main benefits of implementing an effective control system?

Ensuring the organization avoids costly failures or mistakes.

Increasing the likelihood of achieving desired results.

Controls that allow managers to step back and evaluate if the current strategy will accomplish the mission, or if another strategy might be better.

Strategic controls

Controls that evaluate how well we are implementing the current strategy – are we on track to accomplish our assigned goals and objectives?

Operational controls

Put the four steps of organizational control in order. Start with the first step at the top of the list.

Establish standards

Measure performance

Compare performance to standards

Take corrective action

Ken's Construction Company found that a drill bit could make approximately 100,000 holes within tolerance before the bit was so worn that the hole it drilled was too small. So, it replaces drill bits after 95,000 holes have been drilled. This is an example of a __________ control.

feedforward

The __________ summarizes all financial activity that occurred over a designated period of time.

Income statement

The objective of Six Sigma is extremely high quality. Which of the following statements is the best reason why a company would want to aim for such a high standard?

Doing something right the first time, every time, can reduce overall costs.

Controls can help managers determine if their strategy is achieving the desired results. What is a major reason why managers would not implement all of the controls that are available?

The costs of some controls outweigh their benefits.

Monitoring and adjusting ongoing activities and processes in real time to prevent problems from becoming worse.

Concurrent Controls

Gathering information about a completed activity, evaluating that information, and taking steps to improve similar activities in the future.

Feedback Controls

Taking preemptive steps to prevent problems after you identify indicators of an issue/threat.

Feedforward Controls

__________ are a way for banks, investors, and other key stakeholders to understand a firm's financial health.

Audits

What is the primary use of a budget in controls?

To identify desired/expected financial values.

How should nonfinancial controls be used?

They should be used in conjunction with financial controls to provide a comprehensive view of the organization's performance.

Which of the following is not true about Lean controls?

Lean encourages maintaining excess inventories to ensure product availability.

True or false: It is important for managers to make good decisions because they are responsible for allocating their organization's scarce resources.

True

Making a decision without conscious reasoning is known as __________.

intuitive decision making

__________ is a process of generating ideas that follows a process that includes no criticism of suggested ideas and building upon others' ideas.

Brainstorming

Recurring situations that have a known correct response are known as __________ decisions. In this case, a decision tree can help everyone know what the correct answer is.

Programmed

Unusual situations where a manager has to "trust their gut" and select what seems to be the right choice, are known as __________ decisions. In this case, they cannot fully describe the problem or collect relevant data to support a decision.

intuitive

A manager believes that an employee missed a deadline because they are lazy, ignoring that the employee was sick. This is an example of:

Fundamental attribution error

When a person decides on a course of action after hearing some initial information, even though additional data clearly indicates another approach would be better, which bias are they exhibiting?

Anchoring and adjustment bias

A department head chooses the very first option that meets minimum criteria for success rather than continuing to search for a better solution. This is an example of:

Satisficing

Group Decision Support Systems (GDSS) are interactive computer-based systems that combine communication and decision technologies. GDSS can improve the output of a group by __________.

Making sure every idea is heard

__________ are unique and important decisions that require conscious thinking, information gathering, and careful consideration of alternatives.

Nonprogrammed decisions

The rational decision-making model should be used when __________.

information on alternatives can be gathered and quantified

In the bounded rationality model of decision making, individuals __________.

intentionally limit their options to a manageable set and choose the best option without conducting an exhaustive search for alternatives

The availability of too much information and too many choices can lead to __________, where more and more time is spent gathering information and thinking about it, but no decision is made.

analysis paralysis

Stopping at the very first option that meets your minimally acceptable criteria, even though other options yet to be considered may be better, is known as __________.

satisficing

Intuitive decision making should be used when __________.

possible solutions to the problem are difficult to identify

A CEO is certain their new product will succeed because the last two products they championed did well, so they ignore any feedback to the contrary. Which bias is this?

Overconfidence bias

After a project fails, a couple team members claim they "knew all along" that the approach wouldn't work. This is an example of which bias?

Hindsight bias

A company continues to fund a marketing campaign that is clearly not working because they have already spent so much on it, and they want to see it through to the end. This represents __________.

Escalation of commitment (sunk cost fallacy)

A group pressure phenomenon that increases the risk of the group making flawed decisions by allowing reductions in mental efficiency, reality testing, and moral judgment is called __________.

groupthink

A tool that supports programmed decisions, __________ guides the decision maker to the correct choice and ensured consistency of decision making.

a decision tree

__________ is a way to imagine what might go wrong in order to avoid such an outcome before implementing a decision or having to make adjustments during implementation.

Premortem

Strategic Human Resource Management (SHRM) is an integral part of the __________ portion of the POLC framework.

controlling

What is the primary goal of talent management?

To find, hire, develop, and retain productive employees.

Which of the following are valid reasons for testing applicants as part of the selection process?

To assess if the applicant's personality will help them work well with others in the organization.

To determine if the applicant has the knowledge, skills, and abilities required to perform job tasks.

Examples of nonmonetary compensation include:

Flexible work hours.

Employee recognition programs.

Which of the following is not part of Strategic Human Resource Management (SHRM)?

Reducing costs by replacing workers when their work experience would result in higher rates.

True or false: Winning "the war for talent" means hiring more people than any of your competitors

False

True or false: During an interview, it is permitted to ask an applicant about their marital status or if they have children if you believe that these factors may affect their ability to sometimes work late or on weekends

False

Companies often conduct a __________ to determine the internal value of a job--the more vital the job to the company's success, the higher the maximum pay level.

Job evaluation

What major element of Human Relations (HR) is related to the careful evaluation and payment of employees based on their performance, not simply for workplace attendance?

Compensation and rewards

A company's __________ consists of the attributes, life experience, knowledge, inventiveness, energy, and enthusiasm that its people choose to invest in their work.

Human Capital

__________ is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company.

Succession planning

What talent management principle relates to training some people and hiring others from the external marketplace to meet specific human capital needs?

Make or buy

Chris met Ross for an interview about a job that Ross's business has listed as open. At the meeting, Ross gave Chris a document that describes what the employee would be expected to do, how they should do it, and why it is done that way. This document is called a __________.

job description

Campbell talked with Ryan about a position Campbell was interested in applying for. Ryan shared a document that identified the minimum knowledge, skills, and abilities (KSA) the position required. Applicants without those KSA would not be considered for the job because they might not be able to perform all assigned tasks. That document is called a __________.

job specification

Which of the following is an example of situational interviewing?

Asking what the job applicant did when they faced a challenging group project in the past.

Which of the following is not a reason employers should test applicants as part of the selection process?

To disqualify applicants based on demographics (race, color, sex, national origin, religion, or age) that the employer does not want to work with.

In order to best support an organization's mission and goals, compensation systems should:

Reward behaviors that support the goals and discourage those that work against the goals.

__________ ties pay directly to an individual's contributions toward meeting specific business goals or objectives.

Pay for performance