CH.15 Managing Quality and Performance

What is organizational control?

• a way for higher levels of management to take corrective action

• a process used by managers to regulate activities to meet planned goals and standards of performance.

• a process used by managers to organize and manage employees

• a way to adjust performance levels

True or False: Decentralized Control fosters compliance through shared goals, values, and trust among employees.

• True

• False

Which is not used as for the given interval of a year or quarter?

• A activity ratio

• A income statement

• A profitability ratio

• A balance sheet

What type of control relies on formal mechanisms, rules, and centralized authority?

• Laissez-faire control

• Decentralized control

• Hierarchal control

• Autonomous control

Which ratio measures the organization's internal performance?

When an employee does not have adequate performance, a manager needs to do what?

• Take corrective action

• have a meltdown

• Do nothing

• yell

Is the balance sheet a financial statement that shows the organization's financial position with respect to assets and liabilities at a specific point in time?

• YES

• NO

Example: A manager closely monitors employee attendance and productivity to ensure they meet predetermined targets and standards.

Question: What type of control is this?

• Decentralized

• Laissez-faire

• Autonomous

• Organizational

True or False: Performance indicators are not necessary for assessing a company's operational success.

• TRUE

• FALSE

What is the liquidity ratio?

• measures the organization's internal performance

• a measure of a firm's profitability

• indicates the organization's ability to meet its current debt obligations

• measures the organization's financial performance