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A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through

listening to customers

Budgets are used to project costs and revenues, to prioritize and control spending, and to ensure that expenses don't exceed available funds and revenues.

true

When self-control is used, leaders and managers provide workers with clear boundaries within which they may guide and control their own goals and behaviors.

True

The only dimension needed to measure quality is conformance to expectations.

False

A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access their Civil War collection. The librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating

supoptimization

Interpublic
Interpublic, the world's third-biggest marketing services group, informed the SEC that it "had found accounting errors resulting from incompetence as well as falsified books and records, violations of the laws and company policies, and inappropriate customer charges" that required it to restate its earnings for every year in the decade. Interpublic is guilty of overstating both its expenses and its revenues in its earning reports. Interpublic blames its faulty revenue reporting on "inadequate procedures for review of customer contracts." This fraudulent activity will more than likely result in a default on the company's debt and the loss of its stock market listing.

Refer to Interpublic. Which traditional management function was Interpublic not using effectively prior to its discovery of fraudulent activities?

control

Which of the following statements about normative control is true?

Normative control leads to an emphasis on very selective hiring.

Control is a cybernetic process because it

has a feedback loop.

An article on public libraries contained the following statement: "The Balanced Scorecard helps organize and run the library according to a specific strategic plan, while demonstrating the library's value to the community as a whole." When dealing with the customer area of the Balanced Scorecard, the article advised librarians to use customer surveys. Why might this be a poor strategy to use?

Customer surveys are typically misleading, skewed to positive feedback.

The objective control approach to managerial control manifests itself as either behavior control or output control.

True

The Balanced Scorecard method of control minimizes the chance of suboptimization.

True

The three levels of waste minimization are waste disposal, waste reduction, and recycling.

False

Which of the following is NOT one of the four perspectives measured in the Balanced Scorecard approach to control?

policies and procedures perspective

Caterpillar announced plans to cut its production of construction equipment due to forecasted increases in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used ____ controls.

feedforward

The basic control process of business begins with ____.

the establishment of clear standards of performance

____ control is a method of gathering information about performance deficiencies as they occur.

Concurrent

Control is achieved when behavior and work procedures conform to set standards and that the company goals are accomplished.

True

When implementing the financial perspective, managers would use ____.

financial ratios

Which approach to control monitors inputs rather than outputs?

feedforward control

When a company emphasizes ____ as its quality goal, managers must simultaneously control excellence, price, durability, or other features of a product or service that customers strongly associate with it.

value

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