Answer: A. Monitor progress and correct deviations Controlling monitors progress toward goals and helps managers correct deviations from plans.
Before measuring results, what should a manager establish?
A Performance standards
B Customer segments
C Reporting relationships
D Product features
Answer: A. Performance standards Standards define the performance levels or goals against which results will be compared.
What does a manager measure during control?
A Desired market share
B Employee preferences
C Planned expenses only
D Actual performance
Answer: D. Actual performance Managers measure actual organizational, team, or individual performance.
After measuring results, what comparison comes next?
A Goals against job titles
B Actual performance against standards
C Budgets against forecasts only
D Training against hiring
Answer: B. Actual performance against standards The control process compares actual performance with established standards.
If actual results miss a standard, what should managers identify?
A A new slogan
B A replacement manager
C The cause of the gap
D A broader job title
Answer: C. The cause of the gap Managers should determine why a meaningful performance gap occurred before selecting corrective action.
Which step follows identifying a meaningful performance gap?
A Take corrective action
B Raise every target
C Stop measuring results
D Reward every team
Answer: A. Take corrective action After diagnosing a meaningful gap, managers take appropriate corrective action.
What makes a useful performance standard measurable?
A A broad aspiration
B A changing definition
C An informal preference
D Measurable target and deadline
Answer: D. Measurable target and deadline Effective standards specify a measurable objective and a time period.
For a sales team, which objective is a clear performance standard?
A Sell more when possible
B Reach $200,000 in January
C Improve customer feelings
D Become the best team
Answer: B. Reach $200,000 in January A specific sales amount tied to a month is measurable and time-bound.
The gap between actual and planned results is called what?
A A reporting relationship
B A leadership style
C A performance variance
D A hiring forecast
Answer: C. A performance variance A performance gap or variance is the difference between actual results and a standard.
Why do control systems use feedback?
A Detect issues and guide action
B Replace all planning
C Eliminate employee judgment
D Set prices automatically
Answer: A. Detect issues and guide action Feedback helps managers detect problems and take action before they grow.
Which control acts before work begins?
A Concurrent control
B Feedback control
C Output control
D Feedforward control
Answer: D. Feedforward control Feedforward control acts before work is performed to prevent problems.
During a production run, which control monitors work as it occurs?
A Feedforward control
B Concurrent control
C Feedback control
D Strategic planning
Answer: B. Concurrent control Concurrent control monitors activities while work is taking place.
After month-end, finance compares expenses with the budget. Which control is this?
A Feedforward control
B Concurrent control
C Feedback control
D Job evaluation
Answer: C. Feedback control Feedback control evaluates results after an activity or period is complete.
Management by exception directs attention toward what?
A Every minor variation
B Routine work only
C Unrelated employee requests
D Significant deviations
Answer: A. Every minor variation Management by exception focuses managerial attention on important deviations from standards.
When performance falls below target, what should corrective action address?
A The report format
B The root cause
C The job title
D The calendar month
Answer: D. The calendar month Corrective action is more effective when it addresses the underlying cause of a gap.
If market conditions make a target obsolete, what should managers do?
A Keep it unchanged forever
B Review and revise the standard
C Ignore actual results
D Remove all measurement
Answer: B. Review and revise the standard Standards may need review when circumstances change and the original target is no longer appropriate.
How are planning and control connected?
A They are separate activities
B Control replaces planning
C Plans set standards; control updates
D Only budgets connect them
Answer: C. Plans set standards; control updates Planning supplies standards for control, while control information can inform future plans.
Which example uses a measurable, time-bound objective?
A $200,000 in January sales
B Better customer experience
C Higher staff morale
D A strong market position
Answer: A. $200,000 in January sales A target amount for a specified month can be measured against actual sales.
What is a key performance indicator intended to track?
A Employee attendance alone
B A management title
C A product’s color
D Progress toward an important goal
Answer: D. Progress toward an important goal A KPI tracks performance that matters to an organizational objective.
Which practice helps identify quality problems on a production line?
A Hide defects until shipment
B Let employees report defects
C Wait for annual surveys
D Remove inspection records
Answer: B. Let employees report defects Employee reporting can help detect defects early and support corrective action.
Inspection of incoming parts before production is what type of control?
A Feedback control
B Concurrent control
C Feedforward control
D Strategic control
Answer: C. Feedforward control Inspecting inputs before production is feedforward control because it can prevent defects from entering the process.
Which practice helps protect the accuracy of financial records?
A Internal control procedures
B A market survey
C A sales incentive
D A customer persona
Answer: D. A customer persona Internal controls support reliable records and help protect organizational resources.
Planned spending compared with actual spending is an example of what?
A Benchmarking
B Job analysis
C Budgetary control
D Recruitment planning
Answer: A. Benchmarking Budgetary control compares actual financial results with planned amounts.
When actual costs fall below budget at the same output, the variance is generally what?
A Unfavorable
B Favorable
C Unmeasurable
D Strategic
Answer: B. Favorable A lower cost than budget for the same output is generally a favorable cost variance.
When a cost center exceeds budget, what should managers do first?
A Cut every expense immediately
B Raise all future budgets
C Investigate causes and context
D Ignore the difference
Answer: C. Investigate causes and context Managers should understand the reason for an overrun before choosing corrective action.
Benchmarking compares performance with what?
A The prior month’s payroll
B An unchanging internal target
C A manager’s personal preference
D Superior performance elsewhere
Answer: D. Superior performance elsewhere Benchmarking uses strong performance elsewhere as a reference for comparison.
Why compare results with high-performing organizations?
A Copy every practice exactly
B Avoid setting standards
C Replace customer feedback
D Identify improvement opportunities
Answer: D. Identify improvement opportunities Benchmarking can reveal performance gaps and practices worth examining for improvement.
At which levels can organizations use control systems?
A Only at the top
B Strategic, tactical, and operational
C Only in finance
D Only on production lines
Answer: B. Strategic, tactical, and operational Control can occur across organizational levels, from strategic plans to daily operations.
What do first-line managers most often control?
A Long-term industry trends
B Corporate ownership structure
C Daily operational performance
D National market regulations
Answer: C. Daily operational performance First-line managers typically monitor daily work and operational results.
Strategic control checks whether what is happening?
A Every task is identical
B All budgets are reduced
C Hiring stops on schedule
D Strategy is being implemented effectively
Answer: D. Strategy is being implemented effectively Strategic control monitors whether plans are being implemented and moving the organization toward its goals.
Which example is an output performance measure?
A Employee job title
B Defect rate and delivery time
C Office seating plan
D Training calendar
Answer: B. Defect rate and delivery time Defect rates and delivery times measure results of a process.
Why should performance information arrive promptly?
A It reduces measurement needs
B It replaces standards
C It allows earlier corrective action
D It guarantees success
Answer: C. It allows earlier corrective action Timely information lets managers respond before a problem becomes harder to correct.
Why should employees understand performance standards?
A Guide work and employee decisions
B Standards remove all autonomy
C Standards replace training
D Standards guarantee bonuses
Answer: A. Guide work and employee decisions Clear standards help employees understand expected results and guide day-to-day decisions.
When results remain within acceptable limits, what should managers usually do?
A Take drastic corrective action
B Stop measuring performance
C Lower every standard
D Continue monitoring
Answer: D. Continue monitoring Managers generally continue monitoring when performance is within the acceptable range.
Which action is a feedforward control before a new process begins?
A Training workers on the process
B Reviewing last month’s returns
C Counting finished products
D Comparing annual revenue
Answer: A. Training workers on the process Training before launch can prevent errors by preparing workers in advance.
During production, which activity is concurrent control?
A Reviewing last year’s costs
B Setting next year’s goals
C Checking work as it happens
D Surveying customers afterward
Answer: C. Checking work as it happens Real-time checks during production monitor performance while the work is underway.
What is an example of feedback control after delivery?
A Inspecting raw materials
B Setting a sales target
C Training new employees
D Analyzing customer returns
Answer: B. Setting a sales target Reviewing returns after delivery uses completed results to identify issues.
What does a key performance indicator track?
A Employee seniority
B Office capacity
C Progress toward a goal
D A manager’s personal style
Answer: D. A manager’s personal style A key indicator measures progress toward a relevant objective.
Why track financial and nonfinancial measures together?
A Show broader performance effects
B Remove all judgment
C Avoid strategic goals
D Replace customer measures
Answer: A. Show broader performance effects Combining financial and nonfinancial measures can give managers a broader view of performance.
What is a benchmark based on?
A Internal job titles
B Superior comparison performance
C A random estimate
D An employee preference
Answer: B. Superior comparison performance Benchmarking compares an organization’s results or practices with a strong reference point.
What do controls support beyond measurement?
A Higher prices
B Longer job descriptions
C Coordination toward shared goals
D Automatic promotions
Answer: C. Coordination toward shared goals Control systems can coordinate activities and resources toward organizational goals.
What should managers examine before acting on an unfavorable variance?
A Underlying causes and context
B The logo design
C Office attendance only
D A new mission statement
Answer: A. Underlying causes and context Investigating causes and context helps managers choose suitable corrective action.
How can unrealistic standards harm a control system?
A Improve every result
B Remove all variance
C Ensure employee acceptance
D Encourage poor or distorted choices
Answer: D. Encourage poor or distorted choices Unrealistic targets may encourage unhelpful behavior or distort decisions instead of improving performance.
What helps reduce gaming when performance is measured?
A A single narrow metric
B Unclear standards
C Balanced, relevant measures
D Delayed reports
Answer: C. Balanced, relevant measures Balanced measures make it harder for one narrow target to distort broader performance.
How should managers use control information in the next planning cycle?
A Discard prior results
B Set or revise future standards
C Avoid reviewing targets
D Remove corrective action
Answer: B. Set or revise future standards Control information helps managers establish or adjust standards for future plans.
What should a worker do after spotting a defective part on the line?
A Report it through quality process
B Wait for monthly review
C Hide the defect
D Change the product target
Answer: A. Report it through quality process Prompt reporting through the quality process allows the organization to investigate and correct the issue.
How does controlling help evaluate other management functions?
A It replaces staffing
B It removes leadership
C It changes the organization chart
D Tests plans and management actions
Answer: D. Tests plans and management actions Control results help managers assess whether planning, organizing, and leading are producing intended outcomes.
Why does late feedback weaken control?
A It increases production capacity
B It improves standards automatically
C It may delay corrective action
D It permits earlier correction
Answer: C. It may delay corrective action Delayed feedback can let a problem continue before managers have a chance to respond.
Why compare results across multiple periods?
A To avoid setting goals
B Detect trends and recurring gaps
C To replace daily measures
D To reduce accountability
Answer: B. Detect trends and recurring gaps Trends can reveal recurring problems or changes that a single-period comparison may miss.
Which choice helps close the control cycle?
A Use findings to set standards
B Ignore the final results
C Stop future measurement
D Replace plans with reports
Answer: A. Use findings to set standards The control cycle uses information from current results to inform future standards and plans.