Chapter2

Which of the following statements are correct?

a. Results controls create meritocracies

b. Action control create meritocracies

c. Personnel controls create meritocracies

d. Cultural controls create meritocracies

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), b) and c) are correct

h. Statements b), c) and d) are correct

Which of the following statements referring to preventive-type benefits that results controls provide are correct?

a. Results controls alleviate a potential lack of direction

b. Results controls can be effective in addressing motivational problems

c. Results controls on the other hand cannot mitigate personal limitations

d. Results controls can also mitigate personal limitations

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), b) and c) are correct h. Statements a), b) and d) are correct

Which of the following steps are the steps to implement results controls correct?

a. Defining and measuring performance dimensions

b. Encouraging competitive behavior between employees as an additional motivational tool

c. Setting performance targets

d. Providing rewards

e. All of the above-named steps

f. None of the above-named steps

g. Steps a), b) and c) h. Steps a), c) and d)

Which of the following steps are the steps to implement results controls correct?

a. Defining performance dimensions

b. Measuring performance dimensions

c. Setting performance targets

d. Providing rewards

e. All of the above-named steps

f. None of the above-named steps

g. Steps a), b) and c) h. Steps a), b) and d)

Which of the following statements are correct?

a. Defining the right performance dimensions involves balancing organizations responsibilities to all of their stakeholders.

b. It is critical to choose performance measures that are congruent or aligned with the chosen performance dimensions.

c. If the measurements of desired performance dimensions are not aligned with the chosen performance dimensions the results controls will have unintended consequences.

d. If the measurements of desired performance dimensions are not aligned with the chosen performance dimensions the results controls will likely produce undesired results.

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and b) are correct h. Statements c) and d) are correct

Which of the following statements are correct?

a. At higher organizational levels, most of the key results are defined in terms of operational measures that are more controllable at the local level

b. Lower-level managers are typically evaluated based on either market and/or financial terms

c. At higher organizational levels, most of the key results are defined in either market and/or financial terms

d. Lower-level managers are typically evaluated in terms of operational measures that are more controllable at the local level

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and b) are correct h. Statements c) and d) are correct

Which of the following statements are correct?

a. If managers identify more than one result measure for a given employee, they must attach weightings to each measure so that the judgements about performance in each result area can be aggregated into an overall evaluation

b. If managers identify more than one result measure for a given employee, they must attach weightings to each measure these weightings are always additive

c. If managers identify more than one result measure for a given employee, they must attach weightings to each measure

Which of the following statements are correct?

a. If managers identify more than one result measure for a given employee, they can (must not) attach weightings to each measure so that the judgements about performance in each result area can be aggregated into an overall evaluation

b. If managers identify more than one result measure for a given employee, they must attach weightings to each measure these weightings are always additive

c. If managers identify more than one result measure for a given employee, they must attach weightings to each measure

Which of the following statements are correct?

a. Setting performance targets improves motivation.

b. Setting performance targets does not improve motivation.

c. Performance targets allow employees to assess their performance.

d. Rewards included in incentives contracts can be in the form of anything employees’ value punishment as the opposite of rewards, are things employees dislike.

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), c) and d) are correct

h. Statements b), c) and d) are correct

Which of the following qualities the results measures must have in order to evoke the right behaviors?

a. Qualities of Congruency, Controllability, Precision

b. Qualities of Objectivity, Timeliness, Understandability

c. Quality of Cost efficiency

d. Qualities of: Allocative Efficiency and Profit sharing

e. All of the above-named qualities

f. None of the above-named qualities

g. Qualities a), b) and c)

h. Qualities a), b) and d)

Which of the following statements are correct?

a. Results controls are not the only form of control

b. Organizations can supplement or replace results controls with other forms of control

c. Supplement or replacement controls are: action controls, personnel controls and cultural controls

d. Action, personnel and cultural controls are a part of virtually every Management Controls System (MCS)

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements c) and d) are correct

h. Statements a), b) and c) are correct

Which of the following statements are correct?

a. Results controls are the only form of control

b. Organizations cannot supplement or replace results controls with other forms of control

c. Supplement or replacement controls are: action controls, personnel controls and cultural controls

d. Action, personnel and cultural controls are not part of virtually every Management Controls System (MCS)

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements c) and d) are correct

h. Statements a), b) and c) are correct

Which of the following statements are correct?

a. Action controls basic forms are behavioral constraints, preaction reviews, action accountability and redundancy

b. Behavioral constraints can be applied only physically

c. One common form of physical control involves the restriction of decision-making authority

d. Another common form of physical control is generally referred to a separation of duties

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and d) are correct

h. Statements a), c) and d) are correct

Which of the following statements are correct?

a. Behavioral constraints can be physical or administrative.

b. Restricting decision authority to higher organizational levels and separating duties are examples of administrative constraints.

c. Good separations of duties make the control system tighter.

d. To achieve tight action accountability control, the definitions of actions must be congruent, specific, well communicated and complete.

e. All off the above-named statements are correct.

f. None of the above-named statement is correct.

g. Statements a), b) and d) are correct.

h. Statements a), b) and c) are correct

Which of the following statements are correct?

a. Action controls basic forms are behavioral constraints, preaction reviews, action accountability and redundancy

b. Behavioral constraints can be applied physically or administratively

c. One common form of administrative control involves the restriction of decision-making authority

d. Another common form of administrative control is generally referred to a separation of duties e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and d) are correct

h. Statements a), c) and d) are correct

Which of the following statements with regard to action controls are correct?

a. Behavioral constraints can address all control problems i.e. lack of direction, motivational problems and personal limitations

b. Preaction reviews cannot address the control problems lack of direction

c. Action accountability cannot address the control problem personal limitations

d. Redundancy can address all control problems i.e. lack of direction, motivational problems and personal limitations

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and d) are correct

h. Statements a), b) and c) are correct

Which of the following statements with regard to action controls are correct?

a. Behavioral constraints cannot address control problems lack of direction and motivational problems

b. Preaction reviews can address all control problems i.e. lack of direction, motivational problems and personal limitations

c. Action accountability can address all control problems i.e. lack of direction, motivational problems and personal limitations

d. Redundancy cannot address control problems lack of direction and personal motivation

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and d) are correct

h. Statements b) and c) are correct

Which of the following types of action control are effective in eliminating the control problem “lack of direction”?

a. Behavioral constraints

b. Preaction reviews

c. Action accountability

d. Redundancy

e. All of the above-named types of action control

f. None of the above-named types of action control

g. Types b) and c)

h. Types b), c) and d)

Which of the following conditions are the necessary conditions for effective action controls?

a. Cost efficiency

b. Congruency

c. Knowledge of desired actions

d. Ability to ensure that desired actions are taken

e. All of the above-named conditions

f. None of the above-named conditions

g. Conditions a) and b) are necessary

h. Conditions c) and d) are necessary

Which of the following conditions are necessary for results control to work best?

a. Knowledge of desired results

b. Ability to influence desired results

c. Controllability

d. Ability to measure controllable results effectively

e. All of the above-named conditions

f. None of the above-named conditions

g. Conditions a), b) and d)

h. Conditions b), c) and d)

Which of the following conditions have to exist, at least to some extent, in order for action controls to be used effectively?

a. Knowledge of desired actions

b. Cost efficiency

c. Congruency

d. Ability to ensure that desired actions are taken

e. All of the above-named conditions

f. None of the above-named conditions

g. Conditions a) and d)

h. Conditions a), b) and d)

Which of the following statements referring to personnel controls are correct?

a. Personnel controls build on employees’ natural tendencies to control or motivate themselves

b. Some personnel controls help clarify expectations

c. Some personnel controls help ensure that each employee is able to do a good job that they have all the capabilities and resources needed to do the job

d. Some personnel controls increase the likelihood that each employee will engage in self- mentoring

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), b) and c) are correct

h. Statements b) and d) are correct

Which of the following ways are ways to implement personnel controls?

a. Selection and placement

b. Training

c. Job design

d. Provision of necessary resources

e. All of the above-named ways

f. None of the above-named ways

g. Ways a), b) and d) are correct

h. Ways b), c) and d) are correct

Which of the following statements with regard to cultural controls are correct?

a. Cultural controls encourage mutual monitoring

b. One way to implement cultural controls is selection and placement

c. One way to implement cultural controls is training and job design

d. One way to implement cultural controls is provision of necessary resources

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), b) and c) are correct

h. Statements a), c) and d) are correct

Which of the following statements with regard to cultural controls are correct?

a. Cultural controls encourage mutual monitoring

b. Organizational culture can be shaped using codes of conduct, group rewards, interorganizational transfers or employee rotation, physical and social agreements and proper tone and the top

c. The problem with group rewards is that the link between individual efforts and the result being rewarded is relatively weak

d. Common examples of group rewards are bonus, profit-sharing or gain-sharing

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), b) and c) are correct

h. Statements a), c) and d) are correct

Which of the following statements are correct?

a. Some examples of group rewards are bonuses, profit-sharing or gain-sharing plans

b. Group-based incentive plans create a culture of “ownership” and “engagement” to the mutual benefit of organizations and their employees

c. The problem with group rewards is, that the link between individual efforts and the results being rewarded is relatively weak

d. Group rewards as a cultural control do not feature any disadvantage

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), b) and c) are correct

h. Statements a), b) and d) are correct

Which of the following types of personnel controls are effective in eliminating the control problem “lack of direction”?

a. Selection and placement

b. Training

c. Job design

d. Provision of necessary resources

e. All of the above-named types of personnel control

f. None of the above-named types of personnel control

g. Types a) and b)

h. Types c) and d)

Which of the following statements with regard to personnel controls are correct?

a. Selection and placement cannot address all control problems i.e. lack of direction, motivational problems and personal limitations

b. Training cannot address all control problems i.e. lack of direction, motivational problems and personal limitations

c. Job design can address all control problems i.e. lack of direction, motivational problems and personal limitations

d. Provision of necessary resources can address all control problems i.e. lack of direction, motivational problems and personal limitations

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and b) are correct

h. Statements c) and d) are correct

Which of the following types of cultural controls are effective in eliminating the control problem “motivational problems”?

a. Codes of conduct

b. Group-based awards

c. Intra-organizational transfers

d. Physical arrangements and Tone at the top

e. All of the above-named types of cultural control

f. None of the above-named types of cultural control

g. Types a), b) and c)

h. Types a), b) and d)

Which of the following statements with regard to cultural controls are correct?

a. Codes of conduct can address all control problems i.e. lack of direction, motivational problems and personal limitations

b. Group-based rewards can address all control problems i.e. lack of direction, motivational problems and personal limitations

c. Intra-organizational transfers can address all control problems i.e. lack of direction, motivational problems and personal limitations

d. Physical arrangements and Tone at the top can address all control problems i.e. lack of direction, motivational problems and personal limitations

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and b) are correct

h. Statements c) and d) are correct

Which of the following factors are influencing factors for achievement of tight control?

a. Definition of desired results area

b. Codes of conduct

c. Performance measures

d. Cost effectiveness

e. All of the above-named factors

f. None of the above-named factors

g. Factors a) and c)

h. Factors b) and d)

When defining desired results areas, which requirements have to be satisfied?

a. Congruence, Specificity, Communication and Internalization and Completeness

b. Complementarity and Communication and Internalization

c. Specificity and Tightness

d. Congruence and Completeness

e. All of the above-named requirements

f. None of the above-named requirements

g. Requirements b) and c)

h. Requirements c) and d)

Which of the following statements are correct?

a. Behavioral constraints can be physical or administrative

b. Behavioral constraints can be only administrative

c. Restricting decision authority to higher organizational levels and separating duties are examples of administrative constraints

d. Good separations of duties make the control system tighter

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a), c) and d) are correct

h. Statements b), c) and d) are correct

Which of the following statements referring to tightness of action accountability are correct?

a. Preaction reviews can make MCSs tight if the reviews are frequent, detailed and performed by diligent, knowledgeable reviewers

b. To achieve light action accountability control, the definitions of actions must be congruent, specific, well communicated and complete

c. Control in an action accountability control system can also be made tighter by improving the effectiveness of the action-tracking system

d. Control can be made tighter by making the rewards or punishments more significant to the employees affected

e. All of the above-named statements are correct

f. None of the above-named statement is correct

g. Statements a) and b) are correct

h. Statements b), c) and d) are correct

Which of the following statements referring to control system costs are correct?

a. Control systems consist of direct and indirect costs. b. Controls systems consist of fix and variable costs c. Indirect costs include all the out-of-the-pocket monetary costs required to design and implement the MCS d. Direct costs can be caused by any of a number of harmful side effects, including behavioral displacement, gamesmanship, operating delays, and negative attitudes. e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and c) are correct h. Statements a), c) and d) are correct

Which of the following statements are correct? a. Control system costs consist of direct, as well as indirect costs which can be many times greater than direct costs b. Indirect costs can be caused by any of a number of harmful side effects, including behavioral displacement, gamesmanship, operating delays and negative attitudes c. Two major forms of gamesmanship are slack creation and data manipulation d. The term "gamesmanship" refers to the actions that employees take to improve their performance indicators without producing any positive economic effects for the organization. e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and d) are correct h. Statements a), b) and c) are correct

Which of the following statements referring to control system costs are correct? a. Control systems consist of direct and indirect costs b. Control systems consist of fix and variable costs c. Direct costs include all the out-of-the-pocket monetary costs required to design and implement the MCS d. Indirect costs can be caused by any of a number of harmful side effects, including behavioral displacement, gamesmanship, operating delays, and negative attitudes e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and c) are correct h. Statements a), c) and d) are correct

Which of the following statements referring to behavioral displacement are correct? a. Behavioral displacement occurs when the MCS produces, and actually encourages, behaviors that are not consistent with the organization’s objectives. b. In a results control system behavioral displacement occurs when an organization defines sets of results measures that are incongruent with the organization’s “true” objectives. c. Most commonly, incongruence arises because organizations focus on easily quantifiable results d. Behavioral displacement only occurs in means of results control systems e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and b) are correct h. Statements a), b) and c) are correct

Which of the following statements referring to behavioral displacement and action controls are correct? a. Behavioral displacement can only occur in means of action controls b. One form of action control related displacement is often referring to as ‘means-end inversion’ c. Means-ends inversion occurs when employees pay attention to what they do while losing sight of what they are to accomplish d. Means-ends inversion occurs when employees pay attention to the ends while losing sight of the means. e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and d) are correct h. Statements b) and c) are correct

Which of the following statements are correct? a. Means-ends inversion occurs when employees pay attention to what they do while losing sight of what they are to accomplish b. Means-ends inversion occurs when employees pay attention to the ends while losing sight of the means c. The term "gamesmanship" refers to the actions that employees take to improve their performance indicators without producing any positive economic effects for the organization. d. Major forms of gamesmanship are slack creation and data manipulation e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a), b) and d) are correct h. Statements a), c) and d) are correct

Which of the following statements referring to gamesmanship are correct? a. Major forms of gamesmanship are slack creation and data manipulation b. Slack involves the consumption of organizational resources by employees in excess of what is required c. Budget slack involves negotiating highly achievable targets d. Data manipulation comes in two basic forms falsification and data management e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a), b) and d) are correct h. Statements a), c) and d) are correct

Which of the following statements referring to data management are correct? a. Data management can be accomplished through accounting means b. Data management can be accomplished through operating means c. Data management can be accomplished through “means-end inversion” d. Data management can be accomplished through either accounting or operating means e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements a) and c) are correct h. Statements b) and d) are correct

What general observations can be made about the occurrence of indirect costs? a. They are not unique to a special form of control b. The risk of side effects does seem to be smaller with personnel controls c. They are largely unavoidable and greatest in case of design misfit or situational misfit d. They are greater in case of design imperfections and/or usage imperfections e. All of the above-named statements are correct f. None of the above-named statement is correct g. Statements c) and c) are correct h. Statements b), c) and d) are correct

What types of indirect costs can be caused by behavioral constraints? a. Behavioral displacement b. Gamesmanship c. Operating delays d. Negative attitudes e. All of the above-named types f. None of the above-named types g. Types a) and b) h. Types c) and d)

What types of indirect costs can be caused by action accountability? a. Behavioral displacement b. Gamesmanship c. Operating delays d. Negative attitudes e. All of the above-named types f. None of the above-named types g. Types a), b) and c) h. Types a), b) and d)

What types of indirect costs can be caused by redundancy? a. Behavioral displacement b. Gamesmanship c. Operating delays d. Negative attitudes e. All of the above-named types f. None of the above-named types g. Types a), b) and c) h. Types a), b) and d)

What types of indirect costs can be caused by selection and placement? a. Behavioral displacement b. Gamesmanship c. Operating delays d. Negative attitudes e. All of the above-named types f. None of the above-named types g. Types a), b) and c) h. Types a), b) and d)

What types of indirect costs can be caused by training? a. Behavioral displacement b. Gamesmanship c. Operating delays d. Negative attitudes e. All of the above-named types f. None of the above-named types g. Types a), b) and c) h. Types a), b) and d)

What types of indirect costs can be caused by group-based rewards? a. Behavioral displacement b. Gamesmanship c. Operating delays d. Negative attitudes e. All of the above-named types f. None of the above-named types g. Types a), b) and c) h. Types a), b) and d)

What types of control cause the indirect costs of gamesmanship? a. Results accountability b. Behavioral constraints c. Preaction reviews d. Redundancy e. All of the above-named types f. None of the above-named types g. Types a), b) and c) h. Types a), b) and d)

What types of control cause the indirect costs of negative attitudes? a. Results controls b. Action controls c. Personnel controls d. Cultural controls e. All of the above-named types f. None of the above-named types g. Types a) and b) h. Types a), b) and c)

Which of the following questions does the process of designing and improving MCSs require addressing? a. Question: “What is desired?” b. Question: “What is likely to happen?” c. Question: “What controls should be used?” d. Question: “How tightly should each type of control be applied?” e. All of the above-named questions f. None of the above-named questions g. Questions a) and c) h. Questions b) and d)

What types of controls should be considered first to be sufficient? a. Results controls b. Action controls c. Personnel controls d. Cultural controls e. All of the above-named types f. None of the above-named types g. Types a) and b) h. Types c) and d)

Which of the following features can be stated as advantages of section controls? a. Feasibility b. They are often relatively inexpensive c. They allow significant autonomy to the employees d. They do not cause negative attitudes e. All of the above-named features f. None of the above-named features g. Features a), b) and c) h. Features b), c) and d)

Which of the following features can be stated as advantages of section controls? a. Feasibility b. They are often relatively inexpensive c. They allow significant autonomy to the employees d. They can provide effective control even when the knowledge as to what actions are desirable are lacking e. All of the above-named features f. None of the above-named features g. Features a), b) and c) h. Features b), c) and d)

Which of the following features can be stated as disadvantages of action controls? a. They may impose risk on the employees caused by measurement “noise” b. The targets are often asked to fulfill multiple important, but competing, control functions c. Some action controls, particularly those that that require preaction reviews, are costly d. They tend to lead to documentation of the accumulation of knowledge e. All of the above-named features f. None of the above-named features g. Features a) and c) h. Features a), c) and d)

Which of the following features can be stated as disadvantages of action controls? a. They may impose risk on the employees caused by measurement “noise” b. The targets are often asked to fulfill multiple important, but competing, control functions c. It is usually impossible to optimize the performance targets d. Action measures usually provide less than perfect indications of whether good actions had been taken when the measures fail to meet one or more of the qualities of good measures e. All of the above-named features f. None of the above-named features g. Features a) and c) h. Features a), c) and d)

Which of the following features can be stated as advantages of results controls? a. Feasibility b. Results controls allow significant autonomy to the employees c. Results limitations do not have any disadvantages or limitations d. They are often relatively inexpensive e. All of the above-named features f. None of the above-named features g. Features a) and c) h. Features a), b) and d)

Which of the following questions should be answered to assess whether controls should be applied more or less tightly? a. Question: “What does tight control mean?” b. Question: “What are the potential benefits of tight controls?” c. Question: “What are the costs?” d. Question: “Are any harmful side-effects likely?” e. All of the above-named questions f. None of the above-named questions g. Questions a) b) and d) h. Questions b), c) and d)