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Terms in this set (100)Strategic control the process of monitoring and correcting a firm's strategy and performance Informational control a method of organizational control in which a form gathers and analyzes information from then internal and external environment in order to obtain the best fit between the organization's goals and strategies and the strategic environment Behavioral control a method of organizational control in which a firm influences the actions of employees through culture, rewards, and boundaries Traditional approach to strategic control a sequential method of organizational control in which (1) strategies are formulated and top management sets goals, (2) strategies are implemented, and (3) performance is measured against the predetermined goal set. Contemporary control systems must have 4 characteristics to be effective: 1. The focus is on constantly changing information that has potential strategic importance. Organizational culture a system of shared values and beliefs that shape a company's people, organizational structures, and control systems to produce behavioral norms (how we do things around here) Reward system policies that specify who gets rewarded and why Boundaries and constraints rules that specify behaviors that are acceptable and unacceptable Corporate governance the relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the board of directors The two central aspects of strategic control are ___ control and ___ control. informational; behavioral Which of the following are part of the traditional approach sequence? -Strategies are formulated and goals are set by top management Which of the following statements are true about the traditional approach to strategic control? -It is also referred to as "single-loop" learning Which of the following are appropriate conditions for using the traditional approach to strategic control? -the environment is relatively simple True or false: Informational control is primarily concerned with whether the organization is "doing the right things." True Which of the following statements regarding informational control are correct? -It deals with internal environment and the external strategic context The ___ approach to strategic control is sequential. traditional The role of ___ control is to challenge the organization's beliefs and goals and to continuously monitor, test, and review strategies. informational In the traditional approach to strategic control, control is based on ___. comparing actual performance to a predetermined goal Which of the following are characteristics of a contemporary control system? -the focus is on information that changes and may have strategic importance The traditional approach is the most appropriate when ___. the objectives can be measured, goals are simple, and the environment is stable The three elements of behavioral control are culture, rewards, and ___. boundaries
Which type of contemporary strategic control focuses on whether the organization is "doing things right"? behavioral control What are reasons for emphasizing culture and rewards in a system of behavior controls? -the competitive environment is complex and unpredictable The control system that addresses the assumptions that form the foundation of the organization is ___ control. informational A system of shared values and beliefs that shape a company's people, organizational structure, and control systems to produce behavioral norms is ___. organizational control The control process that continuously updates and challenges assumptions that underlie the organization's strategy is ___ control. informational Which of the following are true regarding the role that culture plays? -culture can lead to employees who are more
engaged in their job and in the company as a whole Effective contemporary control systems focus on ___. constantly changing information Which of the following statements about creating and maintaining a strong organizational culture are true? -a strong commitment by leaders is critical to maintaining a strong organizational culture Culture, rewards, and boundaries are key "levers" of ___ controls. behavioral Policies that specify who gets praised and recognized and why is called the ___ system. reward In today's complex competitive environment with weakened employee loyalties, the two levers of behavioral control that are the most effective are culture and ___. reward Which of the following are reasons incentives can go wrong in a company? They may cause issues between organizational departments due to differing goals The set of unwritten standards of acceptable behavior in an organization is called organizational ___ culture Which of the following are characteristics of an effective reward system? -reinforces basic core values True or false: a strong culture can be a primary source of competitive advantage. true Which of the following would be the most likely to motivate employees to perform well on the job? being given the opportunity to lead a project Which of the following is an effective technique for maintaining organizational culture? storytelling Boundaries and constraints play a valuable role in focusing ___ a company's strategic priorities A system that focuses and motivates employee efforts on high-priority tasks I called a ___ system reward Which one of the following is an attribute of effective short-term objectives? be specific and measurable
Rule-based controls are most appropriate for organizations that have which of the following? -unskilled and interchangeable employees Enhanced cohesion and reinforcement of basic core values are part of an effective ___ system. reward
The type of behavior control used in an organization is often based on internal and ___ controls. external Which of the following statements about rewards systems are correct? -employees respond well to managerial praise and financial rewards Which of the following statements regarding controls in a bureaucratic organization are correct? -employees are expected to complete their tasks in a specific manner Rules that specify behaviors that are acceptable and unacceptable are called ___. boundaries and constraints Hiring the right people, training, management role models, and rewards are part of evolving from ___ to culture. boundaries Which of the following statements regarding short-term objectives and actions plans are true? -short-term objectives should be specific,
measurable, attainable, and challenging ___ governance is when shareholders, management, and the board of directors work together to align their goals. Corporate For stable organizations with a largely unskilled workforce and a need to provide a consistent product or service, ____-based controls are the most important. rule Managers consider both external and internal factors to determine how to achieve appropriate ___ control over the individuals who work for the organization. behavioral Which of the following is the most likely to lead to superior financial performance of a company? good corporate governance In a bureaucratic organization, ____ desired behaviors can be specified in a detailed manner A mechanism created to allow for different parties to contribute capital, expertise, and labor for the benefit of each party is called a(n) ____ corporation Which of the following are steps that organizations can take to evolve the organization from boundaries to rewards and culture? -hire the right people ___ deals with the relationship between principals (owners) and their agents (managers/employees) agency The relationship between various participants, including shareholders and management, in determining the direction and performance of corporations is called ___. corporate governance Shareholder activism and an involved and committed board of directors are mechanisms of ___ corporate governance Which of the following has a fiduciary duty to ensure that the company is run consistently with the long-term interests of the business owners or shareholders and to act as an intermediary between the shareholders and management? the board of directors Which of the following statements are true regarding the role that good corporate governance plays on the decision to invest in companies? -major institutions often choose to purchase stock of companies known for their good corporate governance practices Which of the following are attributes of an effective board of directors? -directors provide strong oversight In a(n) ____, shareholders have limited liability as well as limited involvement with the businesses' operation. corporation True or false: Research of boards of directors shows that simple restrictions, such as a requirement that a majority of the board members be outside directors, is enough to make the operations of the board effective Falsee Agency theory is concerned with ___. varying agents' performance Which of the following are ways in which institutional investors are ending in shareholder activism? they act aggressively to protect and enhance their investments Two means of monitoring the behavior of managers through corporate governance mechanisms are through a committed board of directors and ___. shareholder activism Which of the following are ways that a board of directors can incentivize managers to make decisions that are in the company's shareholders' interest? -by requiring CEOs become substantial owners of company stock The duties of the ___ involve reviewing the organization's financial objectives and major strategies, providing advice to top management, and reviewing systems to ensure compliance with laws and regulations board of directors Which of the following duties are primary responsibilities of a board of directors? -evaluate senior managers' performance Which of the following statements about CEO duality is true? It is one of the most controversial issues in corporate governance Which of the following actions can have a positive influence on the dynamics of the boards of directors? -bringing in the right expertise on the board
which of the following are components fo the unity-of-command perspective on CEO duality? -a CEO has a clear focus on both objectives and operations Actions by large shareholders to protect their interests when they feel they are not receiving value maximization is called ___ shareholder activism Which of the following is the agency theory perspective on CEO duality? There should be separation of power between the CEO and the chairman True or false: a corporation's board of directors has little control over the amount bonuses and stock options that the corporation's CEO receives for his or her performance False Government regulatory bodies, auditors, public activists, and the media are all ___ governance control mechanisms external The board of directors functions as a "go between" for the owners and controllers of the corporation One form of opportunistic behavior that managers exhibit is engaging in excess product-market ___, which reduces their employment risk. diversification The leadership structure where the CEO acts as both chief executive officer and the chair of the board of directors is called CEO ___. duality ___ is one external mechanism that provides a solution to opportunistic behavior by managers. The market for corporate control True or false: unity-of-command advocates believe that a CEO can act more efficiently and effectively when holding the positions both of CEO and chairman of the board True The risk of being acquired by a hostile raider is often referred to as the ___ and deers opportunistic behavior by management takeover constraint The ___ theory perspective on CEO duality is based on the separation of power. agency ___ are independent, certified professionals who verify the firm's books of accounts to unearth financial irregularities and ensure good accounting practices Auditors Which of the following are external governance control mechanisms? -banks and analysts ___ are external control mechanisms that ensure that the firm's finances are in order and loan covenants are being followed. Banks and analysts Which of the following are examples of how managers can exhibit opportunistic behavior? -engaging in on-the-job consumption by spending large sums on executive luxuries Public corporations must disclose financial information to government ___ bodies such as the Securities and Exchange Commission regulatory Which of the following is an external control mechanism in which shareholders dissatisfied with a firm's management sell their shares? Market for corporate control Which of the following has an indirect role as an external control mechanism? the media The takeover constraint refers to the risk of being acquired by which of the following? hostile raider Conflicts between controlling shareholders and minority shareholders are called principal-___ conflicts. principal Which of the following statements about external auditors are true? -they often have lucrative consulting contracts with the firms they audit Which of the following is the best description of the expropriation of minority shareholders? When controlling shareholders have personal gains that exceed their losses from their firm's lowered performance Which of the following statements about stock analysts are true? -they make recommendations to there clients to buy, hold, or sell Which of the following provides external oversight of companies? government regulatory bodies An example of the role that public activists have played as an external control mechanism is pressuring companies to refuse to deal in valuable minerals known as ___ minerals, which rebel groups trade to buy weapons conflict Principal-principal conflicts are conflicts between controlling shareholders and __ shareholders minority When controlling shareholders conduct activities that enrich the controlling shareholders at the expense of the minority shareholders, they are engaging in ___ expropriation of minority shareholders Students also viewedStrat Man - Ch.1110 terms cayenne08 Chapter 10 BUS 40083 terms sarmarols Strategic Planning/Business Policy Ch. 1152 terms Lacey296 Sets found in the same folderChapter 259 terms Lacey_Worley4 Chapter 359 terms Lacey_Worley4 Chapter 450 terms Lacey_Worley4 Chapter 550 terms Lacey_Worley4 Other sets by this creatorMGMT 468 Final46 terms Hannah_Muntz MGMT 468 Chapter 890 terms Hannah_Muntz MGMT 468 Chapter 799 terms Hannah_Muntz MGMT 448 Exam 110 terms Hannah_Muntz Other Quizlet setsUnit 5: Indigenous Americas, 1000 BCE-19…27 terms sradakovic914 Unit #10: Analytical Methods59 terms loefflertj1218 Nervous Tissue and the Brain Lab18 terms larryle555 What are the four methods for maintaining corporate culture quizlet?The four main strategies for merging different corporate cultures are integration, deculturation, assimilation, and separation.
What is corporate culture quizlet?Definition. 1 / 10. Corporate Culture refers to the shared values, ingrained attitudes, core beliefs, and company traditions that determine norms of behaviour, accepted work practices, and styles of operating.
Which of the following statements is true of corporate culture?Answer and Explanation: The correct option is c) Put simply, culture is just how things are done in any organization. Corporate culture reflects how management and employees interact and handle business activities. It refers to the shared practices and values of a company's employees.
What is the role of an ethical leader in corporate cultures?According to this definition, ethical leaders would serve as role models of ethical behavior who try to promote such a behavior in their followers, by using communication and reinforcement systems with which to communicate ethical standards and reward (discipline) ethical (unethical) behavior, respectively.
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Which of the following is a traditional approach to corporate culture quizlet?
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