Profit ratios measure how well managers have protected organizational resources to be able to meet short-term obligations. Measuring performance is a vital part of assessing the value of employee and management activities. B) Corrective actions are not part of the control process. False true false Once managers have chosen the standards to evaluate performance, the next step in the control process is to: C compare actual performance against chosen standards of performance. This requires a top-down approach to setting performance criteria rather than a bottom-up approach that I often see occurring in many organizations. Step 3. c.In preparing a performance report, static budgets are usually a good choice for benchmarks. Economic value added (EVA) is focused on short-term performance measurement. As far as possible, performance should be measured in the same units in which standards are set as this would make their comparison easier. In the productivity and quality‐centered environment, workers and managers are often empowered to evaluate their own work. 2. Identify the correct sequence of the steps involved in the controlling process. d.balanced scorecard. Given this information, which of the following is true at Time Now? Which of the following statements is true with respect to controlling function? 3) This graph depicts a time-phased performance measurement baseline (PMB) with cumulative budgeted cost for work scheduled (BCWS), budgeted cost for work performed (BCWP), and actual cost of work performed (ACWP). 18. After the measurement of the actual performance, the actual performance should be compared with the standards fixed quickly. It is easy to measure outputs and behavior of complex, nonroutine activities. Measuring degree means, for example, using a 10-point rating scale rather than a yes/no scale. Which of the following is true of a performance report? C) Performance standards allow for the assessment of programs. Once managers have measured actual performance, they should: When you divide the organization's current assets by its current liabilities, the result is known as the times-covered ratio of the organization. Which of the following can hurt the performance of an organization? Which of the following is an example of a strategic performance measurement system? Ensure the appraisals are … Control is not concerned with keeping employees focused on the important problems confronting the organization but with reacting to events after they have occurred. a.are an optional part of the … A) Usefulness of the information always justifies the cost of measurement. The first step in the control process is to evaluate results in terms of performance standards. Recently, a 70-year-old CEO reflected with me, “In the end, the real measure of success will unlikely be our accomplishments or achievements. The way we design our performance measures can impact on the granularity or sensitivity to change that those measures are capable of showing. This is an example of: With bottom-up change, the emphasis is on making the changes quickly and dealing with problems as they arise; it is revolutionary in nature. There are several techniques for the measurement of performance. Under this technique, some pieces are checked at random for quality specifications. Economic value added (EVA) is a more appropriate performance measure when there is a large difference between the market value of invested capital and the book value of assets. A performance measure is a numeric description of an agency’s work and the results of that work. How to Increase the Accuracy of Interpersonal Perception? Which of the following describes stretch goals? These are all _____. Why is return on investment (ROI) the most commonly used financial performance measure? Outputs and behavior can be measured easily always. _____ shows whether an organization can pay claims of short-term creditors without selling inventory. Measuring degree me… All of the following are usually measured by a graphic rating scale EXCEPT_, a) generic dimensions of performance b) performance of 'actual duties c) performance of co-workers d) achievement of Objectives Ans: c 0.11. Comparing actual performance with standards. Which of the following is true of high-performance work practices? Which of the following is true of direct supervision? Multiple Choice Questions . These measurements should be related to the standards set in the first step of the control process. are calculated at periodic intervals to Measure Company’s performance. True. The subjectivity of financial measures of performance is the reason why managers use them to measure the efficiency and effectiveness of their organizations. However, this might not be possible in a large organization. According to Neely et al (1995), performance measurement may be defined as the process of quantifying the efficiency or effectiveness of an action, while a performance measure is the metric used in the quantification process. For instance, in the case of assembling tasks, each part produced should be checked before assembling. Following are some of the ways for measuring performance: (a) Superior prepares a report regarding the performance of an employee. Which of the following statements is true of control? (IMAGE DESCRIPTION: PMB graph with BCWS plotted from contract start through contract end. 19. Question 12. Bureaucratic rules constrain and standardize behavior and encourage people to think for themselves. Which of the following steps of the control process involves goal setting? Which of the following is an example of process reengineering measure? Identify the correct sequence of the steps involved in the controlling process. During the input stage, managers use __________ control procedures to anticipate problems before they occur. Minimizing errors is an aspect of performance, but not the primary objective of performance management. Measurement of actual performance Performance is measured in an objective and reliable manner. (b) Various ratios like gross profit ratio, debtor turnover ratio, return on investment, current ratios, etc. The times-covered ratio, which measures the degree to which managers use debt or equity to finance ongoing operations, is a type of _____. A. It comprises measuring the actual performance outcomes or results of an organization against its intended goals. The formal monitoring, evaluation, and feedback systems that allow managers to determine if the organization's strategy and structure are working according to plans are known as _____ systems. By doing so, the managers at RST consultin ensure that the wrong candidates are not picked for a particular job. How does your definition compare to this one? How we measure is probably more important to the control process than what we measure. This is known as sample checking. The first one is Scope Baseline and it includes: Project scope statement which includes the work that will be done throughout the project and requirements of the work as well. B)The quality approach has very low acceptability because they are usually developed without input from those to be evaluated.  Step 1: Measuring Actual Performance How We Measure – personal observations, statistical reports, oral reports, and written reports. b.To create a meaningful performance report, actual costs and expected costs should be compared at different levels of activity. Which of the following can hurt the performance of an organization? 3. asked May 3, 2016 in Business by FabKid. are calculated at periodic intervals to Measure Company’s performance. These include personal observation, sample checking, performance reports, etc. Identify the correct sequence of the steps involved in the controlling process. Measuring and Delivering Marketing Performance. Performance measures are based on data, and tell a story about whether an agency or activity is achieving its objectives and if progress is being made toward attaining policy or organizational goals. B) Performance standards define expected behaviors for organizational members. Which of the following statements is true of gender diversity in workplaces? 1. 17. (c) Both (a) and (b) (d) None of the above. C) increasing costs of all inputs used to increase total factor productivity. measuring actual performance. Answer: Level of Difficulty: Easy. written reports. C) The control process begins when work procedures conform to established standards. Similarly, in a manufacturing plant, levels of gas particles in the air could be continuously monitored for safety. Managers can either evaluate output or behavior, never both. Evaluating data B. For example, if sales growth is a target, the organization should have a means of gathering and reporting sales data. D) charging higher prices to increase tax benefit. measure actual performance. What We Measure – what is measured is probably more critical to the control process than how it’s measured  To determine what actual performance is, a manager must first get information about it. Following are some of the ways for measuring performance: (a) Superior prepares a report regarding the performance of an employee. Performing a 360 Degree Evaluation Gather appraisals from subordinates. (c) Both (a) and (b) (d) None of the above. O A static budget can be used to measure performance and to identify discrepancies between budgeted and actual costs. ____ guide behavior and specify what employees are to do when they confront a problem that needs a solution. Performance targets. It is the point where performance objectives identify key results that one wants to accomplish. ANS: T DIF: Moderate OBJ: 19-4. A change that is gradual, in which managers at all levels work together to develop a detailed plan for change, is called a(n) __________. a.To create a meaningful performance report, a static budget should be used. (b) Is a backward looking function. Once performance standards are set, the next step is the measurement of actual performance. Definition. Which of the following is true about the quality approach to performance measurement? The manufacturing sector is one in which there is significant scope for performance measurement, as most aspects of the production process can be accurately measured in quantitative terms. Performance should be measured in an objective and reliable manner. (b) Is a backward looking function. Establish performance baselines D. Optimize performance. D. Outputs are easier to measure because they are more tangible and objective. The first step managers must take to manage change effectively is to: Which of the following types of control allows managers to anticipate problems before they arise? It should be checked in the same unit in which the standards are set. (b) Various ratios like gross profit ratio, debtor turnover ratio, return on investment, current ratios, etc. Measuring performance is a vital part of monitoring an organization’s progress. This is an example of. Identify the first step in the performance measurement process. 0.10. When a performance indicator cannot be stated in quantifiable terms, managers should look for and use subjective measures. D) Control is the process of measuring employee performance using scientific performance scales. It is usually believed that measurement should be done after the task is completed. The more complex a job is, the more difficult it is for a manager to evaluate how well a subordinate is performing. Starling Manufacturing Inc. has carefully set up strict specifications for raw materials that are sourced from suppliers. Which of the following steps of the organizational change process includes identifying obstacles to change? Which of the following statements is true about measuring performance? The most effective course may be prescribed by policies or maybe best left up to employees’ judgment and initiative. Answer: c. 9. A)The quality approach techniques usually have very little congruence with the strategic goals of an organization. b.standard cost system. Behavior control tends to be the first type of control that managers at all levels use to evaluate performance. Thus, in large organizations, certain pieces are checked at random for quality. Answer. Which of the following is true of revolutionary change? Which of the following is true of the control process? A) The establishment of performance standards is the end result of any planning process. Advantages and Importance of Electronic Communication, Contents or Elements of Personal Status Inquiry Letter, Researchers develop an Explainable AI in Medical Informatics for diagnosing breast cancer, Scientists evaluated facts to assess of harms and benefits of lung cancer screening, Chronic pain and depression can be reduced by maintaining yoga and meditation, Scientists spell out an innovative strategy for a male contraceptive agent, Perseverance Spotted From Space As Tiny Speck On Martian Surface. RST Consulting screens job applicants by viewing their résumés electronically and using several interviews to select highly skilled people. 2. The comparing step in the control process determines _____. C) Ease of measurement determines what is going to be measured. a) personal observations b) statistical reports c) oral reports d) written reports. Measure progress and performance >> The project control steps for measuring and evaluating project performance are first to set a baseline plan, then to measure progress and performance, next to compare plan against actual and finally to take action c.lean management system. Answer: c. 9. (e) In large organizations, the technique of sample checking is used. a.product costing system. Recall or Sensitivity: Recall is a measure that tells us what proportion of patients that actually had … It follows a three-step approval process to select new suppliers and ensures that they are aware of raw material specifications. An indication of the way manufacturers can measure their performance is provided by … A) employing more skilled workers to improve quality . Which of the following types of controls do managers use during the output stage of transforming raw materials into finished goods? A. It encourages extensive employee involvement and greater employee control on decision making: Term. Answer. Days sales outstanding is a profit ratio that reveals how efficiently managers are collecting revenue from customers to pay expenses. Which of the following statements about static and flexible budgets is not true? Setting performance standards C. Specifying feedback D. Obtaining data. In small organizations, each piece produced may be checked to ensure that it conforms to quality specifications laid down for the product. Clan control keeps organizational members goal-directed, while they are still open to new opportunities. Which of the following statements is true with respect to controlling function? (c) Progress made in areas like marketing can be measured by considering the number of units, an increase in market share, etc. A control system must be rigid in order to be effective. Performance measurement baseline is constituted with three different baselines as seen in the figure below. Most organizations prepare formal reports of performance measurements that managers review regularly. revise performance standards. false . initiate corrective action if the chosen standard is not being achieved. (a) Measurement of actual performance, Taking corrective action, Setting performance standards, Comparison of actual performance with standards, Analysing deviations Measurement of Actual Performance in Controlling Management Process, Limitations or Disadvantages of Formal Communication, Steps or Stages of Human Resource Planning. true. When performance deviates from standards, managers must determine what changes, if any, are necessary and how to apply them. Gathering true. Which of the following is true of measuring actual performance? Which of the following is a mechanism of behavior control? D) Relevant indicators of progress toward … B) decreasing quantity of output produced to increase total factor productivity. However, in order to facilitate easy comparison, the performance should be measured on the same basis that the standards have. Definition . At the end of every month, the accounting department submits a balance sheet, statement of profit and loss, and cash flow statement to the senior management team. Which of the following is true of measuring actual performance? D) all of the above evaluate the results of comparison. (a) Performance evaluation report technique (b) Personnel enquiry retrieving technique (c) Programme evaluation and review technique Remedial actions taken to prevent deviation in future is called (a) Measurement of actual performance (b) Taking corrective actions (c) Analyzing deviations (d) Setting performance standards To find the right performance measures, we must start with a clear definition of what a performance measure really is. ANS: T DIF: Moderate OBJ: 19-4. However, wherever possible, measurement of work should be done during the performance. Explanation: An IT performance measurement process can be used to optimize performance, measure and manage products/services, assure accountability and make budget decisions. (a) It is a forward looking function. measuring actual performance B. comparing actual performance against chosen standards C. evaluating the results of comparison D. establishing the standards of performance E. initiating corrective action 28. Output control and behavior control are appropriate for the most important and significant organizational activities. A quick comparison of actual performance with the standard performance is possible, if the control system is well organised. B) Measurements of performance need not always be related to organizational goals. Page: 336 . (a) It is a forward looking function. (d) In small organizations, each unit produced can be checked personally to ensure quality standards. Performance should be measured based on an employee’s overall impact, cost efficiency, effectiveness, and ability to implement best practices. False. All rights reserved. Which of the following steps of the organizational change process includes benchmarking? This step involves comparing the actual performance with standards laid down in order to find the deviations. © copyright 2021 QS Study. Performance measurement systems use externally imposed benchmarks of the competitive landscape to assess internal performance. A static planning budget is suitable for planning but not for evaluating performance. A) Preventive measures are a form of control. Being under close scrutiny or not being evaluated in an impartial way motivates employees to perform better. When designing an actual appraisal method, the two basic considerations are a) who should measure and when to measure
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