Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?

61.

Effective short-term objectives should ______________ and _____________.    A.  be specific; measurable B.  be achievable; not challenging C.  be motivating; not limiting D.  be time defined; not limiting To be effective, short-term objectives must have several attributes. They should be specific and measurable, include a specific time horizon for their attainment, and be achievable yet challenging enough to motivate managers who must strive to accomplish them.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

62.

Which of the following statements about action plans is true?    A.  Action plans, though specific, should permit a degree of autonomy to managers and not be constrained by budgets. B.  Action plans must be specific so that managers will have a clear understanding of the resource requirements necessary to implement the plan. C.  Action plans should not be constrained by a time frame in order to allow for modification. D.  Although managers must be held accountable for implementing action plans, this accountability often erodes the managers' motivation to implement the plan on a timely basis. Unless action plans are specific, there may be little assurance that managers have thought through all of the resource requirements for implementing their strategies. In addition, unless plans are specific, managers may not understand what needs to be implemented or have a clear time frame for completion.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

63.	Rules and regulations are examples of ______________ and _____________.    A.  controls; behaviors B.  controls; norms C.  boundaries; behaviors D.  boundaries; constraints Boundaries and constraints are rules that specify behaviors that are acceptable and unacceptable.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

64.

The best way to minimize improper and unethical conduct is to ______________ and _____________.    A.  set boundaries; constraints B.  establish standards; guidelines C.  develop policies; regulations D.  design sanctions; guidelines In an ideal world, a strong culture and effective rewards should be sufficient to ensure that all individuals and subunits work toward the common goals and objectives of the whole organization. However, this is not usually the case. Counterproductive behavior can arise because of motivated self-interest, lack of a clear understanding of goals and objectives, or outright malfeasance. Boundaries and constraints can serve many useful purposes for organizations, including: focusing individual efforts on strategic priorities; providing short-term objectives and action plans to channel efforts; improving efficiency and effectiveness; minimizing improper and unethical conduct.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

65.

Which of the following approaches to behavioral strategic control would be the least appropriate for an organization in which there is a great need for innovation and a high degree of autonomy?    A.  culture B.  rewards C.  rules D.  incentives Rules are most appropriate when associated with standardized output, tasks are generally repetitive and routine, and there is little need for innovation or creative activity.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

66.

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by _____________.    A.  posting written statements of the organizational goals and objectives B.  discouraging the formation of subcultures that isolate work groups C.  designing effective reward systems D.  encouraging employees to see themselves as free agents In most environments, organizations should strive to provide a system of rewards and incentives, coupled with a culture strong enough that boundaries become internalized. This reduces the need for external controls such as rules and regulations.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

67.

Rule-based controls are least appropriate in organizations with which one of the following characteristics?    A.  Environments are stable and predictable. B.  Employees are highly skilled and independent. C.  There is consistency in product and service. D.  The risk of malfeasance is extremely high. Rule based controls are most appropriate in organizations with the following characteristics: environments are stable and predictable, employees are largely unskilled and interchangeable, consistency in product and service is critical, and the risk of malfeasance is extremely high.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

68.

Rules and regulations, rather than culture or rewards, would be used for strategic control at which type of company?    A.  software developer B.  stock brokerage firm C.  manufacturer of mass produced products D.  high tech research facility Rule-based controls are most appropriate in organizations with the following characteristics: environments are stable and predictable, employees are largely unskilled and interchangeable, consistency in product and service is critical, and the risk of malfeasance is extremely high (e.g., in banking or casino operations).

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

69.

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction?    A.  Hire people that identify with the dominant values of the organization. B.  Develop managerial role models. C.  Minimize training and indoctrination. D.  Align reward systems with organizational goals and objectives. In most environments, organizations should strive to provide a system of rewards and incentives, coupled with a culture strong enough that boundaries become internalized. This includes hiring people who identify with the dominant values of the organization and have consistent attributes, training, managerial role models, and reward systems that are clearly aligned with the organizational goals and objectives.

AACSB: Analytic Blooms: Understand Learning Objective: 09-04 The benefits of having the proper balance among the three levers of behavioral control: culture; rewards and incentives; and boundaries. Level of Difficulty: 2 Medium Topic: Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries

70.

The primary participants in corporate governance do not include _____________.    A.  the shareholders B.  the financial institutions C.  the management (led by the chief executive officer) D.  the board of directors The primary participants in corporate governance are: the shareholders, the management (led by the CEO), and the board of directors.

AACSB: Analytic Blooms: Understand Learning Objective: 09-05 The three key participants in corporate governance: shareholders; management (led by the CEO); and the board of directors. Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance