Question 1

The traditional approach to strategic control is interactive,while the contemporary approach to strategic control is sequential.

Accepted Answer

A) True 
 B)False

Question 2

Informational control systems are concerned with which of the following?

Accepted Answer

A)   Is the organization doing things right?
B)   Is the organization doing the right things?
C)   Are rules and regulations being followed as information is processed?
D)   Is the environment of the organization a necessary and sufficient condition for success?E) A) and C)
F) None of the above B

Question 3

Which of the following is NOT one of the characteristics of reward and incentive systems?

Accepted Answer

A)   They represent a poor means of influencing the culture of an organization.
B)   They focus efforts on high priority tasks.
C)   They motivate high levels of individual and collective task performance.
D)   They represent an effective control mechanism.E) None of the above
F) A) and B)

Question 4

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

Accepted Answer

A) True 
 B)False

Question 5

In trying to assure that managerial actions lead to shareholder value maximization,a risk can come about if the market value of a firm becomes less than its book value.The risk is _____________.

Accepted Answer

A)   it becomes an attractive takeover target
B)   the firm will be delisted by the stock exchange
C)   the Securities and Exchange Commission will not allow it to declare dividends until the market value once again exceeds the book value
D)   the firm will be unable to service its debtE) B) and D)
F) B) and C)

Question 6

Unexpected events have little effect on short-term objectives,because short-term objectives are not changeable.

Accepted Answer

A) True 
 B)False

Question 7

The organizational reward system is typically a weak method for motivating employees.

Accepted Answer

A) True 
 B)False

Question 8

What is meant by principal-principal (PP)conflict? What are the implications for sound corporate governance?

Accepted Answer

Principal-principal (PP) conflict refers to a situation where conflicts arise between two or more principals within a company, such as between shareholders, board members, or different groups of shareholders. This conflict can occur when the interests of one group of principals are not aligned with the interests of another group, leading to disagreements and potential negative consequences for the company.

The implications for sound corporate governance are significant. PP conflicts can lead to decision-making that prioritizes the interests of one group of principals over another, potentially leading to decisions that are not in the best interest of the company as a whole. This can result in a lack of accountability, transparency, and fairness within the organization, ultimately undermining the principles of good corporate governance.

To address PP conflicts and promote sound corporate governance, companies should focus on establishing clear and effective communication channels between different groups of principals, ensuring that all stakeholders have a voice in decision-making processes. Additionally, implementing strong governance structures, such as independent board oversight and robust conflict resolution mechanisms, can help mitigate PP conflicts and promote a culture of accountability and transparency within the organization. Ultimately, addressing PP conflicts is essential for fostering a corporate environment that prioritizes the long-term success and sustainability of the company.

Question 9

When subcultures emerge that have shared values opposite from the dominant culture of an organization _____________.

Accepted Answer

A)   organizational cohesiveness increases
B)   information is shared rather than hoarded
C)   individuals begin working at cross purposes
D)   individuals gain insights into overarching goals and objectivesE) B) and C)
F) None of the above C

Question 10

In emerging economies and continental Europe,principal-principal conflicts are frequent.These consist of conflicts between controlling shareholders and executives.

Accepted Answer

A) True 
 B)False

Question 11

Strategic control systems,both informational and behavioral,are used to correct the performance and ultimate strategy of a firm.

Accepted Answer

A) True 
 B)False

Question 12

Once a strong and healthy organizational culture has been established,it becomes self-sustaining.

Accepted Answer

A) True 
 B)False

Question 13

Continuous monitoring,in the contemporary approach,is beneficial because _____________.

Accepted Answer

A)   it reduces time lags
B)   it increases the time it takes to detect changes in the competitive environment
C)   organizational flexibility is reduced
D)   organization response time is increasedE) C) and D)
F) B) and D)

Question 14

For firms competing in highly unstable and turbulent industries,traditional strategic controls are most appropriate.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a characteristic of effective reward and incentive systems?

Accepted Answer

A)   Performance measures are clear and highly visible.
B)   The structure is fixed to assure employees of consistency.
C)   The compensation system is perceived as fair and equitable.
D)   Objectives are well understood, and broadly accepted.E) None of the above
F) A) and B)

Question 16

For businesses facing complex and turbulent business environments,which of the following is true?

Accepted Answer

A)   Goals and objectives that are uncertain prevent opportunism.
B)   Traditional strategic controls are usually inappropriate.
C)   Complacency about predetermined milestones can prevent adaptability.
D)   Detailed plans are needed to maintain order.E) None of the above
F) A) and D)

Question 17

Informational control is primarily concerned with whether or not the organization is doing the right things.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the benefits and risks of using reward and incentive systems as a means of strategic control.

Accepted Answer

Reward and incentive systems can be effe...

Question 19

The collective sum of individual behaviors of the employees of an organization generally results in what is best for the organization; thus,individual rationality assures organizational rationality.

Accepted Answer

A) True 
 B)False

Question 20

The best way to minimize improper and unethical conduct is to ______________ and _____________.

Accepted Answer

A)   set boundaries; constraints
B)   establish standards; guidelines
C)   develop policies; regulations
D)   design sanctions; guidelinesE) B) and D)
F) None of the above

Exam 9: Strategic Control and Corporategovernance

The traditional approach to strategic control is interactive,while the contemporary approach to strategic control is sequential.

Correct Answer
verified

Informational control systems are concerned with which of the following?

Correct Answer
verified
B

Which of the following is NOT one of the characteristics of reward and incentive systems?

Correct Answer
verified

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

Correct Answer
verified

In trying to assure that managerial actions lead to shareholder value maximization,a risk can come about if the market value of a firm becomes less than its book value.The risk is _____________.

Correct Answer
verified

Unexpected events have little effect on short-term objectives,because short-term objectives are not changeable.

Correct Answer
verified

The organizational reward system is typically a weak method for motivating employees.

Correct Answer
verified

What is meant by principal-principal (PP)conflict? What are the implications for sound corporate governance?

When subcultures emerge that have shared values opposite from the dominant culture of an organization _____________.

Correct Answer
verified
C

In emerging economies and continental Europe,principal-principal conflicts are frequent.These consist of conflicts between controlling shareholders and executives.

Correct Answer
verified

Strategic control systems,both informational and behavioral,are used to correct the performance and ultimate strategy of a firm.

Correct Answer
verified

Once a strong and healthy organizational culture has been established,it becomes self-sustaining.

Correct Answer
verified

Continuous monitoring,in the contemporary approach,is beneficial because _____________.

Correct Answer
verified

For firms competing in highly unstable and turbulent industries,traditional strategic controls are most appropriate.

Correct Answer
verified

Which of the following is not a characteristic of effective reward and incentive systems?

Correct Answer
verified

For businesses facing complex and turbulent business environments,which of the following is true?

Correct Answer
verified

Informational control is primarily concerned with whether or not the organization is doing the right things.

Correct Answer
verified

Discuss the benefits and risks of using reward and incentive systems as a means of strategic control.

Correct Answer
Answered by ExamLex AI
Reward and incentive systems can be effe...
View Answer

The collective sum of individual behaviors of the employees of an organization generally results in what is best for the organization; thus,individual rationality assures organizational rationality.

Correct Answer
verified

The best way to minimize improper and unethical conduct is to __ and _.

Correct Answer
verified

Exam 9: Strategic Control and Corporategovernance

The traditional approach to strategic control is interactive,while the contemporary approach to strategic control is sequential.

Correct AnswerverifiedShow Answer

Informational control systems are concerned with which of the following?

Correct AnswerverifiedB

Which of the following is NOT one of the characteristics of reward and incentive systems?

Correct AnswerverifiedShow Answer

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

Correct AnswerverifiedShow Answer

In trying to assure that managerial actions lead to shareholder value maximization,a risk can come about if the market value of a firm becomes less than its book value.The risk is _____________.

Correct AnswerverifiedShow Answer

Unexpected events have little effect on short-term objectives,because short-term objectives are not changeable.

Correct AnswerverifiedShow Answer

The organizational reward system is typically a weak method for motivating employees.

Correct AnswerverifiedShow Answer

What is meant by principal-principal (PP)conflict? What are the implications for sound corporate governance?

When subcultures emerge that have shared values opposite from the dominant culture of an organization _____________.

Correct AnswerverifiedC

In emerging economies and continental Europe,principal-principal conflicts are frequent.These consist of conflicts between controlling shareholders and executives.

Correct AnswerverifiedShow Answer

Strategic control systems,both informational and behavioral,are used to correct the performance and ultimate strategy of a firm.

Correct AnswerverifiedShow Answer

Once a strong and healthy organizational culture has been established,it becomes self-sustaining.

Correct AnswerverifiedShow Answer

Continuous monitoring,in the contemporary approach,is beneficial because _____________.

Correct AnswerverifiedShow Answer

For firms competing in highly unstable and turbulent industries,traditional strategic controls are most appropriate.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of effective reward and incentive systems?

Correct AnswerverifiedShow Answer

For businesses facing complex and turbulent business environments,which of the following is true?

Correct AnswerverifiedShow Answer

Informational control is primarily concerned with whether or not the organization is doing the right things.

Correct AnswerverifiedShow Answer

Discuss the benefits and risks of using reward and incentive systems as a means of strategic control.

Correct AnswerAnswered by ExamLex AIReward and incentive systems can be effe...View AnswerShow Answer

The collective sum of individual behaviors of the employees of an organization generally results in what is best for the organization; thus,individual rationality assures organizational rationality.

Correct AnswerverifiedShow Answer

The best way to minimize improper and unethical conduct is to ______________ and _____________.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
B

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Reward and incentive systems can be effe...
View Answer

Correct Answer
verified

The best way to minimize improper and unethical conduct is to __ and _.

Correct Answer
verified