Answer the following statements true (T) or false (F)

Question

1. The control process begins with establishing standards.
2. Corrective action is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
3. Bureaucratic control is most appropriate for an organization in which the tasks are explicit and certain.
4. Except for in rare instances, employees at George's Pro Painting take responsibility for their own work and how it is done, rather than being governed by a rigid set of rules. George's Pro Painting is using decentralized control.

Answer 1

1. TRUE
The four control process steps are (1) establish standards; (2) measure performance; (3) compare performance to standards; and (4) take corrective action, if necessary.
2. FALSE
Management by exception is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
3. TRUE
Bureaucratic control works well in organizations in which the tasks are explicit and certain. While rigid, it can be an effective means of ensuring that performance standards are being met.
4. TRUE
Decentralized control is an approach to organizational control that is characterized by informal and organic structural arrangements, the opposite of bureaucratic control. This form of control aims to get increased employee commitment, using the corporate culture, group norms, and workers taking responsibility for their performance.