Chapter 20 Controlling, Information, and Technology
1) Measuring performance is the first step in the controlling process.
Answer: True
Rationale:
Measuring performance is indeed the first step in the controlling process. It involves
comparing actual performance against standards to determine whether adjustments are
needed.
2) After actual performance has been measured and compared with established performance
standards, the next step in the controlling process is to take corrective action if necessary.
Answer: True
Rationale:
Once performance has been measured and compared with standards, the next step is indeed to
take corrective action if there are significant deviations from the standards.
3) To control successfully, managers must understand not only the control process, but also
how organization members relate to it.
Answer: True
Rationale:
Understanding both the control process and how organization members relate to it is crucial
for effective control. Managers need to be aware of how their actions and decisions impact
employees and the organization as a whole.
4) Most managers have substantial control over increasing their position power.
Answer: False
Rationale:
Managers may have some control over increasing their position power, but it is not
necessarily substantial. Position power often depends on organizational structure, policies,
and other factors beyond a manager's direct control.
5) In order to preserve their position power, managers should ask for personal favors from
subordinates.
Answer: False
Rationale:
Asking for personal favors from subordinates is not a recommended way to preserve position
power. It can lead to perceptions of favoritism, manipulation, and undermine trust and respect
within the organization.
6) Data refers to the set of conclusions derived from the analysis of facts and figures that
relate to the operation of an organization.
Answer: False
Rationale:
Data refers to the facts and figures themselves, not the conclusions derived from them.
Conclusions are drawn from analyzing data.
7) The information that managers receive heavily influences managerial decision making.
Answer: True
Rationale:
Information plays a significant role in managerial decision-making. The quality, timeliness,
and relevance of information can heavily influence the choices managers make.
8) Operational control decisions relate to determining organizational objectives and
designating the corresponding action necessary to reach them.
Answer: False
Rationale:
Operational control decisions focus on monitoring and regulating day-to-day operations to
ensure they align with established plans and objectives. Strategic planning involves
determining organizational objectives and corresponding actions.
9) Appropriate information for strategic planning decisions is generally not completely
current, but more historical in nature.
Answer: True
Rationale:
Strategic planning decisions often require a broader perspective and consider long-term
trends and historical data rather than immediate, current information.
10) Since information is central to all organizational decision making, there is no such thing
as too much information.
Answer: False
Rationale:
While information is crucial for decision-making, too much information can lead to
information overload, making it difficult for managers to focus on what is truly important. It's
important to have the right amount of relevant information for effective decision-making.
11) Information for operational control decisions does not need to be completely accurate
because such decisions tend to be characterized by subjectivity and focus on areas that are
difficult to measure.
Answer: False
Rationale:
While operational control decisions may involve some subjectivity and focus on aspects that
are hard to quantify, the accuracy of information is still important. Inaccurate information can
lead to poor decision-making and negative impacts on operations.
12) Information quality refers to the degree to which information represents reality.
Answer: True
Rationale:
Information quality is indeed about how well information reflects reality or the degree to
which it is accurate, reliable, and relevant.
13) The first major step in evaluating organizational information is to determine the expected
cost of obtaining that information.
Answer: False
Rationale:
The first major step in evaluating organizational information is typically to assess the
information's relevance and importance to the organization's goals and decision-making
processes.
14) Information technology (IT) is the segment of technology where computers and
telecommunication devices are used that help focus on the use of information in the
performance of work.
Answer: True
Rationale:
Information technology (IT) does indeed involve the use of computers and
telecommunication devices to manage and process information for work purposes.
15) The typical IS is a formally established organizational network that gives managers
continual access to vital information.
Answer: True
Rationale:
An Information System (IS) is typically a formal, organized network within an organization
that provides managers with continual access to important information for decision-making.
16) Gathering appropriate data is the first step in operating an IS properly.
Answer: False
Rationale:
Operating an Information System (IS) properly involves more than just gathering data. It
includes organizing, storing, processing, and disseminating information effectively to support
organizational goals and decision-making.
17) Appropriate information for one manager within an organization is also appropriate for
another.
Answer: False
Rationale:
What is considered appropriate information can vary depending on the manager's role,
responsibilities, and the context of their decision-making. Different managers may require
different types or levels of information.
18) Three activities that improve IS effectiveness are managing user satisfaction, managing
the IS workforce, and managing IS security.
Answer: True
Rationale:
Managing user satisfaction, the IS workforce, and IS security are indeed important activities
that can improve the effectiveness of an Information System (IS).
19) Generally Accepted System Security Principles (GASSP) equity principle states that
management shall respect the rights of all employees when setting policy regarding security
measures.
Answer: True
Rationale:
The equity principle of Generally Accepted System Security Principles (GASSP) does
emphasize that management should respect the rights of all employees when developing
security policies.
20) Generally, the top management of a company would most benefit from information such
as summary reports of transactions, detailed reports of problems, and operating plans and
policies.
Answer: False
Rationale:
While summary reports and operating plans and policies may be beneficial for top
management, detailed reports of problems may be more relevant to middle or lower-level
managers who are responsible for resolving specific issues. Top management may be more
interested in high-level strategic information.
21) ________ involves ensuring that an event occurs as it was planned to occur.
A) Control
B) Planning
C) Influencing
D) Organizing
E) Designing
Answer: A
Rationale:
Control involves ensuring that events occur as planned. It includes monitoring activities,
comparing actual performance with planned performance, and taking corrective action when
necessary.
22) ________ have been called the "Siamese twins of management."
A) Setting standards and measuring performance
B) Managing and leading
C) Planning and controlling
D) Problems and symptoms
E) Organizing and staffing
Answer: C
Rationale:
Planning and controlling are often referred to as the "Siamese twins of management" because
they are closely interrelated and both essential for effective management. Planning sets the
direction, and controlling ensures that activities are on track to achieve the plan.
23) ________ helps managers enhance the success of the overall management system through
effective controlling.
A) Planning
B) Organizing
C) The controlling subsystem
D) Designing
E) Motivation
Answer: C
Rationale:
The controlling subsystem helps managers enhance the success of the overall management
system by providing feedback on performance, comparing it to standards, and taking
corrective action as needed.
24) Which of the following is the first step in the controlling process?
A) controlling performance
B) taking corrective action
C) measuring performance
D) recognizing problems
E) comparing performance standards
Answer: C
Rationale:
The first step in the controlling process is to measure performance. This involves collecting
data on actual performance.
25) As part of the controlling process, you have finished measuring the performance of your
team. What must you do next?
A) take corrective action
B) compare measured performance to standards
C) establish unit of measure to gauge performance
D) modify past plans
E) restructure control systems and subsystems
Answer: B
Rationale:
After measuring performance, the next step is to compare the measured performance to
standards to determine if there are any deviations.
26) The level of activity established to serve as a model for evaluating organizational
performance is known as a(n) ________.
A) symptom
B) problem
C) standard
D) correction
E) incentive
Answer: C
Rationale:
A standard is a level of activity established as a model for evaluating organizational
performance. It serves as a benchmark against which actual performance can be compared.
27) ________ indicate the type of training programs company personnel should undergo to
develop properly.
A) Market position standards
B) Personnel development standards
C) Productivity standards
D) Product leadership standards
E) Social responsibility standards
Answer: B
Rationale:
Personnel development standards indicate the type of training programs company personnel
should undergo to develop properly and perform effectively in their roles.
28) Which of the following is the last step in the controlling process?
A) comparing measured performance to standards
B) taking corrective action
C) measuring performance
D) establishing standards
E) establishing units for measuring performance
Answer: B
Rationale:
The last step in the controlling process is to take corrective action based on the comparison of
measured performance to standards.
29) ________ is managerial activity aimed at bringing organizational performance up to the
level of performance standards.
A) Laddering
B) Corrective action
C) Reprogramming
D) Market correction
E) Contrarian investing
Answer: B
Rationale:
Corrective action is managerial activity aimed at bringing organizational performance up to
the level of performance standards by addressing any deviations or deficiencies.
30) ALB Corp. is in the middle of their monthly controlling process. After some benchmark
checks and quality comparisons, they have found out that the quality of their weapon systems
has gone down. To bring it back to its previous quality standards, ALB Corp. should next
________.
A) take corrective action
B) measure performance of other companies
C) sell their weapons at a lower price
D) compare their weapons against rival companies
E) bring down their performance standards
Answer: A
Rationale:
After identifying a deviation in performance (in this case, a decrease in quality), the next step
is to take corrective action to address the issue and bring performance back in line with
standards.
31) Factors within an organization that are barriers to organizational goal attainment are
called ________.
A) problems
B) propositions
C) symptoms
D) standards
E) yardsticks
Answer: A
Rationale:
Problems are factors within an organization that hinder or obstruct the attainment of
organizational goals. They represent barriers that need to be addressed or overcome.
32) A ________ is a sign that a problem exists.
A) standard
B) symptom
C) yardstick
D) correction
E) benchmark
Answer: B
Rationale:
Symptoms are signs or indicators that a problem exists within an organization. They are
observable phenomena that suggest there may be an underlying issue that needs to be
addressed.
33) The extent to which an individual is able to influence others so they respond to orders is
called ________.
A) benchmark
B) responsibility
C) accountability
D) power
E) strength
Answer: D
Rationale:
Power refers to the ability of an individual to influence others and make them respond to
orders or directives. It is the capacity to affect the behavior of others in a desired manner.
34) The total power a manager possesses is made up of two different kinds of power:
________.
A) recognizing symptoms and problems
B) social power and reward power
C) authority and accountability
D) position power and personal power
E) ownership power and skill power
Answer: D
Rationale:
The total power a manager possesses is typically composed of two main types of power:
position power, which is derived from the manager's formal position in the organization, and
personal power, which is based on the manager's individual characteristics and qualities.
35) The power derived from a manager's relationship with others is called ________ power.
A) total
B) position
C) personal
D) social
E) authentic
Answer: C
Rationale:
Personal power is derived from a manager's relationship with others. It is based on the
manager's personal characteristics, such as expertise, likability, and charisma, rather than
their formal position in the organization.
36) Because Jamie is the manager, her subordinates follow her instructions. This is an
example of ________.
A) personal power
B) position power
C) total power
D) social power
E) absolute power
Answer: B
Rationale:
Jamie's subordinates follow her instructions because of her position as a manager, which
gives her position power. Position power is derived from one's formal position in the
organizational hierarchy.
37) Ed is successful in creating a sense of respect towards him among his employees. This is
an example of ________.
A) personal power
B) position power
C) total power
D) social power
E) absolute power
Answer: A
Rationale:
Ed's ability to create a sense of respect among his employees is an example of personal
power. Personal power is based on individual characteristics and qualities that engender
respect and influence others.
38) Which of the following is true about the steps a manager can take to increase his or her
total power?
A) Moving up the organizational hierarchy is the best way of enhancing personal power.
B) Avoid focusing on your professional achievements.
C) Making subordinates feel obligated to you will enhance your personal power.
D) Avoid using bonuses and raises to link rewards to performance.
E) Managers should increase the job rotation period.
Answer: C
Rationale:
Making subordinates feel obligated to you can enhance your personal power by creating a
sense of indebtedness or loyalty among them.
39) In order to increase his personal power, a manager should ________.
A) move up the organizational hierarchy
B) demonstrate a high level of expertise
C) downplay his authority over organizational resources
D) minimize subordinates' perception that they are dependent on him or her
E) focus on enhancing his position power
Answer: B
Rationale:
Demonstrating a high level of expertise can increase a manager's personal power by
enhancing their credibility and influence over others.
40) Which of the following is a way in which a manager can develop a sense of identification
with his subordinates?
A) by moving up the organizational hierarchy
B) by enhancing his position power
C) by creating a perception that subordinates are dependent on the manager
D) by demonstrating his control over organizational resources
E) by espousing goals, values, and ideals commonly held by his subordinates
Answer: E
Rationale:
A manager can develop a sense of identification with his subordinates by espousing goals,
values, and ideals that are commonly held by them. This can help foster a sense of unity and
shared purpose within the team.
41) How can a manager increase his personal power by developing a perception among
subordinates that they are dependent on the manager?
A) by adopting a wider span of control
B) by downplaying their positional power
C) by developing employees' sense of identification with the manager
D) by demonstrating his control over organizational resources
E) by espousing goals, values, and ideals commonly held by them
Answer: D
Rationale:
Demonstrating control over organizational resources can create a perception among
subordinates that they are dependent on the manager for access to these resources, thereby
increasing the manager's personal power.
42) The process of developing information begins with gathering some type of facts or
statistics, called ________.
A) knowledge
B) expertise
C) data
D) information
E) wisdom
Answer: C
Rationale:
The process of developing information begins with gathering data, which are raw facts or
statistics that need to be processed and analyzed to become information.
43) In management terms, information refers to ________.
A) a collection of charts containing organizational statistics
B) the skill set of the employees carrying out a particular organizational function
C) the set of conclusions derived from the analysis of data that relate to the operation of an
organization
D) a collection of numbers, characters, images, or other outputs from devices that gather
physical quantities and symbols
E) raw, unorganized representations of individual facts and/or figures
Answer: C
Rationale:
In management terms, information refers to the set of conclusions derived from the analysis
of data that relate to the operation of an organization. It is the processed form of data that is
meaningful and useful for decision-making.
44) According to management writers, the process of converting information into action
through decision making is known as ________.
A) management
B) benchmarking
C) controlling
D) organizing
E) planning
Answer: A
Rationale:
According to management writers, the process of converting information into action through
decision making is known as management. This involves analyzing information, making
decisions, and implementing actions based on those decisions.
45) Which of the following is NOT a factor that determines the value of information?
A) information timeliness
B) information quality
C) information cost
D) information quantity
E) information appropriateness
Answer: C
Rationale:
Information cost is not a factor that determines the value of information. The other factors—
timeliness, quality, quantity, and appropriateness—play important roles in determining the
value of information.
46) ________ is defined in terms of how relevant the information is to the decision-making
situation the manager faces.
A) Information appropriateness
B) Information quality
C) Information timeliness
D) Information control
E) Information quantity
Answer: A
Rationale:
Information appropriateness is defined in terms of how relevant the information is to the
decision-making situation the manager faces. It refers to whether the information is suitable
and applicable to the decision at hand.
47) The operations manager of Pegasus Inc. wants to know the return on investment on a
recent promotional drive to develop the marketing strategy for next year. The marketing
manager sends him a detailed report on all the personnel in his department and the salaries
and bonuses paid to them over the past year. This information is likely to be useless to the
operations manager because it is not ________.
A) appropriate
B) timely
C) voluminous
D) real
E) expensive
Answer: A
Rationale:
The information provided by the marketing manager is likely to be useless to the operations
manager because it is not appropriate—it is not relevant or suitable for the decision the
operations manager needs to make about the return on investment for the promotional drive.
48) ________ decisions relate to ensuring that specific organizational tasks are carried out
effectively and efficiently.
A) Strategic planning
B) Operational control
C) Strategic control
D) Tactical control
E) Management control
Answer: B
Rationale:
Operational control decisions relate to ensuring that specific organizational tasks are carried
out effectively and efficiently. They involve monitoring and regulating day-to-day operations
to achieve organizational objectives.
49) ________ decisions relate to obtaining and effectively and efficiently using the
organizational resources necessary to reach organizational objectives.
A) Strategic planning
B) Operational control
C) Strategic control
D) Operational planning
E) Management control
Answer: E
Rationale:
Management control decisions relate to obtaining and effectively using the organizational
resources necessary to reach organizational objectives. They involve allocating resources,
setting performance standards, and evaluating performance.
50) ________ decisions relate to determining organizational objectives and designating the
corresponding action necessary to reach them.
A) Strategic planning
B) Operational control
C) Tactical control
D) Operational planning
E) Management control
Answer: A
Rationale:
Strategic planning decisions relate to determining organizational objectives and designating
the corresponding action necessary to reach them. They involve setting long-term goals and
strategies for achieving those goals.
51) Information required for decisions related to strategic planning should ________.
A) emphasize the performance history of the organization
B) focus on the internal organization environment
C) focus largely on the external organizational environment
D) have a narrow scope and be to the point
E) be very detailed
Answer: C
Rationale:
Strategic planning involves setting long-term goals and determining the actions necessary to
achieve them. To make informed strategic decisions, managers need information about the
external environment, such as market trends, competitor actions, and regulatory changes,
which can significantly impact the organization's future.
52) ________ refers to the degree to which the information represents reality.
A) Information appropriateness
B) Information quality
C) Information timeliness
D) Information quantity
E) Information scope
Answer: B
Rationale:
Information quality refers to the degree to which the information accurately represents reality.
High-quality information is accurate, reliable, and relevant to the decision-making process.
53) Information required for decisions related to operational control should ________.
A) emphasize the future
B) be well defined and narrow
C) come largely from external sources
D) primarily contain historical data
E) provide an aggregate without going into the details
Answer: B
Rationale:
Operational control involves monitoring and regulating day-to-day operations to ensure they
align with established plans and objectives. The information needed for operational control
should be specific, well-defined, and focused on the immediate needs of the organization.
54) Information required for decisions related to strategic planning should ________.
A) emphasize the future
B) be well defined and narrow
C) focus largely on the internal organizational environment
D) be highly current
E) be very detailed
Answer: A
Rationale:
Strategic planning involves setting long-term goals and developing strategies to achieve
them. The information needed for strategic planning should focus on future trends,
opportunities, and challenges that may impact the organization's ability to achieve its goals.
55) ________ is the extent to which the receipt of information allows decisions to be made
and action to be taken so the organization can gain some benefit from possessing the
information.
A) Information appropriateness
B) Information quality
C) Information timeliness
D) Information quantity
E) Information scope
Answer: C
Rationale:
Information timeliness refers to the extent to which information allows decisions to be made
and actions to be taken in a timely manner, so the organization can benefit from possessing
the information.
56) Immediately after Randor Leather awarded a long-term contract for supply of raw
materials, its operations manager gets information from a vendor about a much cheaper
source of raw material. This information is likely to be of little use to the business because it
is not ________.
A) appropriate
B) of good quality
C) timely
D) in sufficient quantity
E) wide in scope
Answer: C
Rationale:
The information about a cheaper source of raw material, if received after a long-term contract
has been awarded, is not timely and therefore of little use to the business, as the opportunity
to benefit from it has passed.
57) As part of a process of job redesigning, the HR manager of Mars LLC conducted an
informal survey of employees to assess their job satisfaction levels. However, fearing
negative action, only a few employees gave clear and unambiguous responses to the HR
manager's questions. This survey is likely to be of little use to the HR manager because it is
________.
A) not relevant
B) too costly
C) not timely
D) not in sufficient quantity
E) too wide in scope
Answer: D
Rationale:
The survey is likely to be of little use because it lacks sufficient quantity of responses, which
may lead to biased or unreliable results.
58) "Paralysis by analysis" is generally caused by ________.
A) information overload
B) insufficient information
C) lack of timely information
D) inappropriate information
E) data contamination
Answer: A
Rationale:
"Paralysis by analysis" refers to a situation where decision-making is delayed or hindered due
to an excessive amount of information or overthinking. It is caused by information overload,
which can make it difficult to focus on key issues and make timely decisions.
59) Derek recently asked for opinions on whether to install charging stations at every bay in
his organization. The response was huge and mixed. There were a lot of pros and cons
mentioned. Derek is now unable to come to a decision. Which of the following describes the
situation?
A) paralysis by organizing
B) paralysis by planning
C) paralysis by control
D) paralysis by analysis
E) paralysis by action
Answer: D
Rationale:
Derek's inability to come to a decision due to the overwhelming amount of information and
conflicting opinions is an example of "paralysis by analysis."
60) Which of the following is the first step in evaluating organizational information?
A) pinpointing the data to be analyzed
B) evaluating the cost of data
C) comparing the value of information with its cost
D) acquiring information
E) increasing value or decreasing cost of information
Answer: A
Rationale:
The first step in evaluating organizational information is to pinpoint the specific data that
needs to be analyzed to address the organization's information needs.
61) ________ involves comparison of organizational information with the expected cost of
obtaining that information.
A) Evaluating the cost of technology
B) Evaluating the cost of personnel
C) Evaluating the cost of data
D) Evaluating the cost of production
E) Evaluating the cost of distribution
Answer: C
Rationale:
Evaluating the cost of data involves comparing the value of organizational information with
the expected cost of obtaining that information. This helps organizations ensure that they are
investing resources wisely in gathering and using information.
62) ________ is a segment of technology which uses computers and telecommunication
devices that focus on the use of information in the performance of work.
A) Information technology
B) Controlling technology
C) Corporate technology
D) Strategic planning technology
E) Management technology
Answer: A
Rationale:
Information technology (IT) is a segment of technology that focuses on the use of computers
and telecommunication devices to process, store, and transmit information. It plays a crucial
role in supporting organizational activities and decision-making processes.
63) Which of the following is the first step in operating an information system properly?
A) transmitting data
B) determining the reason for gathering data
C) using the information
D) determining the information needed
E) determining the medium of technology to process information
Answer: D
Rationale:
The first step in operating an information system properly is to determine the information
needed. This involves identifying the specific data and information required to support
organizational objectives and decision-making processes.
64) Martin has determined exactly what information he needs to assess worker productivity.
He has collected the appropriate data necessary to produce the relevant information. What
should Martin do next?
A) transmit the information
B) determine the quality of the data
C) use the information to assess productivity
D) summarize and analyze the data
E) evaluate the cost of the data
Answer: D
Rationale:
After collecting the appropriate data, Martin should next summarize and analyze the data to
extract meaningful insights and information that can be used to assess worker productivity.
65) Which of the following is the last step in operating an IS properly?
A) transmitting data
B) determining appropriate data
C) using the information
D) determining information needs
E) gathering appropriate data
Answer: C
Rationale:
The last step in operating an information system properly is to use the information generated
by the system to support decision-making and organizational activities.
66) Which of the following information would be most appropriate for the top management
of a large corporation?
A) summary reports of transactions
B) operating plans and policies
C) detailed reports of problems
D) operational control procedures
E) environmental data and trends
Answer: E
Rationale:
Top management of a large corporation is responsible for setting overall strategic direction
and making high-level decisions. Therefore, environmental data and trends, which provide
insights into external factors that may impact the organization, would be most relevant for top
management.
67) Dorothy Wood's work primarily involves setting corporate objectives and making
decisions that impact the control of the entire company. Which of the following information
is most likely to be relevant for Dorothy?
A) forecasts and exception reports of problems
B) summaries and exception reports of operating results
C) detailed reports of problems
D) summary reports of transactions
E) operating plans and policies
Answer: A
Rationale:
As a top-level manager responsible for setting corporate objectives and making strategic
decisions, Dorothy would find forecasts and exception reports of problems most relevant.
These types of information help her anticipate future trends and identify areas that may
require strategic intervention.
68) Which of the following information would be most appropriate for the middle
management of a large corporation?
A) environmental data and trends
B) summaries and exception reports of operating results
C) summary reports of transactions
D) detailed reports of problems
E) forecasts
Answer: B
Rationale:
Middle management is responsible for implementing the strategies set by top management
and overseeing day-to-day operations. Therefore, summaries and exception reports of
operating results, which provide insights into the performance of specific departments or
functions, would be most relevant for middle management.
69) Which of the following information would be most appropriate for the first-line
management of a large corporation?
A) summary reports of operations
B) environmental data and trends
C) decisions on strategic plans
D) detailed reports of problems
E) forecasts
Answer: D
Rationale:
First-line management is responsible for overseeing the day-to-day operations of a specific
work unit or team. Therefore, detailed reports of problems, which provide specific
information on issues that need to be addressed, would be most relevant for first-line
management.
70) Irvine White's work primarily involves supervising the production in one of the factories
of TM Corp, a large manufacturing and retail company. Which of the following information
is most likely to be relevant for Irvine?
A) trend forecasts for the industry
B) exception reports of operating results of his company
C) detailed reports of problems in his factory
D) environmental data for the company's business
E) decisions on strategic plans for his organization
Answer: C
Rationale:
As a first-line manager responsible for supervising production, Irvine would find detailed
reports of problems in his factory most relevant. These reports would help him identify and
address issues affecting production efficiency and quality.
71) Which of the following activities improves IS effectiveness?
A) controlling the medium of information technology
B) planning the IS security
C) managing user satisfaction
D) organizing the information system procedure
E) controlling user authorization
Answer: C
Rationale:
Managing user satisfaction improves IS effectiveness by ensuring that users are satisfied with
the system's performance and functionality, leading to increased productivity and user
acceptance.
72) ________ involves measuring the degree to which employees, or users, are satisfied with
the IS.
A) Measuring employee satisfaction
B) Managing price satisfaction
C) Managing user satisfaction
D) Managing employee proficiency
E) Formatting the IS
Answer: C
Rationale:
Managing user satisfaction involves measuring and assessing the satisfaction levels of
employees or users with the IS, which helps in identifying areas for improvement and
enhancing user experience.
73) The quality of the IS refers to ________.
A) the accuracy of the information
B) its cost
C) the relevance of the information
D) the proficiency of the users
E) its ease of use
Answer: E
Rationale:
The quality of the IS refers to its ease of use, reliability, and user-friendliness, which are
important factors in determining the overall effectiveness and efficiency of the system.
74) Which of the following is true about managing the IS workforce?
A) During the economic and technological boom of the late 1990s, executives found it very
easy to hire and retain IS employees.
B) Due to consumer backlash, companies are reducing the outsourcing of jobs to other
countries.
C) Companies outsource work to other countries primarily for quality advantages.
D) Replacing IS personnel is inexpensive in today's technology-driven environment.
E) Outsourcing IS work overseas creates problems such as integrating domestic and
nondomestic workforces and defining global work expectations.
Answer: E
Rationale:
Outsourcing IS work overseas creates challenges such as integrating different workforces and
defining global work expectations, which can impact the management of the IS workforce.
75) Organizations must clearly define and acknowledge information security accountability
and responsibility. Which of Generally Accepted System Security Principles (GASSP) for
maintaining information security is being talked about here?
A) accountability principle
B) ethics principle
C) timeless principle
D) assessment principle
E) equity principle
Answer: A
Rationale:
The accountability principle of GASSP states that organizations must clearly define and
acknowledge information security accountability and responsibility to ensure that individuals
are held accountable for their actions related to information security.
76) The ________ of GASSP's key principles states that organizations should periodically
assess the risks to information and information systems.
A) accountability principle
B) ethics principle
C) timeless principle
D) assessment principle
E) equity principle
Answer: D
Rationale:
The assessment principle of GASSP states that organizations should periodically assess the
risks to information and information systems to identify and mitigate potential security
threats.
77) In response to the increasing threat of security issues to information systems, private and
public organizations around the world came together in 1992 to form the ________.
A) International Association for Computer Systems Security
B) Information Systems Security Association
C) International Information Security Foundation
D) Network Security Framework Forum
E) System Administration, Networking, and Security Institute
Answer: C
Rationale:
The International Information Security Foundation was formed in 1992 to address the
increasing threat of security issues to information systems by bringing together private and
public organizations to collaborate on security initiatives.
78) The International Information Security Foundation produced a document which included
a set of best practices for IS managers known as ________.
A) Information Systems Security Consultant Professionals (ISSCP)
B) Gannt chart
C) Generally Accepted System Security Principles (GASSP)
D) Material Safety Data Sheet (MSDS)
E) Pert chart
Answer: C
Rationale:
The International Information Security Foundation produced a document that included a set
of best practices for IS managers known as Generally Accepted System Security Principles
(GASSP), which are guidelines for maintaining information security.
79) Outline the steps involved in the controlling process.
Answer: There are three main steps in the controlling process:
1. Measuring performance: Before managers can determine what must be done to make an
organization more effective and efficient, they must measure current organizational
performance. However, before they can take such a measurement, they must establish some
unit of measure that gauges performance and observe the quantity of this unit as generated by
the item whose performance is being measured.
2. Comparing measured performance to standards: Once managers have taken a measure of
organizational performance, their next step in controlling is to compare this measure against
some standard, or the level of activity established to serve as a model for evaluating
organizational performance. Successful managers pinpoint all important areas of
organizational performance and establish corresponding standards in each area.
3. Taking corrective action: After actual performance has been measured and compared with
established performance standards, the next step in the controlling process is to take
corrective action if necessary. Corrective action is managerial activity aimed at bringing
organizational performance up to the level of performance standards. In other words,
corrective action focuses on correcting organizational mistakes that are hindering
organizational performance. Before taking any corrective action, however, managers should
make sure the standards they are using were properly established and their measurements of
organizational performance are valid and reliable.
80) Explain the importance of power to the control process. Describe the difference between
positional power and personal power.
Answer: Power can be defined as the extent to which an individual is able to influence others
so they respond to orders. An important element of the control process is to take appropriate
corrective action, and in order to take corrective action, management must be able to
influence behavior. Position power comes from the organizational position a manager holds,
while personal power comes from a manager's relationships with others. Position power can
only generally be increased if the manager earns a promotion. The manager has relatively
little control over when this will happen. Personal power, on the other hand, can be developed
and increased at any time. As a result, managers should concentrate on improving and
increasing personal power.
81) Explain the ways an individual can be successful in increasing his or her personal power.
Answer: To increase personal power, a manager should attempt to develop various attitudes
and beliefs in other organization members.
1. A sense of obligation toward the manager — The organization members should attempt to
develop a sense of obligation toward the manager. If a manager succeeds in developing this
sense of obligation, other organization members will allow her to influence them within
certain limits. The basic strategy suggested for creating this sense of obligation is to do
personal favors for people.
2. A belief that the manager possesses a high level of expertise within the organization — A
manager should attempt to develop a belief that she possesses a high level of expertise within
the organization. In general, a manager's personal power increases as organization members
perceive her level of expertise is increasing. To raise perceptions of her expertise, a manager
must quietly make her significant achievements visible to others and build up a successful
track record and a solid professional reputation.
3. A sense of identification with the manager — A manager should also attempt to develop a
sense of identification with the subordinates. A manager can strive to develop this
identification by behaving in ways other organization members respect, and by espousing
goals, values, and ideals commonly held by them.
4. The perception that they are dependent on the manager — A manager should also develop
in her subordinates a perception of dependency on her. The main strategy here is to clearly
convey the amount of authority she has over organizational resources — and not only those
necessary for organization members to do their jobs, but also those they personally receive in
such forms as salaries and bonuses.
82) Identify the methods by which managers can make controlling a successful activity.
Answer: To increase the quality of the controlling subsystem, managers should make sure
controlling activities take all the following factors into account:
1. Specific organizational activities being focused on: Managers should make sure the various
facets of the control process are appropriate to the control activity under consideration.
2. Different kinds of organizational goals: Control can be used for such different purposes as
standardizing performance, protecting organizational assets from theft and waste, and
standardizing product quality. Managers should remember that the control process can be
applied to many different facets of organizational life and that, if the organization is to
receive maximum benefit from controlling, each of these facets must be emphasized.
3. Timely corrective action: Some time will necessarily elapse as managers gather controlrelated information, develop necessary reports based on this information, and decide what
corrective action should be taken to eliminate a problem. However, managers should take the
corrective action as promptly as possible to ensure that the situation depicted by the
information gathered has not changed. Unless corrective actions are timely, the organizational
advantage of taking them may not materialize.
4. Communication of the mechanics of the control process: Managers should take steps to
ensure people know exactly what information is required for a particular control process, how
that information is to be gathered and used to compile various reports, what the purposes of
the various reports actually are, and what corrective actions are appropriate.
83) Describe the information that is appropriate for making strategic planning decisions and
for making operational control decisions.
Answer: Strategic planning decisions relate to determining organizational objectives and
designating the corresponding action necessary to reach them. Operational control decisions,
on the other hand, relate to ensuring that specific organizational tasks are carried out
effectively and efficiently.
Strategic planning decision makers need information that focuses on the relationship of the
organization to its external environment, emphasizes the future, is wide in scope, and presents
a broad view. Appropriate information for this type of decision is generally not completely
current, but more historical in nature. In addition, this information does not need to be
completely accurate because strategic decisions tend to be characterized by some subjectivity
and focus on areas that are difficult to measure, such as customer satisfaction.
Information appropriate for making operational control decisions has dramatically different
characteristics from information appropriate for making strategic planning decisions.
Operational control decision makers need information that focuses, for the most part, on the
internal organizational environment, emphasizes the performance history of the organization,
and is well defined, narrow in scope, and detailed. In addition, appropriate information for
this type of decision is both highly current and highly accurate.
84) What are the steps in evaluating information?
Answer: The first major step in evaluating organizational information is to ascertain the value
of that information by pinpointing the data to be analyzed, and then determine the expected
value or return to be received from obtaining perfect information based on these data. Then
this expected value is reduced by the amount of benefit that will not be realized because of
deficiencies and inaccuracies expected to appear in the information. Next, the expected value
of organizational information is compared with the expected cost of obtaining that
information. If the expected cost does not exceed the expected value, the information should
be gathered. If it does exceed the expected value, managers either must increase the
information's expected value or decrease its expected cost before the information gathering
can be justified. If neither of these objectives is possible, management cannot justify
gathering the information.
85) Define the terms "technology," "information technology," and "information systems."
Answer: Technology consists of any type of equipment or process that organization members
use in the performance of their work. Information technology (IT) is technology such as
computers and telecommunication devices that focus on the use of information in the
performance of work.
In simple terms, an information system (IS) is a network of applications established within an
organization to provide managers with information that will assist them in decision making. It
can also be described as a system designed to provide selected decision-oriented information
needed by management to plan, control, and evaluate the activities of the corporation.
86) Describe the six steps necessary to effectively operate an IS.
Answer: IS personnel generally need to perform six sequential steps to properly operate an
IS. The first step is to determine what information is needed within the organization, when it
will be needed, and in what form it will be needed. Because the basic purpose of the IS is to
assist management in making decisions, one way to begin determining management
information needs is to analyze the following:
1. Decision areas in which management makes decisions
2. Specific decisions within these decision areas that management must actually make
3. Alternatives that must be evaluated to make these specific decisions.
The second major step in operating the IS is pinpointing and collecting data that will yield
needed organizational information. This step is just as important as determining information
needs of the organization. If collected data do not relate properly to information needs, it will
be impossible to generate needed information. After information needs of the organization
have been determined and appropriate data have been pinpointed and gathered, summarizing
the data and analyzing the data are, respectively, the third and fourth steps IS personnel
generally should take to properly operate an IS. It is in the performance of these steps that IS
personnel find computer assistance of great benefit. The fifth and sixth steps are transmitting
the information generated by data analysis to appropriate managers and getting the managers
to actually use the information. The performance of these last two steps results in managerial
decision making.
87) How does user satisfaction with an IS determine the effectiveness of the IS? How can
companies effectively manage user satisfaction?
Answer: User satisfaction is important because of its direct influence on IS effectiveness.
When users are satisfied with the IS, the IS will be more integrated in the user's work routine,
and the user will become more dependent on the IS. Stated differently, when employees are
satisfied with the IS, they will use the IS in their work routines. As users become dependent
on the IS and integrate the IS into their routines, the IS becomes effective.
User satisfaction, which denotes the degree of user satisfaction with the IS, is determined by
two main factors: (1) the quality of the IS and (2) information quality. The quality of the IS
refers to its ease of use. If a company's employees consider an IS easy to use, that IS would
be labeled a high quality IS. Information quality, on the other hand, measures the degree to
which the information produced by the IS is accurate and in a format required by the user.
Taken together, then, users are satisfied with the IS when the IS is of high quality and
provides high-quality information.
88) What are the challenges faced by executives in managing the IS workforce?
Answer: As corporations rely more heavily on information systems, they become more
susceptible to security issues involving these systems. In particular, companies may lose
valuable financial, employee, or customer data due to security breaches involving IS. In
addition, companies become increasingly vulnerable to viruses, worms, and Trojan horses
designed to paralyze information systems. As technology continues to change rapidly, it
becomes more difficult for IS employees to prevent and eliminate these security threats.
In response to the increasing threat of security issues to information systems, private and
public organizations around the world came together in 1992 to form the International
Information Security Foundation. This committee produced a document known as the
Generally Accepted System Security Principles (GASSP), which included a set of best
practices for IS managers. GASSP's key principles are:
1. Accountability principle
2. Ethics principle
3. Timeliness principle
4. Assessment principle
5. Equity principle
Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546
