Chapter 20€¦ · Web view · 2012-02-27Reduced cycle time is one of the common techniques of TQM, and refers to the ability of TQM to shorten the time required to receive inventory

Chapter 19Managerial and Quality Control

True/False Questions

1. Organizational control is the systematic process of regulating organizational activities to make them consistent with the expectations in plans, targets, and standards of performance.

Answer: True Level: 1 Page: 708 Type: F

2. Effectively controlling an organization requires information about product standards and actual products, as well as actions to correct any deviations from the standards.

Answer: False Level: 2 Page: 709 Type: F

3. The three types of control are formally called feedforward, concurrent, and feedback.


4. Feedforward control is sometimes called preliminary or preventive quality control.


5. Concurrent control focuses on the organization's outputs.


6. Feedback control focuses on the quantity of an end product or service.


7. A standard for performance is included in an organization’s overall strategic plan to compare organizational activities against.


8. To do nothing if performance is adequate or to take corrective action if performance is inadequate is the final step of the feedback control model.


9. Managers, in most companies, rely exclusively on quantitative measures

Chapter Nineteen * Managerial and Quality ControlTest Bank * Page 527


10. Corrective action when performance is inadequate may be to simply adjust standards.


11. The fundamental unit of analysis for a budget control system is called a responsibility center.


12. An expense budget lists forecasted and actual revenues of the organization.


13. The level of funds flowing through the organization and the nature of cash disbursements is shown through the capital budget.


14. A budget that plans and reports investments in major assets to be depreciated over several years is called a balance sheet budget.


15. A process in which lower level managers anticipate their department's resource needs and pass them up to top management for approval is called bottom-up budgeting.


16. The balance sheet shows the firm’s financial position with respect to expenses and credits at a specific point in time.


17. Liabilities are the firm’s debts, both current and long-term.


18. The income statement shows revenues coming into the organization from all sources and subtracts all expenses.


19. Frequently calculated ratios typically pertain to activity, passivity, and profitability



20. The company's ability to meet its current debt obligations and a measurement of the firm's margin of safety is shown by liquidity ratio.


21. Inventory turnover is an activity ratio and measures how many times the inventory is turned over to meet the total sales figure.


22. An activity ratio that is the percentage returned to investors on total assets is return on total assets (ROA).


23. Technology and quality control departments are typically associated with bureaucratic control.


24. Decentralized control is the use of cultural values, traditions, shared beliefs and trust to increase compliance with goals.


25. Decentralized control represents the absence of control because visible rules, supervision, and procedures are absent.


26. A quality team is a group of six to twelve volunteer employees who meet regularly to discuss and solve problems affecting their common work activities.


27. The quality circle concept spread to the United States and Canada from Japan.


28. The age-old practice of allowing the artisan to sign his name to the finished product is called benchmarking.



29. The continuous process of measuring products, services, and practices against the toughest competitors or the industry leaders is called outsourcing.


30. Reduced cycle time is one of the common techniques of TQM, and refers to the ability of TQM to shorten the time required to receive inventory after placing an order for it.


31. The implementation of a large number of small, incremental improvements in all areas of the organization and an ongoing basis is called continuous improvement.


32. Very high expectations from senior management and a desire to share authority by middle managers are two of the positive factors leading to success of TQM.


33. Economic value added system identifies various activities needed to provide a product and determines the cost of each of those activities.


34. Market value-added systems measure the stock market’s estimate of the value of the company’s past and projected capital investment projects.


35. Open-book management ties employee rewards to the company's overall success.


36. A balanced scorecard contains four major perspectives: customer service, external business processes, financial performances, and the organization’s capacity for learning and growth.


Multiple Choice Questions


1. ______ is the systematic process through which managers regulate organizational activities.

a. Strategic planningb. Organizational controlc. Organizational goal settingd. Strategic regulatione. Organizational leading

Answer: b Level: 1 Page: 708 Type: F

2. The three types of control are

a. feedforward, concurrent, and feedback.b. performance, quality, and quantity.c. quality, performance, and feedback.d. feedforward, quality, and feedback.e. feedward, concurrent, and quality.

Answer: a Level: 2 Page: 709 Type: F

3. ______ is the first step in the control system.

a. Establishing strategic objectivesb. Establishing standards of performancec. Taking corrective actiond. Comparing performance to standarde. Measuring previous performance


4. Preventive quality control is also known as

a. concurrent control.b. feedback control.c. output control.d. preliminary control.e. subjective control.

Answer: d Level: 2 Page: 710 Type: F

5. ______ controls deals with active anticipation of problems and their timely solution.

a. Feedforward controlb. Concurrent controlc. Feedback controld. Post-action control


e. Output control

Answer: a Level: 2 Page 710 Type: F

6. All of the following are types of control EXCEPT

a. preliminary control.b. subjective control.c. post-action control.d. concurrent control.e. all of the above are types of control described in the text

Answer: b Level: 1 Page: 710-711 Type: F

7. control focuses on human, material, and/or financial resources.

a. Concurrentb. Feedbackc. Feedforwardd. Organizationale. All of the above

Answer: c Level: 1 Page: 710 Type: F

8. Which of the following is an example of a feedforward control?

a. A manager observing a new employee to see how he/she is performingb. The performance appraisal interviewc. An examination of an employee's work recordsd. Criteria used in the hiring processe. None of the above

Answer: d Level: 2 Page: 710 Type: A

9. ______ control monitors ongoing employee activities.

a. Concurrentb. Feedbackc. Feedforwardd. Strategice. All of the above


10. Direct supervision is most effective for which type of control?


a. Feedforwardb. Concurrentc. Feedbackd. Preliminarye. Post-action

Answer: b Level: 3 Page: 711 Type: F11. When Flowers Unlimited uses hand-held computers to monitor daily sales activity, it is an

example of a

a. feedback control.b. feedforward control.c. concurrent control.d. technological control.e. hand-held control.

Answer: c Level: 2 Page: 711 Type: A

12. Xavier likes to roam through his department to make sure everyone is staying on task. This is an example of a

a. feedback control.b. concurrent control.c. feedforward control.d. behavioral control.e. non-trusting control.

Answer: b Level: 2 Page: 711 Type: A

13. Feedback control is sometimes called

a. output control.b. concurrent control.c. preventive quality control.d. preliminary control.e. precaution control.


14. control focuses on the organization's outputs.

a. Feedbackb. Outputc. Post-actiond. All of thesee. a and c only



15. All of the following are key steps of setting up feedback control systems EXCEPT

a. comparing performance to standards.b. establishing standards.c. getting employee opinions.d. measuring performance.e. making necessary corrections.


16. Remote Control Corporation sends a post-purchase questionnaire to all consumers who buy their products. They are interested in gathering data on product quality, customer service orientation, and customer satisfaction. This is an example of

a. a concurrent control.b. a feedback control.c. a feedforward control.d. preliminary control.e. preventive control.


17. Marie is a manager at Chris’s Candies. On a regular basis Marie and her subordinates set individual and organizational goals. This process is similar to which component of the control model?

a. Taking corrective action when necessaryb. An information systemc. Establishing performance standardsd. Engaging strategic analysise. None of the above


18. After establishing standards of performance, according to the control model, the manager should

a. compare performance to standards.b. get the standards approved by the supervisors and subordinates.c. measure actual performance.d. take corrective action.e. provide feedback.


Answer: c Level: 1 Page: 712-713 Type: F

19. Michelle recently discovered that the reject rate for her department has exceeded the standard for performance in this area. What should Michelle do to exercise effective control?

a. She should order more training for her workforce.b. She should contact the maintenance department and have them come fix her

machinery.c. She should suspend the poorer workers in her department.d. She should investigate and discover the cause of the problem.e. None of these


20. James, a manager at CompuTech, receives quarterly reports, which tracks his department's production statistics. However, these reports lack key information regarding reject rates. Which of the following components of the control model need improvement?

a. Measuring actual performanceb. The planning and setting of performance standardsc. SWOT analysisd. The ability to take corrective action when necessarye. All of the above

Answer: a Level: 2 Page: 712-713 Type: A

21. In most organizations, managers must rely on quantitative measures and in order to exert effective control.

a. numerical indicatorsb. profitsc. their own judgmentd. goal achievemente. employees' words


22. Arbor Tree Corporation has a detailed set of organizational goals and management information system that delivers timely and accurate information. Arbor Tree still has control problems, however, because its managers refuse to act on the information they receive. Arbor Tree’s control process has flaws in which of the following areas?

a. Its performance standardsb. Its management information systemsc. Its ability to take corrective action when necessary


d. Its measurement systemse. None of the above


23. Your department has absenteeism standards, a way to measure absenteeism, and, based on your investigation, you have concluded that your department has an excessive absenteeism rate. What should your next step be?

a. Set new absenteeism standardsb. Develop new measures of absenteeismc. Terminate three employees for excessive absenteeismd. All of the above would be good examples of taking corrective action.e. None of these


24. Kurt’s work group consistently exceeds the goals the members set for themselves some months ago. In an attempt to better motivate the group, Kurt thought it would be a good idea to set new goals. This is an example of Kurt exercising control by

a. comparing performance to standards.b. developing adequate measures of performance.c. taking corrective action.d. all of thesee. a and b only


25. Any organizational department or unit under the supervision of a single person who is responsible for its activity is called a(n)

a. independent center.b. responsibility center.c. analysis center.d. control center.e. budgeting center.


26. A(n) ______ includes anticipated and actual expenses for a responsibility center.

a. revenue budgetb. cash budgetc. capital budgetd. expense budget


e. operating budget


27. ______ is a financial budget that estimates cash flows on a daily basis or weekly basis to ensure that the company can meet its obligations.

a. Capital expenditure budgetb. Balance sheet budgetc. Cash budgetd. Revenue budgete. Profit budget


28. Melissa has been assigned to work on the development of a budget that plans future investments in major assets such as buildings and heavy machinery. Melissa is working on a(n)

a. cash budget.b. capital budget.c. revenue budget.d. operating budget.e. expense budget.


29. The plans future investments in major assets to be depreciated over several years.

a. capital budgetb. balance sheet budgetc. cash budgetd. revenue budgete. profit budget


30. Joey is a department manager at IronRods.com. His sole role in the budget process is to implement the budget that is developed for him. This is an example of

a. strategic budgeting.b. operational budgeting.c. top-down budgeting.d. management by objectives.e. bottom-up budgeting.



31. Juanita is an area manager at Home Theater, Inc. She anticipates her area's needs and formulates a proposed budget every quarter. She then sends this proposal to her manager. This is an example of

a. top-down budgeting.b. strategic budgeting.c. revenue budgeting.d. bottom-up budgeting.e. none of these.


32. The firm’s financial position with respect to assets and liabilities at a specific point in time is shown by its

a. activity ratio.b. profitability ratio.c. income statement.d. liquidity ratio.e. balance sheet.

Answer: e Level: 2 Page: 716 Type: F

33. An advantage of the bottom-up budgeting process is

a. its emphasis on bureaucratic control.b. lower managers are more involved.c. top managers control the information flow.d. top managers are often not committed to achieving budget targets.e. all of these.


34. The ability of the organization to meet its current debt obligations is indicated by a(n) ______ ratio.

a. activityb. liquidityc. profitabilityd. conversione. growth



35. ______ is a ratio that measures the firm's internal performance with respect to key activities defined by management.

a. A liquidity ratiob. An activity ratioc. Return on total assetsd. A current ratioe. Profit margin on sales


36. The is purchase orders divided by customer inquiries.

a. current ratiob. inventory turnover ratioc. conversion ratiod. profit margin on salese. none of these


37. Jena is a production manager at Scooby Snacks. She is concerned that too much money is being wasted on inventory that is sitting in the warehouse too long. She should calculate a(n)

a. current ratio.b. inventory turnover ratio.c. conversion ratio.d. profitability ratio.e. leverage ratio.

answer: b Level: 2 Page: 718 Type: A

38. Net income divided by sales is the correct formula for calculating

a. return on total assets.b. a current ratio.c. a liquidity ratio.d. profit margin on sales.e. a corporate evaluation.


39. ______ refers to funding activities with borrowed money.


a. ROAb. Leveragec. Liquidityd. Profitabilitye. Activity


40. Bureaucratic control is most consistent with

a. bottom-up budgeting.b. top-down budgeting.c. operational budgeting.d. revenue budgeting.e. horizontal budgeting.


41. The basic philosophy of control at Calendar Days, Inc. is based on the policies found in the employee handbook, as well as a strict hierarchy of authority. This philosophy is consistent with

a. clan control.b. bottom-up control.c. bureaucratic control.d. culture control.e. decentralized control.


42. ______ control is implemented through the organization's administrative system

a. Clan b. Bureaucratic c. Organizational d. Administrative e. Decentralized


43. The control "system" at Quality Corporation is based on the culture of the organization and norms that develop in the individual work teams. This is an example of

a. bureaucratic control.b. decentralized control.c. organizational control.


d. feedback control.e. none of these.


44. Decentralized control is most consistent with which of the following budget processes?

a. Bottom-up budgetingb. Top-down budgetingc. Strategic budgetingd. Cost budgetinge. None of these


45. Which of the following elements is not typically associated with bureaucratic control?

a. Management control systemsb. Hierarchy of authorityc. Technologyd. Peer groupe. The quality control department


46. Which of the following elements is usually associated with bureaucratic control?

a. Technologyb. Peer groupsc. Corporate cultured. Self-controle. All of these


47. Minimum standards, little direction, and trust are all characteristics of ______ control.

a. feedforwardb. bureaucraticc. concurrentd. decentralizede. centralized


48. Decentralized control is usually implemented in all of the following areas except


a. self-control.b. peer group.c. corporate culture.d. employee selection and socialization.e. the quality control department.

Answer: e Level: 2 Page: 721 Type: F

49. It is to assume that decentralized control is .

a. accurate, weakb. acceptable, weakc. a mistake, weakd. useless, stronge. useful, useless


50. Total quality management

a. is based on the ideas of Frederick Taylor.b. gives managers total responsibility for achieving quality goals.c. gives all employees the responsibility for achieving quality goals.d. was first successfully implemented in the United States.e. all of these.


51. Total quality management is most consistent with

a. bureaucratic control.b. systematic control.c. decentralized control.d. feedforward control.e. centralized control.


52. is a philosophy of organization-wide commitment to continuous improvement, focusing on teamwork, customer satisfaction, and lowering costs.

a. Engineeringb. Total quality managementc. Outsourcingd. Culture


e. Diversity


53. With TQM, employees must be trained to think in terms of and not .

a. detection, preventionb. prevention, detectionc. measurement, preventiond. innovation, improvemente. none of these


54. A quality circle is a group of volunteer employees.

a. 2 to 4b. 6 to 12c. 10 to 20d. 15 to 25e. 30 to 50


55. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is a

a. feedforward control group.b. work team.c. quality circle.d. committee.e. problem team.


56. Quality circles are based on the assumption(s) that

a. the people who do the job know it better than anyone else.b. quality can be increased by increasing the size of the organization.c. quality can be increased by talking more about it.d. the more employees talk, the more satisfied they will be.e. all of these.


57. Marilyn belongs to an informal group at work that meets twice a month to discuss common


issues and problems in the workplace. Recently, this group has been focusing on ways to improve safety in the workplace. This group is an example of

a. a safety group.b. a quality circle.c. an ad-hoc committee.d. a problem team.e. none of these.


58. ______ is the key to successful benchmarking.

a. Applicationb. Implementationc. Analysisd. Strategye. Planning


59. ______ is the process of measuring your organizational process against the best in the industry.

a. Outsourcingb. Continuous improvementc. Environmental analysisd. Benchmarkinge. Competitive measurement


60. To reduce the organization's cycle time is to reduce the number of

a. of committees in the organization.b. layers of management.c. steps in an organizational process.d. staff employees in the organization.e. none of these.


61. ______ is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs.

a. Continuous improvement


b. Cycle timec. Quality circlesd. Six Sigmae. Benchmarking


62. The steps taken to complete a company process is called

a. continuous improvement.b. cycle time.c. quality circles.d. six sigma.e. benchmarking.


63. It seems that once a year the managers of Barbie and Ken’s Corporation attempt a major organization intervention, such as management-by-objectives. They never seem to be satisfied with the performance of Barbie and Ken’s and, sure enough, 12 months later, along comes another major intervention. By implementing organizational change in this way, Barbie and Ken’s management may well be violating the principle of

a. benchmarking.b. continuous improvement.c. unity of direction.d. top-down control.e. none of these.


64. Many countries have endorsed a universal framework for quality assurance called

a. The international quality standard.b. global standards.c. ISO 5000.d. ISO 9000.e. TQM-Japan/United States Standards.


65. A(n) ______ is a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets.

a. Open-book managementb. Economic value-added system


c. Activity-based costingd. Inappropriate control systeme. None of these


66. A control system that identifies the various activities needed to produce a product and determines the cost of those activities is referred to as

a. open-book management.b. an economic value-added system.c. activity-based costing.d. an inappropriate control system.e. none of these.


67. ______ allows employees to see for themselves the financial condition of the company.

a. Open-book managementb. An economic value-added systemc. Activity-based costingd. An inappropriate control systeme. Market value-added system


68. A comprehensive management control system that balances traditional financial measures with operational measures relating to a company’s critical success factors is called a(n)

a. economic value-added system.b. activity-based costing system.c. market value-added system.d. balanced scorecard.e. open-book management system.


Scenario Questions

Scenario—Martina Gomez


The yearly auditing review of Aztec Industries is scheduled for next month. Martina Gomez is preparing for that audit and is also preparing her budget for the coming year.

1. Martina has also requested that the financial ratios be calculated and analyzed for her. Which of the following ratios will give her the best information for evaluating liquidity?

a. Profit margin on salesb. Current ratio c. Conversion ratiod. Return on assetse. None of these.

Answer: b Type: A

2. Which of these budgets will provide Martina information about planned investments in major assets like buildings and heavy machinery?

a. Cash budgetb. Revenue budgetc. Capital budgetd. Expense Budgete. Balance-Sheet budget

Answer: c Type: A

3. In planning and budgeting for the next 12 months, Martina is participating in a budgeting process in which lower-level manager’s budget their department's resource needs and pass them up to top management for approval. This budget process is an example of

a. zero-based budgeting.b. bottom-up budgeting.c. top-down budgeting.d. balance sheet budgetinge. None of these.

Answer: b Type: A

Short-Answer Questions 2. The systematic process through which managers regulate organizational activities is

known as _______. Answer: organizational control Page: 708

3. ______ can focus on events before, during, or after the process.


Answer: Control Page: 709

3. Name the three types of control.

Answer: Feedforward, concurrent, and feedback

Page: 709

4. Control that focuses on human, material, and financial resources flowing into the organization is known as _______ control.

Answer: feedforward Page: 710 5. Control that monitors ongoing employee activities to ensure they are consistent with

quality standards is called .

Answer: concurrent control Page: 711

6. focuses on the organization’s outputs.

Answer: Feedback control Page: 711

7. List the four steps in the feedback control model. Answer: The four steps are (1) establish standards of performance, (2) measure actual

performance, (3) compare performance to standards, and (4) take corrective action. Page: 712

8. When ______ deviates from a ______, managers must interpret the deviation.

Answer: performance; standard Page: 713

9. In a traditional _______ approach, managers exercise their formal authority to make necessary changes.

Answer: top-down Page: 713

10. A(n) is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity.

Answer: responsibility center Page: 714

11. An includes anticipated and actual expenses for each responsibility center


and for the total organization.

Answer: expense budget Page: 714

12. A(n) lists forecasted and actual revenues of the organization.

Answer: revenue budget Page: 715

13. The estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations.

Answer: cash budget Page: 715

14. The lists planned investments in major assets such as buildings, trucks, and heavy machinery, often involving expenditures over more than a year.

Answer: capital budget Page: 715

15. A budgeting process in which middle and lower-level managers set departmental budget targets in accordance with overall company revenues and expenditures specified by top management is called budgeting.

Answer: top-down Page: 71516. A budgeting process in which lower-level manager’s budget their departments’ resource

needs and pass them up to top management for approval is called budgeting.

Answer: bottom-up Page: 715

17. The ______ provides three types of information: assets, liabilities, and owners’ equity.

Answer: balance sheet Page: 717

18. The firm’s financial performance for a given time period is shown on the ______.

Answer: income statement Page: 717

19. A(n) ratio indicates an organization’s ability to meet its current debt obligations.

Answer: liquidity Page: 718

20. A(n) ratio measures internal performance with respect to key activities defined by management.

Answer: activity Page: 718


21. The percentage representing what a company earned from its assets is called ______.

Answer: return on assets (ROA) Page: 718

22. involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms.

Answer: Bureaucratic control Page: 720

23. _______ control uses cultural values, traditions, shared beliefs, and trust to generate compliance with organizational goals.

Answer: Decentralized Page: 721 24. An organization wide commitment to infusing quality into every activity through

continuous improvement is called .

Answer: total quality management (TQM) Page: 722

25. A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting their common work activities is known as a(n) _______.

Answer: quality circle Page: 722 26. The continuous process of measuring products, services, and practices against major

competitors or industry leaders is called .

Answer: benchmarking Page: 723

27. _______ refers to the number of steps taken to complete a company process. Answer: Cycle time Page: 723

28. The implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis is referred to as .

Answer: continuous improvement Page: 724

29. A set of international standards for quality management, setting uniform guidelines for processes to ensure that products conform to customer requirements is called .

Answer: ISO 9000 Page: 726

30. A control system that measures performance in terms of after-tax profits minus the cost


of capital invested in tangible assets is called the .

Answer: economic value added (EVA) system Page: 727

31. A control system that identifies the various activities needed to provide a product and determines the cost of those activities is called a(n) .

Answer: activity-based costing (ABC) Page: 727

32. Sharing financial information and results with all employees in the organization is called management.

Answer: open-book Page: 728

33. List the four major perspectives of a balanced scorecard.

Answer: (1) Financial performance, (2) customer service, (3) internal business processes, and (4) the organization’s capacity for learning and growth.

Page: 731

Essay Questions 1. In terms of time horizon, there are three options for organizational control focus. One is

feedback control. Name the other two and briefly compare each of the three. ANSWER: The three options are feedback control, concurrent control, and feedforward control.

Feedforward control focuses on human, material, and financial resources flowing into the organization and is also known as preliminary or preventative control. Concurrent control consists of monitoring ongoing organizational activities to ensure their consistency with established standards. Feedback control focuses on the organization's outputs and on the quality of the end product or service after the organizations' task is completed.

Level: 2 Page: 709-711

2. Identify and briefly describe the four steps of the feedback control model.

ANSWER:The four steps are 1) establish standards of performance, 2) measure actual performance, 3) compare performance to standards, and 4) take corrective action. Please refer to exhibit 19.2 in the text.



3. Describe the difference between a balance sheet and an income statement.

ANSWER:A balance sheet show’s the firm’s financial position with respect to assets and liabilities at a specific point in time. It provides three types of information: assets, liabilities, and owners’ equity. An income statement is different from a balance sheet in the sense that it shows revenues coming into the organization from all sources and subtracts all expenses, indicating the firm’s net income.


4. Identify and briefly describe each of the common financial ratios addressed in your text.

ANSWER:The major categories addressed in the text are liquidity ratios, activity ratios, profitability ratios, and leverage ratios. Please refer to Exhibit 19.5 in the text.


5. In a TQM program, what is benchmarking? ANSWER: Benchmarking is the continuous process of measuring products, services, and practices

against the toughest competitors or the industry leaders. The key to benchmarking lies in analysis and in the selection of the comparison company.

Level: 2 Page: 723

6. Compare bureaucratic control with decentralized control. ANSWER: Bureaucratic control uses rules, policies, hierarchy of authority, reward systems, and

other formal devices to influence employee behavior and assess performance. In contrast, decentralized control uses cultural values, traditions, shared beliefs, and trust to generate compliance with organizational goals. Bureaucratic control generates employee compliance with rules while decentralized control generates employee commitment to quality.



7. What are the positive and negative factors associated with TQM.

ANSWER:Please refer to Exhibit 19.8 in the text for positive and negative factors associated with TQM.

Level: 2 Page: 725

8. What are the two significant aspects of control in the new workplace? Explain each one.

ANSWER:Open-book management allows employees to see for themselves the financial condition of the company, how each individual’s job fits into the big picture and the company’s financial future, and it ties employee rewards to the company’s overall success. The balanced scorecard is a comprehensive management control system that balances traditional financial measures with operational measures relating to a company’s critical success factors. It contains four perspectives: financial performance, customer service, internal business processes, and the organization’s capacity for learning and growth.



Chapter 20€¦ · Web view · 2012-02-27Reduced cycle time is one of the common techniques of TQM, and refers to the ability of TQM to shorten the time required to receive inventory

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