MANA 4322: CH-9 And CH-10 Test
Questions with Solved Solutions.
strategic control - Answer the process of monitoring and correcting a firm's strategy and
performance
traditional approach of strategic control - Answer a sequence method of organizational
control in which 1) strategies are formulated and management sets goals, 2) strategies are
implemented and, 3) performance is measured against the predetermined goal set
informational control - Answer a method of organizational control in which a firm gathers
and analyzes information from the internal and external environment in order to obtain the best
fit between the organization's goals and strategies and the strategic environment
behavioral control - Answer a method or organizational control in which a firm influences the
actions of employees through culture, rewards, and boundaries.
organizational culture - Answer a system of shared values and beliefs that shape a company's
people, organizational structures, and controls systems to produce behavioral norms.
reward system - Answer policies that specified who gets rewarded and why
boundaries and constraints - Answer rules that specify behaviors that are acceptable and
unacceptable.
corporate governance - Answer the relationship among various in determining the direction
and performance of corporations. the primary participants are 1) the share-holders 2) the
management and, 3) the board of directors.
corporation - Answer a mechanism created to allow different parties to contribute capital,
expertise, and labor for a maximum benefit of each party.
agency theory - Answer a theory of the relationship between principals and their agents,
with emphasis in two problems: 1) the conflicting goals of principals and agents, and 2) the
different attributes and preferences toward risk of principals and agents
board of directors - Answer a group that has a fiduciary duty to ensure that the company is
run consistently with the long term interests of the owners, or shareholders, of a corporation
and that acts as an intermediary between the shareholders and the management
Questions with Solved Solutions.
strategic control - Answer the process of monitoring and correcting a firm's strategy and
performance
traditional approach of strategic control - Answer a sequence method of organizational
control in which 1) strategies are formulated and management sets goals, 2) strategies are
implemented and, 3) performance is measured against the predetermined goal set
informational control - Answer a method of organizational control in which a firm gathers
and analyzes information from the internal and external environment in order to obtain the best
fit between the organization's goals and strategies and the strategic environment
behavioral control - Answer a method or organizational control in which a firm influences the
actions of employees through culture, rewards, and boundaries.
organizational culture - Answer a system of shared values and beliefs that shape a company's
people, organizational structures, and controls systems to produce behavioral norms.
reward system - Answer policies that specified who gets rewarded and why
boundaries and constraints - Answer rules that specify behaviors that are acceptable and
unacceptable.
corporate governance - Answer the relationship among various in determining the direction
and performance of corporations. the primary participants are 1) the share-holders 2) the
management and, 3) the board of directors.
corporation - Answer a mechanism created to allow different parties to contribute capital,
expertise, and labor for a maximum benefit of each party.
agency theory - Answer a theory of the relationship between principals and their agents,
with emphasis in two problems: 1) the conflicting goals of principals and agents, and 2) the
different attributes and preferences toward risk of principals and agents
board of directors - Answer a group that has a fiduciary duty to ensure that the company is
run consistently with the long term interests of the owners, or shareholders, of a corporation
and that acts as an intermediary between the shareholders and the management
