Test Bank Questions Flashcards
(153 cards)
1
Q
The balanced scorecard
A
An accounting report that connects the firm’s critical success factors determined in a strategic analysis with measures of its performance.
2
Q
Critical success factors of balanced scorecard are assigned to four perspectives on the business
A
financial, customer service, internal business processes, and learning and growth
3
Q
Nonconformance costs
A
Also known as failure of the system and - Include internal and external failure costs. External failure costs include environmental costs, e.g., fines for violations of environmental laws and loss of customer goodwill.
4
Q
Conformance costs
A
Prevention cost e.g Costs of quality circles, system development
Appraisal cost e.g Costs of inspecting in-process items
5
Q
Business strategies may be characterized by their effects on operations
A
1) A cost strategy is successful when the enterprise is the low-cost producer.
2) quality strategy involves competition based on product quality or process quality
3) exibility strategy entails offering many different products
4) service strategy seeks to gain a competitive advantage and maximize customer value by providing services, especially post-purchase services such as warranties on automobiles and home appliances
6
Q
Social trend affecting the organisations
A
hanges in labor markets, reflect social, cultural, and demographic factors in the organization’s macroenvironment that may constitute opportunities or threats (identified in a SWOT analysis). The attributes of people (age, education, income, ethnicity, family status, etc.) and their beliefs, attitudes, and values shape and are shaped by social trends that in turn affect the organization. Thus, changes in the characteristics, sources, locations, and costs of labor resources supplied (a basic factor of production) have great effects on an organization’s strategic position.
7
Q
Political trend affecting organisations
A
Tougher legislation to protect the environment
8
Q
Economic trend affecting organisations
A
Rising inflation
9
Q
Technological trend affect organisations
A
Replacements for steel in cars and appliances
10
Q
Generic strategies of organisation
A
1) Differentiation strategy
2) Cost leadership strategy
3) Focus Differentiation strategy
4) Cocus Cost strategy
11
Q
SWOT analysis
A
Tool used in the strategic planning process. It involves taking into consideration an organization’s strengths and weaknesses and the opportunities and threats facing the organization
12
Q
Boston Consulting Group (BCG) Growth Share Matrix segments
A
Star - High growth, high cash generating
Cash Cow - Low growth, high cash generating
? - High growth, low cash generating
Dog - low growth, low cash generating
13
Q
Appraisal cost
A
Detects products that do not conform to specifications. (1) statistical quality control programs, (2) inspection, and (3) testing
14
Q
Prevention costs
A
attempts to avoid defective products (1) preventive maintenance, (2) employee training, (3) review of equipment design, and (4) evaluation of suppliers (Supplier education)
15
Q
Internal failure costs
A
Occur when defective products are detected BEFORE shipment
16
Q
External failure costs
A
Occur when defective products are detected AFTER shipment
17
Q
Product differentiation
A
Work to develop products and services that are better than or different from competitors’ products (for example, higher quality or with additional features not available elsewhere)
18
Q
Price differentiation
A
Competing on the basis of a product being cheaper
19
Q
What strategy is followed when a company drops one product as a way to reduce total costs.
A
Cost leadership strategy, cost focus is dropping all except 1
20
Q
Generic strategy favored by firms that seek competitive advantage through providing a unique product or service and that have a broad competitive scope.
A
Differentiation strategy
21
Q
Generic strategy favored by firms that seek competitive advantage through providing a unique product and that have a narrow competitive scope, e.g., a regional market or a specialized product line.
A
Focussed differentiation strategy
22
Q
Generic strategy of a firm that seeks competitive advantage through lower costs. It has a broad competitive scope.
A
Cost Leadership Strategy
23
Q
Generic strategy of a firm that seeks competitive advantage through lower costs. It has a narrow competitive scope
A
Focussed Cost Leadership Strategy
24
Q
Strategic (organizational) planning
A
Process of setting the overall organizational goals and specifying the means to be used. It involves the drafting of strategic plans.
25
Four categories of quality costs
(1) prevention, (2) appraisal, (3) internal failure, and (4) external failure
26
Target market definition vs a strategic market definition
A target market for a ride share company may be transporting people, but a strategic market may be transporting items such as food and groceries.
27
Market-oriented definition vs the product-oriented definition.
Defined in market terms needs and customer groups
28
A mission statement
a formal, written document that defines the organization’s purposes and values, for example, to produce and distribute certain goods of high quality in a manner beneficial to the public, employees, shareholders, and other constituencies. Thus, a mission statement does not announce specific operating plans.
29
Strategic management
a set of decisions and activities needed to create strategies, allocate resources, and succeed in a competitive environment. The first step is to draft the organization’s mission statement. The second step is a situational analysis that considers organizational strengths and weaknesses (a capability profile) and their interactions with environmental opportunities and threats. This evaluation is a SWOT analysis. Strengths and weaknesses (the internal environment) are usually identified by considering the firm’s capabilities and resources. What the firm does particularly well or has in greater abundance are core competencies. Opportunities and threats (the external environment) are identified by considering macroenvironment factors (economic, demographic, political, legal, social, cultural, and technical) and microenvironment factors (suppliers, customers, distributors, competitors, and other competitive factors in the industry).
30
Boston Consulting Group’s portfolio model for competitive analysis a build strategy is used for
A question mark with the potential to be a star.
31
Boston Consulting Group’s portfolio model for competitive analysis, a divest strategy is used for
Question marks and dogs that reduce the firm’s profitability.
32
Boston Consulting Group’s portfolio model for competitive analysis, a harvest strategy is used for
Weak cash cows and possibly dogs.
33
Boston Consulting Group’s portfolio model for competitive analysis, a hold strategy is used for
Strong cash cows. It is necessary if the business is to continue to generate large net cash inflows. Harvesting might impair a strong cash cow’s ability to generate long-term positive net cash inflows.
34
Quality-related costs four categories:
external failure costs, internal failure costs (Nonconformance), prevention costs, and appraisal costs (Conformance)
35
strategic planning function
involves formulating its mission (ultimate firm purposes and directions), determining its strategic business units (SBUs), allocating resources to SBUs, planning to start new businesses, and downsizing or divesting old businesses.
36
mission statement
(ultimate firm purposes and directions). Address reasonably limited objectives, define the firm’s major policies and values, and state the firm’s primary competitive scopes (e.g., industries, products and services, applications, core competencies, market segments, degree of vertical integration, and geographic markets).
37
ethnocentric managerial attitude
Assumes that the home country’s people, practices, and ideas are superior to all others. Thus, nationality is the most important factor
38
geocentric managerial attitude
Truly internationally oriented, absorbing the best that various cultures offer. Talent, not nationality, determines personnel decisions throughout the firm.
39
polycentric managerial attitude
Assumes that cultural differences require local managers to make most decisions. Thus, talent is less of a factor than nationality
40
Strategic management is a five-step process:
The board of directors drafts the organization’s mission statement, a general statement of what the organization intends to accomplish and its reason for existing. The statement may be accompanied by one or more goals, which are concrete targets for measuring the organization’s success.
The organization performs a situational analysis, also called a SWOT analysis, involving identification of its strengths, weaknesses, opportunities, and threats.
Based on the results of the situational analysis, upper management develops a group of strategies describing how the mission statement will be fulfilled.
Strategic plans are implemented through the execution of component plans at each level of the entity.
Strategic controls and feedback are used to monitor progress, isolate problems, and take corrective action. Over the long term, feedback can be used to adjust the original mission and goals.
41
Strategic (organizational) planning establishes
the general direction of an organization by setting goals and specifying the means to be used. It embodies the concerns of senior management and is based specifically on (1) identifying and specifying organizational objectives; (2) evaluating the organization’s strengths and weaknesses; (3) assessing risk levels; (4) identifying and forecasting the effect of external (environmental) factors relevant to the organization; (5) deriving the best strategy for reaching the objectives, given the organization’s strengths and weaknesses and the relevant future trends; and (6) analyzing and reviewing the capital budgeting process and capacity planning
42
Managers at a consumer products company purchased personal computer software from only recognized vendors and prohibited employees from installing nonauthorized software on their personal computers. To minimize the likelihood of computer viruses infecting any of its systems, the company should also
Software from recognized sources should be tested in quarantine (for example, in a test/development machine or a stand-alone personal computer) because even vendor-supplied software may be infected with viruses. The software should be run with a vaccine program and tested for the existence of logic bombs, etc.
43
Which of the following is an encryption feature that can be used to authenticate the originator of a document and ensure that the message is intact and has not been tampered with
a) Heuristic terminal.
b) Perimeter switch.
c) Digital signatures.
d) Default settings.
Businesses and others require that documents sent over the Internet be authentic. To authenticate a document, a company or other user may transmit a complete plaintext document along with an encrypted portion of the same document or another standard text that serves as a digital signature. If the plaintext document is tampered with, the two will not match.
44
Encryption technology
Converts data into code. Uses a fixed algorithm to manipulate plain text and an encryption key (a set of random data bits used as a starting point for application of the algorithm) to introduce variation.
45
Webcrawler
(a spider or bot) is a computer program created to access and read information on websites. The results are included as entries in the index of a search engine.
46
A hoax virus
False notice about the existence of a computer virus. It is usually disseminated through use of distribution lists and is sent by email or via an internal network.
47
Killer application
One that is so useful that it may justify widespread adoption of a new technology.
48
Piggybacking
practice of establishing a wireless Internet connection by using another subscriber’s wireless Internet access service without the subscriber’s knowledge.
49
eavesdropping attack.
a network layer attack consisting of capturing packets from the network transmitted by others’ computers and reading the data content in search of sensitive information like passwords.
50
Spoofing
Occurs when a perpetrator sends out emails or documents that appear to be from a legitimate institution. Phishing scams are often initiated through email spoofing.
51
Privacy may encompass 4 types
(1) personal privacy (physical and psychological), (2) privacy of space (freedom from surveillance), (3) privacy of communication (freedom from monitoring), and (4) privacy of information (collection, use, and disclosure of personal information by others).
52
evaluation of the privacy framework, the internal auditor considers (4)
The various laws, regulations, and policies relating to privacy in the jurisdictions where the organization operates.
Conferring with in-house legal counsel to determine the exact nature of laws, regulations, and other standards and practices applicable to the organization and the countries where it operates.
Conferring with information technology specialists to determine that information security and data protection controls are in place and regularly reviewed and assessed for appropriateness.
The level or maturity of privacy practices.
53
Firewall
a combination of hardware and software that separates two networks and prevents passage of specific types of network traffic while maintaining a connection between the networks.
54
Objective of security software
to control access to information system resources, such as program libraries, data files, and proprietary software. Security software identifies and authenticates users, controls access to information, and records and investigates security related events and data.
55
Neural networks
a collection of processing elements that work together to process information like the human brain, including learning from previous situations and generalizing concepts.
56
Logical access controls
ensure that only those persons with a bona fide purpose and authorization have access to computer systems.
57
General IT Controls
relate to the organization’s information systems environment as a whole. Physical controls that limit physical access to computer equipment, data, and important documents (i.e., biometric devices) are an example of general controls.
58
Victor Vroom’s expectancy theory is based on
thought process that involves (1) subjective expectations of rewards, (2) beliefs as to what is valuable, and (3) expectations of receiving these rewards if effort is exerted
59
Victor Vroom’s expectancy theory addresses
individualized (1) motivations and (2) perceptions of the probability of success.
60
Expectancy of performance (E → P) is high if
an individual perceives that (s)he has the ability, experience, resources, and opportunity to perform. But if it is low, motivation also is low
61
Expectancy of outcome (P → O) is high if
Individual perceives that performance leads to desirable outcomes (rewards). But if it is low, motivation also is low.
62
According to Victor Vroom’s expectancy theory motivation is highest when
employees (1) view rewards as valuable and (2) are confident that they can perform.
63
Positive reinforcement
strengthens and increases a certain behavior by rewarding the desired behavior
64
Negative reinforcement
removes an existing unpleasant condition when the desired behavior occurs, strengthens and increases a certain behavior
65
Frederick Herzberg’s two-factor theory of human behavior postulates two classes of factors in the job situation
1) Maintenance or hygiene factors are those whose presence will not especially motivate people but whose absence will diminish performance. These factors are extrinsic to the work itself. include supervision, working conditions, interpersonal relations, salary, and status
2) Motivational factors are those the absence of which will not diminish performance but the addition or availability of which will motivate employees. Intrinsic to the work itself, these include achievement, recognition, challenging work, advancement, growth in the job, and responsibility.
66
Maslow’s theory is that
lower-level needs (physiological and safety needs) must be satisfied before higher-level needs (acceptance by peers, esteem, self-actualization) can influence the individual
67
According to Maslow, the highest need in the hierarchy is
self-actualization. It is the desire to become what one is capable of becoming, to realize one’s potential, and to accomplish to the limit of one’s ability. Challenging work helps to satisfy this need.
68
Groupthink is
tendency to conform and ignore relevant individual input that is at variance with the majority opinion. Research into cohesive groups has revealed the prevalence of groupthink. Groupthink is conformity to a group’s opinion despite information that it may be incorrect.
69
Management complacency characteristics (4)
1) A lack of innovation
2) Faulty perception of markets and competition
3) Failure to observe or properly appraise the initial warnings of decline
4) Not focusing on daily objectives
70
effectiveness vs efficiency
achievement of objectives vs ratio of output to input
ust achieve its objectives efficiently to be considered effective.
71
Job enrichment
An attempt to apply the findings of Herzberg (two-factor theory of behavior), Maslow (hierarchy of human needs), Likert (participation), and McGregor (Theories X and Y) by structuring the job so that each worker participates in the planning and controlling so as to maximize the satisfaction of both social and ego needs and avoid the disadvantages of routine, highly specialized work
72
Edwin Locke’s goal-setting theory,
difficult goals to which the employee is committed provide the best motivation tool. Performance improves when goals are specific rather than general, difficult rather than easy, and participative (self-set) rather than imposed by others.
73
Antecedents
cues that encourage but do not cause a given behavior. Managing antecedents involves eliminating barriers to good performance and replacing them with helpful aids. Barriers include unattainable objectives, poor training, confusing rules, and conflicting directions from management. Aids include challenging but attainable objectives, clear instructions, realistic plans, constructive suggestions, and acceptable work rules.
74
job enhancement (enrichment) vs job enlargement
Vertical loading vs Horizontal loading
75
supply chain consists of flows from sources (5) through intermediaries to ultimate consumers
(1) materials, (2) components, (3) finished goods, (4) services, or (5) information
76
An organization must manage its flows of materials, components, finished goods, services, or information through intermediaries to ultimate consumers. These flows may occur across the functions in an organization’s
value chain (R&D, design, production, marketing, distribution, and customer service). These flows and the related activities also may occur across separate organizations.
77
Key performance indicators (KPI) are
quantifiable measures used by organizations to track progress towards its goals and objectives.
78
vertical distribution systems,
The channel structure in which producers, wholesalers, and retailers act as a unified system
79
horizontal distribution
channel structure system, where two or more companies at one level of the channel work together.
80
multichannel system
channel structure where a single firm sets up two or more channels to reach one or more customer segments
81
Most basic and commonly used data analytics method and concentrates on the reporting of actual results.
Descriptive analysis
82
data analytics method that provides insight on the reason certain results occurred.
Diagnostic analysis
83
data analytics method that involves the utilization of text mining and natural language algorithms to find patterns in unstructured text
Text analysis
84
The desired results of the sharing of information by all functions and organizations in the supply chain is (4)
(1) minimization of inventories held by suppliers, manufacturers, and retailers; (2) avoidance of stockouts; (3) fewer rush orders; and (4) production as needed by retailers.
85
Cleaning data consists of (3)
1) Flushing out useless information,
2) identifying missing data,
3) normalizing data.
86
Physical distribution systems include (3)
warehousing, transportation, and retail outlets.
87
Physical distribution (market logistics)
involves planning, implementing, and controlling the movement of materials and final goods to meet customer needs while earning a profit
88
order of the five stages of data analytics
(1) define questions, (2) obtain relevant data, (3) clean/normalize data, (4) analyze data, and (5) communicate results.
89
Project documents are artifacts are/ are not included in the project management plan?
NOT PART Examples of project documents are those that may relate to scope, requirements, resources, activities, costs, milestones (significant points or events), communications, scheduling, quality, risks, and lessons learned.
90
business case and benefits management plan
business documents prepared before project initiation. The source of a business document is external to the project.
91
Formal authorization by the initiator or sponsor
project’s charter
92
At the control point the project’s charter and business documents are reviewed to compare performance with the
project management plan.
93
Co-optation
way of allowing some participation but without meaningful input.
94
Lumpy demand
business term that means periodic demand for a product or service that increases in large, lumpy increments.
95
project has four generic phases
(1) starting the project,
(2) organizing and preparing,
(3) doing the work, and
(4) closing (ending the project)
96
Employees resist change for many reasons (12)
(1) surprise, (2) inertia, (3) misunderstanding, (4) lack of skills, (5) emotional reactions, (6) lack of trust in management, (7) fear of failure, (8) personality conflicts, (9) poor timing, (10) management’s insensitivity, (11) threats to job status or security, and (12) breakup of the work group.
97
objectives of organizational development are to (7)
(1) deepen the sense of organizational purpose and align individuals with it;
(2) promote interpersonal trust, communication, cooperation, and support;
(3) encourage a problem-solving approach;
(4) develop a satisfying work experience;
(5) supplement formal authority with authority based on expertise;
(6) increase personal responsibility; and
(7) encourage willingness to change.
98
Organizational process assets (OPAs)
specific (internal) to an entity. They are its plans, processes, policies, procedures, and knowledge bases that affect project management. Examples are change controls, financial controls, work instructions, and knowledge repositories (such as historical information and lessons learned repositories).
99
Enterprise environmental factors (EEFs)
are external to the project but influence, limit, or direct the project. They may be internal or external to the entity. An example category of external EEFs may consist of financial factors (e.g., exchange and interest rates, inflation, tariffs, and location).
100
Baseline
(e.g., scope, schedule, performance measurement, and cost) have possible components of the project management plan. A baseline is an approved work product changeable only by formal procedures. It is a basis for comparison with an actual result.
101
project management process groups
Initiating , planning, Executing
102
project management plan components include
(1) a description of the project’s life cycle, (2) baselines (e.g., scope, schedule, performance measurement, and cost), and (3) subsidiary management plans.
103
In Robert E. Kelley’s model of follower styles, an effective follower is at the favorable end of each dimension
(1) self-managed,
(2) self-aware,
(3) committed to organizational success. Accepts appropriate risk and conflict in pursuit of higher goals.
104
Paul Hersey and Ken Blanchard leadership theory based on two demension: Task and relationship. The styles are based on followers maturity (willingness and ability). Four styles of leadership are:
1) Telling style : higher focus on task and a low focus on people needs.
2) Selling style: high focus on task and people needs.
3) Participating: low focus on task and high focus on people needs.
4) Delegating: Low focus on task and people needs
105
Power may be classified as
1) Reward power (the leader controls resources)
2) Coercive power (the leader may punish the subordinate),
3) Legitimate power (the leader has the right to lead),
4) Referent power (the leader has fame, charisma, etc.),
5) Expert power (the leader has specialized ability or knowledge).
106
business continuity management (BCM) testing method
107
combinatorial test design
108
Management emphasizes
stability, reliability, and efficiency of the organization. It provides a rational basis for the exercise of leadership.
109
leadership
emphasis is on the people in the organization. It should provide them with a purpose and a vision for change.
110
Utility programs can be used to read files that contain all authorized access user codes for a server. A control to prevent this is
Log-on passwords can only prevent unauthorized users from entering the system. If passwords are internally encrypted, even a user of a powerful utility program will not be able to read them.
111
Value-added networks (VANs)
A value-added network transmits data between the networks of different entities, not a single entity’s networks.
They are private networks that provide their customers with reliable, high-speed, secure transmission of data. To compete they add value by providing their customers with error detection and correction services, electronic mailbox facilities for EDI purposes, EDI translation, and security for email and data transmissions.
112
materials remaining from the production cycle but not usable for any purpose.
Waste
113
materials left over from the production cycle but still usable for purposes other than those for which it was originally intended.
Scrap may be sold to outside customers, usually for a nominal amount, or may be used for a different production process
114
Earnings per share ordinarily are higher if [debt/equity] is used to raise capital instead of [debt/equity]
Earnings per share ordinarily are higher if [debt] is used to raise capital instead of [equity]
Cost of debt is lower than the cost of equity because interest is tax deductible.
prospect of higher EPS is accompanied by greater risk to the entity resulting from required interest costs, creditors’ liens on the entity’s assets, and the possibility of a proportionately lower EPS if sales volume fails to meet projections.
115
Public-key encryption
Asymmetric encryption requires (1) a public key and (2) a private key issued by a trusted certificate authority.
A sender encrypts a message using the recipient’s public key.
The recipient then decrypts the message using the recipient’s private key. The private keys are never shared between the parties.
No risk associated with transmitting private keys under public-key encryption.
116
Private-key encryption
Symmetric encryption requires (1) a public key and (2) a private key from the sender.
Public and private keys of the entity are mathematically related. Risk associated with transmitting of the private key from the sender to the recipient.
117
organic form of organization
Loose structure, low division of labor, low formalization, and decentralization.
118
A mechanistic structure of organization
Orgs focusing on cost minimization through tight controls, extensive division of labor, high formalization, and centralization.
119
Imitation strategies of organization
A structure that combines mechanistic and organic components.
120
element of a computer system that differentiates it from a manual system
Audit transaction trail useful for auditing purposes might exist only for a brief time or only in computer-readable form.
121
Sales-type leases and operating leases differ in that the lessor for operating lease must [derecognize the leased asset/ continues to report leased asset]
For sales-type leases, the lessor must For operating leases, the lessor recognizes lease payments as lease (rental) income. The leased asset continues to be reported on the lessor’s balance sheet.
122
Price-to-earnings (P/E) ratio
Market price of share ÷ EPS
123
Dividend-payout ratio
Dividends per share ÷ EPS
OR
Total dividends ÷ Net Income
124
Basic Earnings per share (BEPS)
Net income - preferred dividens
÷
Weighetd average number of common shares outstanding
125
Diluted Earnings per share (DEBS)
If potential shares had been issued and added to the denominator (Convertable bonds/ convertable preferred shares)
126
Difference between the numerator and denominator
Denominator (DOWN UNDER)
*Term below the fraction bar
*Indicates the total number of equal parts that form the whole quantity or unit.
*Act as a divisor
The numerator (NEARER ):
* The term above the fraction bar
*Shows the number of parts that are selected
*If zero, then the complete fraction value is equal to zero
*Acts as a dividend.
127
P/E Ratio is high it may suggest that the security is overpriced/underpriced and the invester wants to acquire/sell, or may suggest an updated assessment of company's situation
P/E Ratio is high it may suggest that the security is overpriced and the invester wants to sell, vica versa
128
Long, not short, lead times prompt a more frequent review, why
Longer the lead time the longer it may take to get the stock, resulting in costly stock outs. Shorter the lead time, the quicker the product available
129
Goodwill equals the excess of the consideration transferred on the acquisition date of net [carrying /fair] value of the net of the identifiable assets acquired and liabilities
Goodwill equals the excess over the fair value.
130
Kaizen budgeting
Projects costs on the basis of future improvements in existing practices and procedures during a budget period.
131
activity-based budgeting
Focuses on the costs of activities necessary to produce and sell products and services for a budget period.
132
The statement of cash flows may report cash flows from operating activities in either an [indirect or direct] format.
The [in-/direct] method adjusts income or loss for the effects of
A) noncash transactions,
B) deferrals or accruals of
1) past or future operating cash flows,
2) income or expense related to financing or investing activities.
The [in-/direct] format reports the major classes of operating cash receipts and cash payments as gross amounts.
The direct format reports the major classes of operating cash receipts and cash payments as gross amounts.
The indirect presentation adjusts income or loss.
133
The systems development life-cycle approach is the oldest methodology applied to the development of medium or large information systems. The cycle is analytically divisible into stages
1) Definition,
2) Design,
3) Development,
4) Implementation, and
5) Maintenance.
134
Fred E. Fiedler’s contingency theory of management
no single style of directing is best for all occasions. A successful director (leader) must, for each situation, balance his or her formal authority, the task structure, and the leader’s relationships with the pertinent group members.
135
Derivatives
including options and futures, are contracts between the parties who contract. Unlike equities and bonds, they are not claims on business assets. A futures contract is entered into as either a speculation or a hedge.
136
A futures contract is entered into as either a speculation or a hedge.
Offset risk when [speculating/hedging] and increased risk when [heding/speculating]
Speculation involves the assumption of risk in the hope of gaining from price movements. Hedging is the process of using offsetting commitments to minimize or avoid the impact of adverse price movements.
137
Speculation involves
The assumption of risk in the hope of gaining from price movements.
138
Hedging is the process of
Using offsetting commitments to minimize or avoid the impact of adverse price movements.
139
Research suggests that the following traits may correlate with leader effectiveness
1) Intelligence, knowledge, judgment, and decisiveness
2) Drive to excel, persistence in goal attainment, and conscientiousness
3) Aspiration to lead, self-confidence, honesty, and optimism tempered by reality
4) Energy and stamina
5) Education and social mobility
140
Fred E. Fiedler’s contingency theory of leadership depends on which situational factors
Position power, task structure, and leader-member relations
Position power is based on the formal authority structure. It is the degree to which the position held enables a leader to evaluate, reward, punish, or promote group members. It is independent of other sources of power, such as personality or expertise.
Task structure is how clearly and carefully members’ responsibilities for various tasks are defined. Quality of performance is more easily controlled when tasks are clearly defined.
Leader-member relations reflect the extent to which group members like, trust, and are willing to follow a leader.
141
A substitute eliminates the need for instructions from a leader. Examples of substitution for task-oriented leadership
(1) a group of professionally trained and experienced employees, (2) formal rules and procedures, and (3) highly structured tasks
group still may need people-oriented leadership provided by group professionalism but not by rules or structures.
142
path-goal theory, two groups of contingency factors affect the relationship between leadership behavior and outcomes
1) environmental factors beyond subordinates’ control (task structure, the formal authority system, and the work group)
2) subordinate factors (includes the subordinate’s locus (center) of control, experience, and perceived ability)
143
eadership style to use to obtain employee satisfaction and effective employee performance. Four styles:
Achievement-oriented style: tasks are nonrepetitive and ambiguous and employee competence is high. leader sets challenging goals and expects subordinates to perform at their highest level.
Participative style: Subordinates with an internal locus of control . leader consults with employees and considers their suggestions before making a decision.
Directive style: Subordinates who are neither competent nor confident . locus of control is external, tasks are ambiguous or stressful, and substantial conflict exists in the work group. leader lets subordinates know what is expected of subordinates, schedules work to be done, and gives specific guidance on how to accomplish tasks.
Supportive: leader is friendly and shows concern for the needs of the subordinates. tasks are highly structured and the authority relationships are clear and bureaucratic
144
Segregation of duties is a basic category of control activities. Which duties should be assigned to different people
1) Authorizing transactions,
2) Recording transactions, and
3) Custody of assets
145
Closed-loop verification occurs when
inputs by a user are transmitted to the computer, processed, and displayed back to the user for verification. Updating and verifying customer addresses would be an example of closed-loop verification. Closed-loop verification is an online input control.
146
DB2 (IBM) and Oracle (Oracle Corp.) are used in mainframes and mid-range systems (e.g servers). SQL Server (Microsoft) is also used in mid-range systems. Access (Microsoft) is a DBMS system for personal computers.
Database management systems
147
A management information system (MIS) vs transaction processing system (TPS)
A management information system (MIS) provides managers with the information they need for analysis, planning, control, and decision making. A transaction processing system (TPS) supports the ongoing routine operations of an organization.
148
Electronic data interchange (EDI)
communication of electronic documents directly from a computer in one organization to a computer in another organization, for example, to order goods from a supplier or to transfer funds.
149
Optical character recognition (OCR)
is a method of scanning printed documents and saving them to a digital storage medium.
150
Feasibility studies are conducted to determine
(1) the technology the new system will require, (2) the economic resources that must be committed to the new system, and (3) the impact the new system will have on current operations
151
When changes are made in operating systems, controls include
(1) segregation of duties, (2) testing the system before use, (3) making backout plans, (4) implementing changes in offhours, and (5) logging all changes.
152
Under GRC systems, organizations develop strategies at three different levels
Corporate-level strategy: Concerned with market definition (i.e., business and markets to focus resources).
Business-level strategy: Organisations with different business units, each develop own strategy
Functional level: Concentrate on specific functional areas, such as HR, IT, Treasury
153
