Application of Qualities of Effective Control Systems

question 82

Multiple Choice

Application of Qualities of Effective Control Systems
Jared has been hired to establish a control system for SRP Inc. Jared knows several decisions must be made before the control system can be implemented. Several contingencies must also be considered. One of the first decisions that must be made is where to place the controls and what needs to be controlled. Jared also knows the organization is relatively small and will be for some time, and that management intends to decentralize extensively. Furthermore, management has indicated that
if- then guidelines are to be implemented. Jared looks forward to designing a system that will work well for the company for years to come.
-Since the organization is small, Jared should recommend that

• A)control should be formal, impersonal, and include extensive rules and regulations.
• B)an increase should be made in the number of controls and they should monitor everything.
• C)there be a reduced number of controls.
• D)control should be informal, personal, and include management by walking around.

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Definitions:

Recall from Memory

The cognitive process of retrieving information from the past, stored in the human brain.

Personal Biases

Individual prejudices or predispositions that influence one's perspective and decision-making process.

Implicit Favorite

An unconscious bias or preference for a particular option or individual, often influencing decision-making processes without explicit awareness.

Alternatives

Different options or choices available in a decision-making process that can be considered when planning strategies or solving problems.