Application of Designing a Control System

question 158

Multiple Choice

Application of Designing a Control System
Gina realizes her unit needs to make some changes in its control system. However, she is uncertain which will work best for her organization. They are just one unit among five. She could base her unit's performance on their distinct product, and turn her unit into a profit center and evaluate against the company total. She could also use more heavily the rules, policies, regulations, and procedures already in place. She has not strictly enforced many of the regulations established by the home office. Part of the reason for this is that her unit is fairly self- regulating. The work groups set their goals and insure those goals are attained. Little latitude is allowed for a worker who does not meet the group norms.
-Any form of control that Gina chooses should ultimately help her to

• A)effectively and efficiently reach the organization's goals.
• B)monitor everything that happens in the unit.
• C)monitor only the important activities in the unit.
• D)involve a minimum of management involvement.

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Definitions:

Participative Budgeting

A budgeting process where workers at all levels are involved in setting budget goals and objectives, fostering collaboration and buy-in.

Top Management

The highest level of managerial staff responsible for setting strategic goals and leading an organization.

Strategic Plan

A Strategic Plan is a company's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Financial Consequences

The economic effects or outcomes that result from financial decisions or actions, which can affect an individual's or organization's financial health.