Bahrul Kabeer's Control (Scenario)

question 6

Multiple Choice

Bahrul Kabeer's Control (Scenario)
Bahrul Kabeer, Inc., is a statistical software company based in Kuwait. This publicly traded firm has grown in a systematic fashion over its 25 year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. While it is true that world financial markets have been in a free-fall over the past three years, demand for the firm's products has typically been fairly recession-proof in the past. The board of directors is growing increasingly impatient with the management team. The firm's president, Samira is concerned that recent performance indicates that management has lost control of the workforce. She has hired Majid, an expert in control system design, to evaluate Bahrul Kabeer, Inc., and offer suggestions to improve the firm's performance.
-Samira asks how management will know whether the new control system is working. Majid tells Samira that final judgments regarding the effectiveness of a control system rests upon ________.

• A) how well it facilitates goal achievement
• B) how well managers buy in to the new system
• C) how well employees adhere to controls put in place
• D) the amount of thought given to setting standards in the first place

---

Definitions:

General Practitioner

A medical doctor who does not specialize in one particular area of medicine and provides general health care to people of all ages.

Performance Standard

Defined criteria set to measure the quality or level of service or products to ensure they meet a certain threshold.

Professional's Statement

A formal declaration or testimony by an expert in a particular field, often used to provide opinion, analysis, or findings in legal, financial, or other professional contexts.

Liability

The condition of being accountable for certain actions, particularly in the context of legal or monetary commitments.