Designing a Control System (Scenario)

question 57

Multiple Choice

Designing a Control System (Scenario)
Gina realizes her department needs to make some changes in its control system. The department is one of five in her division, and she is not sure which approach will work best for the organization. She could base her department's performance on their distinct product, making it a profit centre and evaluating it against overall company results. She could also make better use of the policies, regulations, and procedures that are already in place. To date, Gina has not strictly enforced many of the regulations established by the head office because her department is self-regulating. The work groups set their goals and insure those goals are achieved. Everyone is well aware of the expected standards and work behaviours, and there is little tolerance for workers who do not meet the group norms.
-Gina also recognizes that it is not enough to just set up the control system.As an effective manager,she also needs to ________.

• A)follow up and ensure that everyone is doing what they are supposed to be doing
• B)ensure that employees are given tasks that they can handle
• C)ensure that productivity levels stay the same for stability
• D)do the most important tasks herself to make sure they get done correctly

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Definitions:

External Cost

A cost of economic activity not borne by the producer or consumer, but rather by a third party or the environment, often leading to market failure.

Efficient Amount

The quantity of a product or service that achieves a perfect balance between economic efficiency and the satisfaction of all market participants.

Government Intervention

Actions taken by a government to adjust or interfere in the economic affairs of a nation, with the intention of achieving economic or societal objectives.

External Cost

Costs of a transaction that affect people other than the buyer or seller, typically not reflected in the market price, such as pollution or other negative externalities.