A Properly Designed Control System Is Important to an Organization

question 152

Multiple Choice

A properly designed control system is important to an organization because it can be used to

• A) maximize costs.
• B) anticipate,monitor,and respond to changing circumstances.
• C) modify inappropriate organizational focus.
• D) modify organizational standards.
• E) reduce resistance to change.

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Definitions:

Inertia

The tendency to remain unchanged or idle in one's attitudes, behavior, or decisions due to psychological resistance to change.

Non-compensatory Rule

A decision rule in which an option is rejected if it fails to meet at least one important criterion, regardless of its merits on other criteria.

Clever Hans Effect

The phenomenon where a creature (notably a horse named Clever Hans) appears to be able to perform tasks requiring intelligence, but is actually responding to cues from humans.

Negative Correlation

An association between two elements in which the rise of one leads to the fall of the other.