Refer to the Scenario Below to Answer the Questions That

question 25

Multiple Choice

Refer to the Scenario below to answer the questions that follow.
Control Systems at Statco (Scenario)
Statco is a statistical software company based in British Columbia.This publicly traded firm has grown dramatically over its 25-year history,and it now has 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 very turbulent over the past three years,demand for the firm's products has typically been recession-proof in the past.Now,the board of directors is growing increasingly impatient with the management team.The firm's president,Susan Wong,is concerned that recent performance may indicate that management has lost control of the work force.She has hired Mark Adams,an expert in control system design,to evaluate Statco and offer suggestions to improve the firm's performance.
-Susan asks how management will know whether the new control system is working.Mark tells Susan that the ultimate effectiveness of a control system is determined by ________.

• A)the level of management support for the new system
• B)how well employees adhere to established controls
• C)how well the system facilitates goal achievement
• D)the quality of the standards developed to measure performance
• E)how efficiently management implements the system

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Definitions:

Authority Decision

A decision-making process where decisions are made by individuals in positions of authority, often without consulting those who will be affected by the decisions.

Vroom-Jago

A leadership model that emphasizes decision-making processes and involves evaluating the situation to choose the best leadership style.

Leader-Participation Model

A leadership approach that involves the leader including one or more employees in the decision-making process, considering their opinions and perspectives before making a final decision.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired objective.