Chapter 4: Control System Tightness Flashcards

1
Q

How can tight controls be distinguished from loose controls?

A
  • tight controls provide higher certainties that employees will act as desired by the company
  • tight controls require detailed and reasonable knowledge about objectives
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2
Q

What are the requirements for tight controls?

A

1.) Definition of desired results:
=> congruent, specified, communicated, complete
2.) Performance measurement: tightness depends on effectiveness of the measures

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3
Q

When should tight action controls be considered?

A

Tight action controls should only be considered if consistent engagement is expected and harmful actions are not engaged.

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4
Q

When should tight personnel / cultural controls be considered?

A

Only few situations where personnel / cultural controls are considered tight.

=> charity / voluntary organisations and small family-run companies.

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