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
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
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.
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.