Application of Designing a Control System
Gina realizes her unit needs to make some changes in its control system. However, she is uncertain which will work best for her organization. They are just one unit among five. She could base her unit's performance on their distinct product, and turn her unit into a profit center and evaluate against the company total. She could also use more heavily the rules, policies, regulations, and procedures already in place. She has not strictly enforced many of the regulations established by the home office. Part of the reason for this is that her unit is fairly self- regulating. The work groups set their goals and insure those goals are attained. Little latitude is allowed for a worker who does not meet the group norms.
-A reorganization is announced in which Gina's unit is going to be consolidated along with the other four units into a centralized structure to reduce cost. The consolidated unit will report to the VP of sales as a part of a much larger group. In this situation what form of control system will most likely be adopted by the unit?
A)market
B)bureaucratic
C)centralized
D)clan

Question

Quizplus · Accepted Answer

Given the reorganization into a centralized structure to reduce costs and the consolidation under the VP of sales, a bureaucratic control system, characterized by the use of rules, policies, regulations, and procedures, is most likely to be adopted. This aligns with the emphasis on formal structures and standardization in a centralized setup.