Application of Qualities of Effective Control Systems
Jared has been hired to establish a control system for SRP Inc. Jared knows several decisions must be made before the control system can be implemented. Several contingencies must also be considered. One of the first decisions that must be made is where to place the controls and what needs to be controlled. Jared also knows the organization is relatively small and will be for some time, and that management intends to decentralize extensively. Furthermore, management has indicated that
if- then guidelines are to be implemented. Jared looks forward to designing a system that will work well for the company for years to come.
-Because Jared cannot control all activities, he should place the strategic control devices where those devices can call attention only to
A)the deficiencies.
B)the exceptions.
C)ambiguous elements.
D)the inequities.

Question

Quizplus · Accepted Answer

Jared should focus on placing strategic control devices to highlight exceptions. This approach aligns with management's intention to implement if-then guidelines and supports a system that can efficiently manage a decentralized organization by focusing on deviations from expected performance, rather than trying to monitor all activities comprehensively.