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.
-As the degree of centralization in Gina's company increases, there is a(n)
A)increase in the number and breadth of controls.
B)decrease in self- directed controls.
C)reduced number of controls.
D)increase in the number of informal controls.

Question

Quizplus · Accepted Answer

As the degree of centralization in a company increases, there is an increase in the number and breadth of controls. This is because centralized organizations have a greater need for control in order to ensure that all units are operating in a consistent and efficient manner.