The range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies are referred to as
A) formal reporting structures.
B) organizational charts.
C) compensation policies.
D) management control systems.

Question

Quizplus · Accepted Answer

Management control systems include both formal and informal mechanisms to ensure managers are behaving in ways consistent with a firm's strategies. These mechanisms can include performance evaluations, budgets, targets, and information systems, among others. Formal reporting structures, organizational charts, and compensation policies are all components of management control systems, but they do not fully encompass the range of mechanisms available to ensure strategic consistency.

The Range of Formal and Informal Mechanisms to Ensure That