An effective diagnostic control system encourages ________.
A) management by exception
B) strict rules
C) democratic rules
D) elite rules

Question

Quizplus · Accepted Answer

An effective diagnostic control system is designed to monitor actual performance against standards or benchmarks, and to identify deviations from these standards. This encourages management by exception, where managers focus their attention and resources on the areas where there are significant deviations from the expected performance. This helps managers prioritize their efforts and resources to address the most pressing issues, and to intervene where necessary to address performance gaps or deficiencies. Strict rules, democratic rules, or elite rules may be part of the control system, but they are not the defining characteristics of a diagnostic control system that encourages effective management by exception.

An Effective Diagnostic Control System Encourages ________