"Levers of control," in addition to a diagnostic control system, are needed in an organization because
A)diagnostic controls have been found to lead to poor financial performance.
B)diagnostic controls have no place in a Balanced Scorecard system.
C)pressure to perform on diagnostic controls may lead to unethical behaviour.
D)they are mandated by the external accounting agencies.
E)they are mandated by taxation agencies.

Question

Quizplus · Accepted Answer

While diagnostic controls are important for measuring performance, relying solely on them can create pressure to meet targets that may lead to unethical behavior. Levers of control provide a more balanced approach that considers not only financial performance but also strategic, operational, and cultural factors. This helps to ensure that performance is achieved in an ethical and sustainable manner.

"Levers of Control," in Addition to a Diagnostic Control System