"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 behavior
D) they are mandated by the Financial Accounting Standards Board

Question

Quizplus · Accepted Answer

While diagnostic controls are important for establishing clear expectations and standards, relying solely on these controls can lead to pressure to meet goals at all costs, potentially leading to unethical behavior. Therefore, organizations need complementary "levers of control" such as interactive, belief, and boundary systems to ensure ethical behavior and overall performance.

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