Ronaldo is doing some management consulting for three companies. Safety Solutions Inc. is a large corporation that was established in the 1960s. It produces safety mechanisms for industrial machinery. The organization uses a strict set of rules and regulations with its workforce and tracks a large amount of data using statistical techniques. Eastern Plains Employment Associates is a network of regional employment centers that was started eight years ago. Its management uses a control system that ties salaries to prevailing salary standards, and the center directors are evaluated on the basis of the profitability of their centers. Resources are moved between centers on the basis of transfer prices. Ocean Innovations Inc. is a software company. Its control process is very future oriented. It likes to prevent problems before they arise, using policies, procedures, and rules. Which control system does Eastern Plains Employment Associates utilize?
A)bureaucratic control
B)market control
C)clan control
D)feedforward control
E)concurrent control

Question

Quizplus · Accepted Answer

Eastern Plains Employment Associates utilizes a market control system, where salaries are tied to prevailing salary standards and center directors are evaluated on profitability. Resources are also moved between centers based on transfer prices. Market control emphasizes the use of economic incentives to motivate and monitor behavior.

Ronaldo Is Doing Some Management Consulting for Three Companies