Goold and Quinn (1990) suggest three reasons for establishing control systems:
A) A strategic control system should coordinate the activities of members of an organization.
B) A strategic control system should motivate managers to achieve their agreed objectives.
C) It helps to build up levels of trust.
D) A strategic control system helps senior managers know when to intervene in the decisions of unit managers.

Question

Quizplus · Accepted Answer

A strategic control system should coordinate the activities of members of an organization to ensure that their efforts are aligned with the overall strategic objectives of the organization. This helps to ensure that the organization is working towards a common goal.

A strategic control system should motivate managers to achieve their agreed objectives by providing them with clear targets to work towards and by tracking their progress towards these targets. This helps to ensure that managers are held accountable for their actions and that they are working towards the goals of the organization.

A strategic control system helps senior managers know when to intervene in the decisions of unit managers. By tracking performance and identifying deviations from expected outcomes, senior managers can identify areas where intervention may be necessary to ensure that the organization is on track towards its goals. This allows for timely and effective decision-making.

Goold and Quinn (1990) Suggest Three Reasons for Establishing Control