Scenario A. Owners from two businesses have asked you which type of control system they should utilize. To help you make your decision, they have each provided a brief description of their organization. Alpha Omega, Inc. is a large corporation built in the 1950s. They produce chemical concentrates for industrial cleaning. Their organization uses a strict set of rules and regulations with their workforce. They have the ability to track a large amount of data using statistical techniques. Mid-Atlantic Health is a regional medical center. They want to use a control system that will allow them to tie pricing of services and profits to specific services in the medical center.
-Which control system should Mid-Atlantic Health utilize? Assume they will not change their current method of operation.
A)Bureaucratic
B)Market
C)Clan
D)Feedforward
E)Concurrent

Question

Quizplus · Accepted Answer

Mid-Atlantic Health wants a control system that ties pricing and profits to specific services. This type of control is best achieved through a market control system, where prices and profits are determined by the demand and supply of specific goods or services. A bureaucratic control system, like the one used by Alpha Omega, is more focused on standardization and compliance with rules and regulations, which may not be applicable to the unique needs of a medical center. A clan control system is more focused on group cohesion and socialization, which may not be effective in ensuring profitability in the healthcare industry. A feedforward control system is more focused on anticipating problems and preventing them from occurring, which may not be relevant to this situation. A concurrent control system is focused on monitoring ongoing activities and making real-time adjustments, which may also not be applicable to a control system that ties pricing and profits to specific services.