Question : Which control technique involves using competition to regulate performance?
Option 1: Bureaucratic control.
Option 2: Market control.
Option 3: Clan control.
Option 4: Strategic control.
Correct Answer: Market control.
Solution : The correct answer is (b) Market control.
Market control is a control technique that involves using competition to regulate performance. It relies on market forces and competitive dynamics to influence and regulate the behavior and performance of individuals and organizations. In market control, performance is monitored and evaluated based on market outcomes such as sales, market share, profitability, and customer satisfaction.
Question : Which control technique involves dividing an organization into smaller, manageable units?
Option 4: Decentralized control.
Question : Statement 1: Market control involves using market competition to regulate performance.
Statement 2: Market control is suitable for organizations with a hierarchical structure.
Option 1: Both correct.
Option 2: Both incorrect.
Option 3: Statement 1 correct, Statement 2 incorrect.
Option 4: Statement 2 incorrect, Statement 1 correct.
Question : A control system that relies on external audits is an example of:
Option 4: Centralized control.
Question : Case Study 7:
RST Motors is an automobile manufacturer. The company wants to implement an effective control system to ensure that its production processes meet the required quality standards.
Question:
Which control technique would be suitable for RST Motors to ensure product quality?
Question : Case Study 14:
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