What do control systems in an organization measure?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

Control systems in an organization are primarily designed to measure and assess the performance of subunits. These systems help in evaluating how effectively these subunits—such as departments, teams, or projects—meet their objectives and contribute to the overall goals of the organization. By focusing on performance metrics, control systems enable management to identify areas for improvement, ensure that resources are used effectively, and align the activities of different parts of the organization with its strategic objectives.

Measuring performance can involve various indicators, such as financial metrics, productivity levels, or quality measures, which provide a comprehensive view of how well each unit is operating. This allows management to make informed decisions based on the performance data collected through these control mechanisms.

In contrast, while employee satisfaction, market trends, and customer feedback are important elements for understanding different aspects of the business environment, they do not specifically fall under the primary function of control systems that are focused on performance measurement of organizational subunits.

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