Chapter 4: Control System Tightness

Question 1

How can tight controls be distinguished from loose controls?

Answer 1

• tight controls provide higher certainties that employees will act as desired by the company
• tight controls require detailed and reasonable knowledge about objectives

Question 2

What are the requirements for tight controls?

Answer 2

1.) Definition of desired results:
=> congruent, specified, communicated, complete
2.) Performance measurement: tightness depends on effectiveness of the measures

Question 3

When should tight action controls be considered?

Answer 3

Tight action controls should only be considered if consistent engagement is expected and harmful actions are not engaged.

Question 4

When should tight personnel / cultural controls be considered?

Answer 4

Only few situations where personnel / cultural controls are considered tight.

=> charity / voluntary organisations and small family-run companies.