Case Interview Prep

Category - Management

What is the purpose of a control system?
  1. To ensure that processes are acting as intended without wasting resources
  2. To enforce organizational rules
  3. To control employee behavior within a specific scenario
  4. To establish standards for an organizational process
Explanation
Answer: A - A control system is designed to assure that organizational processes are acting as intended. Additionally, the control system will help create a system that limits waste to organizational resources.

Key Takeaway: Control systems can help eliminate waste within an organizational process. Human nature tends to create variation within processes and a control system will help to eliminate that variation. Variations can often lead to differing outcomes (and sometimes unintended and undesirable outcomes). A good control system will standardize processes and establish expectations to help eliminate the waste and rework associated with the normal variation.
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