Advanced One common approach to organisational control theory is to look at the model of a cybernetic system. This is often illustrated by a diagram of a thermostat mechanism.

You are required:

(a) to explain the limitations of the simple feed¬ back control this model illustrates, as an explanation of the working of organisational control systems;

Note: A diagram is not required. (7 marks)

(b) to explain

(i) the required conditions (pre-requisites) for the existence of control in an or¬ ganisation, which are often derived from this approach to control theory;

(5 marks)

(ii) the difficulties of applying control in a not-for-profit organisation (NPO).

(8 marks) (Total 20 marks) CIMA Stage 4 Management Accounting -

Control and Audit May 1994