After much investigation, the Crews Company decided to use its own employees in adding another floor to their present building. A $400,000 budget was approved. Managers estimated that the project would take two years for completion. They transferred some employees from production of ZERXO, which was experiencing depressed sales. Because no employees belonged to a union, the company had this flexibility.

Sales of ZERXO became even more depressed after construction began. Market research, however, indicated that this was only a temporary decline and that production should not be halted on this line. After consultation, management decided to offer additional ZERXO workers the chance to transfer to building construction.

Periodically, top management inspected the building site so they had a general idea of the stage of completion. The assistant plant manager assumed the position of building supervisor and furnished top management with a review of operations only on request.

Because of these additional workers, construction was completed in one and one-half years, but at a cost of $440,000. The construction passed all building codes and also met all the company’s specifications.

Required:
Do you believe the control function was effectively applied? It not, what control techniques should have been used?