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Establishing targets and designing measurement systems are much more difficult for managers because the high level of uncertainty in the organizational environment means managers rarely
Establishing targets and designing measurement systems are much more difficult for managers because the high level of uncertainty in the organizational environment means managers rarely know what might happen in the future. Thus, it is vital for managers to design control systems to alert them to problems quickly so that they can be dealt with before they become threatening. Another issue is that managers are not just concerned about bringing the organization's performance up to some predetermined standard; they want to push that standard forward to encourage employees at all levels to find new ways to raise performance. Managers use three important types of control systems to coordinate and motivate employees to ensure that they pursue superior efficiency, quality, innovation, and responsiveness to customers: (1) output control, (2) behavior control, and (3) clan control
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