Bahrul Kabeer's Control (Scenario)

Multiple Choice

Bahrul Kabeer's Control (Scenario)
Bahrul Kabeer, Inc., is a statistical software company based in Kuwait. This publicly traded firm has grown in a systematic fashion over its 25 year existence and now claims more than 12,000 employees worldwide. As it has grown, the company has adopted a hierarchical structure, which emphasizes organizational authority. Management relies heavily on administrative rules, regulations, and policies in order to meet its goals. However, the company has struggled to meet projected revenues for each of the past 10 quarters. While it is true that world financial markets have been in a free-fall over the past three years, demand for the firm's products has typically been fairly recession-proof in the past. The board of directors is growing increasingly impatient with the management team. The firm's president, Samira is concerned that recent performance indicates that management has lost control of the workforce. She has hired Majid, an expert in control system design, to evaluate Bahrul Kabeer, Inc., and offer suggestions to improve the firm's performance.
-Majid asks Samira how management measures organizational performance. Samira states that they rely mainly on statistical reports, but also draw inferences from qualitative oral and written reports. Majid responds that, for most organizations and managers, using a combination of approaches ________.

A) indicates that management is overly cautious
B) is an indicator of managerial indecisiveness
C) increases "noise" in the control system
D) increases the probability of getting reliable information