(a) Strength: (put something about the definition) One of the four functions of control is to motivate people to treat the organization’s goals as their own. Thus, they behave in a manner that helps achieve organizational goals. Since economic theory stipulates that rational individuals are self-interested, this increases the likelihood of achieving the company’s objectives and ensuring success for the company. This idea is reinforced as control imposes goal-setting and strategic planning on a company. It also provides individuals with autonomy, which helps asses if individuals are acting out of self-interest, which, in turn, is indicative of the effectiveness of the MCS.
(b.i) The Core Control System¬—Strength: By categorizing the MCS, it enabled Flamholtz to provide such great amount of detail regarding the core control system. The planning subsystem further stresses the need for strategic planning and goal setting as it provides a focus towards which employee efforts should be directed. It also introduces the idea that these goals can be used as a benchmark to measure actual performance and motivate performance. Weakness: Since the measurement subsystem relies heavily on the accounting system, employees are usually evaluated and rewarded on accounting measures. This encourages fraudulent financial reporting when employees fail to meet goals. Such an outcome is very likely from this