Question

State any one situation in which an organisation's control system loses is effectiveness.

Answer 1

Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. This makes it difficult to measure the deviation between actual performance and standard performance.
For example, setting standards for 'Job satisfaction' is difficult as each individual employee is motivated by different motives and drives. Thus, effective control system is difficult to set as the standards cannot be quantitatively provided.