Question

The control system at Western Mountains Health Associates ties executive salaries to nationally prevailing salary standards, and the center directors are evaluated on the basis of the profitability of their centers. Resources are moved between centers on the basis of transfer prices. Western Mountains Health Associates uses the _________ control system.
a. bureaucratic

b. clan

c. feedforward

d. market

Answer 1

Answer: (D) Market control system

Explanation:

 The market control system is the process of managing all distribution of the products and the services in an organization. The main responsibility of the market control system is that it manages all the marketing department and also helps in rectifying the mistakes in the system.

There are basically four types of market control system are as follows:

• Annual plan control
• Effectiveness and the efficiency control system
• Strategic control
• Profitability control    

According to the given question, the Western mountain heath association is one of the control system that uses the concept of market control system for evaluating all the process in an organization such as transportation, pricing and the demand.

Therefore, Option (D) is correct.