Concept
As soon as two people agree to work together, issues of control arise. We introduced this basic concept in an earlier chapter. When there are 200,000 people, the control issues are paramount and more complex, so let’s add a little detail. How does one control a large organization? Control systems are essential to good management. Good systems are a boon, while badly designed control systems can be worse than nothing.
There are many things to control: budgets, expenses, hiring, firing, promotions, graft and corruption, regulatory compliance, taxation, quality control, culture, and much more.
Accounting is the usual financial control system. Those systems vary widely from firm to firm. Standardized accounting ...
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