diagnostic control systems as “the formal information systems that managers use to monitor organisational outcomes and correct deviations from preset standards of performance”. Accordingly, a diagnostic control system would typically be characterised by setting goals; measuring outputs; computing performance variances; using variance information as feedback to alter input and/or processes to bring performance back in line with preset goals and standards.
Interactive control systems on the other hand “are the formal information
systems that managers use to personally involve themselves in the decision
activities of subordinates”