7.Organizational Structure & Controls (Cont’d)• Organizational Controls (OC) (Cont’d) – 2. Financial controls • Objective criteria used to measure firm’s performance against previously established quantitative standards (used for unrelated diversification) • Focus on short-term financial outcomes • Produce risk-averse managerial decisions ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.