Discuss at least two inefficiencies of financial control

What will be an ideal response?

First, financial control focuses on financial measures that do not measure other important attributes such as product quality, employee satisfaction, and customer service. Because these elements and others are important to the organization's long-term success, they also should be measured and monitored.

Financial control measures the effect of the overall level of performance and ignores the performance achieved on a more detailed level. For this reason, financial control does not suggest how to improve performance, but only serves as a signal of potential problems and opportunities.

Financial control is oriented to short-term performance and it only considers how well the organization has performed this quarter or this year. This preoccupation with short-term success is debilitating because little attention gets focused on long-term improvement.