Final answer:
A diagnostic control system measures a company's progress by comparing actual performance to planned performance and is used to ensure plans are being followed and targets are met.
Step-by-step explanation:
A diagnostic control system measures company progress by comparing actual performance to planned performance. This management tool is designed to ensure that the organization's plans are being followed and that targets are met. It involves setting performance goals, monitoring actual performance, and comparing the two to identify variances that might require attention.
Diagnostic control systems are often used alongside other types of control systems like boundary systems, which set limits on behavior; interactive control systems, which allow for dialogue and learning about strategic uncertainties; and belief systems, which communicate core values and mission. In practice, organizations might use a combination of these systems to guide operations and strategy.