Communication problems are the source to the bad performance levels. Communication is essential to the success of any business and in this company communication is bad and ineffective. The mismanagement of operations and activities is a major problem and has led to bad performance levels.
The contingency variables that affect control in large organizations like this one in the case are that formal, impersonal and extensive rules are required that guide towards better management and enhanced performance levels of an organization, the people at position or a certain level have different responsibilities but they must exercise effective control unlike the manager in this case since he had major problems and could not handle the job well. Decentralization is low in large organizations due to the complex framework of operations and activities but integration of these operations is essential for a smooth flow down the organization, the culture of the organization plays an essential role and in large organizations it is threatening to a certain extend due to formal rules but these should enhance performance levels and motivate workers to come up to a certain desirable level and the importance of an activity matters a lot because crucial operations have to be handled accordingly and in large organizations controls are informal which leads to abuse of authority and this is what is happening in this case. The project was completely abandoned this way (Robbins, 1977).