Negative feedback
Negative feedback counteracts a deviation from a target by using information about actual results to adjust action. The word negative describes the stabilising direction of the response, rather than criticism or an adverse variance. Its effectiveness depends on a valid target, reliable measurement, timely information and a response that addresses the cause. Excessive or delayed correction can create oscillation, and a stable system may still be pursuing an unsuitable objective.
Worked example
A cold store’s target is 4°C. A sensor reports 7°C, so the controller increases cooling until temperature returns towards 4°C. In budgeting, corrective action similarly seeks to reduce an identified deviation after considering its cause.
Common mistake
Thinking negative feedback means unfavourable comments or that every deviation requires punishment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Supporting | September 2026–June 2027 |
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |