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Control Mechanisms: Bureaucratic, Market, Clan, Strategic

Bureaucratic Control
Market Control
Clan Control
Strategic Control

1. Compare and contrast the above control mechanisms.
2. Determine the effectiveness of these control mechanisms.
3. Examine the positive and negative reactions to the use of these controls.

Solution Preview

Let's take a closer look at these three areas from different perspectives, which you can consider for your final copy. I also included some extra information at the end of this response for consideration.

RESPONSE:

Organizations attempt to maintain a healthy workforce in order to achieve specific organizational goals, which becomes more complex with diversity. Therefore, control strategies and mechanisms are put in place to make sure that plans stay on track and sustain good quality. There are three broad strategies for achieving organizational control: bureaucratic control, market control, and clan control (http://www.articlesbase.com/leadership-articles/balancing-workplace-control-501465.html#ixzz0nx8GwJpR), as well as an strategic control.

One definition of control illustrates the essential elements of the control process:

"Management control is a systematic effort to set performance standards with planning objectives, to design information feedback systems, to compare actual performance with these predetermined standards, to determine whether there are any deviations and to measure their significance, and to take any action required to assure that all corporate resources are being used in the most effective and efficient way possible in achieving corporate objectives." (Mockler, cited in www.strategic-control.24xls.com/en111)

Bureaucratic control is a structural control where an organization uses such things as rules, policies, hierarchy of authority, reward systems, written documentation, and other formal mechanisms to influence and guide employee behavior and assess performance. To regulate the behavior and results, this control area includes such things as budgets, statistical reports, and performance appraisals. ((http://www.articlesbase.com/leadership-articles/balancing-workplace-control-501465.html#ixzz0nxAXg4fE). In terms of effectiveness, bureaucratic control can be used when behavior can be controlled with market or price mechanisms; however, if not, it would not be effective (www.strategic-control.24xls.com/en111). One native reaction is when rules are too strict and constrains employees' behaviors, they may resist and trouble may irrupt, as organizations that use this control strategy tend to rely on strict rules and to have a very rigid hierarchy. Here management has complete control, which they consider a positive.

Although a structural control like Bureaucratic control, Market control instead involves the use of price competition to evaluate output. In this control area, managers compare profits and prices to determine the efficiency of their organization. In other words, profit and loss strategies are the evaluating basis In terms of effectiveness, though; certain things need to be in place to use this control strategy such as a reasonable level of competition in the goods or service area and it must be possible to specify requirements clearly. On the other hand, it is not appropriate in controlling functional departments, unless the price for services ...

Solution Summary

The solution discusses various control mechanisms.

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