Control Mechanisms

1606 WordsJan 16, 20097 Pages
Control Mechanisms Control mechanisms are necessary in order for any business to run smoothly and ensure that things are going as planned. These controls help the business determine the activity and direction of its employees in a manner that helps the company meet its goals (Bateman & Snell, 2007). There are three basic types of controls: bureaucratic, market, and clan. Bureaucratic control basically consists of the formal rules and regulations that establish authority, set standards, and regulate behaviors (Bateman & Snell). Market control regulates activities by examining the competition, analyzing profit and loss, and utilizing economic information (Bateman & Snell). Clan control differs from the previous two controls in that…show more content…
Tactical behavior happens when a person attempts to falsify or manipulate data to make them selves look better when the end result is examined. Last, there is the Resistance to control; this negative behavior may lead to power structures, lawsuits and competition among employees, Clan Control is one concept within its corporation. Clan control relies on social characteristics such as culture, values, commitment, traditions, and beliefs, to control behaviour. Clan control is most often used in organizations where people believe they can be part of shaping the culture. The negative to this control is:”Power Abuse” this control may encourage an employee to cut corners and cheat. Market control is based on a pricing mechanism that allows regulation of performance. Market Controls provide a natural incentive for employees to enhance their skills so that they may be offered to potential firms. The negative to this control is that economic measures may not reflect the complete value of an organization adequately. The employees often suffer as companies are bought and sold based on market controls (Bateman & Snell). The Coca-Cola Company has to ensure that their suppliers and distributors are on one accord with the company and that they uphold the Coca-Cola standards. Systems must be in place to assist a company in

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