Essay on Control Mechanisms

1538 Words 7 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
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In addition to these bureaucratic controls, Coca-Cola also utilizes market and clan controls. One way the company uses market control is by breaking into smaller business units based on geography and product. For example, they have a North American business unit as well as a Bottling Investments business unit (The Coca-Cola Company, 2007). Each year, the economic information from each of these units can be analyzed to make decisions regarding future activities. Coca-Cola utilizes clan control by assuming that all employees share a passion for the organization and will use their creativity and innovation in a manner that helps the company achieve its goals. This is exemplified by their career slogan, “One Company. One Team. One Passion.” (The Coca-Cola Company, 2008).
Some controlling mechanisms work better than others, and the controlling functions at Coca-cola are no different. There are similarities and differences between each controlling mechanism associated with Coca-cola. An example is the aspect of ethical behavior shared with an audit and the Code of Business Conduct. Even though the two aspects are different, they still encompass a similar value, integrity. A person’s integrity could be questioned by both an audit or by being compared to the Code of…

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