Control and Mechanisms

1449 Words Oct 17th, 2010 6 Pages
Control Mechanisms and Nike
In the past few years, management, leadership, and control strategies in business organizations has emerged as key factors in determining the long-term success or ultimate failure of such organizations. One large well-known successful global company is Nike, who has demonstrated extreme success that can be directly attributed to management, leadership, and control strategies (Krentzman, 1997). Control mechanisms such as bureaucratic control, market control, clan control and management audits can vary in effectiveness and have positive and negative aspects that affect Nike as an expanding organization. These controls impact the functions of management and can be compared and contrasted to evaluate their uses.
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Market control is most effective when a board of directors need more control over an organization’s CEO. Clan control allows the concept of empowerment. Empowerment within an organization makes for a quite effective work force since they are allowed the ability to feel like a part of the organization. Bureaucratic control is very effective and allows leadership full control over the organization as a whole. The downside to this control system is that it does not take into account the employees personal attitudes and feelings. Arter (2000) states, “Management audits, which are generally performed internally, are compliance audits plus cause-and-effect analysis. When performed correctly, they are potentially the most useful of the evaluation methods, because they result in change” (Management Auditing, para. 3). Each of the control systems is effective in their own unique ways and it is up to the organization to determine which method will best suit their needs.
Negative and Positive Reactions of Control Mechanisms
Management control systems, when implemented improperly, become a detriment rather than a tool. Every management control tool has both beneficial and detrimental aspects, each provide a route for performance, progress, and accountability. Each tool also establishes roadblocks in innovation, employee control, and cultural change.
Bureaucratic control Bureaucratic control provides a systematic check and balance for performance and

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