Control Mechanisms

Topics: Decision making, Control system, Budget Pages: 3 (636 words) Published: February 19, 2013
Control Mechanisms
Management with in WellPoint regularly provides updates to the Board regarding performance. Some advantages of bureaucratic control systems are minimal uncertainty about decision making expectation and standards required from staff. Bureaucratic control system has apparent management roles and responsibilities. Disadvantages of this system are lack of employee morale and or room for change and innovation. Stiff procedural guidelines can at times because employees feel disconnected from decision making. The effectiveness of market control determines such things as wage/salary for managers and employees WellPoint can use the market controls, like profitability to determine the performance of the organization. Market controls are effective in determining the cost of medical treatments their clients may receive and in turn relates to what they can charge. In addition, the market can determine what the average wages are for their employees. Clan control is uses to regulate employee’s behavior and accomplish the organizational goals. This control system works is best implemented when there is no one in the role of decision maker. Employees are encouraged to provide input, make decisions, and perform independently. However lack of standard management can cause problems in business when using clan control Employees may take advantage, or slack their responsibility without instructions.

Budgetary controls have positive effectiveness on the day to day operations within Well Point. The budget forecasting, the expected income, expenses and profits, will lay out the years expected performance expectations. The budget helps evaluate the effectiveness of how they run their business, and set goals to accomplish. If there is a problem that goes unnoticed, it could compromise the financial stability of WellPoint. Budgetary controls also make management to think about the future. With some fluctuation within the WellPoint stock, budgetary focus is a...
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