Four Types of Control Mechanisms

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Four Types of Control Mechanisms

By | December 2010
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Four Types of Control Mechanisms
Control mechanisms are used to monitor progress and evaluate performance. System control, Bureaucratic control, Market control, and Clan control are all mechanisms that Target use to operate at peak performance. System control uses a set of procedures designed and established to check or regulate a resource or system. Bureaucratic control consists of formal rules and regulations that establish authority. It also set standards and regulate employee behavior through rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms used to also influence employee performance. Examples of the bureaucratic control system could be audits or Code of Business Conducts. Market control adjusts activities by analyzing the competition, analyzing profit and loss and converting economic information. Some examples of market control would be cash flow statements, budgets, marketing research, sales analysis, etc. Clan control, the opposite of bureaucratic control, embodies cultural values, beliefs, corporate culture, shared values, traditions, professional standards and even informal relationships to aid the reaching of organizational goals and control behavior. A few examples of clan control would be dress styles and work hours. A real life example can be seen with the success of Japanese firms recently which American corporations began to take note of and even emulate. Because Japanese firms operate more like families because of their shared values, they were able to work with a more team centered approach and address problems as a team thus, becoming successful in global businesses. The importance of clan control can however, be underestimated since the control is “invisible”.

References
Bateman, T. S., & Snell, S. A. (2009). Management: Leading and collaborating in a competitive world (8th ed.). Newark, NJ: McGraw-Hill. Ganly, S. (2002-2010). Advantages and disadvantages of control sytems...

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