Control and Mechanisms

Topics: Management, Control system, Control theory Pages: 5 (1463 words) Published: October 31, 2010
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. The Four Steps of Control

Management controls are a necessary tools used by all levels of management to ensure personnel stride toward a consistent goal. These controls are ways to restrict or maintain behaviors within the company. Nike uses these controls to do just that. Similar to other companies, Nike controls the company by using the four basic steps of control: setting performance standards, measuring performance, comparing performance against the standards and determining deviations and taking action to correct problems and reinforce successes. Types of Control Mechanisms

Bureaucratic Control Bureaucratic control is created by using a set of rules gauged by an authority to guide the workforce in the way that they should perform.
Market Control Market control is the way that a company will use profit and loss as a means to guide production and pricing. Allowing the market to control the way the company operates economically.

Clan ControlClan control does not primarily focus on business aspects of employment, rather the way employees conduct themselves interpersonally to work together in achieving goals for the company.

Management Audits Management audits are a way that a company can investigate on the effectiveness and efficiency within their own structure. Management audits can be internal or external and can be on leadership and management aspects of the company as well as on financial aspects of the company. Compare and Contrast Control Mechanisms

Organizations need control. There are many different types of control that organizations can use. Four of the organizations that can be used are market control, clan control, bureaucratic control and management audits. By comparing and contrasting these controls, companies can more effectively choose better approaches to their usage. Market control’s main outlook is on control of market or pricing. Bureaucratic control has the approach that focuses and relies on the administrative procedures, regulations and rules. This control standardization depends on the activities such as job descriptions of employee work behavior and administrative mechanisms. Clan control is used for employee behavior that is regulated through personal ethics and the organization’s culture. The difference with bureaucratic control is that clan control is based on an individual or a group which identifies the expected work performances. Organizations that often use teams also use clan control. If a change needs to be made with clan control, it takes a long time to do so. Management audits are audits that focus on the management evaluation and overall performance of the organization. Management audits are used to find ways of making improvements within the organization. Management audits can be external when an organization evaluates another. It can also be used internally when there are assessments of the company’s control process. This contrast of control measures reveals different uses for each mechanism. Control comes in various forms and is beneficial when used properly. Effectiveness of Control Mechanisms

The effectiveness of any control type will determine whether or not that control will be implemented into an organizations function. The four...

References: Arter, D.R. (2000). Quality digest. Quality Digest. Retrieved from
Bateman, T.S., & Snell, S.A. (2009). Management: Leading and Collaborating in the Competitive World (8th ed.) . Retrieved from University of Phoenix eBook Collection database.
Krentzman, J. (1997). The Force Behind the Nike Empire. [Magazine]. Stanford magazine(Jan. / Feb.).
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