Chapter 9 Flashcards
Strategic Control
The process of monitoring and concerning a firms strategy and performance
Informational
The ability to respond EFFECTIVELY to environmental change.
“Doing the right things” (effective)
Behavioral
The appropriate balance and alignment among a firms culture, rewards, and boundaries.
Doing things right (EFFICIENT)
Traditional Control System
- Strategies are formulated and top management sets goals
- Strategies are implemented
- Performance is measured against the predetermined goal set
Downside: wait until the end to check if it worked. Wasting resources, sometimes it’s too late
Bureaucratic control
Uses formal rules, standards, hierarchy, and legitimate authority. Works best where tasks are certain and workers are independent
Market control
Uses prices, competition, profit centers, and exchange relationships. Works best where tangible output can be identified and market can’t be established between parties
Clan control
Involves culture, shared values, beliefs, expectations, and trust. Works best where there is “no one best way” to do a job and employees are empowered to make decisions
Informational control
A method of organizational control in which a firm gathers and analyzes information from the internal and external environment in order to obtain the best fit between organizations goals and strategies and the strategic environment.
Primarily concerned with whether or not the organization is “doing the right things”
Behavioral control
A method of organizational control in which a firm influences the actions of employees through culture, rewards, and boundaries.
Focused on “doing things right”
Organizational culture
A system of shared values and beliefs that shape a company’s people, organizational structures, and control systems to produce behavioral norms.
Implicit boundaries
Unwritten standards of acceptable behavior (dress, ethical matters)
Sustaining an effective culture
Must be: cultivated, encouraged, fertilized
Maintaining an effective culture:
Storytelling
Rallies or pep talks by top executives
Example: Mary Kay
