Control | Controlling, 3 Approaches to design control system, and effectiveness

Define controlling within an organization. In a brief essay, list and describe characteristics of the three approaches to designing control systems that have been identified. What determines the effectiveness of any control system?

Answer

Control is the process of monitoring, comparing, and correcting work performance. 

Three different types of control systems have been identified:  market control, bureaucratic control, and clan control. Market control emphasizes the use of external market mechanisms, such as price competition and relative market share, to establish the standards used in the control system. Bureaucratic control systems emphasize organizational authority and rely on administrative rules, regulations, procedures, and policies. Under clan control, employee behaviors are regulated by shared values, norms, traditions, rituals, beliefs and other aspects of the organization’s culture.  Regardless of the design, the effectiveness of any control systems is determined by how well it facilitates goal achievement.

Source: Management, 11e (Robbins/Coulter)