CONTROL | Explain briefly the two broad options managers have with respect to control system

Explain briefly the two broad options managers have with respect to control system.

ANSWER

Managers have two broad options with respect to control systems. First, they can manage in ways that allow and expect people to control their own behavior. This puts priority on internal control, or self-control. Second, they can structure situations to make sure things happen as planned. This is external control, and the alternatives include bureaucratic or administrative control, clan or normative control, and market or regulatory control. Effective control typically involves a mix of these options.

Self-control: Managers can take advantage of this human capacity for self-control by unlocking and setting up conditions that support it. This means trusting people to be good at self-management, allowing and encouraging them to exercise self-discipline in performing their jobs. Any workplace that emphasizes participation, empowerment, and involvement will rely heavily on self-control.

Bureaucratic control: This form of external control uses authority, policies, procedures, job descriptions, budgets, and day-to-day supervision to make sure that people act in harmony with organizational interests.

Clan control: This form influences behavior through norms and expectations set by the organizational culture. Sometimes called normative control, it harnesses the power of group cohesiveness and collective identity.

Market control: This form is essentially the influence of customers and competition on the behavior of organizations and their members. Business firms show the influence of market control in the way that they adjust products, pricing, promotions, and other practices in response to customer feedback and what competitors are doing.

Source: Management, 11th Edition & 12th Edition- John R. Schermerhorn