Control Mechanisms Executive Summary
Dark Angel
University Of Phoenix
Control Mechanisms Executive Summary
Control systems are established to detect and correct deficiencies in the results of planned activities. There are three major types of control systems – bureaucratic (formal), market, and clan. Bureaucratic control uses formal rules, standards, hierarchy, and legitimate authority. Market control uses prices, competition, profit centers, and exchange relationships. Clan control involves culture, shared values, beliefs, expectations, and trust. (Bateman, 2003). This summary analyzes the executive control mechanisms in four organizations.
Bureaucratic Control Systems
Management Audits
External Audits. OSI conducts external audits of its competitors in order to enhance its strategic plan. This information guides OSI in expansion to remain competitive.
Internal Audits. OSI conducts internal audits to assess financial stability, sales effectiveness, earnings growth, public relations, and civic responsibilities. The audit reviews OSI’s past and present to predict its future.
Budgetary Controls
OSI does not operate within budgetary controls. Most of OSI’s business involves providing services. OSI’s coordination of human capital and clients allows the company to provide service to the client with little or no capital involved. Once the services have been provided, OSI bills the client and pays the employees 66% of the client’s payment.
Financial Controls
Branch offices cannot make purchases over $10,000.00 a ...