It is primarily concerned with whether the organization is doing the right things.

The process of monitoring and concerning a firms strategy and performance

The ability to respond EFFECTIVELY to environmental change. "Doing the right things" (effective)

The appropriate balance and alignment among a firms culture, rewards, and boundaries.Doing things right (EFFICIENT)

Traditional Control System

1. Strategies are formulated and top management sets goals2. Strategies are implemented3. 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

Uses formal rules, standards, hierarchy, and legitimate authority. Works best where tasks are certain and workers are independent

Uses prices, competition, profit centers, and exchange relationships. Works best where tangible output can be identified and market can't be established between parties

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

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"

A method of organizational control in which a firm influences the actions of employees through culture, rewards, and boundaries. Focused on "doing things right" (adsbygoogle = window.adsbygoogle || []).push({});

A system of shared values and beliefs that shape a company's people, organizational structures, and control systems to produce behavioral norms.

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