Control Mechanism
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Control Mechanism
Control is considered one of the four fundamental functions of management along with planning, organizing, and leading (Bateman & Snell, 2009). This involves monitoring and evaluating performances as well as implementing necessary changes to best facilitate the expectations of the organization. The fundamental function of management ensures an organization is properly employing the available resources and meeting the short and long term goals with the focus upon quality of work and safety. The concept of controlling mechanisms is considered a means of complying with the established plans, standards, and criteria in conjunction with the organizational goals and values and accomplished through the following strategies: bureaucratic, market, and clan. Bureaucratic control is the use of rules, regulations, hierarchy authority, written documentation, and reward systems to influence behavior. It also includes access performances using tools such as budgets, statistical analysis, reports, and performance evaluations. Bureaucratic control can be considered when behavior can be managed with market or price mechanisms. Market control involves the use of pricing mechanisms to regulate activities within an organization similar to economic transactions evaluated on the basis of profit and loss. Clan control relies on values, beliefs, corporate culture, shared norms and informal relationships to regulate employee behaviors and facilitate fulfilling the organizational goals or objectives. Businesses that use clan control require high degrees of trust among their employees because there is minimal direction and standards. The employees are responsible for defining and establishing the expectations along with the related standards and procedures. Businesses, such as the Starbucks Coffee Company, must establish and employ controlling mechanisms to best facilitate their short and long term goals. Starbucks Coffee Company effectively and efficiently manages the 9,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim (Cooking.com, 2011).
The four types of controlling mechanisms considered and utilized by the Starbucks Coffee Company include the use of bureaucratic controls, clan controls, market controls and management audits. Coffee is the second most traded product worldwide (Cooking.com, 2011). The sale of specialty coffees is a $9 billion dollar industry and the Starbucks Coffee Company implements the mentioned controlling mechanism through internal controls, technology, social and cultural considerations. An internal control, by definition, is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. The process provides a safeguard against theft and unauthorized use, acquisition, or disposal of allocated resources and revenues. The bureaucratic controls