Control Mechanisms
Control mechanisms are ways for businesses to have measures of control over their business environment. Controls are implemented in organizations to give guidance and keep the organization focused. McDonald’s, one of the most successful fast food organizations in the world uses multiple control mechanisms to ensure the individual success of their franchise restaurants. Some of the controls that McDonald’s uses include bureaucratic, market, product, and architectural control. The implementation of these controls has both positive and negative effects on the organization.
Bureaucratic control is a system by which management uses rules and regulations to control performance. Some of the things that can be controlled in
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The positive reactions of the controls from corporate are having control, consistency, and location, location, location. Because of the research corporate does, which they do a lot of there is a better chance of success for each restaurant. The reason for this is that what the Corporation looks for is the location which will end up making it right from the beginning. For the franchisee the positive aspect is that corporate has done all the homework. By them doing their homework it has benefited them every time. They do not have to worry about the quality of supplies, or about the shipping process. The reason for this is that again all the work has been done for them. Being a franchisee owner has its benefits because they end up just walking in and running the business, but it also has its negatives, the franchisee needs to do the hiring and training that need to be done. Also they are at the mercy of the corporation looking at all the things that the franchisee owner is doing, in other words the feeling that big brother is watching over your shoulder. Also as a franchisee they tend to ignore many of the suggestions that are given by the corporation which sometimes gets them in a bit of trouble.
Control mechanisms indeed give organizations measures of positive control over processes, employees, and, hopefully, outcome. On the other hand, control mechanisms also have affects on
The control structure is the means used to ensure that organization members are doing what they are supposed to do; it describes the nature of and methods for communication in an organization. Due to lack of a structural job design and absence of coordination within departments and lack of autonomy employees are irresponsible and do not perform the task to
“The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.” The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published the Internal Control–Integrated Framework in 1992. As summarized above one can see the importance of the implementation of an effective control environment, as it sets the foundation for the other 4 components of internal control. The control environment is made up fundamental smaller components. The ones that were particularly relevant to BMIS are the use of board of directors and audit committee, management philosophy and operating style, and human resource policies and practices. If management doesn’t prioritize control, then the rest of the organization will not put precedence on following policies and procedures either. This was clearly evident at Bernard L. Madoff Investment Securities LLC (BMIS), and ultimately led to their downfall.
1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and
As mentioned the author attempted to accomplish the above goal through a field study where the management control systems on a restaurant chain was assessed. That being said in order to determine if the motivation of the article was achieved is to analyze the
Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).
The second aspect of management used to investigate the issue is Controlling. Control is a concern that is facing every manager in every organisation today. Many businesses continually look to improve relationships between all levels of staff in order for a healthy working environment. To effectively control a business the organisation requires information about
A concept we learned about in Business Leadership that relates to the main point in this book is control systems. We looked at the importance of control in management and learned about various different systems. In this book, systems are shown to greatly help customer service. Systems are predetermined ways to get a specific result and still ensure consistency. Andrew, the plant manager said “Systems give you a floor, not a ceiling”. Thus, a system is the sort of thing you build on, a starting point. An external control measure, for example, involves
Another advantage of a franchise is that you use a recognized business name and reputation also the franchise benefit from advertising or promoting. The franchise has to share all the profit with the franchisor while Tesco which is a public limited company have to share their profit between a great numbers of people. Shares can be advertised and sold through the stock exchange. Another advantage of a public limited company it has more chance to become successful because they have thousand people who working for it, with many skills, idea and experiences. Franchisee is different from a public limited company has it is dependent on the franchisor skills. If the franchisor goes out of business or gets a bad reputation, this will cause problems in the business.
Discuss the corporate control of your business. Explain why your business in Mexico is exposed to agency problems.
Controlling is monitoring the performance of the organization, identifying deviations between planned and actual results, and taking corrective action when necessary. With all these four functions that are involved in the process of management, if all are followed correctly the organization will be properly ran and will have few complications.
|Franchisee |Cons |Buy back of franchisees operations to promote change in distribution channel, had same result - negative effect of|
Is the last process of management operations, which depends on the imposition of control and control of the workflow through control and ensure its implementation.
The purpose of this paper is to analyze a case study related to issue of control and how organizations can utilize different approaches of control in order to improve quality and performance in all arenas, domestic and global. The focus of this case revolves around Lincoln Electric, an Ohio based company that has set the bar for how to develop and implement a successful management system. This paper will use the Lincoln Electric case analysis to present recommendations on how managers can use control methods to enhance employee performance, increase employee participation and empowerment, and improve organizational quality in
This paper determines the effects contextual factors have on the design of Management Control Systems. The paper firstly discusses what is meant by “Management Control Systems” and what is expected of “Management Control Systems”. Contingency-based research is outlined and five key contextual variables are identified for discussion. The five factors (external environment, technology, structure and size, strategy and national culture) are assessed to determine their impact on design and implementation of management control systems.
A good control system provides timely information to the manager which is very much useful for taking various decisions. Control simplifies supervision by pointing out the significant deviations from the standards of performance. It keeps the subordinates under check and brings discipline among them.