Discuss the types of control you and your friend would use and the control processes the two of you would implement as new owners of the firm.

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Discuss the types of control you and your friend would use and the control processes the two of you would implement as new owners of the firm.

                               

CONTROL PROCESSES THAT SHOULD BE IMPLEMENTED

 Cybernetic control system

Is defined as a self regulating system in which standards of performance are determined, once operating can automatically monitor the situation and take corrective action. (Management Pacific Rim focus Bartol, Tein, Matthews, Martin 4th edition). Cybernetic control makes performance comparisons between the standards and actual performance, and feedback provides information on the variances.

The cybernetic model of control is associated with delivering efficiency in mechanistic organizations (Brownell 1987) that are characterized by formal rules, standardized operation procedures, and routines. This type of control  is best suited for the firm as control reduces human discretion and so saves time. Cybernetic control is best suited for large inventories as it can place orders when inventory reaches a specified level (Bartol et al 4th edition). It simply isn’t possible for managers to carry out this process in a large inventory

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MANAGERIAL APPROACHES TO IMPLEMENTING CONTROLS

Bureaucratic control approach

Bureaucratic control is the use of written rules, policies, hierarchy of authority, standardization, etc., to standardize and control employee behavior. (Bartol et al). this type of approach gives emphasis on fixed duties and narrow subtasks and are external to the person. All of these conditions meeting with the  structure of the firm can help it to run smoothly it has disadvantages. Bureaucratic control hinders innovation and inhibits rapid change. For this reason bureaucratic control should be combined with clan control.

Clan control

According to ‘Bartol et al’ clan control uses ...

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