Most Managers Know That What Cannot Be Managed Cannot Be

Most Managers Know That What Cannot Be Managed Cannot Be Controlled C

Using the Argosy University online library resources and the Internet, research bureaucratic and clan control mechanisms and then complete the following: Compare and contrast bureaucratic and clan control systems. Give an example of each. Discuss the impact of each system on people and performance at your current or previous place of employment. Identify the type of tasks best suited for each control system, giving reasons to support your response. Write a one- to two-paragraph response for each point.

Paper For Above instruction

The management control systems within organizations are crucial for guiding behavior, ensuring accountability, and achieving strategic objectives. Two prominent types of control mechanisms are bureaucratic and clan control systems, each with distinct characteristics, advantages, and limitations. A comprehensive understanding of these systems enables managers to select and implement the most effective controls suited to specific organizational contexts and tasks.

Bureaucratic Control Systems are formal, rule-based controls that rely on standardized procedures, policies, and hierarchies to regulate employee behavior. These controls operate through clear directives, performance standards, and oversight mechanisms such as audits and evaluations to ensure compliance. An example of bureaucratic control can be observed in government agencies or large corporations where strict policies govern employee conduct and operational procedures. For instance, a government department may enforce strict reporting protocols, standardized approval processes, and adherence to regulations to maintain consistency and accountability.

The impact of bureaucratic control systems on people typically involves a structured environment with clearly defined roles and responsibilities, which can increase efficiency and uniformity. However, these systems may also lead to decreased flexibility and innovation, as employees may feel constrained by rigid rules and procedures. Performance in bureaucratic systems is often measured objectively through compliance metrics and adherence to established standards. This control mechanism is particularly effective for routine, repetitive tasks where consistency and compliance are critical, such as manufacturing or regulatory compliance operations.

Clan Control Systems are informal, values-based controls rooted in organizational culture, shared norms, and mutual trust among members. These controls rely on socialization, peer influence, and a sense of belonging to guide employee behavior and decision-making. An example of clan control is observed in startup companies or companies emphasizing innovation and collaboration, where interpersonal relationships and shared beliefs shape employee conduct. A tech startup that fosters a culture of trust and shared vision exemplifies clan control, where employees are motivated by common goals and organizational values rather than strict rules.

Clan control systems tend to foster a positive work environment, promoting motivation, commitment, and teamwork among employees. They often lead to higher job satisfaction and increased creativity, as employees feel trusted and valued. However, the informal nature of clan controls can pose challenges in ensuring consistency and managing performance, especially in larger or more complex organizations. Performance measurement in clan-controlled environments is often subjective, based on peer evaluations and alignment with organizational values. Clan controls are best suited for innovative tasks, strategic decision-making, and roles requiring high levels of creativity and collaboration, such as product development or research teams.

In my previous experience working at a technology firm, bureaucratic controls were prevalent in routine administrative processes, such as compliance documentation and expense approvals, which required strict adherence to policies. Conversely, clan controls were evident in the development teams, where shared values of innovation, trust, and collaboration motivated employees and shaped behaviors beyond formal rules. The bureaucratic system ensured consistency and compliance, while the clan system fostered engagement and creativity among employees. Each system influenced performance differently: bureaucratic controls maintained standards for routine tasks, while clan controls enhanced innovation and team cohesion for strategic projects.

In conclusion, both bureaucratic and clan control systems serve vital roles within organizations but are suited to different types of tasks. Bureaucratic controls excel in environments requiring standardization, compliance, and efficiency for routine operations. In contrast, clan control is more effective in dynamic, innovative settings where trust, shared values, and collaboration drive performance. Successful organizations often integrate both systems, leveraging formal controls for stability and informal controls for adaptability and innovation. The key to effective management lies in understanding the nature of tasks and selecting control mechanisms that align with organizational goals and culture.

References

  • Ouchi, W. G. (1979). A conceptual framework for the design of organizational control mechanisms. Management Science, 25(9), 833-848.
  • Vince, R. (2014). Managing Organizational Culture. Routledge.
  • Simons, R. (1995). Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal. Harvard Business Review Press.
  • Anthony, R. N., & Govindarajan, V. (2007). Management Control Systems (12th Edition). McGraw-Hill/Irwin.
  • Mohr, L. B. (1982). Explaining Organizational Behavior. Jossey-Bass.
  • Merchant, K. A., & Van der Stede, W. A. (2012). Management Control Systems (3rd Edition). Pearson.
  • Burns, T., & Stalker, G. M. (1961). The Management of Innovation. Tavistock Publications.
  • Daft, R. L. (2015). Organization Theory and Design (12th Edition). Cengage Learning.
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.
  • Robbins, S. P., & Coulter, M. (2018). Management (14th Edition). Pearson.