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The complexity and unpredictability of the contemporary global competitive environment call for a different approach to organizational control and management. From the traditional approach of overemphasizing task specialization, standardization, and rigid control, today's strategic control involves the use and balancing of three separate but interrelated elements, namely, culture, rewards, and boundaries. Each element plays a different role in the development and implementation of an effective system of strategic controls. While culture promotes individual identification with the organization and its objectives, rewards and incentives serve to align individual and organizational goals. However, to achieve a successful organization development effort, the delicate balance and creative tension among culture, incentives, and controls must be maintained at all times. Get Full Access Gale offers a variety of resources for education, lifelong learning, and academic research. Log in through your library to get access to full content and features! Access through your library Copyright: COPYRIGHT 1997 Elsevier Science Publishers Source CitationGale Document Number: GALE|A19774022 We’ve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. You can read the details below. By accepting, you agree to the updated privacy policy. Thank you! View updated privacy policy We've encountered a problem, please try again.  BUSI 400: Chapter 9 Strategic Control and Corporate Governance Two central aspects of strategic control::: 1) informational control (ability to respond effectively to environmental change). 2) behavioral control (the appropriate balance and alignment among a firms culture, rewards, and boundaries) Two types of control systems : traditional and contemporary Traditional approach to strategic control::: sequential::: 1) strategies are formulated and top management sets goals. 2) strategies are implemented. 3) performance is measured against the predetermined goal set Adapting to and anticipating both internal and external environmental change is an integral part of strategic control Contemporary approach to strategic control:: involves informational control and behavioral control Informational control = primarily concerned with whether or not the organization is ‘doing the right things’. Deals with the internal environment as well as the external strategic context, addresses the assumptions and premises that provide the foundation for an organizations strategy Behavioral control = asks if the organization is ‘doing things right’ in the implementation of its strategy Contemporary control systems must have 4 characteristics to be effective::: 1) focus is on constantly changing info that has potential strategic importance, 2) info is important enough to demand frequent and regular attention from all levels of the organization. 3) data and information generated are best interpreted and discussed in face-to-face meetings. 4) control system is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans Behavioral control is focused on implementation, effectively implementing strategy requires manipulating 3 key control levers:: culture, rewards, and boundaries Organizational culture = a system of shared values (what is important) and beliefs (how things work) that shape a company’s people, organizational structures, and control systems to produce behavioral norms (way we do things around here) Reward systems = reward and incentive systems represent a powerful means of influencing an organizations culture, focusing efforts on high priority tasks, and motivating individual and collective task performance. Reward system (by specifying who gets rewarded and why) is an effective motivator and control mechanism To be effective, incentive and reward systems need to reinforce basic core values, enhance cohesion, and commitment to goals and objectives, and meet with the organizations overall mission and purpose Which of the following is an example of how organizational culture exerts behavioral control quizlet?Which of the following is an example of how organizational culture exerts behavioral control? Culture sets implicit boundaries that encourage individual identification with the organization objectives.
Which type of contemporary strategic control focuses on whether the organization is doing things right?Behavioral Control: Asks if the organization is "doing things right" in the implementation strategy. 1. Focus on constantly changing information that has potential strategic importance 2.
Which of the following duties are primary responsibilities of a board of directors check all that apply?Boards have 3 primary roles: to establish policies, to make significant and strategic decisions, and to oversee the organization's activity.
What happens when subcultures emerge that have shared values opposite from the dominant culture of an organization?Culture sets implicit boundaries that encourage individual identification with the organization objectives. What happens when subcultures emerge that have shared values opposite from the dominant culture of an organization? Individuals lose sight of overall goals and begin working at cross-purposes.
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Behavioral control is primarily concerned with whether the organization is doing the right things
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