Question

Describe how global companies can utilize the various types of control systems.

Answer 1

The ultimate aim of multinational companies was to earn maximum and make maximum profit from that.Therefore,organisations try to create strategies to achieve their organization’s vision, mission, and goals. This lead to the concept of organisational control systems. control systems are which allow the executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns.there are mainly three types of Control systems,

1.output control system

2.behavioral control system

3.clan control system

Output Control system:- Output control system mainly focuses on the results or a threshold limit which is succeeded or not.It focuses on measurable results within an organization which either may be number in a week or target price in a particular period of time or somewhat.for examples  number of plates an assembly line produces per week, and the number of vehicles a salesperson sells per month such that..In each of these cases, executives must decide what level of performance is acceptable, communicate expectations to the relevant employees, track whether performance meets expectations, and then make any needed changes.According to this multinational companies evaluate each salesperson on that companies and analyse their performance based on their work and also give their instruction if their works need improvisation.Output control system evaluates each and every persons ability to produce or sell a product on their means...it determines how an employee is valuable to that company.

By using output control system each company can make a threshold production and selling limit or profit percentage for a period of time and work based on that goal.Output Controll system manily focuses on results.

Behavioral Control System:- Behavioral control systems mainly focuses to use the employee as most effective.It  focuses on controlling the actions that ultimately lead to results. In these control system, it treats the employee and produce maximum profit from that by using him as most effectively on the company by regulating his attitude to some rules and procedures.various rules and procedures are used to standardize or to dictate behavior of the employee.By regulating through this principle the employee become most productive on his field and companies can earn maximum profit from their.The dress codes that are enforced within many organizations are one example of behavioral control. To try to prevent employee theft, many firms have a rule that requires checks to be signed by two people. Some employers may prefer non-smoking employees, as cigarette breaks can take as much as 40 minutes out of a workday, plus higher absenteeism and associated health costs for smokers.Companies introduce shifts for workers so that on the particular time of their work they give maximum effort for the company by this way companies can earn maximum profit.They introduces rewards and hike for their job and salary for their maximum effort and contibutions..By this way company can earn their goal by utilizing their employees in very productive way.

3.Clan Control System :- it is an informal type of control system. Specifically, clan control relies on shared traditions, expectations, values, and norms to lead people to work toward the good of their organization.In these control system the company promotes their employees to innovate new ideas and try to achieve that..By this way they can use their employees to create a new product which was not common in public and take the petant of that product and become a brand on that.In these companies, output is tough to dictate, and many rules are not appropriate.Creativity is very important on that companies.

Google is one of the main company use the clan control system effectively.They permitted 20% of theri employers working time for innovations of new idea and research on that cases.The company offers an ‘‘ideas mailing list’’ for employees to submit new ideas and to comment on others’ ideas. Google executives routinely make themselves available two to three times per week for employees to visit with them to present their ideas. These informal meetings have generated a number of innovations, including personalized home pages and Google News, which might otherwise have never been adopted.Google car the latest innovation one of from that.

Through these utilization of these 3 control systems the multinational companies can earn their goals and become a brand on their fields.