Advantages and disadvantages of control systems in business management

Article link:

http://www.helium.com/items/1811312-advantages-and-disadvantages-of-control-systems-in-business-management

By: Stephanie Mayes

Summary:

·         Types of control systems are:

o    Bureaucratic control – uses rules, standards and authority. Specific tasks for different employees. Lots of businesses use this form of control.

§  Advantages – less confusion about making decisions, very clear management rules and standards

§  Disadvantages – no room for business to change and grow, employee morale, undervalued employees, strictness

o    Market control – uses prices and competition. Tangible control. Not a good choice because it causes security control issues.

§  Advantage – flexible

§  Disadvantages – too much value change because companies are bought and sold, employees are affected

o   Clan control – uses culture, standards, trust, and beliefs. This is good for innovations as each employee is a decision maker. There is no one that is strictly a decision maker

§  Advantages – more chances of innovation, ideas

§  Disadvantages – lack of standard control system and strictness means employees can slack

Impact on business:

                Each business needs to decide which type of control will work best for their processes. Management decision making is very important as well as choice of employees to implement the control systems. Control systems are very valuable and with an understanding of each type, a better choice can be chosen.