On which of the following control systems do the top managers want to focus?
Adirondack Accounting Associates is an organization that has undergone a dramatic transformation over the last few years. Earlier, employees were managed using a wide array of rules, regulations, and procedures. Offending employees were punished for their violations. Today, under the leadership of the new CEO, Agatha, employees are encouraged to make decisions and come up with innovative solutions to problems they encounter. Most employees are much more satisfied under the new arrangement. The group is much more cohesive and is committed not only to the overall success of the organization but also to its standards and reputation. Despite the improved employee morale under Agatha, the other top managers have expressed a strong desire to reign in what they see as excessive employee freedoms and institute more formalized rules. Meanwhile, the middle managers have expressed their desire to base operations on costs and prices, and outsource certain tasks if it is more profitable. Agatha discusses the issue with an outside consultant, who recommends that the company focus on creating a strong culture with values that all employees accept and understand.
A) clan
B) market
C) bureaucratic
D) democratic
E) informal
C) bureaucratic
The top managers are favoring a bureaucratic control system because of its use of rules, standards, and regulations to guide performance. Furthermore, budgetary control ties together feedforward, concurrent, and feedback control, which are all part of a bureaucratic control system.
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