Discuss the differences between informational control and behavioural control and when each is appropriate.

What will be an ideal response?


Adapting to and anticipating both internal and external environmental change is an integral part of strategic control. The relationships between strategy formulation, implementation, and control are highly interactive, as suggested by Exhibit 9.2. The exhibit also illustrates two different types of strategic control: informational control and behavioral control. Informational control is a method of organizational control in which a firm gathers and analyzes information from the internal and external environment in order to obtain the best fit between the organization's goals and strategies and the strategic environment. It is primarily concerned with whether the organization is doing the right things. Behavioral control is a method of organizational control in which a firm influences the actions of employees through culture, rewards, and boundaries. It asks if the organization is doing things right in the implementation of its strategy. Both the informational and behavioral components of strategic control are necessary, but not sufficient, conditions for success. What good is a well-conceived strategy that cannot be implemented? Or what use is an energetic and committed workforce if it is focused on the wrong strategic target?

Business

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