CIMA E2 Syllabus B. Managing people performance - Control by organisation - Notes 2 / 19
Ouchi and Child have identified 4 types of organisational control:
Personal centralised control - This type of control is found in small businesses where the owner is the manager and makes all the decisions.
Authority is based on the leader's charisma. They reward and punish the staff personally.
Bureaucratic control - This type of control is achieved by establishing a system of rules, procedures, standardisation and hierarchy. For example, in a government department.
Reward and punishment systems are used to reinforce the control strategy.
Output control - This type of control is based on output standards and targets.
There is little in the way of control from management as employees know the level of performance required to meet the targets set.
It is most appropriate where there is a need for quantifiable and simple measures of organisational performance. For example, in a large manufacturing company.
Clan/Cultural control - This type of control is based on the shared belief that all team members are equally valued and should be respected. For example, in a firm of accountants.
Employees strongly identify with management goals and have the necessary skills and experience, they are given the freedom of choosing how to complete their allocated tasks.