Business and Marketing: Modern Organizations’ Control Methods

Business and Marketing: Modern Organizations’ Control Methods

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Business and Marketing: Modern Organizations’ Control Methods

I am familiar with ABC International, an organization that utilizes a decentralized control method of management (Hoovers, 2015). In the organization, the decentralized control structure works by having senior management delegating control and decision-making powers to lower-level management within the organization.  It implies that the supervisors have the authority to settle on choices that affect their regions of obligation. A few choices can be pushed down to individual workers. However, those choices are usually restricted to consumptions identified with customer service. One unique characteristic of the type of control is that agreement makes decisions, and all work is considered teamwork (Kyriazoglou, 2012). Colleagues audit one another's work and are capable of a gathering for what each part creates. The ring-like administration structure is proposed to demonstrate the absence of hierarchy and to proof that all workers are at the same level.

ABC International has adopted the decentralized control due to:

• The need for individualized customer service
• The rising competition in global market hence the need to make myriads of decisions as a response remedy to competitors’  strategies
• The changing face of business due to innovations that the centralized control is not practical to use (Hoovers, 2015)

The associated advantages of the control method include high decision-making speed as the decentralized structure has minimum layers of bureaucracy compared to other control methods.  The method of control requires less number of middle-level managers as control is decentralized to supervisors. It promotes autonomous working between management and employees thus enabling the organization to be self-sufficient (Kyriazoglou, 2012).

However, there are few disadvantages associated with the control method such as procedural differences between relevant authorities with each level of control trying to make decisions that fit individual interests (Kyriazoglou, 2012).  It also results in problems of knowing the boundaries of control and management of the executive, middle-level and lower-level management as the starting point, and end point of every management level is hard to determine.