Balancing Organizational Control: Six Influencing Factors PPT
This PPT slide, part of the 31-slide Levers of Control (LoC) PowerPoint presentation, presents the "Levers of Control Model," emphasizing the need for a balanced equilibrium within organizations, influenced by 6 critical factors. Each factor plays a distinct role in shaping how control mechanisms operate and adapt.
Culture is highlighted as a foundational element. It affects how employees engage with control systems, with different cultural values leading to varying control requirements. A people-centric culture may prioritize different controls compared to a results-driven one, indicating the need for tailored approaches.
Strategy is another key factor. The strategic direction of an organization directly impacts the choice of control systems. Organizations pursuing competitive strategies must adopt unique control mechanisms that align with their specific objectives, suggesting that strategy and control are closely intertwined.
Scope addresses the challenges posed by large organizations. The complexity and size can lead to operational detachment among business units, complicating the balance of control. This necessitates customized control systems that cater to the unique needs of different divisions, ensuring alignment across the organization.
External Environment refers to the unpredictable nature of market dynamics. Organizations must remain agile, adapting their control mechanisms to respond to economic, political, and other external shifts. This highlights the importance of flexibility in control systems.
Technology's rapid evolution also demands constant adjustments in control systems. Organizations must stay ahead of technological advancements to effectively monitor and manage their operations.
Lastly, Organizational Structure influences how power and accountability are distributed. Whether centralized or decentralized, the structure affects how control levers are implemented and the autonomy of divisions.
Finding the right balance among these factors is essential for effective and adaptive control systems, ensuring organizations can navigate complexities and drive performance.
This slide is part of the Levers of Control (LoC) PowerPoint presentation.
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