Answer to Question #278204 in Marketing for Jen

Question

Describe the organizational architecture that a transnational firm might adopt to reduce the cost of control.

Answer 1

By installing these control systems when and where they are needed, a company can lower its control costs. Personal controls are commonly utilized in small businesses, but the concepts apply to all businesses. Managers will gain a better knowledge of individual and overall performance by directly overseeing subordinates' behavior. When employees trust in the firm's norms and value systems, cultural controls are in place. Managers will have a guideline of boundaries to keep within if bureaucratic controls are in place, whether it's their subunit's budget or how much capital they may spend in a specific time period. The output controls and the bureaucracy controls are in sync. Output controls define profitability, productivity, growth, market share, and quality as targets for subunits to meet. The targets specified for subunits are compliant with the firm's policies and processes.To cut expenses, a multinational corporation should implement greater bureaucratic and output constraints. The ultimate goal is to gain cultural control, but this will be impossible to achieve without a robust and welcoming work environment.