Business Control Mechanisms
Control Mechanisms
Control mechanisms are ways for businesses to have measures of control over their business environment. Controls are implemented in organizations to give guidance and keep the organization focused. McDonald’s, one of the most successful fast food organizations in the world uses multiple control mechanisms to ensure the individual success of their franchise restaurants. Some of the controls that McDonald’s uses include bureaucratic, market, product, and architectural control. The implementation of these controls has both positive and negative effects on the organization.
Bureaucratic control is a system by which management uses rules and regulations to control performance. Some of the things that can be controlled in this way at the McDonald’s restaurant are budgets, dress code, uniforms, job descriptions, menus, cleanliness, pay, statistical reports, hair cut style or nets, hours of operation, and performance goals. It does not matter to which restaurant customers go anywhere in the world, the workers are neat, well groomed, and dressed the same for that particular region. The budgets are the same for all stores in each region, and statistical reports for each store are reported in the same manner, with exactly the same forms.
Market control is another mechanism McDonald’s uses to ensure each restaurant’s success. One way this is done is by stabilizing the prices of the food items being sold in each region. The price of a Big Mac is the same in Mesa as it is in Prescott. Another way is by controlling the geographical location of each store. Research is done to make sure there are enough customers in a given area, or enough customers passing through the area to warrant a restaurant. Boundaries are also set for each store so they do not infringe on each others territory.
Another control mechanism used by McDonald’s is product control. McDonald’s controls each step of the operation from beginning to end. All potatoes used in the manufacture
Control mechanisms are ways for businesses to have measures of control over their business environment. Controls are implemented in organizations to give guidance and keep the organization focused. McDonald’s, one of the most successful fast food organizations in the world uses multiple control mechanisms to ensure the individual success of their franchise restaurants. Some of the controls that McDonald’s uses include bureaucratic, market, product, and architectural control. The implementation of these controls has both positive and negative effects on the organization.
Bureaucratic control is a system by which management uses rules and regulations to control performance. Some of the things that can be controlled in this way at the McDonald’s restaurant are budgets, dress code, uniforms, job descriptions, menus, cleanliness, pay, statistical reports, hair cut style or nets, hours of operation, and performance goals. It does not matter to which restaurant customers go anywhere in the world, the workers are neat, well groomed, and dressed the same for that particular region. The budgets are the same for all stores in each region, and statistical reports for each store are reported in the same manner, with exactly the same forms.
Market control is another mechanism McDonald’s uses to ensure each restaurant’s success. One way this is done is by stabilizing the prices of the food items being sold in each region. The price of a Big Mac is the same in Mesa as it is in Prescott. Another way is by controlling the geographical location of each store. Research is done to make sure there are enough customers in a given area, or enough customers passing through the area to warrant a restaurant. Boundaries are also set for each store so they do not infringe on each others territory.
Another control mechanism used by McDonald’s is product control. McDonald’s controls each step of the operation from beginning to end. All potatoes used in the manufacture
References: Bateman, T. S., & Snell, S. A. (2009). Management: Leading and collaborating in the competitive world (8th ed.). New York, NY: McGraw-Hill/Irwin. Bizquest. (2010). Bizquest. Retrieved from http://www.bizquest.com/franchise-for-sale/McDonald’s-Restaurants-franchise?gclid=CKCLhIGG5aQCFRhg2godgwk3Jw McDonald’s. (2010). McDonald’s. Retrieved from http://www.McDonald’s.com/us/en/home.html