Positive and Negative Reactions to the Use of These Controls
Within the Starbucks organization control mechanisms such as, bureaucratic control, market control and clan control are put to use daily. With any type of control mechanism there are positive and negative aspects to each. Let us look at the positive and negative reactions to control mechanisms within the Starbucks organization starting with bureaucratic control.
The use of bureaucratic control for Starbucks is implemented and managed on the executive level. At this level, bureaucratic control is used by management to control employee behavior through a system of rewards and formal procedures. One way Starbucks implements its formal procedures is through the control of franchising. Howard Schultz the owner and creator of Starbucks is quoted on franchising by stating, “Starbucks remain steadfastly opposed to franchising, so that the company could control the quality of its products and build a culture common to all stores”(MHHE). Starbucks uses bureaucratic control positively by maintaining control over its product and location sites. Negatively this can impact bureaucratic control when it comes to franchising. Unlike Starbucks, McDonalds encourages franchising. It is through the independent owners of McDonald’s franchises that creative and new products are made and added to the companies menu. Many ideas for new items on the menu come from the franchisees responding to customer demand (MCDONALDS.CO.UK)
Market control is another type of control mechanism used by the Starbucks organization. Market control is unique in of itself because it deals primarily with control function of management. This type of control is used by Starbucks when it comes to the area involved with staffing. Starbucks can hire ideal workers by offering higher than market average pay to its employees. By controlling the market pay scale, Starbucks can use market control in a positive aspect for themselves. Market control while helpful to Starbucks can impact them negatively.
The use of bureaucratic control for Starbucks is implemented and managed on the executive level. At this level, bureaucratic control is used by management to control employee behavior through a system of rewards and formal procedures. One way Starbucks implements its formal procedures is through the control of franchising. Howard Schultz the owner and creator of Starbucks is quoted on franchising by stating, “Starbucks remain steadfastly opposed to franchising, so that the company could control the quality of its products and build a culture common to all stores”(MHHE). Starbucks uses bureaucratic control positively by maintaining control over its product and location sites. Negatively this can impact bureaucratic control when it comes to franchising. Unlike Starbucks, McDonalds encourages franchising. It is through the independent owners of McDonald’s franchises that creative and new products are made and added to the companies menu. Many ideas for new items on the menu come from the franchisees responding to customer demand (MCDONALDS.CO.UK)
Market control is another type of control mechanism used by the Starbucks organization. Market control is unique in of itself because it deals primarily with control function of management. This type of control is used by Starbucks when it comes to the area involved with staffing. Starbucks can hire ideal workers by offering higher than market average pay to its employees. By controlling the market pay scale, Starbucks can use market control in a positive aspect for themselves. Market control while helpful to Starbucks can impact them negatively.
References: www.mhhe.com/business/management/.../starbucks-1.html http://www.mcdonalds.co.uk/static/pdf/aboutus/education/mcd_franchising.pdf