Dirkjan: Created page with "In Management Control '''''Cultural controls''''' or mutual-monitoring tap into� social pressure and group norms and values. Cultural controls are ef..."

2020-08-25T08:13:37Z

Created page with "In Management Control '''''Cultural controls''''' or mutual-monitoring tap into� social pressure and group norms and values. Cultural controls are ef..."

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In [[Management Control|Management Control]] '''''Cultural controls''''' or mutual-monitoring tap into� social pressure and group norms and values. Cultural controls are effective because members� of a group have emotional ties to one another. Cultures are built on shared traditions;
* norms;
* beliefs;
* ideologies;
* attitudes;
* ways of behaving, etc.

Five ways to shape culture:
* '''Codes of conduct'''
** Codes of ethics; corporate credos, mission statements, etc.;
** Formal written documents with broad statements of corporate�values, commitments to stakeholders, and the ways in which�top management would like the firm to function.
** Fundamental guiding principles of the company.
* '''Group-based rewards'''
** e.g., bonus, profit-sharing, employee ownership of company stock;
** Cultural controls rather than results controls because the link between individual performance and rewards is weak.
* '''Intra-organizational transfers'''
** Improve the socialization of individuals in an organization and�inhibit the formation of incompatible goals and perspectives;
** Improve identification with the organization as a whole as�opposed to subunit identification.
* '''Physical and social arrangements'''
** e.g., office plans, interior decor, dress codes and vocabulary, etc.
* '''Tone at the top'''
** Top management statements must be consistent with the culture�they are trying to create, and importantly, their behaviors should�be consistent with their statements.

[[Category:mbi]]

[[Category:M18]]

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Cultural Controls - Revision history

Dirkjan: Created page with "In Management Control '''''Cultural controls''''' or mutual-monitoring tap into� social pressure and group norms and values. Cultural controls are ef..."