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  • Essay / Control Mechanisms - 1536

    Control MechanismsControl mechanisms are necessary for the smooth running of any business and ensure that things go as planned. These controls help the company determine the activity and direction of its employees in a way that helps it achieve its goals (Bateman and Snell, 2007). There are three basic types of control: bureaucratic, market and clan. Bureaucratic control consists primarily of formal rules and regulations that establish authority, set standards, and regulate behavior (Bateman & Snell). Market control regulates activities by examining competition, analyzing profits and losses, and using economic information (Bateman & Snell). Clan control differs from the previous two controls in that there are no formal rules, regulations, or analyses. Clan control operates under the assumption of common goals, values, and trust between individuals and the organization (Bateman & Snell). Like most businesses, the Coca-Cola Company has a system of control mechanisms in place to help guide the activities of its employees. . One of the bureaucratic control mechanisms used by Coca-Cola is auditing. Coca-Cola's audit committee charter is responsible for ensuring the integrity of financial statements, overseeing internal financial controls, and evaluating the company's internal audit function (The Coca-Cola Company, 2008 ). Another bureaucratic control is the Code of Business Conduct, which guides employee actions in a manner consistent with company values. “The Code helps our...paper course website......ication. The Coca-Cola Company. (2007). Form 10-K for the year ended December 31, 2007. Retrieved April 23, 2008 from http://www.thecoca-colacompany.com/investors/pdfs/form_10K_2007.pdf.The Coca-Cola Company. (2008). Careers. Retrieved April 21, 2008 from http://www.thecoca-colacompany.com/careers/index.html.The Coca-Cola Company. (2008). Investors. Retrieved April 21, 2008 from http://www.thecoca-colacompany.com/investors/governance/audit.html. The Coca-Cola Company. (2008). Our business. Retrieved April 21, 2008 from http://www.thecoca-colacompany.com/ourcompany/business_conduct.html.Vance, NR. (1999). Positive and negative reactions from control. http:pennyc.com/504_site/chap6.htm.