Assessment of Flamholtz and Management Control Systems Essay
(a) Strength: (put something about the definition) One of the four functions of control is to motivate people to treat the organization’s goals as their own. Thus, …show more content…
(b) Firm’s Existing Culture: In order for Birch’s decentralization policy to have been successful, Birch must have a very competitive culture. Each division also seems to be very driven in achieving their own divisional goals.
(c) Organizational structure: Each division is headed by a divisional manager who has the authority for all decisions regarding their respective division. However, they have no authority over decisions regarding overall company policy. Divisions are not restricted to conducting business with other divisions within Birch. They have the option of doing business with other companies.
(d.i) The Core Control System--Operations: In the case, Northern specifically deals with designing a special display box. They also deal with comparing bids and reimbursing other divisions for their work in developing and designing this display box. Thompson specifically deals with the package design and development, and the planning of production methods and materials used in order to manufacture the boxes in question. Thompson was reimbursed by Northern for the costs they incurred during the design and development of this box. Southern supplies Thompson with linerboard and corrugating medium, and supplies only linerboard to Eire. Eire