7. Explain the three basic approaches to implementing controls.

For each approach, give an

example based on a familiar organization.
Market control relies on market mechanisms to regulate prices for certain clearly specified
goods and services needed by an organization. Bureaucratic control relies on regulation through
rules, policies, supervision, budgets, schedules, reward systems, and other administrative
mechanisms aimed at ensuring employees will exhibit appropriate behaviors and meet
performance standards. Clan control relies on values, beliefs, traditions, corporate culture,
shared norms, and informal relationships to regulate employee behaviors and facilitate reaching
organizational goals. Most organizations use a blend of clan control and bureaucratic control.

8. Explain the four strategic control levers. How does development of Sony's Walkman illustrate
this approach?
The incrementalism approach to controlling an innovative project relies heavily on clan
control but also involves a phased set of plans and accompanying bureaucratic controls
beginning at a very general level and growing more specific as the project progresses. In early
stages, managers set general goals, select key individuals for the project, set a few critical limits,
and establish a few major decision points for checking progress. At the middle stages of the
project, managers set a few more critical performance goals, limitations, and checkpoints. At
later stages, more concrete controls may be possible to accompany more specific planning.