Part 1

The stages of life can be correlated with the organizational stages of development since when it started until it is stable. I know a certain electronic company which was founded in my presence and have been monitoring it while young until it grown to national level. The first stage is birth also known as a stage of existence. This marked the start of the company at which the entrepreneur’s thoughts were put into action.  At this stage the organizational structure was very simple with a centralized management system. The company sold only power cables, data cables, power banks, bulbs and other small commodities (Nelson & Quick, 2012).

The next stage is growth or survival when the company started to build up its capabilities. A systemized framework was established through the expansion of the business into a wider variety of electronics dealt with. Components like loudspeakers, television sets and laptops were gradually introduced. The next stage is maturity. The company is currently in this stage because the current management has become hierarchical. The company is no longer expanding but instead it is focusing on growth. It has now specialized in laptop sales. The company at this stage is very stable because problems are easily combated. The next stage is renewal whereby the restructure of the company is restructured. Lastly, decline is a stage that marks the initial process of death of the company (Nelson & Quick, 2012).

Many companies are freeing themselves from bureaucracy by establishing approaches that promote self dependence and management. An example is Zapoos which is a shoe retailer company. It is first converting to Holacracy which flatters the system of titles. The company is using the approach of ideology which regards the company as private and individual premise (Reigngold, n.d). The approach of business transition is also used whereby the staff is departing and restricting of the company is considered. This has generated much tension for the public.

 

 

Part 2

Your job responsibilities	How your boss controls	Positives of his control	Negatives of this control	How you would improve control
1.      Publishing the budgets of the company	The boss controls the prices to be slightly lower than that of our competitors	It improves the competitive advantage of the company	It lead to less income during the low seasons of the company’s operations	Putting a moderate reduction of the prices which is not too low to affect the business prod-activity
2.      Designing adverts	By spending much of the budget in advertising	It improves the rate of brand recognition for the company	Some of the advertising methods are not fruitful enough to cover-up the expenses incurred	Invest in only the potential methods such the social media rather than posters and other traditional methods
3.      Carrying out analysis on the volume of products	The boss controls the profit margin for our products through the approval of prices	Reducing the marginal profit of the company offers a competitive advantage	It affects the internal operations of the company	Making the volume control measure an independent measure
4.      Selling the company’s share to the public	The boss signs agreement of joint partnerships	It increases our market share and the volume sales	The control decentralizes the governance of the company	The boss should chose the franchising business model to solve the issues of management

 

Question 1

Control mechanisms have recently been recognized by most businesses across the globe.  Control mechanisms are advantageous such that they assist companies in upholding high quality outcome of the business operations.  The controls also help in balancing the investments as well as the income made to ensure a safe cash flow. Controls also help the managers to compete with other companies in terms of technology, marketing, pricing as well as in the quality of products made. However, the control mechanisms tend to squeeze the employees in to some unfavorable working conditions. Controlling the expenditure for example means the reduction of wages which commonly leads the subjection of the working force. Control mechanisms are also limited to various boundaries beyond which they should not go. This comes as a requirement of the legal process which moderates these controls to ensure fair competition (Leitch, 2008).

Question 2

It is however healthy for managers to set up the appropriate control degree failure to which various risk of excess control may befall on the company. It is very evident that excessive control develops a bureaucratic kind of an environment which uses up most of the company’s corporate resource. Excess controls also lead to duplicate work whereby the managers keep monitoring the various document flows and other aspects (Leitch, 2008). The repetition of this wastes time and resources as a result. Lastly the controls are inflexible because making changes to controls is very difficult. Less application of controls would whoever brings down the productivity of the business because the employees in many times are not self-driven (Leitch, 2008).

Question 3

Different companies embrace only the control mechanisms that best fit their situation. This is because the control may be based on the strategic and operational planning of the company and therefore the goals of different companies differ. Therefore, there is no any standard control mechanisms that can cover all industries (Leitch, 2008).

 

References

Leitch, M. (2008). Intelligent internal control and risk management: Designing high-performance risk control systems. Aldershot, England: Gower.

Nelson, D. L., & Quick, J. C. (2012). Organizational behavior: Science, the real world, and you. Mason, Ohio: South-Western.

 

Reigngold J., (n.d) A move to “self-management” has shaken the online shoe retailer. Can it regain its mojo? Fortutne http://fortune.com/tag/zappos/