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Organisational Culture - Markets, Bureaucracies and clans

Q: What is goal incongruence?

Goal incongruence exists when organizational members don’t agree on what the goals of the organization are or should be.

Q: When does performance ambiguity occur?

Performance ambiguity occurs when revenue streams are unpredictable or uneven.

Q: When does market control occur?

Market control exists when prices determine how social interactions between people are formed. Price competition and market share determine social interaction. How much are you contributing to total profit? For example, you and your friends go for beverages and you choose the bar that has the best happy-hour prices.

Q: What is bureaucratic control?

Bureaucratic control is when legitimate authority governs social interactions. Legitimate authority determines social interactions. Rules and SOPS. Train employees and supervise closely. An example of this is when you organize an end of the semester happy hour on campus, purchase food and beverages for a large group, and then charge them for attending; provide a wristband and only those with a wristband are served.

Q: When does clan control occur?

Clan control occurs when shared values and beliefs govern how people interact socially. Shared values and beliefs govern social interactions. More implicit. Select the right employees. An example of clan control is when a group of friends just get together at one person’s house and everyone chips in money for beverages and pizza. The group has this tradition at the end of every semester, and they know they can depend upon one another to share the costs and have a good time.

5 important questions on Organisational Culture - Markets, Bureaucracies and clans

What is goal incongruence?

Goal incongruence exists when organizational members don’t agree on what the goals of the organization are or should be.

When does performance ambiguity occur?

Performance ambiguity occurs when revenue streams are unpredictable or uneven.

When does market control occur?

Market control exists when prices determine how social interactions between people are formed.

Price competition and market share determine social interaction.
How much are you contributing to total profit?
For example, you and your friends go for beverages and you choose the bar that has the best happy-hour prices.

What is bureaucratic control?

Bureaucratic control is when legitimate authority governs social interactions.

Legitimate authority determines social interactions.
Rules and SOPS.
Train employees and supervise closely.
An example of this is when you organize an end of the semester happy hour on campus, purchase food and beverages for a large group, and then charge them for attending; provide a wristband and only those with a wristband are served.

When does clan control occur?

Clan control occurs when shared values and beliefs govern how people interact socially.

Shared values and beliefs govern social interactions.
More implicit.
Select the right employees.
An example of clan control is when a group of friends just get together at one person’s house and everyone chips in money for beverages and pizza. The group has this tradition at the end of every semester, and they know they can depend upon one another to share the costs and have a good time.