The Basic Building Blocks of Organizational Structure

This text explains the formation of organizational structures. It includes a case study as an example of one company's path to designing the organizational structure after several acquisitions. It also provides an overview of the linkages between leadership and departments.

Creating Organizational Control Systems

Learning Objectives

  1. Understand the three types of control systems.
  2. Know the strengths and weaknesses of common management fads.


In addition to creating an appropriate organizational structure, effectively executing strategy depends on the skillful use of organizational control systems. Executives create strategies to try to achieve their organization's vision, mission, and goals. Organizational control systems allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns. Three basic types of control systems are available to executives: (1) output control, (2) behavioural control, and (3) clan control. Different organizations emphasize different types of control, but most organizations use a mix of all three types.