Control Mechanism
Control Mechanisms and the Starbucks Corporation The purpose of this paper is to identify four types of control mechanisms, feed-forward, concurrent, feedback, and financial, and their application in the Starbuck Corporation. The control mechanisms are compared and contrasted along with determining the effectiveness of these control mechanisms, and examining the positive and negative reactions. Finally, students will explain how these controls affect the four functions of management.
Control Mechanisms
Every business needs to have controls in place to remain competitive and survive in business. Without controls, the company would operate in chaos for a short period before the business collapses. When operating a business, a manager needs to understand the different control types; bureaucratic, market, and clan. Within each of these control types, control mechanisms exist that define the type of control used.
Feed-forward
Feed-forward is the control mechanism that establishes guidelines for future events and is proactive rather than reactive. By planning future events within a business, less chaos or "fires" will need to be put out. It also allows regular employees to make decisions without needing managerial approval.
Concurrent
Concurrent control mechanisms are those that take place in real-time. With the growing use of technology, concurrent mechanisms are the most prolific mechanism in any organization. In the case of Starbucks, technology allows managers to monitor outflow, product consumption, trends, etc.
Feedback
The feedback control mechanism takes place after an event. Once a problem or solution has been recognized, the information flows from one person to another. If it is a problem that has been acknowledged then the feedback is given promptly and then in writing for future use in discipline or training. If it is a solution that has been noticed, the solution is documented and implemented as a new procedure.
Financial
Control Mechanisms
Every business needs to have controls in place to remain competitive and survive in business. Without controls, the company would operate in chaos for a short period before the business collapses. When operating a business, a manager needs to understand the different control types; bureaucratic, market, and clan. Within each of these control types, control mechanisms exist that define the type of control used.
Feed-forward
Feed-forward is the control mechanism that establishes guidelines for future events and is proactive rather than reactive. By planning future events within a business, less chaos or "fires" will need to be put out. It also allows regular employees to make decisions without needing managerial approval.
Concurrent
Concurrent control mechanisms are those that take place in real-time. With the growing use of technology, concurrent mechanisms are the most prolific mechanism in any organization. In the case of Starbucks, technology allows managers to monitor outflow, product consumption, trends, etc.
Feedback
The feedback control mechanism takes place after an event. Once a problem or solution has been recognized, the information flows from one person to another. If it is a problem that has been acknowledged then the feedback is given promptly and then in writing for future use in discipline or training. If it is a solution that has been noticed, the solution is documented and implemented as a new procedure.
Financial
References: Bateman, T.S., & Snell, S.A. (2009). Management: Leading and collaborating in a competitive world. 8th edition. Retrieved May 30, 2010 from https://ecampus.phoenix.edu/content/eBookLibrary2/content/TOC.aspx?assetdataid=0dd00b95-d78d-40a8-bf5e-3f72f654d901&assetmetaid=f65d6fdb-d2b7-4710-8429-2e86eeb1129c. Droege, S. (2006). Management Control. In M. H. Helms (Ed.), Encyclopedia of Management (5th ed., pp. 490-492). Detroit: Gale. Ishikawa, A., & Smith, C. H. (1972). A feedforward control system for organizational planning and control. Abacus , 8 (2), 163-180. Starbucks Coffee. (2010). Company profile. Retrieved May 30, 2010 from http://assets.starbucks.com/assets/company-profile-feb10.pdf Starbucks Coffee. (2010). Newsroom. Retrieved May 30, 2010 from http://news.starbucks.com/news/ Starbucks Coffee. (2010). Timeline. Retrieved May 30, 2010 from http://news.starbucks.com/images/10041/StarbucksCompanyTimeline-JAN2010.pdf Yahoo Finance. (2010). Investing. Retrieved May 30, 2010 from http://biz.yahoo.com/ic/ll/713mkt.html