Coca-Cola Control Mechanisms: Bureaucratic and Market Controls

Prepare a paper in which you address the following as it relates to Coca-Cola.

Identify 2 types of control mechanisms (ways controls are applied) used in your selected organization.
Compare and contrast these control mechanisms.
Determine the effectiveness of these control mechanisms.
Examine the positive and negative reactions to the use of these controls.
Explain how these controls affect the four functions of management.

Bureaucratic control is the use of rules, regulations, and formal authority to guide performance. It includes such items as budgets, statistical reports, and performance appraisals to regulate behavior and results.

For Bureaucratic Control, write on a company rule or regulation. Like employee evaluations, Budgets, production reports

Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources (services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the basis of profit and loss.

For Market Control, How is a can of coke priced? How much of the soft drink industry is controlled by Coca-Cola?


Solution Preview

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Control Mechanisms Used by Coca Cola
Control Mechanisms
Coca Cola among many businesses utilize control mechanisms to keep employees motivated. Two types of control mechanisms that this company uses are as follows:
1) Employee Incentive Programs
These are used to keep employees motivated. Productivity goes up when employees are motivated through encouragement and rewards (Bateman & Snell, 2009).
2) Company Policies and Rules
These are used to keep employees in line. There are no rewards but consequences for not following the policies and rules. Consequences can be suspension or fired from a job, or a demotion.
Comparison of the Two Control Mechanisms

Control Mechanisms Employee Incentive Programs Company Policies & Rules
Compare & Contrast Used as motivators Used as ultimatums
Effectiveness Very effective Very effective
Positive Reactions • Employees welcome incentives and will follow program to receive them.
• Will make suggestions to improve the incentives.
• Enjoy their jobs more when incentives are in place • Employees will abide by policies and rules figuring they are in place for everyone to be safe and follow rules for the job.
Negative Reactions • Employees are not happy if they do not receive the expected …

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