A control system is necessary in an organisation in which activities of certain departments, divisions and sections needs to be coordinated and controlled. Most control systems are past-action-oriented and consequently are inefficient or fail. For example, there is little an employee can do today to correct the results of actions completed two weeks ago. Steering controls, on the other hand, are future-oriented and allow adjustments to be made to get back on course before the control period ends. They therefore establish a more motivating climate for the employee.
Although many standards or controls are simply estimates of what should occur if certain assumptions are correct, they take on a precision in today's control system that leaves little or no margin for error.
Managers would be better off establishing a range rather than a precise number and changing standards as time passes and assumptions prove erroneous. This would be fairer and would positively motivate employees. There are three fundamental beliefs underlying most successful control systems.
Virtual organisations are small, core organisations that out source major business functions. In structural terms, the virtual organisation is highly centralised with little or no departmentalization. The example of a virtual structure is today's movie making organisations. ...