Convenience

Chapter 14:
Basic Elements of Control
4 4 1
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Bureaucratic Control
Bureaucratic control
is an approach to organization design characterized by formal
and mechanistic structural arrangements. As the term suggests, it follows the bureau-
cratic model. The goal of bureaucratic control is employee compliance. Organizations
that use it rely on strict rules and a rigid hierarchy, insist that employees meet mini-
mally acceptable levels of performance, and often have a tall structure. They focus their
rewards on individual performance and allow only limited and formal employee
participation.
McDonald’s applies structural controls that reflect many elements of bureaucracy.
The organization relies on numerous rules to regulate employee travel, expense
accounts, and other expenses. A new performance appraisal system precisely specifies
minimally acceptable levels of performance for everyone. The organization’s structure
is considerably taller than those of the other major networks, and rewards are based on
individual contributions. In another example, a large oil company recently made the
decision to allow employees to wear casual attire to work. But a committee then spent
weeks developing a 20-page set of guidelines on what was and was not acceptable. For
example, denim pants are not allowed. Similarly, athletic shoes may be worn as long as
they are not white. And all shirts must have a collar. Nordstrom, the department store
chain, is also moving toward bureaucratic control as it works to centralize all of its
purchasing in an effort to lower costs. Similarly, Home Depot is moving more toward
bureaucratic control to cut its costs and more effectively compete with its hard-
charging rival, Lowe’s.
Dimension
Employee compliance
Goal of control approach
Strict rules, formal controls,
rigid hierarchy
Directed toward minimum levels
of acceptable performance
Directed at individual
performance
Limited and formal
Employee commitment
Group norms, culture, self-control
Directed toward enhanced
performance above and beyond
the minimum
Directed at group performance
Extended and informal
Performance expectations
Degree of formality
Organization design
Reward system