Control Mechanism Paper

Control Mechanism Paper

Larry H Hayes Jr

July 12, 2010

Control Mechanisms Paper

Each organization use some form of control to maintain a sense of order within the firm: Best Buy is no exception to this rule. In fact some of the control mechanisms used by Best Buy are budgetary, financial, inventory, market, and a mix of bureaucratic and clan controls. Each of the control mechanisms used at Best Buy is differently applied in the functional areas of the business.

Best Buy uses the financial control mechanism the same way other businesses do. Best Buy has to prepare a periodic balance sheet, which itemizes its current assets, liabilities, and stockholder’s equity, and shows the financial picture of the corporation. The financial control mechanisms are also used to create income statements; statements of cash flow; and help the corporation determine its financial ratios. The information provided by these various financial statements help the organization control the decisions it makes in other areas of the firm. Each organization uses some form of budget to forecast the needs of the organization, and to determine if some form of financial or operational leverage will be needed. Best Buy uses its budgets to determine how much product to order and hold, and if the company will need to adjust personnel.

Best Buy applies systematic monitoring of its products in the field. The data enable the organization to determine what product to place in certain locations: This is also called inventory control. The organization also uses its web-based resources to allow its stores to concentrate floor space to the more popular items. The organization has a formal organizational structure, and a form of bureaucratic control of its operation. However, Best Buy also uses results-only work environment, or ROWE, a radical experiment whose aim is to reshape the corporate workplace, achieve an unparalleled degree of work/life balance and redefine the very nature of work...