Markets, Bureaucracies and Clans ar three distinct social coordination mechanisms which argon indicate in different degrees in any real system of rules. infra different circumstances the above three modes of control are effective in minimizing the transactions cost. Different combinations of these causes three prefatory mechanisms of mediation or control: food markets, which are high-octane when carrying into action ambiguity is low and mark incongruence is high; bureaucracies, which are efficient when both goal incongruence and implementation ambiguity are moderately high; and clans, which are efficient when goal incongruence is low and performance ambiguity is high.1 Market mechanism works best when payoff can be priced and competitive bidding is possible. When performance cannot be effectively measured i.e. high performance ambiguity, then market mode of control cannot be effective, then either ? bureaucracy? or ?clan? will be effective depending upon ?goal incongruence.? High uncertainty and speed of change makes it difficult to stop up prices and impose rules and regulations, rendering market and bureaucracy useless. Bureaucracy aims to standardise and control employee behaviour. Explicit rules, standards, hierarchy and legitimate authority are the main requirements for success of bureaucratic control. There are deuce underlying issues which are of central importance in find which form of control will be more efficient. rootage is the question of the clarity with which performance can be assessed.
wink is the degree of goal incongruence. These two dimensions are intimately think in determining the forms of control that will emerge, but separately of these dimensions is shaped by an independent set of forces.22. Technology and purlieu can both be sources of uncertainty, jointly and separately. Let us examine the effect of ?Technology? on the structure of the organization first. Perrow has classified types of organizations across the technology variable by define a 2 X 2 matrix depending on the number of technological exceptions inherent...
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