For many years Microsoft has played an important role in the computer industry. Microsoft has evolved into a great technological corporation that is used by millions of people with different ethnicities and backgrounds all over the world. Microsoft has unified many people from many different cultures on how to communicate with one another. There are four different types of control mechanisms to assist with the growing dynamics of Microsoft. They are budgetary, financial, market, and clan controls. Controls direct the activities of different individuals to assist with achieving the goals of Microsoft. After examining the different types of mechanisms and how they affects Microsoft in both a positive and negative way, even though some results are similar, they are each very different. Each control mechanism has a different impact of the four functions of management. Analyzing and reviewing how each one impacts Microsoft will help to determine and explain the purpose of each control mechanism.
Microsoft Building
Microsoft and Flickr
Front entrance to building 17 on the main campus o...Microsoft, like any major corporation, uses managing control mechanisms in order to succeed in all aspects of its industry. They have focus on four mechanisms, the first of which is budgetary control. This "is the process of finding out what" is "being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences" (Bateman and Snell, 2007). This way Microsoft will know what to expect in sales, what is being accomplished, and make corrective actions if needed. The second mechanism is financial control. Microsoft uses a balance sheet to keep control of their assets, liabilities and stockholders' equity, and also uses a profit and loss statement in order to analyze and keep control of the income and expenses of Microsoft operations. This is to ensure that their revenues are larger than their expenses at all times. Another...