If bureaucratic and market mechanisms are insufficient for directing a company's workforce in today's environment, it can turn to structural control.

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Quizplus · Accepted Answer

Control systems based solely on bureaucratic and market mechanisms are insufficient for directing today's workforce. There are several reasons for this: employees' jobs have changed, the nature of management has changed, and the employment relationship has changed. But this does not mean giving up control. It means creating a strong culture of high standards and integrity so that employees will exercise effective control on their own. This is known as clan control. Clan control involves creating relationships built on mutual respect and encouraging each individual to take responsibility for his or her actions.

If Bureaucratic and Market Mechanisms Are Insufficient for Directing a Company's