BUSINESS CONTROL STRUCTURES
Business management control mechanisms are one of the most valuable inputs to any serviceoriented
business integration activity. The term ???control??? means management influence. Control
means propagation of policies down to the smallest business unit. It also means the establishment
of an organizational chain of command structure, according to which domains must comply with
enterprise standards and best practices. Thus, ahead of the service-oriented business integration,
it is imperative that the organization??™s management control guidelines be thoroughly researched
and understood. This analysis should also clarify how business domains respond to management
rules and regulations. Organizational management charts can provide detailed information about
the internal constitution of management structures. This would also assist in studying the chain
of command and the reporting system the enterprise maintains.
There are two major recognized control structures practiced in organizations: centralized
and decentralized. It is feasible, however, that organizations combine these two reporting mechanisms
to enable more flexible management structures. As was observed previously, management
structures are immensely influenced by the geographic and distribution aspects of an organization.
Indeed, propagation of command and management of staff are often influenced by an enterprise??™s
cultural characteristics.
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