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Challenges in Organizational Control: The Economic and Management Perspectives

Yanli Zhang and Zhiyong Yao
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Yanli Zhang: Center for Enterprise Development and Innovation, Soochow University, Suzhou, China & School of Business, Montclair State University, Montclair, NJ, USA
Zhiyong Yao: School of Management, Fudan University, Shanghai, China

International Journal of Knowledge-Based Organizations (IJKBO), 2015, vol. 5, issue 3, 33-44

Abstract: Organizational control is an important while challenging topic. Both the organizational economics and management literature have studied extensively the mechanisms of organizational control and have each arrived at important insights. However, these two literatures have developed largely separately and do not communicate with each other. By combining insights from both organizational economics and management literature, the authors assess the strengths and weaknesses of each of the three types of organizational control methods: incentives, monitoring, and social control. They conclude that as jobs nowadays are increasingly more complex, organizations need to combine the three control mechanisms to motivate their employees to achieve the cooperative behaviors and to fulfill the goals of the organizations.

Date: 2015
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