Control Mechanisms Paper - Essay Example

Limited company, an associate of the Chevron Corporation working together with Well Dynamic, a joint venture Company of Halliburton Energy Services and Shell Technology Ventures Fund (Anonymous, 2008). The control systems exercised within this organization are not hierarchical, rather there is a networked system of exercise in control. Where specific projects may have team leaders assigned to them, with control being exercised on a collective basis, although the leader may have the final word where an important decision is concerned.

Since projects of this type may give rise to the use of a high level of Information services, informal control mechanisms are more likely to be place with the enterprise systems representing the control systems within the organization (Hwang, 2005). There are likely to be informal control systems that are exercised within such an associative organizational working set up, such as cultural controls and self control. These are the tacit perspectives that may be exercised in effectively managing knowledge.

In such organizations, it is the individuals who possess the requisite knowledge who are likely to exercise informal systems of control, rather than formal controls being exercised from above. Budgetary constraints are set out and the individuals work together in groups; uncertainty avoidance, cultural control and intrinsic motivation as self control are the necessary antecedents for such ERP systems to function effectively (Hwang, 2005) and it is knowledge management that is effectively at the centre of the control system in such organizations.

The Agency Theory and the Stewardship theory on organizational control state that the governance structures within an organization are affected by goal alignment, which is the effective control mechanism around which organizational operations are based. (Sundaramurthy and Lewis, 2003). The agency theory has been widely applicable and states that differences in goals between different