Question 1 – Do you think that to truly be effective it is possible for an international firm to have a common control system for any single activity?

I do not think that to truly be effective it is possible for an international firm to have a common control system for any single activity because of the variety of cultures, institutional environments and financial costs associated with doing business in different countries. As the book illustrates in Chapter 3 companies that operate globally must take into account the cultural differences of the employees they higher and how they respond to different forms of management and oversight. In addition different countries have different rules, regulations, and laws that might impact what may be accepted business standards. It would be important to implement a control system that adhere to what is acceptable in that environment. Finally, there are different financial costs associated with operating in different countries. Using manufacturing as an example, although a company’s strategic control may theoretically apply across all environments, the tactical and operational controls that are implemented will need to be modified based on the country the factory is located.

Question 3 – Do people respond to control systems or control systems respond to people?

I recognize up front that I’m not providing a definitive “yes” or “no” answer to the question as to whether or not people respond to control systems or control systems respond to people. I say this because I think that in majority of situations, especially those that impact the company’s most critical goals and objectives, the company has established their controls for specific reasons. Therefore, the company is less likely to change those controls to address their workforce but instead would get a workforce that was willing to follow suit. For example, let’s say a company decides to utilize a new software package to better track inventory. By using this software the company will create an annual saving of $12 million dollars a year and so it is required that all employees utilize the software. Regardless of whether employees want to use the software, the company will require it. Understanding that their performance is being measured based on the company’s desire to use the software employees will act accordingly. I think this is especially relevant when financial incentives and recognition are tied to performance. However there are some minor controls that a company might be willing to modify to respond to the nature of their employees. For example, if the standard was for employees to work 7-4 the company may find that providing flexible shift hours would increase productivity but not impact output, the company might be willing to make this change; therefore allowing people to influence the control system.